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MBA 2013-2015
Production & Operations Management Project Study of Layout, Cranksgaft Division, Escorts Agri Machinery Group, Faridabadh
Submitted by:- Abhishek Bhatnagar (2013H149231P)
Darvin Xeona (2013H149266P) Dipesh Joshi (2013H149291P) Prateek Singh Bapna (2013H149284P) Sachin Soni (2013H149265P) Saurabh Tripathi (2013H149232P) Suhas John (2013H149288P)
ACKNOWLEDGEMENT
Words are only representations of our regards and gratitude that we have towards our actions
and their inherent associations. As a matter of fact, without co-operation, no thought could be
coined into real action. Consistent motivation and invaluable support throughout any project
is an issue that cannot be quantitatively measured. These acknowledgements are only a
fraction of regards towards their gestures.
“Vital to every operation is co-operation”. We really agree to this wonderful quotation put
forth by Mr. Frank Tyger. This project was successful due to the co-operation extended by
people who have truly contributed towards it. We gratefully acknowledge Dr. Rajesh Matai
who’s deep sharing and synergy has moved us many levels beyond our own thinking. We
express our deep sense of gratitude to ma`am who has been a source of inspiration throughout
the course of this work with her inestimable advice and moral encouragement.
We are thankful to following persons for their valuable inputs and their kind co-operation and
guidance which helped us in carrying out this project study.
• Mr. Vijay Gambhir, Production head (ESCORTS Crankshaft Manufacturing Division
Plant Faridabad)
• Mr. Dinesh Prasad, Senior Plant Production Manager
We take this responsibility to express our profound and sincere gratitude to Department of
Management, BITS Pilani for providing us with the opportunity to explore the corridors of
the corporate world and gather invaluable knowledge and practical experience via the
Production and Operations Management project.
Finally, we would like to thanks those people who all are attached to this Project directly or
indirectly.
TABLE OF CONTENTS SL. NO. DESCRIPTION PAGE NO.
1 Introduction 1
2 Facility Layout Problem 4
3 Company Profile 7
4 Product description - Crankshaft 10
5 Operational details of plant 11
6 Plant layout 12
7 Addressing issue 14
8 Theory of constraints 15
9 Constraint identified 19
10 Recommendations 20
11 Conclusion 22
1. INTRODUCTION
Facility layout means planning for the location of all machines, utilities, employee workstations,
customer service areas, material storage areas, aisles, rest rooms, lunchrooms, drinking fountains, internal
walls, offices, and computer rooms, and for the flow patterns of materials and people around, into, and
within buildings. Through facility layouts, the physical arrangement of these processes within and around
buildings, the space necessary for the operation of these processes, and provided the space required for
support functions. As process planning and facility layout planning information continuous interchange
between these two planning activities, because each affects the other the objective of the facility layout
study is to minimize total cost, this cost comprises of construction cost, installation cost, material
handling cost, ease of future expansion, production cost, machine downtime cost, in-process storage cost,
safety cost, ease of supervision
There are five basic types of layouts for manufacturing facilities; process, product, cellular
manufacturing (CM), fixed position and Hybrid Layouts:
1. Process layouts (functional layouts, or job shops)
These are designed to accommodate variety in product designs and small batches .Process layout use
general purpose machines that can be changed over rapidly to new operations for different product
designs. These machines are usually arranged according to type of process being performed.
Manufacturing Operations Layout
• High Production capacity
• Low costs • Easy maintenance
Warehouse Layout • Efficient loading and
unloading • Ease of inventory
counts • Effective stocking
Service Operations Layout • Customer comfort • Stock rotation • Privacy and
Communication in work areas
Office operations layouts • Organization
structure reinforcement
• Privacy in work areas
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2. Product layout (production lines or assembly lines)
These are designed to accommodate only a few product designs. The machinery or equipment is
arranged to ensure continuous flow of material in an orderly mode throughout the plant.
Examples of product layout, Paper mills, dairies, cement factories, and automotive assembly plants,
Auto manufacturing. Product layout use specialized machines that are set up once to perform a specific
operation for a long period of time on one product, this machines requires great expense and long
down times to change over to a new product design. Companies that produce only a few product types
often set up a different production line for each product type. The facility layout would allow for the
different product lines to separate from each other.
Workers repeatedly perform a narrow range of activities on only a few product designs& required a
small rate of skill, training and supervision.
The planning and scheduling activities are complex, they are not ongoing (continuous), rather
planning & scheduling tend to be done intermittently as product changeovers occur. The primary
objective is to minimize material handling cost by properly arranging the equipment in the processing
sequence.
3. Cellular manufacturing layouts (CM)
In these layouts machines are grouped into cells, and the cells function somewhat like a product layout
island within a larger shop or process layout although the cell layout can take on many different forms,
the flow of parts more like a product layout than a job shop. CM layout would be attempted for these
reasons:
1-Machine changeovers are simplified.
2- Training periods for workers are shortened.
3-Materials-handling costs are reduced.
4- Parts can be made faster and shipped more quickly.
5- Required less in-process inventory.
6- Production is easier to automate.
4. Fixed-Position Layouts
Some manufacturing and construction firms use a layout for arranging work that locates the product in
a fixed position and transports workers, materials, machines, and subcontractors to and from the
product. Missile assembly, large aircraft assembly, ship construction, and bridge construction are
examples of Fixed-position layouts. Fixed-position layouts are used when a product is very bulky,
large, heavy, or fragile. The fixed-position nature of the layout minimizes the amount of product
movement required. Examples of fixed-position layout include larger shipbuilding and airplane
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manufacturing. Here, the ship or airplane is too large to be moved around the shop, the various stages
of manufacture (particularly assembly) are performed in one place by bringing all tools to the plane or
ship
5. Hybrid Layouts
Most manufacturing facilities use a combination of layout types( Hybrid Layouts .As an example of a
hybrid layout consider the final assembly of Boeing's commercial aircraft (i.e., models 737, 747, 757,
767, and 777). During final assembly, each aircraft unit is located in a fixed-position assembly bay.
However, every two or three days each aircraft unit is rolled out of its bay and pushed into the next
assembly bay, where different assembly tasks are performed. So, even though an aircraft is assembled
for two or three days at a time in a fixed position, it passes through six or eight different assembly bays
in a product layout fashion. It is important to understand the characteristics, advantages, and
disadvantages of each basic type of layout.
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2. FACILITY LAYOUT PROBLEM
The facility layout problem is one of the most fundamental quadratic assignment problems in
Operations Research. The problem has been widely studied by many researchers in Operations
Research and management science, and known to be NP complete (NP, nondeterministic polynomial).
A facility layout problem (FLP) is about arranging the physical departments or machines within a
facility to help the facility work in a productive way. A poor layout can lead to accumulation of work-
in process inventory, overloading of material handling system, inefficient setups and longer queues.
Therefore, solution of an FLP is a strategic study to be conducted. Traditionally, there are two
approaches for the facility layout problem. The first one is the quantitative approach aiming at
minimizing the total material handling cost between departments or machines based on a distance
function. The second one is the qualitative approach aiming at maximizing closeness rating scores
between departments or machines based on a closeness function.
Classification of FLP
When the flows of materials between the departments are fixed during the planning horizon, facility
layout problem is known as the static (single period) facility layout problem (SFLP). Researchers had
paid more attentions to SFLP, and now SFLP has two new trends. Approaches to get flexibility for
SFLP include to modify the SFLP and to increase the robustness of the SFLP. Gradually, SFLP
develops these two approaches to the dynamic facility layout problem (DFLP) and robust layout,
respectively.
Up to now, there are existing three basic types of layout problem, including SFLP, DFLP and robust
layout problem. How to select the suitable type of layout problem is an urgent task. The appropriate
type of layout problem is based on the judgment conditions. The judgment conditions include whether
the material handling flows change over a long time or not, and whether it is easy for rearrangement or
not when the production requirement changes drastically. If the material handling flows change over a
long time, choose DFLP or robust layout; if not, choose SFLP. If rearrangement is easy when the
production requirement change drastically, choose DFLP; if not, choose robust layout.
Objectives of FLP
Traditionally, there are two basic types of objectives for FLP. The first one is the quantitative
(distance-based) objective aiming at minimizing the total material handling cost between departments
based on a distance function. The distance-based objective, considers all distance pairs, but due to
department areas, inter-department distances may be misleading. To help relieve this concern,
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distances have been measured in a variety of ways: from department centroid-to-centroid, expected
distance, distance from department boundaries, distance along the material handling network, etc.
The second one is the qualitative (adjacency-based) goal, aimed at maximizing the closeness
relationship scores between departments based on the placement of departments that utilize common
materials, personnel, or utilities adjacent to one another, while separating departments for reasons of
safety, noise, or cleanliness. The adjacency-based objective, if interpreted from a material handling
cost perspective, is based on the assumption that the material handling costs between two departments
are reduced significantly when the two departments are adjacent.
Constraints of FLP
Facility layout plays a crucial role in determining the throughout time of a manufacturing process. The
objective of the facility layout problem in manufacturing environment is the arrangement of facilities
on a floor shop, subject to the following constraints:
1. to reduce the flows among all facilities;
2. to have a regular flow of the parts and products not permitting bottleneck in the production;
3. to rationalize the space occupied by the facilities;
4. to permit flexibility considering that with the technological progress and the new demands in the
market, facilities could be added or changed.
5. to locate in a specified location.
Facilities are including machines, departments, storage equipment, and factory, material handling
systems, commerce and warehouse. In the manufacturing system it may be distinguished machines,
material handling systems and storage equipment.
Mathematical formulation of FLP
The facility layout problem is one of the best-studied problems in the field of combinatorial
optimization. A number of formulations have been developed for this problem. Models are categorized
depending on their nature, assumptions and objectives. More particularly the FLP has been modeled as
quadratic assignment problem (QAP), quadratic set covering problem (QSP), linear integer
programming problem (LIP), mixed integer programming problem (MIP), and graph theoretic
problem.
Solution methodologies for FLP
Several researches have been done in the facility layout problem. The solution methodologies for FLP
can be divided into exact algorithms, heuristics and meta-heuristic algorithms. The exact methods such
as the branch-and-bound and cutting plane algorithm have been successfully applied to FLP when the
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number of facilities is less than 16. However, when the number of facilities is larger than 16, FLP
cannot be solved optimally in reasonable time. In order to obtain good (near optimal) solution in a
reasonable computational time, heuristics were developed. Recently, meta-heuristic approaches such as
simulated annealing (SA), genetic algorithms (GA), tabu search (TS), and colony optimization have
been successfully applied to solve large FLP.
Other approaches
The major drawbacks of the aforementioned approaches lie in the fact that the search for the best
layout is not very efficient and the multi-objective nature are not considered in the problem. As a
matter of fact, facility layout problem can be considered one of the truly difficult ill-structured, multi-
criteria and combinatorial optimization problems. Many researchers still finding out for new and recent
developments rather than conventional approaches to overcome the aforementioned drawbacks.
Intelligent techniques such as expert systems, fuzzy logic and neural networks have been used as new
advancements for the tackled problem.
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3. COMPANY PROFILE
The Escorts Group is among India's leading engineering conglomerates operating in the high growth
sectors of agri-machinery, construction & material handling equipment, railway equipment and auto
components. Having pioneered farm mechanization in the country, Escorts has played a pivotal role in
the agricultural growth of India for over five decades. One of the leading tractor manufacturers of the
country, Escorts offers a comprehensive range of tractors, more than45 variants starting from 25 to 80
HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of tractors from the
house of Escorts. A leading material handling and construction equipment manufacturer, we
manufacture and market a diverse range of equipment like cranes, loaders, vibratory rollers and
forklifts. Escorts today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.
Escorts has been a major player in the railway equipment business in India for nearly five decades. Our