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INDUSTRIAL ENGINEERING DESIGN I
TITLE: DESIGN OF PP BAG FACTORY
GROUP TWO
Name ID
Abriham Takile 0600095

Addisie Beyaylegn 0600107
Almaw Gashu 0600178
Birhanu Chalie 0600436
Gashaw Dagnew 0600780
Selamawit Chakile 0502338
Sub mitted to: - Ms. Hermela S.

Submission date: - 13/10/2009 E.C
INDUSTRIAL DESIGN I
Contents
Declaration ......................................................................................................................................... VI
Acknowledgment ............................................................................................................................... VII
Executive Summery .......................................................................................................................... VIII
CHAPTER ONE ......................................................................................................................................... 1
1. DESIGN OF A FEASIBLE PRODUCT ............................................................................................... 1
1.1 Market Analysis .............................................................................................................................. 1
1.2 Technical Analysis .......................................................................................................................... 8
CHAPTER TWO ...................................................................................................................................... 10
2. IDENTIFICATION AND QUANTIFYING OF RAW MATERIALS AND UTILITY .................... 10
2.1 Raw Materials ............................................................................................................................... 10
2.2 Utilities.......................................................................................................................................... 11
CHAPTER THREE .................................................................................................................................. 12
3. PROCESS PLANNING AND DESIGN............................................................................................. 12
3.1 selection of machineries and equipment ....................................................................................... 12
3.2 Determination of Production System ............................................................................................ 16
3.3 Determination of Process Capacity .............................................................................................. 17
3.4 Process Mapping and Preparation of Route Sheet ....................................................................... 20
CHAPTER FOUR..................................................................................................................................... 22
4. FACILITY LAYOUT DESIGN ......................................................................................................... 22
4.1 Plant Location and Site Selection ................................................................................................. 22
4.2 Primary Facilities ......................................................................................................................... 30
4.3 Material Handling System ............................................................................................................ 31
4.4 Workstation Design and Line Balancing ...................................................................................... 32
4.5 Auxiliary Facilities........................................................................................................................ 56
4.6 Working Conditions ...................................................................................................................... 56
4.7 Civil Workers ................................................................................................................................ 59
CHAPTER FIVE ...................................................................................................................................... 64
5. DETERMINATION OF HUMAN RESOURCE AND ORGANIZATIONAL STRUCTURE ......... 64
5. 1 Human Resource to Run the Industry .......................................................................................... 64
5.2 Organizational Structure to Run the Industry ............................................................................... 67
CHAPTER SIX ......................................................................................................................................... 68
Design of PP Bag Factory I

INDUSTRIAL DESIGN I
6. DETERMINATION OF COST AND SELLING PRICE ................................................................... 68

6.1 Initial Investment Cost .................................................................................................................. 68
6.2 Total Cost of Production ............................................................................................................... 72
6.3 Unit Cost ....................................................................................................................................... 75
6.4 Selling Price .................................................................................................................................. 80
CHAPTER SEVEN ................................................................................................................................... 82
7. ECONOMIC FEASIBILITY ANALYSIS ......................................................................................... 82
7.1 Cash Flow ..................................................................................................................................... 82
7.2 Net Present Value ......................................................................................................................... 84
7.3 Profitability Index ......................................................................................................................... 84
7.4 Breakeven Analysis ....................................................................................................................... 85
7.5 Pay Back Period ........................................................................................................................... 85
CHAPTER EIGHT ................................................................................................................................... 86
8. DETERMINING THE IMPLEMENTATION SCHEDULE OF THE PROJECT USING CPM OR
PERT ....................................................................................................................................................... 86
8.1 Critical path method (CPM) ......................................................................................................... 86
8.2 Network diagram, activity on arrow ............................................................................................. 87
REFERENCE ...................................................................................................................................... 92
List of table
Design of PP Bag Factory II

INDUSTRIAL DESIGN I
Table 1: total supply of PP woven bag (pcs) .................................................................................. 2

Table 2: linear recreation ................................................................................................................ 4
Table 3: linear recreation evaluation process.................................................................................. 5
Table 4: projected demand for PP woven bag and demand supply gap ......................................... 6
Table 5: Sale volume of the plant ................................................................................................... 7
Table 6: five-year production volume............................................................................................. 8
Table 7: size and shape of the product ............................................................................................ 8
Table 8: Performance Specification ................................................................................................ 9
Table 9: Quantifying of the Raw Materials .................................................................................. 11
Table 10: quantity of utility .......................................................................................................... 11
Table 11: design capacity.............................................................................................................. 19
Table 12: Process capacity ............................................................................................................ 20
Table 13: critical factors ............................................................................................................... 25
Table 14: objective factors ............................................................................................................ 26
Table 15: Cumulative objective factor .......................................................................................... 27
Table 16: objective factor measure ............................................................................................... 28
Table 17: Subjective factors.......................................................................................................... 28
Table 18: Quantity of machinery .................................................................................................. 38
Table 19: machinery area .............................................................................................................. 38
Table 20: Total workstation area .................................................................................................. 40
Table 21: Standard data for the cars ............................................................................................. 44
Table 22. Occupational safety and health standards ..................................................................... 45
Table 23: From to chart of overall production section and department of offices ....................... 50
Table 24: Production office layout ............................................................................................... 51
Table 25: Production machine from to chart ................................................................................ 53
Table 26: From to chart of office layout ....................................................................................... 54
Table 27: Difference of single and multiple building ................................................................... 61
Table 28: Workers required operating the machine ...................................................................... 65
Table 29: The demonstration workers .......................................................................................... 65
Table 30: Machinery and equipment cost ..................................................................................... 68
Table 31: Foundation and machine installation cost..................................................................... 69
Table 32: Office equipment .......................................................................................................... 69
Table 33: furniture ........................................................................................................................ 69
Table 34: Vehicle cost .................................................................................................................. 70
Table 35: Workers and labor cost ................................................................................................. 72
Table 36: Depreciation cost .......................................................................................................... 74
Table 37: Raw material cost per year ........................................................................................... 74
Table 38: Utility cost .................................................................................................................... 75
Table 39: size of each type of product .......................................................................................... 76
Table 40: Production cost for 50*85-product type ....................................................................... 77
Table 41: Total production cost for 48*95-product type .............................................................. 77
Table 42: Total production cost for 50*95-product type .............................................................. 78
Design of PP Bag Factory III

INDUSTRIAL DESIGN I
Table 43: Total production cost for 61*100-product type ............................................................ 78

Table 47: The unit cost of the other type is calculates as in the same way. ................................. 80
Table 48: Selling price of each type of product ............................................................................ 81
Table 49: selling volume of each product year ............................................................................. 82
Table 50: cash flow ....................................................................................................................... 83
Table 51: Activities with their predecessor and successors .......................................................... 86
Table of figure
Design of PP Bag Factory IV

INDUSTRIAL DESIGN I
Figure1: Existing demand and supply diagram .............................................................................. 3

Figure2: Projected demand and supply diagram ............................................................................. 7
Figure3: Process Mapping ............................................................................................................ 20
Figure 4 route sheet ....................................................................................................................... 21
Figure5: Tape-plant machine ........................................................................................................ 12
Figure6: Circular loom machine A ............................................................................................... 13
Figure7: Circular loom machine B ............................................................................................... 14
Figure8: cutting machine .............................................................................................................. 14
Figure 9: Sewing machine ............................................................................................................ 15
Figure 10: Packing machine.......................................................................................................... 15
Figure 11: operation time of machinery........................................................................................ 34
Figure 12: activity node diagram .................................................................................................. 35
Figure 13: block layout of the production section, cafeteria, warehouse and office .................... 51
Figure 14: production offices block diagram ................................................................................ 53
Figure 15: Production machines block diagram ........................................................................... 54
Figure 16: Block diagram of the office layout.............................................................................. 55
Figure 17: Overall factory layout .................................................................................................. 55
Figure 18: organizational structure ............................................................................................... 67
Figure 19: Network diagram ......................................................................................................... 87
Figure 20: Critical path ................................................................................................................. 89
Design of PP Bag Factory V

INDUSTRIAL DESIGN I
Declaration
We are group B section two, fourth year industrial engineering student, in Bahir Dar institute of technology.
The empirical information of this report is depends on industrial design I program. This project is our own
work and we properly sited the resource we used to study the feasibility of the project.
Advisor name Signature

Mrs. Hiermiela S.
Name ID Signature
Abriham Takile 0600095…………………………..
Addisie Beyaylegn 0600107………………………….
Almaw Gashu 0600178………………………….
Birhanu Chalie 0600436………………………….
Gashaw Dagnew 0600780………………………..
Selamawit Chenille 0502338…………………………
Design of PP Bag Factory VI

INDUSTRIAL DESIGN I
Acknowledgment
First and for most we would like to give our great thanks to GOD helping us to do this project. In addition,
we would like to say thanks to our advisor Ms. Hiermiela who helps us to do this project. In addition to our
advisor, we would to thanks Bahir Dar university industrial engineering program instructors especially Mr.
Azmeraw and Mr.Atenkut.
Design of PP Bag Factory VII

INDUSTRIAL DESIGN I
Executive Summery
This project contains plant location; here we consider parameters like transportation, availability
of labor force, market location and environmental condition. Determination of machine numbers,
here also determine tape plant machine, circular loom machine, cutter machine, sewing machine,
printing machine, packing machine, crusher machine and recycle machine.
Work station design; in this section mainly considered parameters are line balancing, material flow
analysis.
Facility Layout design: -we have calculated the area of parking, food service, toilet, storage, and
office building and production shop areas. The overall area of the company is 30,000m2. Among
this the production area and total building area covers 7,618.89m2.
Implementation schedule: - scheduling the process by using PERT/CPM
Cost benefit analysis: - breakeven point analysis, financial projection and calculation of payback
period.
The initial investment cost, total variable cost, total fixed cost of the designed project is
91,023,563birr, 59,111,911birr and 27,083,893birr respectively. The payback period of the
project is 1 year and 1 month.
Design of PP Bag Factory VIII

INDUSTRIAL DESIGN I
CHAPTER ONE
1. DESIGN OF A FEASIBLE PRODUCT
1.1 Market Analysis

Introduction
One of the growing applications of plastic materials is packing. Among the various types of plastic
materials polypropylene (PP), woven bags and sacks are extensive in packaging industry due to
their wide variety of usage, flexibility and strength. Woven polypropylene bags are specializing in
packing and transporting bulk commodities. Due to strength, flexibility, durability in addition,
lower cost, woven polypropylene bags are most popular products in industrial package, which are
widely used in packing grain, feeds, fertilizer, seeds, powders, sugar, salt, powder, chemical in
granulated form. The advantages of PP woven bag include:
 Very affordable, Lower cost;
 Flexible and high strength, persistent durability;
 Can be printed on both sides;
 Can be stored in an open area due to UV-stability, up to 6 months;
 Water and dust proof design due to inside PE liners or laminated on the outside; hence,
packed materials are protected from outside humidity;
 Twisted weave and anti-skid print to prevent slipping; and
 Fully recycle.
As compared to jute and paper bags, the polypropylene (PP) bags have higher mechanical strength,
non- contaminant, excellent appearance, flexible to be manufactured at customer’s needs
(preferred color and texture), easy to print logos, symbols or writings, versatility of the product,
water proof, etc.
1.1.1 Present Supply and Demand
PP bags are biodegradable containers made from plant fiber called polypro paly. It is used to
storing and holding. Heavy-duty PP bags or sacks are popular for packaging agricultural and
industrial commodities.
Even though synthetic materials replace PP bags, some applications take advantage of PP’s
biodegradable nature, where synthetics would be unsuitable. PP shopping bags and carriers are
increasingly replacing plastic non-woven as ecofriendly alternatives.
Design of PP Bag Factory 1

INDUSTRIAL DESIGN I
PP bags are mainly to pack sugar, grain, coffee, cotton and other agricultural products, which are
pack in weight ranging from 25 to 100 kg. PP bags used in the agro-based products treated with
vegetable oils to destroy the harmful effect of hydrocarbons are hydrocarbon free bags. Due to
their biodegradable nature PP bag is becoming and ecofriendly alternative.
The country’s requirement of PP woven bags is meeting through both local production and
imports. The data source for locally manufactured products i.e. Central Statistical Agency’s
“Report on large and medium scale manufacturing and electricity industries survey” does not show
the local production volume of PP woven bags separately. Therefore, in order to estimate the trend
in the local production of PP woven bags an indirect approach. PP woven bags are produces from
imported polypropylene resin. During the period 1999 – 2008, on average the country has imported
9,548 tons of polypropylene resin.
The total supply or apparent consumption of PP woven bag, which comprise local production and
import, are summarizes in table below.
Table 1: total supply of PP woven bag (pcs)
Year Local production Import Total supply

1999 40,066,364 47,196,943 87,263,307
2000 32,007,818 254,501,592 286,509,410
2001 62,306,591 463,266,359 525,572,950
2002 91,801,773 250,038,750 341,840,523
2003 151,358,045 403,659,701 555,017,746
2004 104,919,545 202,477,245 307,396,790
2005 111,597,273 178,636,373 290,233,646
2006 148,358,727 126,136,400 274,495,127
2007 172,047,682 210,175,000 382,222,682
2008 165,302,045 209,075,266 374,377,311
Source: - Ethiopian Revenues and Customs Authority
As can be seen from Table 1.4, the total supply or apparent consumption of PP woven bags during
the period 1999– 2008 has ranged from 274,495,127*103 pieces to 555,017,746*103 pieces. The
highest volume of total supply was register in 2003 while the lowest was in 2006 however; on
average total supply of PP, woven bags were about 342,492,949 pieces.

INDUSTRIAL DESIGN I
Avpiece=
[364,296,748+286,509,410+525,572,950+341,840,523+555,017,746+307,396,790+290,233,646
+ 274,495,127+382,222,682+374,377,311]/10
= (3,424,929,492)/10
=342,492,949.2
Demand supplay capacity
608,500,000
508,500,000
408,500,000
308,500,000
208,500,000
108,500,000
8,500,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Years
Figure1: Existing demand and supply diagram
1.1.2 Projected Demand

Currently in Ethiopia, the major end users of PP woven bag are the agricultural and manufacturing
sectors. For forecasting the future demand, we use simple moving average method from many
methods of forecasting. There are two type of forecasting method. This is quantitative and
qualitative method. Quantitative method also divided too many ways from this the one and fore
most system is time series method. This time series method has also some divisions these are: -
 Naïve method  Weighted moving average
 Simple mean  Exponential smoothing
 Moving average  linear regression forecasting
From this we use linear regression forecasting method because for this method is more accurate or
preferable method than from other forecasting methods because Naïve method, Simple mean,
Moving average, Weighted moving average, Exponential smoothing are used to forecast for short
period of time (up to one year) but linear recreation forecasting is used to forecast more than one
year. For PP bags, manufacturing industry there is two variables. These are independent variable
and the dependent variable. The number of years are the independent variable and the amount of
product produced corresponding to that year is dependent variable.

INDUSTRIAL DESIGN I
Table 2: linear recreation
Year X Y
1999 1 87,263,307
2000 2 286,509,410
2001 3 525,572,950
2002 4 341,840,523
2003 5 555,017,746
2004 6 307,396,790
2005 7 290,233,646
2006 8 274,495,127
2007 9 382,222,682
2008 10 374,377,311
FX=a+xb
Xmean = (1+2+3+4+5+6+7+8+9+10)/10
=5.5
Ymean=
[87,263,307+286,509,410+525,572,950+341,840,523+555,017,746+307,396,790+290,233,646+
274,495,127+382,222,682+374,377,311]/10
= (3,424,929,492)/10
=342,492,949.2

INDUSTRIAL DESIGN I
Table 3: linear recreation evaluation process
Year X Y X*Y X2
1999 1 87,263,307 87,263,307 1

2000 2 286,509,410 573,018,820 4
2001 3 525,572,950 1,576,718,850 9
2002 4 341,840,523 1,367,362,092 16
2003 5 555,017,746 2,772,088,730 25
2004 6 307,396,790 1,844,380,740 36
2005 7 290,233,646 2,031,635,522 49
2006 8 274,495,127 2,195,961,016 64
2007 9 382,222,682 3,440,004,138 81
2008 10 374,377,311 3,743,773,110 100
Total 55 19,632,206,325 385
10
∑ 𝑋2 = 385
𝑛=1
2
(Xmean) =30.25
(Xmean)*(Ymean) =1,883,711,221
Therefor b= ((19,632,206,325) _10*1,883,711,221)/ (385_302.5)
= (19,632,206,325_18,837,112,210)/82.5
=795,094,115/82.5
=9,637,504
a= (Ymean) _b (Xmean)
= (342,492,949.2) _ (9,637,504) 5.5
=342,492,949.2_53,006,272
=289,486,677

INDUSTRIAL DESIGN I
By applying this formula, we can determine the forecasting (projected) demand

FX=a+xb
Hence,
F11= a + 11b F16=289,486,677+16*9,637,504
=289,486,677 +11(9,637,504) =443,686,741
=395,499,221 F17=289,486,677+17*9,637,504
F12= 289,486,677 +12*9,637,504 =453,324,245
=405,136,725 F18=289,486,677 +18*9,637,504
F13=289,486,677+13*9,637,504 =462,961,749
=414,774,229 F19= 289,486,677 +19*9,637,504
F14=289,486,677+14*9,637,504 =472,599,253
=424,411,733 F20=289,486,677 +20*9,637,504
F15=289,486,677+15*9,637,504 =482,236,757
=434,049,237
Table 4: projected demand for PP woven bag and demand supply gap
Year Projected Demand (pieces)

2009 395,499,221
2010 405,136,725
2011 414,774,229
2012 424,411,733
2013 434,049,237
2014 443,686,741
2015 453,324,245
2016 462,961,749
2017 472,599,253
2018 482,236,757

INDUSTRIAL DESIGN I
490,000,000
Demand supplay capacity
480,000,000
470,000,000
460,000,000
450,000,000
440,000,000
430,000,000
420,000,000
410,000,000
400,000,000
390,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Years
Figure2: Projected demand and supply diagram
1.1.3 Sales Volume

Sales volume is the quantity of items of business sells during a given period, such as a year or
fiscal quarter. Sells volume is the cash amount of the company during the period making under
review. Based on the market study and available technologies the selected capacity of the plant is,
26,775,000 pieces (50*85, 48*95, 50*95, 61*100, 61*110, 72*130, 72*120) per annum.
Table 5: Sale volume of the plant
Type of product Quantity in pieces

50*85 3,925,000
48*95 3,850,000
50*95 3,800,000
61*100 3,825,000
61*110 3,725,000
72*130 3,875,000
72*120 3,745,000
Considering the production process involved, time required foe skill development and market
penetration the plant is plan to operate at 70% of its installed capacity in the first year of operation.

INDUSTRIAL DESIGN I
In the second and third year and then after it will increase to 80%, 90%, 95% and 100%
respectively as shown in next table.
Table 6: five-year production volume
Type of Year 1 Year 2 Year 3 Year 4 Year 5

product
50*85 2,747,500 3,140,000 3,532,500 3,728,750 3,925,000
48*95 2,695,000 3,080,000 3,465,000 3,657,500 3,850,000
50*95 2,660,000 3,040,000 3,420,000 3,610,000 3,800,000
61*100 2,677,500 3,060,000 3,442,500 3,633,750 3,825,000
61*110 2,607,500 2,980,000 3,352,500 3,538,750 3,725,000
72*130 2,712,500 3,100,000 3,487,500 3,681,250 3,875,000
72*120 2,621,500 2,996,000 3,370,500 3,557,750 3,745,000
Capacity 70% 80% 90% 95% 100%
The products of the envisaged factory can be distributed through the existing wholesale channel
or by establishing own distribution centers at strategic locations. As it stated in the above, from
long term plan for the future is to expand the products into another places that have not enough
distribution of standardized bread product, so we will try to satisfy those customers interest with
high variety of product and at low price to dominate the market and increasing the volume of the
market share.
1.2 Technical Analysis

1.2.1 Determination of Size, Shape, Style, and Related Features of the Product
Size, shape, style and related features of the PP woven bag are list from the following table:
Table 7: size and shape of the product
Type of product Size Weight holding capacity

length Width (kg)
50*85 85 50 100 50
48*95 95 48 50 50
50*95 95 50 50 50

INDUSTRIAL DESIGN I
61*100 100 61 90 50
61*110 110 61 100 50
72*130 130 72 100 100
72*120 120 72 100 100
1.2.2 Determination of Part/Components for Product
PP woven bag has no part and component. The product is determined only by its size, weight,
holding capacity and by its diner type. PP woven bag is homogeneous component.
1.1.3 Performance Specification
The specification of PP woven bags is depending up on by the type of the diner. If the amount of
calcium is high the strength of the diner is strong while the amount of calcium is low the strength
of the diner is poor. The specifications of PP woven bag are tabulates as follow.
Table 8: Performance Specification
Diner type Calcium amount(kg) Polypropylene amount(kg)

450 18 100
500 20 100
550 25 100
750 30 100

INDUSTRIAL DESIGN I
CHAPTER TWO
2. IDENTIFICATION AND QUANTIFYING OF RAW MATERIALS AND UTILITY
2.1 Raw Materials
The main and direct major raw materials required for production of polypropylene woven bag are:
 Polypropylene (PP)
 Calcium carbonate (deep master batch)
 Master batch (color master batch)
Auxiliary materials for printing and maintenance purpose are:
 Spare part  Lubricant
 Chemicals  solvent
 Ink
Polypropylene (PP): PP is a versatile thermoplastic capable with many commercial applications.
PP is available in a wide variety of malt flow rates and PP has many advantages. Some of their
advantages are:
 Low density, reducing environmental impact
 Chemical and thermal resistance
 Fully recyclable
 Excellent moisture and oxeye barrier
 Hot fill and retort capable
 Microwavable
Calcium carbonate: Calcium carbonate considered a non-reactive ingredient, which can be
combining with other ingredients to optimize finished product characteristics. Calcium carbonate
used to strengthen the dinner (warp and weft).
Master batch: Master batch is a solid or liquid additive for plastic, sack and bag for coloring
(color master batch). Additive master batch modifies various properties of the sack and bag:
 light resistance  anti-static
 flame retardant  lubrication
 anti-fouling  Extension aids

INDUSTRIAL DESIGN I
Quantifying of the Raw Materials

The quantity of the raw material per day depends on the company and machinery capacity. Due to
this reason, the raw material quantity is Shaw in the following table.
Table 9: Quantifying of the Raw Materials
Raw materials Required per day Required per month Required per year
Polypropylene 5,000kg 130,000kg 1,575,000kg
Calcium carbonate 1,000kg 26,000kg 315,000kg
Master batch 475kg 12,350kg 149,625kg
Lubricant 50 liter 1,300 liter 15,750 liter
Ink 15 liter 390 liter 4,725 liter
2.2 Utilities
The main utilities of the envisaged plant are electricity and water.
Table 10: quantity of utility
Utilities Amount/month
Electricity 55,761 Kwh
Water 315 m3
Lubricant 15,750 liter
Ink 10,725 liter

INDUSTRIAL DESIGN I
CHAPTER THREE
3. PROCESS PLANNING AND DESIGN
3.1 selection of machineries and equipment
Appropriate Machine and Equipment
 Tape-plate machine  Printing machine

 Loom machine  Packing machine
 Cutter machine  Crushing machine
 Swinging machine  Recycling machine
Tape-plate machine: A tape plant machine is a plastic film making machine and produces tape
which is a continuously produce machine with in a capacity of 160 ~ 520 kg/hour. The unit is
equipped with a screen filter and rotary bland slitting system. The machine has less down time
and prevents pr0duction loss. The pressure rollers the take-off unit are pneumatically controlled,
and have synchronized control electric system. The machine are treating and cleaning the raw
material after converting to dough from the dust material in some cleaning zones like filter-sifter
inside and treating outside from dust particles, wet and strength of denier by means of water
quench, hot air oven tapes extraction unit and stretching unit.
Figure3: Tape-plant machine
Raffia tape stretching line is designed for producing PP/HDPE raffia tape and flat yarn which used
for woven bag, geotextile, artificial grass, carpetbacking production, and more. Capacity is 160-
520 kg/hr,and the unitis equipped with a belt type screen filter changer and rotary type slitting unit

INDUSTRIAL DESIGN I
for none stop operation The tape plant has low energy consumption, less down time and reduces
production loss. The pressure roller of the equipment are pneumatic controlled, and have one-steps
ynchronize control electronic system.The machine can incorporate with European-made gear box,
T-die, melt pump, tape winder upon customer's special requirement. Designed form a king 500-
1500 denier (2000-6000denier upon special request).Working speed from 100-270 meter/minute.
Circular loom machine: The heavy-duty circular loom was specially designed to weave endless
tubular or flat PP bags. The warp tapes are taken from two creels via rollers to the weaving
machine, which ensures uniform warp tension, excellent circular PP bag quality and trouble-free
handling. During production, warp bobbins can be changed easily and quickly without shutdown
of the circular loom; tape ends are simply tied in. 6 shuttles running and 12 bobbin flange disc in
a reed constructed for this purpose insert the weft. The tubular PP bag is taken past a calibrating
and spreading system to two continuously driven haul-off rollers and subsequently winds onto
surface winder. The production capacity of circulare machine is 1200-1500 meter per day.
Figure4: Circular loom machine A

Lohia Corp offers a comprehensive range of circular looms for weavinglight to heavy weight
tubular or flat PP/HDPE fabrics for a wide variety of end nules,chemicals, grains, animal feed,
seeds and husk; to 8 and 10 shuttle for theproduction of wfruits and vege applications.Lohia Corp’s
loom ranges from 4 shuttle for open mesh (leno weave) packaging fabric for r gratable, to 6 shuttle
for a vast range of ackaging applications such ascement, fertilizer, polymeide width fabric for
Jumbo bags (FIBC’s), tarpau lins and geo & agro textiles. It has advantages of the latest technology

INDUSTRIAL DESIGN I
– higher operating efficiencies, excellentweaving quality, lower wastage, lower energy

consumption, lower maintenance etc.
Figure5: Circular loom machine B

Cutter machine: these machines are uses to cute the PP woven bag into the required pieces. These
machines have the capacity to cut more than 27,800-32,000 pieces within a day.
Figure6: cutting machine

Sewing machine: The non-woven PP bag sewing machine was specially designed to sew up the
final and ordered product of PP bags. The Bobbin winder this winds the thread onto the bobbin for
use as the lower thread. Spool pin this holds the spool of thread. Thread guide this is used when
winding the thread onto the bobbin and then threading the machine. Operation panel this is used
to select the stitch and specify the various settings. Hand wheel used to manually raise and lower
the needle. Feed dog position lever use the feed dog position lever to lower the feed dogs. Foot

INDUSTRIAL DESIGN I
controller you can use this to control the sewing speed, and to start and stop sewing. The capacity
of the sewing machine is depending on the adelity of the operator. The designed capacity of the
sewing machine is 3-15 with in a miniute.
Figure 7: Sewing machine

Print machine : For every information and customer logo with different color to be printed, a plate
is made and eventually put on a cylinder which is placed in the printing press. To make a complete
picture, regardless of printing on flexible film or corrugated PP bag, the image transferred from
each plate has to register exactly with the images transferred from the other colors. To ensure an
accurate picture is made, mounting marks are made on the flexographic plates.
Pack machine: The non-woven PP bag pneumatic packaging machine is mechanical device that is
used to pack the final products of PP bag. The macine packs 1000 number of PP bag at once.
Figure 8: Packing machine

INDUSTRIAL DESIGN I
3.2 Determination of Production System

The production process of polypropylene bag involves three main production operations namely
yarn making, weaving and bag making.
Yarn making
Polyethylene resin is charge in to hopper of extruder and heated to pass through the die to form
film and the film is cool, cut in to a fixed width, and then delivered continuously in to stretching
equipment. The hot plate of the stretching equipment will heat the slit tape film, which is then
stretch by high seed rolls and results a stretched yarn, which will be annealed and wound on a
bobbin to be delivered to weaving process
Weaving
This process is carry out by a circular loom system for weaving the stretched yarn in tabular state.
The yarn is drawn out from the creel stand is set on the loom in a circular shape and used as a
warp. The pick is set on six shuttles that are inside the loom and when the loom is operate the
shuttle rotates in a circular shape which results the pick to move through the warp in a circular
shape to effect weaving
Bag making
This is the last stage of the production process where the woven yarn is printed, cut to length and
converted to bag using cutters, printers and sewing machine in the process.
To determine the production system of PP woven bag we have the following point that used to
determine the production system.
PP woven bag industry is:
 Labor
 Intensive industry and mostly not require skilled operator
 Layout of the machine is laid down in order of process sequence
 Methods and machineries are standard
 High volume of production
 work relating to operation
 Packaging and other activities are simple.
It is clear that, the above point lead as the best production system for PP woven bag is mass
production system
Mass production system

INDUSTRIAL DESIGN I
Manufacture of discrete parts or assemblies using a continuous process are mass

production. This production system is justified by very large volume of production. The
machines arranged in a line or product layout. Product and process standardization exists
and all outputs follow the same path…unlike batch.
Characteristics Mass production:
 Standardization of product and process sequence
 Dedicated special purpose machines having higher production capacities and output
 Large volume of products
 Shorter cycle time of production
 Lower in process inventory.
 Perfectly balanced production lines
 Flow of materials, components and parts is continuous and without any back tracking.
 Production planning and control is easy.
 Material handling can be completely automatic
3.3 Determination of Process Capacity

Process capacity is the ability of the combination of 5M’s (material, men, machines, money and
method) to produce a product that will consistently meet the design requirement and customer
expectation.
The Requirements for determining process capacity are:
 Number of output per hour, per day, per month, per year
 Number of machines required per line and in the whole system
 Number of line or production line
 Number of equipment in the line and in the whole system
Therefore, to determine process capacity the following points are important.
 Machine capacity
 Availability of material
 Method of production
Process capacity =Design capacity of the machines*total time
To know the process capacity of each machine we must be considering the alliance time that
creates bottleneck on the production process.

INDUSTRIAL DESIGN I
Allowance (A): it is impossible to work throughout the day even though the most practicable,
effective method developed. Even under the best working method condition, the job will still
demand the expenditure of human effort and some allowance must. Therefore, different types of
allowances are allows in the company. Such as personal time allowance, delay allowances, Fatigue
allowances etc.
1. Machine allowances: -Thread and needle breakage, adjusting tension and Small problems in
machine
2. Relaxation allowance: examples- people needs to go the toilet, scratch, blow their nose.
3. Interference allowance: example- one worker is attending more than one machine.
4. Process allowance: example- no work, power failure, faulty material, faulty tools or equipment’s
5. Holiday colander and weekend:
6. Special allowance: like change over, excess work allowance, learning allowance, Training
allowance, implementation allowance, tool changing and regrinding, startup, cleaning, shut down
and set up.
Due to these reason the company can produce 87% of its designed capacity (i.e. 13% of the total
time is spend for allowance.
Design capacity of tape-plant machine is 120-500 kg/hr.
Average design capacity= (160+520)/2
=310kg/hr.
Design capacity per day=310kg/hr.*24hr./day
=7,440kg/day
=2,715,600kg/year
Design capacity of circular loom machine is 2800-3500 meter per day
Average design capacity = (2,800+3,500)/2
=3,150meter/day
Design capacity per year=3,150*365meter/year
=1,149,750meter/year
The design capacity of cutting machine is 10-30 pieces (bags)/min
Average design capacity = (10+30)/2
=20pieces/min
=1,200pieces/hr.

INDUSTRIAL DESIGN I
= 28,800pieces/day
=10,512,000pieces/day
Design capacity of printing machine is 16-22 pieces per minute.
Average printing capacity= (16+22)/2
=19pieces/min
=1,140pieces/hr.
=27,360pieces/day
=9,986,400pieces/year
Design capacity of sewing machine is 3-5 pieces/min
Average sewing capacity ((3+5)/2)
=4pieces/min
=240pieces/hr.
=5,760pieces/day
Design capacity of packing machine=90,000pieces/day
The design capacity the machinery per (year, day, and shift) is summarize in the following table.
Table 11: design capacity
Machine name Design capacity/year Design capacity/day Design capacity/shift

Tape-plant 2,715,600kg 7,440 kg 2,480 kg
Circular loom 1,149,750meter 3,150 meter 1,050meter
Cutting machine 10,512,000pieces 28,800 pieces 9,600 pieces
Sewing machine 2,102,400 pieces 5,760 pieces 1,920 pieces
Printing machine 9,986,400 pieces 27,360 pieces 9,120 pieces
Packing machine 32,850,000 pieces 90,000 pieces 30,000 pieces
Standing from the design capacity of the machinery and the utilization of the company the process
capacity is calculate by the following formula.
Process capacity =Design capacity of the machines*total time
However, as we see before 13% of the total time is allowance that are consume for different
purpose.

INDUSTRIAL DESIGN I
Process capacity of tape-plant= Design capacity*total time/shift*utilization

=2,720 kg/shift*0.87
=2,366 kg/shift
The winding machine is use to enwrap the yarn that are produced from the tape-plant. The process
capacity is determine by the process capacity of the tape-plant machine. In the same way, we can
calculate the process capacity of other machinery and summarized by the following table.
Table 12: Process capacity
Name of machine Process capacity/year Process capacity/day Process capacity/shift

Tape-plant 2,362,572 kg 6,473 kg 2,158 kg
Circular loom 1,000,283 meter 2,741 meter 914 meter
Cutting machine 9,145,440 pieces 25,056 pieces 8,352 pieces
Sewing machine 1,829,088 pieces 5,011 pieces 1,670 pieces
Printing machine 8,688,168 pieces 23,803 pieces 7,934 pieces
Packing machine 28,579,500 pieces 78,300 pieces 26,100 pieces
The production capacity of the company is depends up on the process capacity of the machinery.
Therefore, the production capacity of the company is 28,579,500 pieces per year.
3.4 Process Mapping and Preparation of Route Sheet

Process Mapping
Raw
Swinging Printing
material
Mixer Cutting Packing
Winder weaving Wearhouse
Figure9: Process Mapping

INDUSTRIAL DESIGN I
Preparation of Route Sheet

Process Operation Inspection Delay Transportation Storage
Raw material
store
Mixer
Tape-plant
Winder
Loom
Cutter
Singer
Printer
Packing
Warehouse
Figure 10 route sheet

INDUSTRIAL DESIGN I
CHAPTER FOUR
4. FACILITY LAYOUT DESIGN
4.1 Plant Location and Site Selection
The perfect PP woven bag envisioned as generally levels with some topographic interest. Having
complete utilities, stable, excellent road, protection from excessive weather patterns, with efficient
space for PP woven bag industry facilities, the site should be accessible present and future
expectation and be free of any natural and onion mental hazards.
The selection of location is an important activity for the success of the business and quiets careful
analysis the selection of location is primer important both for new and already established
enterprise. The choice of location is vital for any new firm. The factor that is considered during
the selection of site for PP woven bag industries are -
 Availability of labor force
 Proximate to Market
 Availability of raw material
 Transportation
 Availability of utility (Water, Electricity)
Specific Site Selection
To select the specific site, we considered the following principal factory corresponding with their
rating factor.
 Weight factors (0.00-1.00)
 Subjectively score each factor (0-100)
 Critical factors
In every location decision, usually at least one factor determines whether a location will be
considered for further evaluation.
1 if location i satisfies critical factor j CFij
0 otherwise
Site selection element
To select the appropriate site and location we must be consider the industrial zone regions in
Ethiopia. The following are the industrial zones:
 Beshoftu  Jimma

INDUSTRIAL DESIGN I
 Deridawa  Hawassa
 Bahir Dar  Mekele
 Gonder  Burie
 Harer  Debre-Birhan
 Combelcha  Adama
There are three categories of site selection element of determine the best site or location
 Social and land use factors
 Construction cost factor, Soils and foundation, Utilities and Others
 Operations and maintenance cost factory’s
After identifying the site selection element, the next step is to assign weighting factors to each
element
Weighting factors are not very important, somewhat important, important, very important and
essential with the standard value of 0.01, 0.05, 02, 0.26, and 0.3 respectively.
Applying Ranking Criteria
Following the assigning criteria (weighting) factors each selection element is evaluate according
to established criteria and ranked on the sample five points sealed from zero to four.
Criteria ranking scores
 0= unacceptable (least desirable) least cost effective
 1= poor
 2= fair
 3=good
 4= excellent, most desirable, most cost effective
Ranking Criteria Element
1. Accessibility of row material & other materials
 Fully accessible site……………………………………………4
 Well access ……………………………………………………3
 Access periodically ……………………………………………2
 Access interrupted by weather temperature condition ………...1
 In accessible……………………………………………………0
2. Target market Accessible
The center of the market mostly considered as the center of the site

INDUSTRIAL DESIGN I
 Very well market access site ………….4

 Well access site…………………………3
 Access periodically…………………….2
 Access interested by any factory……….1
 In accessible market factory…………… 0
3. Site topography
The site should be fairly level with some topographic relief that can provide appropriates
manufacturing eared development.
 Site is level and can accommodate all anticipated uses ……………………………...4
 Site is mostly level can accommodate all anticipated uses ………………………….3
 Site is not level but can accommodate all anticipated uses ………………………….2
 Site is not level and also only accommodate limited number of anticipated uses……1
 Site is not level & cannot accommodate anticipated uses……………………………0
4. Transportation (Road Access)
 Site having various road access and transportation system ………4
 Site having somewhat Varese’s road access………………………3
 Site having in efficient transportation system…………………….2
 Site having one type of transportation system…………………….1
 Site having no road access………………………………………….0
5. Site soils condition
 Unstable soil, highly specialized foundation required 0
 Mostly unstable, specialized foundation required 1
 Isolated area offsite, some specialized foundation required 2
 Mostly stable soil, conventional foundation 3
 Stable soil, conventional foundation system possible 4
6. Site cost
 Site is cost prohibit able……………………………………... 0
 Site is above fair markets…………………………… 1
 Site is available at fair market low………………………………….. 2
 Site is available at below market low….………………. ……………… 3
 Site is available at no cost market low………………………………….. 4

INDUSTRIAL DESIGN I
7. Availability of labor
 Inadequate labor force …………………………………… 0
 Somewhat in adequate labor force ……………………….1
 Adequate labor force ……………………………………...2
 Adequate labor with high cost…………………………….3
 evaluation matrix Adequate labor with appropriate skilled and cost………...4
8. community attitude
 Hostile, bitter…………………………0
 Parasitic in nature…………………….1
 Non-cooperation……………………….2
 Cooperator……………………………….4
To select the site factors the main considerations are
 Critical factors
 Subjective factors
 Objective factors
Then we calculate over all location measure for location of the site. For this site selection, we
choose the following industrial zones.
 Addis Ababa  Debre-Birhan
 Gonder  Adama
 Hawassa  Bahir Dar
 Combelcha
For this location selection first calculate critical factor.
Table 13: critical factors

INDUSTRIAL DESIGN I
Critical factors
Location Tax incentive Electric power Transportation CFmeasure
Addis Ababa 1 1 1 1
Deridawa 1 1 1 1
Gonder 1 1 1 1
Hawassa 1 1 1 1
Combelcha 1 1 1 1
Debre-Birhan 1 1 1 1
Adama 1 1 1 1
Bahir Dar 1 1 1 1
CFA.A=1*1*1=1 CFCOM=1*1*1=1
CFD.D=1*1*1=1 CFDB=1*1*1=1
CFGON=1*1*1=1 CFAD=1*1*1=1
CFHAW=1*1*1=1 CFBD=1*1*1=1
Objective factor for each location calculated as follow. (The entire given amount is in a day) or
per a day.
Table 14: objective factors
Objective factor
Location Revenue Labor cost Water cost Transportation cost Energy cost
Addis Ababa 724,600 40,083 20 3,500 1,583
Deridawa 721,500 35,000 21 2,500 1,583
Gonder 725,900 33,800 18 2,600 1,583
Hawassa 712,500 34,000 20 2,900 1,583
Combelcha 723,400 31,500 17 2,200 1,583
Debre-Birhan 722,500 33,500 18 2,500 1,583
Adama 712,400 36,600 19 2,800 1,583
Bahir Dar 723,000 32,100 16 2,300 1,583
To calculate objective factor making labor cost, transportation cost, water cost and energy cost
negative but revenue is positive cost therefore the negative cost is subtract from the revenue.

INDUSTRIAL DESIGN I
Cumulative objective factor for Addis Ababa=724,600-(40,083+20+3,500+1,583)

=679,414
We can calculate the cumulative objective factor for the other site locations in the same way and
summarized in the following table.
Table 15: Cumulative objective factor
Location Cumulative objective factor

Addis Ababa 679,414
Deridawa 683,296
Gonder 687,899
Hawassa 673,997
Combelcha 688,100
Debre-Birhan 684,899
Adama 671,398
Bahir Dar 687,001
OFMA.A= [688,100-679,414]/ [688,100-671,398]

=8,686/16,702
=0.52006
OFM Deridawa= [688,100-683,296]/ [688,100-671,398]
=4,804/16,702
=0.28763
OFM Gondar= [688,100-687,899]/ [688,100-671,398]
=201/16,702
=0.01203
OFM Hawassa= [688,100-673,997]/ [688,100-671,398]
=14,103/16,702
=0.84439
OFM Combelcha = [688,100-688,100]/ [688,100-671,398]
=0/16,702
=0
OFM Debre-Birhan = [688,100-684,899]/ [688,100-671,398]
=3,201/16,702
=0.19165

INDUSTRIAL DESIGN I
OFM Adama = [688,100-671,398]/ [688,100-671,398]

=16,702/16,702
=1
OFM Bahir Dar = [688,100-687,001]/ [688,100-671,398]
=1,099/16,702
=0.0658
The summary of the objective factor measure is tabulate as follow.
Table 16: objective factor measure
Location objective factor measure

Addis Ababa 0.52006
Deridawa 0.28763
Gonder 0.01203
Hawassa 0.84439
Combelcha 0
Debre-Birhan 0.19165
Adama 1
Bahir Dar 0.0658
The subjective factor of each location is lists in the following table with their weight.
Table 17: Subjective factors
Subjective WF Addis Deridaw Gonder Hawas Comb Debre- Adam Bahir

factors Ababa a sa elcha Birhan a Dar
Criteria
Accessibility 0.3 0.5 0.5 0.6 0.4 0.5 0.9 0.65 0.4
of Row
material
Community 0.2 0.9 0.4 0.7 0.8 0.4 0.9 0.45 0.8
attitude
Site 0.01 0.6 0.6 0.7 0.4 0.4 0.9 0.4 0.65
topography
Transportatio 0.26 0.7 0.9 0.25 0.9 0.8 0.55 0.8 0.8
n
Support 0.05 0.2 0.7 0.13 0.2 0.35 0.21 0.98 0.7
service
Site cost 0.02 0.8 0.4 0.34 0.8 0.73 0.35 0.65 0.1
Availability 0.16 0.6 0.3 0.42 0.61 0.5 0.63 0.2 0.9
of labor
0.64 0.561 0.40137 0.40137 0.6416 0.5541 0.7243 0.591 0.6755

INDUSTRIAL DESIGN I
SFM A. A= (0.3*0.5) +( 0.01*0.6) +( 0.2*0.9) +( 0.26*0.7) +( 0.05*0.2) +( 0.02*0.8) +( 0.16*0.6)

=0.64
SFM D. D= (0.3*0.5) +( 0.01*0.4) +( 0.2*0.6) +( 0.26*0.9) +( 0.05*0.7) +( 0.02*0.4) +( 0.16*0.3)
=0.561
SFMGON= (0.3*0.6) +( 0.01*0.7) +( 0.2*0.7) +( 0.26*0.25) +( 0.05*0.13) +( 0.02*0.34) +(
0.16*0.42)
=0.40137
SFMHAW= (0.3*0.4) +( 0.01*0.8) +( 0.2*0.4) +( 0.26*0.9) +( 0.05*0.2) +( 0.02*0.8) +( 0.16*0.61)
=0.6416
SFMCOM= (0.3*0.5) +( 0.01*0.4) +( 0.2*0.4) +( 0.26*0.8) +( 0.05*0.35) +( 0.02*0.73) +(0.16*0.5)
=0.5541
SFMD.B= (0.3*0.9) + (0.01*0.9) + (0.2*0.9) + (0.26*0.55) + (0.05*0.21) + (0.02*0.35) + (0.16*0.63)
=0.7243
SFMADA= (0.3*0.65) + (0.01*0.45) + (0.2*0.4) + (0.26*0.8) + (0.05*0.98) + (0.02*0.65) + (0.16*0.2)
=0.591
SFM B. D= (0.3*0.4) +( 0.01*0.8) +( 0.2*0.65) +( 0.26*0.8) +( 0.05*0.7) +( 0.02*0.1) +( 0.16*0.9)
=0.6755
Then we can calculate overall location measure for location i. before that calculation subjective
factor weighted 50% and if the subjective factor weighted 50% more than the objective factor.
LMi = CFMi [0.4(1-OFMi) + (1-0.4) SMFi] =0.63601

LMAA=1[0.4(1-0.52006) + (1-0.4) 0.64] LMHAW=1[0.4(1-0.84439) + (1-0.4) 0.6416]
=0.19198+0.384 =0.06224+0.38496
=0.57598 =0.4472
LMDD=1[0.4(1- 0.28763) + (1-0.4) 0.561] LMCOM=1[0.4(1-0) + (1-0.4) 0.5541]
=0.28495+0.3366 =0.4+0.33246
=0.62155 =0.73246
LMGON=1[0.4(1-0.01203) + (1-0.4) 0.40137] LMDB=1[0.4(1- 0.19165) + (1-0.4) 0.7243]
=0.39519+0.24082 =0.32334+0.43458

INDUSTRIAL DESIGN I
=0.75792 LMBD=1[0.4(1-0.0658) + (1-0.4) 0.6755]

LMADA=1[0.4(1-1) + (1-0.4) 0.591] =0.37368+0.4053
=0+0.3546 =0.77898
=0.3546
Therefore, based on α value of 0.4, the Plattsburgh location seems favorable. However, as the
weight of the objective factors, α, increases more than 0.6, the Montreal location becomes
attractive. Then select the maximum measure value. When we see all values on each location,
0.77898 is the maximum measure. So depending on the rule of selecting location the company
location is at Bahir Dar.
4.2 Primary Facilities

 Raw Materials:
 labor
 Power and Fuel:
 Transport and Communication facilities
 machinery
Raw Materials: Raw materials are major proportion of the finishes products. Unrestricted and
regular supply of raw material is very necessary for carrying out unrestricted production. Nearness
to the source of raw material is very economical for an industrial unit. The considerations of many
industries have been set up near the source of supply of raw material.
Nearness to raw material is important in case of heavy and bulky materials having lesser value
such as coal and other weight losing materials.
Labor: Labor cost is one of the main constituents of the total cost of production. It influences the
total cost of production. Labor implies both the skilled and unskilled workers needed for
different types of activities. The supply of un-skilled labor does not create any serious problem
because such labor is available everywhere. Skilled labors available only at specific centers.
Industries requiring highly skilled labor have to select such sites, which ensure adequate and
regular supply of required labor. Availability of skilled and efficient labor is mainly responsible
for the development of various industries in a particular region
Power and Fuel: Availability of cheap power and fuel supply sources is another decisive factor in
selecting proper location of an industrial unit.

INDUSTRIAL DESIGN I
Transport and Communication facilities:

Adequate and quick facilities of transport must be keeping in mind for quick delivery of raw
materials to the factory and finished products to the market.
4.3 Material Handling System

Material Handling is the movement, storage, protection, and control of materials throughout the
manufacturing and distribution process including their consumption and disposal. This fact can be
summarizing that material handling serves two functions, which are storage and transport.
Material handling systems provides function to facilitate assembly jobs hence it should be integrate
into line design. It plays several roles in different type industries. First, material handling systems
should be compatible with products in terms of size, weight and others factors. The manual
deliveries are not suitable for bulky product. A line with shorter time needs less material handling
and vice versa. Lastly, material handling should be keep at proper levels so that the line can be
operating smoothly.
Goals of Material handling
 Here are some goals that are expected when using materials handling equipment
 Maintains or improve product quality, reduce damage and provide protection for materials
 Promote safety and improve working conditions
 Promote productivity.
 Control inventory by decreasing storage requirement.
 Give efficient flow of materials.
Factors related to section of material handling equipment
 The reliability of the product selected
 Ergonomics
 Financing
 Labor relation
 Safety
 Proper application of product selected
For this company handcart uses as a material handling. This handcart are used to transporting raw
materials and master batches from the proportioning unit to that of the mixer machine, and in
storage of finished products in a specified storage room, we can also use them to load products

INDUSTRIAL DESIGN I
that are already sold in lories and some other trucks. Therefore, the material handling equipment
of the company is handcart. For these factory is handcart is the special one because the weight of
the product and the raw material is not heavy.
4.4 Workstation Design and Line Balancing

4.5.1 Line Balance
Line balancing is the process of assigning time and tasks to workstations, so that workstations have
approximately equal time requirements (depends on workload). It is a technique to minimize
imbalance between workers and workloads in order to achieve required run rate this done by
equalizing the amount of work in each station and assign the smallest number of workers in the
particular workstation.
We use line balancing to
 Minimize idle time
 To reduce production cost
 To manage the workloads among assemblers
 To identify and balance the location of bottleneck
 To determine number of workstation
 Optimize the efficiency and productivity of manufacturing process.
Cycle times another issue that is need for time study and is defines as total time taken to do all
works to complete one operation. Possibly, we have tried to study the cycle time by breaking each
workstations and operations.
 It means arrangement of machine capacity to secure relatively uniform flow at capacity
operation.
 It means has equal operating times at the successive operation in the process as a whole.
 Arrangement of work where subsequent operations one located immediately adjacent to each
other
Here the job is dividing into small portion called “job element”. The aim is to maintain production
at an equal rate Line balancing operates under two conditions:
 Precedence Constraint
 Cycle time Restriction
I) Precedence Constraint

INDUSTRIAL DESIGN I
Products cannot move to other station if it does not fulfill required task at that station. It should
not across other station because certain part needs to be doing before others.
II) Cycle time Restriction
Cycle time is maximum time for products spend in every workstation. Different workstation has
different cycle time, and cycle time is the Maximum amount of time allowed at each station. This
can be finding by dividing required units to production time available per day.
The required workstation cycle time converts hours to second because task time is in second.
Cycle time – is the maximum amount of time that should be allows for each workstation.
Task time= production time per shift
Output per shift
Standing from the process capacity we must be calculates time required for one unit of product.
The average weight and length of one unit of PP woven bag is 84.3 gram and 1.05 meter
respectively
Tape-plant machine
2,158 kg=8hr 871pieces = 8hr
1kg=X 1pieces=X
X=8hr/2,158
X=8hr/871 pieces
X =0.22min
X=0.55min
But, 1pieces=84.3gr
Cutter machine
X=2,158 kg
8,352 pieces=8hr
X=2,158,000 pieces/84.3
1 pieces=X
X=25,599 pieces takes 8 hr.
X=8hr. /8,352
25,599pieces =8 hr.
X=0.057 min
1 pieces=X
Sewing machine
X=8hr. /28,066pieces
1,670pieces=8hr.
X=0.019 min
1 pieces=X
Loom machine
X=8hr. / 1,670
1 piece=1.05meter
X=0.29 min
X=914meter
Printing machine
X=914pieces/1.05
7,934pieces=8hr.
X=871pieces takes 8hr.
1pieces =X

INDUSTRIAL DESIGN I
X=8hr/7,934 1 pieces=X
X=0.06min X=8hr/26,100
Packing machine X=0.018 min
26,100pieces=8hr.
The steps in line balancing are:

1. Specify the sequential relationships among tasks using a precedence diagram.
2. Determine the required workstation cycle time C, using the formula
C =Production time per shift
Required output per shift (in units)
3. Determine the theoretical minimum number of workstations (NT) required satisfying the
Workstation cycle time constraint using the formula:
NT =Sum of task times (T)
Cycle time (C) but these formula is for only assembled line balance.
In the company, the cycle time is the maximum operation time of the machine that is within the
single line balance.
4. Select a primary rule by which tasks are to be assign to workstations, and a secondary
Rule to break ties.
5. Assign tasks, one at a time, to the first workstation until the sum of the task times is equal
To the workstation cycle time or no other tasks are feasible because of time or sequence
restrictions. Repeat the process for workstation 2, workstation 3 and so on until all tasks are
assigning.
Figure 11: operation time of machinery
Operations Operation symbol Precedence Required Time(sec)

Tape-plant (yarn making) A _ 1.13
Loom (weaving) B A 33.1
Cutting C B 3.43
Sewing D C 17.4
Printing E D 3.6
Packing F E 1.10

INDUSTRIAL DESIGN I
Step 1: Activities on node diagram (draw and label)
AA B C D E F
Figure 12: activity node diagram

Process B (task B) takes the largest time 48.6 sec
Step 2: calculate desired cycle time
We estimate that the Maximum output of the section is 24,650units/shift.
The cycle times for the above sequence of operation are 33.3sec because the maximum
operation time for the continuous operation task is the cycle time of the operation.
Cd=33.1 sec
Step 3: Calculate the number of workstation
=1.13+33.1+3.43+17.4+3.6+1.14
33.1
=59.4/33.1
=1.79
=2
Cycle Time 33.1 min/unit/ Wk. station
Assign the longest duration operation to the first station. Therefore, going to task B but it cannot
have done before A. The only available for station 1 are A. Then we have the choice of assigning
B or C but C is not going to fit. Then we are going to do C, D, E and F.
Efficiency = sum of all task time *100
Station no. *cycle time
=59.4*100%
2*33.1
=5940%
66.2

INDUSTRIAL DESIGN I
=89.73%
Balanced delay =1- efficiency
=1-0.8973
=0.1027
=10.27 %
4.5.2 Work Station Design
The objective of a workstation layout should be economy of floor-space consistent with efficient
working of the machine with least traveling time for the operator or worker. By
means of an efficient workstation layout, we have to bring about important operating economy,
which is one of the major activities. Some of the savings in space may originate from utilization
of common space for more than one purpose. Thus, the spaces occupied by the operator or
worker in working may also serve as clearance. To design effective and efficient workstations,
first, determine the number of workstations at which operation and inspection processes are being.
To determine the number of these workstations we have to do some sort of line balancing.
Workstation design aims for designing a work place in the most suitable form. The work
performed, materials, equipment, operator movements and anatomical measurements
(agronomical design) considered into consideration.
Poor design of the layout of workstations can result in risk of damage to users’ muscles and joints.
Careful design and set-up will eliminate or significantly reduce these risks.
A well design workstation is crucial to productive and efficient work. Even minor changes in
workstation design can make a big difference to productivity, health and safety.
Workstation Area: The workstation area of the company is the summation of the machinery area,
the aisle for the movement of workers and product from one space (area) to another area and
maintenance area of the machine. However, here the aisle for transporting equipment is included
in to the aisle for the workers. Therefore, it is not available calculating the cart aisle. Because the
cart uses less area than the worker uses and it is possible to use one aisle for multiple purpose.
From standard data, the aisle for human movement and material transporting space is fixed. This
is different by its situation.
Machine Number Determination:
No of machine = total production per week * operation time

INDUSTRIAL DESIGN I
Total working time per week

Total production per week = total demand per year
Weeks in year
= 26,775,000pieces/year
52 weeks/year
= 514,904pieces/week
Total working time per week = working hr. per day * 60 minutes * no of day in week
= 24hr. * 60min *6
= 8,640 min/week
For tape-plant machine: -
No of machines = 514,904 pieces/week *0.019min/pieces
8,640 min/week
=1.12
=1
For loom machine
No of machine = 514,904 pieces/week*0.552mit/piece
8,640 min/week
=32.87
=33
For cutting machine
No of machine = 514,904 pieces/week*0.057min/pieces
8,640 min/week
=3.34
=3
For sewing machine
8,640 min/week
=17.3
=17
For printing machine
8,640 min/week
=3.6
=4
For packing machine
No of machine = 514,904 pieces/week*0.018
8,640 min/week
=1.09

INDUSTRIAL DESIGN I
=1
Quantity of machinery are summarize in the following table.
Table 18: Quantity of machinery
Name of machinery Quantity

Tape-plate machine 1
Loom machine 33
Cutter machine 3
Sewing machine 17
Printing machine 4
Packing machine 1
Crushing machine 1
Recycling machine 1
Total area 61
Machinery Area Calculation
Standards
 Maintenance area of the operating machine is 50cm or 0.5m.
The machinery area of the company is show as follow.
Table 19: machinery area
Parameters of Length Width Area Total Maintenance Total area

component (M) (M) (m2) machine area
area (m2)
Tape-plate machine 43.6 3.6 156.96 156.96 48.2 205.16
Loom machine 10 1.7 17 561 419 980.1
Cutter machine 5 2 10 30 24 54
Sewing machine 1.3 2.8 3.64 61.88 86.7 148.58
Printing machine 9 2.5 12.5 50 90 140
Packing machine 5 3 15 15 9 24
Crushing machine 6 3 18 18 10 28

INDUSTRIAL DESIGN I
Recycling machine 10 1.1 11 11 12.1 23.1
Total area 903.84 699 1,602.94
Aisle Area Calculation: From standard data, the aisle for human or person movement and material
transporting space is fixed. It is different for different condition.
Standards’
 Between stationary object and machine take 92cm or 0.92m
 Between operating machine can take 107cm or 1.07m
Aisle area is the difference between workstation area and machinery area. Therefore, the
workstation area of each machinery is calculated a follow.
Tape-plate machine Area=50.30m2

Length=0.92m+43.6m+0.92m=45.44m
Width=1.07m+3.6m+1.07m=5.74m Sewing machine
Area =260.83m2 Length=0.92m+1.3m+0.9m=3.14m
Loom machine Width=1.07m+2.8m+1.07m=4.94m
Length=0.92m+10m+0.92m=11.84m Area=15.51m2
Width=1.07m+1.7m+1.07m=4.84m Recycle machine
Area= 57.31m2 Length=0.92m+10m+0.92m=11.84m
Cutter Width=1.07m+1.1m+1.07m=3.24m
Width=1.07m+2m+1.07m=4.14m Crusher machine
Area =28.32m2 Length=0.92m+6m+0.92m=7.84m
Printing machine Width=1.07m+3m+1.07m=5.14m
Length=0.92+9+0.92=10.84m Area=40.30m2
Width=1.07++2.5+1.07=4.64m Packing machine

INDUSTRIAL DESIGN I
Width=1.07m+3m+1.07m=5.14m
Table 20: Total workstation area
Machine name Quantity Work station area (m2)

Tape-plant 1 260.83
Loom 33 1,891.23
Cutter 3 84.96
Sewing 17 263.67
Printing 4 201.2
Packing 1 35.16
Crusher 1 40.30
Recycling machine 1 38.36
Total area 2,815.68
The aisle area of the company was calculates as follow:

Work station area=Machine area + maintenance area + aisle area
=2,815.68 m2+699 m2
=3,315m2
Aisle area = (Work station area) – (Machine area + maintenance area)
=2,870.48m2 – (903.84+699) m2
=1,912m2
i. Areas of production (shop) supervision
In the company, two shop supervisors controls and helps the operators. So for these supervisors
need two offices located near the workstation for which they are responsible.
From the standard table (handbook), the area required for the supervisors is between 60 and 120
Ft2 (18.30 &36.60 m2) per person. The area for a person covers 18.30 m2.
Area =18.3*No of supervisor
=18.3 * m2=36.6m2
ii. Area required for tool room

INDUSTRIAL DESIGN I
Tools and equipment used for production have to be located at the center of the production room.
Therefore, the tool rooms in the factory are located at the center of the production room, in that
each operator can access easily the tools and equipment when they require.
The estimated area required for the tools and equipment rooms to be 4*4m (16m2).
iii. Area requirement for inspection and quality control department
The inspection and quality department has to be located near to the production rooms. The area
required for inspection and quality department is assuming to be 6m2 per person.
Area =6*2m2
=12m2
iv. Area requirement for maintenance department
The estimate area for maintenance department office is 3m2 per persons.
 Since, there are six workers in the maintenance department, who is responsible for the
maintenance work.
The total area of the maintenance department is:
Area =3*6m2
=18m2
Temporary store of product area
Temporary storage areas put the product temporarily. The estimated temporary product store
area is length (L) is 16.9 and width (W) is 8.4m.
Area=16.9m*8.4m
=141.96m2
Total production area=3,315m2+36.6m2+16m2+12m2+18m2+141.96m2

=3,539.56m2
Area calculation for other facilities
In addition to space requirements for operation, many activities and related support activities,
space must be provide for a number of other necessary activities. Among them are offices, food
service (cafeteria), medical service, laboratory, and locker room.
Food service (cafeteria)

INDUSTRIAL DESIGN I
Standards taken from handbook for industrial engineering, (page 1795)

Number of people base figure (ft2) coefficient
100-200 200 5
200-400 400 4
400-800 800 3
There is a need of 17ft2 for one employee for dining room. The company has 324 employees from
the production staff in 1 shift and 85 employees on the general shift. The demonstrative staff
workers are doing for only one shift per day.
Therefore: - Area of the kitchen (AK) = base figure*coefficient
Area = 800*3=2,400ft2 but, 1m2=10.752ft2
AK= (2,400/10.752) m2=223.31m2
There are 247 employees in one shift
Area for the dining room=247*17ft2=4,199 ft2
Adr = (4,199/10.752) m2
= 390.53m2
Total area for cafeteria = (223.31+390.53) m2
=613.84m2
Office layout
Good office layout should start by determining the function performed and the method used. The
layout of the office depends on -
Easy access for visitors
Easy access for employees
Easy access for job application
The following two categories of office are required in a plant.
1. General office: These offices are for the principal executives and departmental heads and are
located near to the plant.
2. Factory office: Factory office is such as production control, plant super intendant, inspection,
time keeping, etc. protected from noise, fumes and other nuisances.
Standards Standard width for main calculating aisle (corridor) varies from 5_8 ft. each employee
includes his desk, chair space and share of the aisle requires (5 to 7) ft2 of working space.
- Area requirement standards

INDUSTRIAL DESIGN I
Company manager’s office area= 250-400ft2

Assume take Manager Office Area (MOA) =315ft2
MOA= (315/10.725)
= 29.4 m2
Secretary area (SA) =60-110ft2
Assume taken= 85ft2
= (85/10.752)
=7.91m2
7.91m2 is required for each secretory.
Department head (super visor) area = 80-110ft2
Assume taken= 100ft2
= (100/10.752)
= 9.3m2
Conference room area (CRA) = 15-20ft2 per person
Assume that CRA=18 ft2
The company has 158 employees for one shift
CRA = 18*158
= 2844 ft2
CRA = (2844/10.752)
=264.5m2
Production engineer office 80-110 ft2

Assume taken= 80ft2
=7.5m2
HR office 100-150 ft2
Assume taken =191ft2
=17.76m2
Finance office room 80-110ft2
Assume taken =80ft2
= 7.05m2
Design engineer office 150-200ft2

INDUSTRIAL DESIGN I
Assume taken =193.75ft2

=18m2
Total office area=29.4m2+7.91m2+9.3m2+264.5m2+7.5m2+17.76m2+7.05m2+18m2
=
361.42m2
Parking area estimation: Access road to parking area should plan to minimize accidents. Assume
that one lorry can carry 20 tons (20,000kg)
Number of lorry=raw material weight in ton for one week/one Lorries carrying in ton
The raw material usage in the company within a shift is 800kg
Number of lorry=3*2,400*7/20,000
=2.52lorry
= 3 Lorries assume,
Private car = 5
Cobra = 3
Bus = 3
Table 21: Standard data for the cars
Car Length(m) Width(m) Number of cars Area of cars(m2)

Lorries 13.72 3 3 125.52
Bus 8 3 2 48
Private cars 3 2 5 30
Other car(emergency car) 4 2 3 24
Area required for turning the cars and aisles be about 40m*40m = 1600m2
Total parking area = (125.52+48+30+ 24+1600) m2
=1,828m2
Maintenance room: Maintenance room is used to storing material for using machine maintenance
and other machine e.g. electrodes, bolts, welding machines, and other maintenance machines.
The company has 21 machine maintenance workers for one person have 2m2
Total area=2m2*61
= 122m2
For material handling or equipment area is assume take 8m2
So, total maintenance room area =122+8m2
=130m2

INDUSTRIAL DESIGN I
Lavatory area: Lavatory facilities in the company involve duty process must be more complete
than in the plant with a relatively clean process.
Lavatory toilet facilities in the plant should be decentralized in order to be conveniently accessible
to workers.
 Laboratory and locker room should combine.
 Locker room and wash room
 Locker room and washroom should be located for convenient accessibility from the
entrance gate as well as to the working area. The number of lockers and should
require can be determined considering the size of labor force, nature of worker and
timing of leaving the departments.
 Toilet (latrines) and urinals should be located for convenient accessibility from the
entrance gates as well as to the working area.
Standards for space planning purpose: -
 1.1m2 should allowed for each water closets
 0.46m2 for each urinals
 0.56m2 for each sink
Table 22. Occupational safety and health standards
Number of person Minimum number of closets
1-9 1
10-24 2
25-49 3
50-74 4
75-100 5
There will be one additional water closet for each 30 additional persons.
 At least one sink with adequate hot and cold water shall be provided for every 10 employees
 A sink shall be at least 60.96cm wide and shall be an individual faucet.
 Where 10 or more women are employee, at least one resting room is required.
Two beds are required if between 100 and 250 women are employed
Assume in the company 50% are women (females).
That means
Number of women=50*409/100=204 female worker or employees.

INDUSTRIAL DESIGN I
If required resting room bed is only two. For each bed, 5.67m2
Area=2*5.67m2
=11.34m2
Latrines (toilet) from standard data: From plant layout and material handling S.C Sharma, page
138. One latrine (toilet) should be providing for 20 to 100 male workers and after one additional
for every 50 male workers.
Estimation
i. 5 water closets from standard
Then 361-79/20
=282/20
= 14.1 approximately is equal to 14 closets
Total = 5 closet + 14 closets
=19 closets
1 closet = 1.1m2 form standard data then
Area = 19*1.1
= 20.9m2
ii. It is large basin in a kitchen for washing pots, vegetable etc. fixed to a wall and usually with
pipes to supply and carry way water.
Number of sink = 119 employee/10 employee
= 12 sink
Area: 1 sink = 0.56m2 from standard data
So 12sinks = 12* 0.56
=6.72m2
iii. Urinals
There are 35 urinals
Area = 35*0.46m2 for each
= 16.1m2
v. Toilet area: - One toilet is required for 20 female employees use. The company has 68 female
employees in one shift.
So for 68 employees = 68/20 toilet
= 3.4toilets.
=3 toilets

INDUSTRIAL DESIGN I
For one toilet area = 2.25m2

Area of toilet =3*2.25m2
=6.75m2
For male one toilet =20 – 100 employee workers.
Assume one toilet =30 employee uses.
The companies have 60 male employee workers in one shift.
1 toilet = 30
X = 68
X = 68/30
=2.3toilet
=2toilets.
Area =2*2.25m2
=4.5m2
Total area = total female toilet area + Total male toilet area
= 4.5m2 + 6.75m2
=11.25m2
vi. Hand wash basin area is: -
For male = 25
For female = 25
Total = 50
For each hand wash basin = 0.5m * 0.5
= 0.25m2
Area = 50*0.25m2
= 12.5m2
vi. Locker room
The separate locker rooms are providing to each sex.
Area estimation
There 361 workers so it must be built locker room. From standard data
1 locker = 0.56m2
Area = 361* 0.56 = 202.16m2
Here adjusts one locker for four people that separated by partitions vertically. Therefore, 91lockers
are required for 361workers.
Medical Services

INDUSTRIAL DESIGN I
A productive work force must be keep in good health, proper food services, protects the workers’
health. However, medical services must be providing on addition.
Industrial medical service may be providing for the following situations.
1 Physical example for job applicants and periodic checkups exams
2 Emergency first and for minor insure or illness
3 Professional medical services for major insure on illness
Standards
 It can be anticipated that 3-6% of the total plant force will be treated daily by medical
facilities in an 8hr. days
 The first aid station should be located close to the person responsible for it. Each station
should be equipped with starchier for seriously injured person.
 All aid room should consist of at least a first aid cabinet, bed, and two chairs and should
not be smaller than 9.29 m and not more than18.6 m.
 An estimated of the space required for a first aid room may be obtain by approximately
the size of medical staff assigned to the medical service.
 The number of nurses in an industrial clinic depends up on the occupational hazards on
the industry and the number of workers employed
 For each employee, on industrial nurse should be hired
 One physician should be employee of between 200-800 employees work in the firm.
 the first aid room needed one physical and one nurse
 A first –aid room should be having an area of at least 100sqft (9.3m2) preferably 200sq ft.
(18.6m2)
Take 200sqft or 18.6m2
Estimation area
1. Central control room and tool room: The central control room is located at the free space that
is lay in the middle of the production room.
Assumption: - For the central control room it takes about 9m length and 8m width.
Area = 9m*8m = 72m2
2. Powerhouse: At this room, the whole system power that helps for machine operation of and
other facility will be lay. Put a generator for emergency cases.

INDUSTRIAL DESIGN I
Estimate the area to be about 12m*15m

= 180m2
3. Library and laboratory: The library can take 50 persons once therefore there is a need to have
50 chair with 25 table i.e. two persons use one table
4. Let each 2 persons taken an area of 1.5m*1m = 1.5mseq
Total area 25*1.5m2 = 37.5 m2 for 50 persons and there is 2m horizontal gap
Total shelf takes an area 7m*7m=49m2 with the setting position of library.
Three shelves hence, 3*49m2
= 147 m2
the gap between each consecutive row tables are 2m, which has five horizontally arranged tables
and having 10 rows. Therefore, 10m*2m = 20m2
Total area = (20+37.5+147) = 194.5m2
Storage Area
 Storage is used to storing material before production stages. Storage system layout is used
includes the height, length, with of storage, the location of the individual items in storage
and the location configuration of the any requirement supper function.
 Storage method is used include the specification of unit load to be stored, handled, and
controlled, storage/retrieval device, storage equipment, and other material handling
equipment.
 Storage area allowed which are on the physical dimension of the product and its handling
equipment.
 Therefore, in the company the raw material and finished product store is 20 meter by 20
meter.
Area=20m*20m
=400m2
Total other facility area
=400m2+194.5m2+180m2+72m2+18.6m2+202.16m2+12.5m2+11.25m2+16.1m2+6.72m2+20.9m2+
11.34m2+130m2+1,828m2+361.42m2+613.84m2
= 4,079.33 m2
Total building area=3,539.56m2+4,079.33 m2
=7,618.89 m2

INDUSTRIAL DESIGN I
4.6 Department activity relationship and block diagram

The following activity relationship shows by from to chart is the overall production section and
department of offices.
Table 23: From to chart of overall production section and department of offices
From/To office Production room warehouse cafeteria

Office 4 1 2
Production room 4 6 4
Warehouse 0 6 0
Cafeteria 2 4 0
Key:
6- Absolutely important
4-Esentialy necessary
3-Important
2-Ordinary
0-not important
Based on the relationship production room and warehouse are under an absolute necessary
important.
Note. A=office
B=production room
C=warehouse
D=cafeteria
Step 1: take department production room and warehouse.
B C
Step 2:
Production room warehouse Sum A
Office 4 1 5 (max. take)
Cafeteria 4 0 4
B C

INDUSTRIAL DESIGN I
Step 3:
A
B C A Sum
D 4 0 2 6
D
B C
The block layout of the production section, cafeteria, warehouse and office are shows as follow.
Office Warehouse
Cafeteria Production room
Figure 13: block layout of the production section, cafeteria, warehouse and office
Table 24: Production office layout
From A B C D E F
/to
A 6 6 6 6 O
B 6 6 6 3
C 5 5 3
D 6 3
E 6
F
A=Machines D=Quality room

B=Section manager E=Maintenance room
C=Shift leader F=Toilet and shower room
Step 1: Take department A and B (high value)
A B

INDUSTRIAL DESIGN I
Step 2:
A B Sum
A B
C 6 6 12 (take this department)
D 6 6 12
E 6 6 12
F 0 3 3 C
Step 3:
A B
A B C Sum
D 6 6 5 17 take it
E 6 6 5 17 D
F 0 3 3 6
C
Step 4:
A
A B C D Sum B
E 6 6 5 6 23 take
E
F 0 3 3 3 9
Step 5: D
A B C D E Sum
F 0 3 3 3 6 15
C
A B
F
E
C
INDUSTRIAL DESIGN I
The block diagram of the production offices are shows as follow
Section manager Shift leader
Toilet and
Machines Quality room shower
Maintenance room
Figure 14: production offices block diagram

The block diagram of machinery relationship, office layout and the general layout of the company
are shows as follow in the same way of the above method.
Table 25: Production machine from to chart
A B C D E F G H
A 6 0 0 0 0 3 0
B 6 0 0 0 2 0
C 6 0 0 2 0
D 6 0 2 0
E 6 3 0
F 4 0
G 6
H

INDUSTRIAL DESIGN I
A=Tape-plant E=Printing machine

B=Circular loom F=packing machine
C=Cutter G=Crusher machine
D=sewing machine H=Recycle machine
Tape-plant Circular loom
Cutter
Sewing
Recycle Crusher
Printing
Packing
Figure 15: Production machines block diagram

Table 26: From to chart of office layout
From/ To A B C D E
A 5 5 5 3
B 4 5 3
C 4 3
D 3
E
A =Managerial case
B =Finance and marketing case
C =Recording and storing case
D =Medical service case
E =Get rest case

INDUSTRIAL DESIGN I
General Manager Office Finance and marketing
Recording and storing
Get rest / Cafeteria Medical services
Figure 16: Block diagram of the office layout
Figure 17: Overall factory layout

INDUSTRIAL DESIGN I
4.5 Auxiliary Facilities

Auxiliary facilities now exist or hereafter constricted or acquired. Which furnish a service to
student’s facility, or staff at a system and which generate income, fees, rents, charges, and revenue
arising from the use of the facilities to support any project cost; such facilities shall include (but
shall not be limited by type or class)
An auxiliary facility is one that supports another covered establishment's activities (e.g., research
and development laboratories, warehouses, and storage facilities).
 storage facilities- used to store raw materials
 offices-
 warehouses- used to store finished and semi-finished products before they are released to
market
 toilet
 parking area
 cafeteria
 clinic
4.6 Working Conditions

Working conditions in factories: the circumstances under which individuals are required to do their
jobs include such factors as the number of hours on the job, required output for workers, safety in
the workplace, and paid to workers and their families for injuries and fatalities suffered in the
workplace. Because workers, for the most part, lacked the means to obtain fair compensation for
their injuries, accidents were ultimately cheaper than slowdowns in production. This changed
toward the end of the century as the growth of the labor movement began to draw public attention
to the plight of the worker.
That part of labor welfare, which concerns with the worker’s health, safety, comfort and efficiency
in work setting is termed as working conditions.
Thus, the term ‘working condition’ is described in the context of
 Health
 Safety,
 Working environment
 Hours of work,
 Welfare of the workers,

INDUSTRIAL DESIGN I
 Provision of sanitation, canteens, crèches, drinking water, rest shelter, and other similar
facilities are included in it.
As a part of labor welfare activities, working conditions include welfare amenities provided within
the premises of an establishment. The envisaged company will consist of facilities like
 Latrines and urinals
 Washing and bathing facilities,
 Crèches
 Rest shelters and canteens
 Arrangement for drinking water
 Arrangement for prevention of fatigue
 Health services including occupational safety
 Uniform and protective clothing and
 Administrative arrangements within the factory
Health and welfare measures in factories as provided in the Factories Act have already been
describe in detail in the previous lessons.
1. Identifying working hour: The Factories Act regulates the working hours of workers employed
in factories. It is if no adult worker shall be required or allowed to work in a factory for more
than 48 hours in any week. The envisaged company will have daily 8 hour operating time with
three shifts and one labor is working for 8hr per day and 48 hrs.
Holidays: No worker shall be required or allowed to work in the envisaged factory on both
religious and national holidays but if they want to work in that day bonus will give to them.
Daily Hours of Work: No adult worker shall be required or allowed to work in a factory for more
than nine hours on any day.
Intervals for rest: The duration of work of adult workers in a factory each day shall be so fix the
number of period shall exceed five hours and that no worker shall work for more than five hours
before he had an interval for rest of at least half an hour. That means workers in envisaged
company will have two tea breaks for 15minutes and lunch break for 30 minutes.
2. Health and safety: The principal objectives of safety, health and well-being at work are to:
 identify the risks which can lead to injury, illness and unsatisfactory conditions at the
workplace

INDUSTRIAL DESIGN I
 analyze and determine the nature of the risks and problems; how they affect the worker
and what measures need to be taken
 correct the situation and introduce improvements
 follow up, ensuring that the measures have been properly carried out and have had the
intended effect
 ensure that no new problems have been introduced into the workplace
To keep safe, the workers the following actions must under take
 Establish clinics inside the factory for workers
 All protection/guards, maintenance instructions and safety instructions should be included
the machine.
3. Working environment-The working conditions can influence us indirectly thereby causing
accidents. Such factors include disorder at the workplace, noise, temperature, ventilation and
lighting. So that the following measures will take to avoid accidents that comes due to working
environment disorder
Work place- the work must be clean and pleasant and the machines arranged in proper way by
following KIEZEN principle.
Temperature and ventilation - In the hot season, workers feel very uncomfortable and their
efficiency of work drops. With higher living standards and technology, the employers are
sometimes able to control the climate in the space they live or work in. In the envisaged factory or
in outdoor work, however, there are often to intolerable heat and therefore need to take measures
to reduce the harmful effects of heat. They can also reduce the heat by installing air conditioning.
Noise- At many workplaces, the level of noise can be injurious to hearing. Often different types of
processing machines create the noise. Tools powered by compressed air, or manual work
hammering metal objects also creates loud noise. Noise that is continuous at a level of 85-90 dB
or more is injurious to hearing. Workers risk damage to their hearing if they spend more than five
hours a day at this level of noise. Hearing can also be damage by sudden loud noises from an
explosion near the ear. Unfortunately, they cannot close their ears. Therefore, they shall to buy ear
protectors and silencers on the machine and reduce
Noise from equipment. It can be reduce efficiently by taking the following measures.
 changing the type of pneumatic equipment to reduce high-frequency components
 replacing that equipment with quieter model

INDUSTRIAL DESIGN I
 properly fastening some noise-producing parts isolating or screening the workplace

containing noisy equipment
Lighting- the workers often forget how important lighting is both at home and at work. The eyes
can adjust to a wide range of brightness, but inadequate lighting makes it difficult to work and
contributes to accidents. Poor lighting can also result in eye problems. Lighting requirements at
workplaces should make good use of natural light and at the same time avoid disturbances by
sunlight or other light sources.
The lightning requirements for the envisaged factory: – According to the nature of the work the
factory don’t need more light at the day time and in each work station 4 up to 10 lamps are required
at night time. Regular service for lights is important. It also gives opportunities to think of better
lighting.
4.7 Civil Workers

Civil work focuses on the structure of the company buildings. Before the actual construction of
roads and bridges of the company, there is an intensive process of the development. Civil work of
the company includes the building of the company.
Building type selection
After selecting the suitable site, the next step is to plan and organize the facilities and equipment
to be use in the factory. A particular type of building is required to be select and method of
arranging materials, machinery and equipment has decided. Factory building provides the housing
for men, materials and machines. The factory design refers to the plan for a particular type of
building, arrangement of machinery equipment and provision of service facilities, lighting,
heating, ventilation etc. in the building. The manufacturing process takes place inside the factory
building. It is not proper to house the manufacturing process in a ready-made factory. The factory
building can be of different designs depending upon the purpose and specific requirement of the
management process. Thus, factory design comprises of the building design and layout of the
factory.
The factory building can be of different design depending upon the purpose and specific
requirements of the manufacturing process. The building must process the functional,
constructional and architectural characteristics.

INDUSTRIAL DESIGN I
1) The functional characteristics- consider the production processes intended to be intending to

perform in the factory.
2) Constructional characteristics- consider the safety and durability of the building.
3) While, the architectural aspects are mainly concerned with the beautification of the factory
building
However, primary importance should be gives to some extent to the constructional aspects rather
than the aesthetic value of the building.
Planning construction of factory building is very important task. The factory building should be
design to protect the property and employees. It provides efficient operation of the plant so that,
the operation cost is minimized. It should provide pleasant and comfortable working environment
to the employee.
There are two main types of factory building depend on floor using, namely: -
1. Single store building
2. Multi store building
1) Single store or horizontal buildings
A single store building normally consists of the ground floor only. However, in some cases,
basement or mezzanine floor may be construct for storing raw materials and finished goods
Advantages
 Facilities expansion  Effective utilization of floor space
 Efficient supervision  Greater flexibility in layout
 Reduce fire hazarder  Suitable for heavy plant
 Low cost and quick constriction  Use of natural light and ventilation
2) Multi store buildings
Multi store building consists of number of floor various departments, machineries, and equipment
arranged on different floors according to the manufacturing plan. The departments having heavy
machinery are arranging on ground floor.
Advantages
 Low cost of land  Use of gravity flow
 More storage space  Lower heating cost
 Compact layout
Before selecting the building type let us see the futurities of the company

INDUSTRIAL DESIGN I
 Products are not having heavy load and it is no longer in length.

 Machines have heavy load or weight.
 It needs easy material handling system that supported by labor force.
 All machines are ground based.
 Need enough light
By making compaction between them, standing from the above futurities of the company and other
things or reason select company building type
Table 27: Difference of single and multiple building
Particulars Single store building Multi store building

Cost of construction Low High
Conservation of floor space High Low
Material handling Easy Difficult
Load bearing capacity High Low
Availability for light products Good Good
Vibration resistance Good Poor
Supervision Efficient Inefficient
cost of land High Low
scope for expansion High Low
Based on the above reason single store or horizontal building is more preferable than multi-store
building.
Selection of construction of factory buildings
There are five types of contractions, these are
 Wood frame construction
 Brick construction
 Steel construction
 RCC (reinforced concrete construction)
 Pre- cast concrete construction
Wood frame
 Quickly constructed  Shorter life
 Most flexible  Floor capable for light load
 Alteration mode easily  High
 Highly flammable

INDUSTRIAL DESIGN I
Brick construction
 More durable than wood frame
 Much less cost of deprecation
 Cheaper than steel from rock
 Alterations are easy compare to steel from
 Wall and columns may create obstruction in manufacturing process
Steel construction
 Steel columns, beams, girds & roof stress
 Side wall brick or corrugated steel sheets
 Construction cost is greater than brick
 Involve low insurance rate
RCC (reinforced concrete construction)
 All structural members made of RCC
 Ceilings are concrete surface
 Fire proof
 Involve low maintenance cost
 Costly and less flexible
 Proved have floor loading
Pre – caste construction
 Economical way of construction
 Very speedy
 Cranes to form the walls, roofs
 Etc.
Brick construction is the best constriction for the company because it is better than the other
constriction type as it described from the above point.
To build the factory building first considers the following points:
 Ground and exterior facilities  Wall and windows
 Floor  Roof and ceilings
Ground and exterior facilities

The trend towards industrial building in the country has forced management to consider plant
ground and exterior facilities with increasingly larger proportions of the work force traveling to
work in passenger’s cars, access high ways and parking facilities must be properly plan. Farley in
planning stages thought the given to other means of transportation, such as rail and water facility.
Floor: The strength of the floor decided based on the foundation and the type of the soil. Generally,
concrete materials are necessary for flooring. Because it is cheap and serviceable, it have the ability
to resisted vibration and advisable for heavy load. There are two characteristics of major
importance when considering industrial flooring
 Flooring should be strong enough to support equipment and product

INDUSTRIAL DESIGN I
 The floor level should be constant for all buildings

To build the floor of the factory the layout man should check the floor strength with the architect,
builder, or contractor because good flooring material must meet many stringent requirements like:
Desirable flooring material should provide Durability, Comfort for the floor and Resistance to
vibration, Sound absorption, Low material cost and low installation cost and Insulation against
heat and cold.
Wall and windows: Industrial plant built at the turn of the century depending up on thick stonework
or masonry to hold up their wall and roofs. In many modern industrial plants, the only load bearings
walls are the extern or walls, while inside the plant non load-bearings partitions are important to
segregate various areas. Since the interior loads are carry by the columns, partitions are easily
movable provide flexibility in the layout.
Roof and ceilings
The roof is a serious problem that must be give considerable through in the design stages.
Numerous roofing materials are available today in the forms of corrugated or ribbed steel or
aluminum, precast slabs of concrete, tiles for buildup roofs, and other insulation substances. Many
types of roofing are:
 Flat roof  Saw tooth

 Valley roof  Bowstring
 Gable roof  Quonset
 Monitor
For the selected single store, building is gable roof.

INDUSTRIAL DESIGN I
CHAPTER FIVE
5. DETERMINATION OF HUMAN RESOURCE AND
ORGANIZATIONAL STRUCTURE
5. 1 Human Resource to Run the Industry
Determination of workers required to operate the machines
Number of operators required to run each machine could be determined using the
following formula.
No. of operators = demand per week *machine time
No of machine *available production time per week per shift
 Given demand=443,700pieces per week
 available production time per week=8*3*60=1440 min then
No of operators required for: -
Tape-plant production= (443,700pieces/week*0.019min/pieces)/ (1*1440min/week)
=5.85 operators
=6 operators
Circular loom machine= (443,700pieces/week*0.552min/pieces)/ (33*1440min/week)
=5.15 operators
=5 operators
Cuter machine = (443,700pieces/week*0.057min/pieces)/ (3*1440min/week)
=5.85 operators
=6 operators
Sewing machine= (443,700pieces/week*0.29min/pieces)/ (17*1440min/week)
= 5.25 operators
=5 operators
Printing machine= (443,700pieces/week*0.06min/pieces)/ (1*1440min/week)
= 4.6 operators
=5 operators
Packing machine= (443,700pieces/week*0.018 min/pieces)/ (1*1440min/week)
= 5.54 operators
=6 operators

INDUSTRIAL DESIGN I
The winding machine is to enwrap the yarns that are produce from the tape-plant. The process
capacity of winder machine is determine by the process capacity of the tape-plant machine. This
winder has 720 winding rings; the estimated workers for this machine per shift are six.
Table 28: Workers required operating the machine
Name of machine Number of machine No. operators/machine Total operators

Tape-plant 1 6 6
Winder 1 18 18
Circular loom 33 5 165
Cutter 3 6 18
Sewing 17 5 85
Printing 4 5 20
Packing 1 6 6
Crusher 1 3 3
Recycling 1 2 3
Total operators 324
Workers are required for both administration and production. There are 409-man power, 324
machine operator and 85-administration worker to determine the amount of production worker by
consider the machine standards.
Table 29: The demonstration workers
No. Description No. Req.

1 General Manager 1
2 Executive Secretary 1
3 Head, Administration & Finance 1
4 Secretary 1
5 Personnel and General Service 1
6 Archive 1
7 Personnel Clerk 1

INDUSTRIAL DESIGN I
8 General Service Clerk 1

9 Driver 9
10 Messenger 2
11 Guard 10
12 Cleaners (Office) 5
13 Finance Section Head 1
14 Senior Accountant 1
15 Accountant 1
16 Accounts Clerk 2
17 Cashier 1
18 Head, Commercial Department 1
19 Purchaser 3
20 Sales Person 3
21 Sales Clerk 1
22 Stores Clerk 3
23 Store Keeper 3
24 Production & Technical Manager 1
25 Production Head 1
26 Maintenance Head 1
27 Mechanical Maintenance Foreman 4
28 Electrical Maintenance Foreman 4
29 Electrician 2
30 Mechanic 4
31 Shift Leader 1
32 Mechanic Helper 5
33 Electrician Helper 2
34 Machinist 6
35 Operators 324
36 Total man power 409

INDUSTRIAL DESIGN I
5.2 Organizational Structure to Run the Industry
General Manager
Clinic Secretar
Legal Auditor
Production Financial Human

Marketing
department departme recourse
department
(HR)
department
Sales Purchasin Accounta Store

division g division nt division
Quality Shift leader

supervis
Tape- Printing and

Loom Singer
plant packing
section section
section section
Work Technici Worker Technici

Work Tech Work Techni
Figure 18: organizational structure er nician er cian

INDUSTRIAL DESIGN I
CHAPTER SIX
6. DETERMINATION OF COST AND SELLING PRICE
6.1 Initial Investment Cost
The Cost Analysis focused on future prices and provided for the client's use. The Cost Analysis
(estimate) derived from Pena's Problem Seeking. It involves: Building Cost, Fixed Equipment and
machinery cost, Site Development, Total Construction Cost, Site Acquisition, Professional Fees,
Contingencies, Administrative Costs, Permanent Financing Costs, intern Financing Cost.
All of the above cost is generalize by:
 Working capital
 Land cost
 Machinery and equipment cost
 Civil work
Table 30: Machinery and equipment cost
Machine name Quantity Cost/machine (birr) Total cost (Birr)

Tape-plant 1 348,750 348,750
Circular loom 33 218,550 7,212,150
Cutter 3 258,500 775,500
Sewing 17 10,450 177,650
Printing 4 85,250 341,000
Packing 1 37,025 37,025
Crusher 1 22,325 22,325
Recycle 1 58,750 58,750
Total 61 8,973,150
Source: www.alibaba.com
From the commitments of the LOHA, machine their workers do Producer Company the installation
of the machine by the cost of 35% of the machinery cost.

INDUSTRIAL DESIGN I
Table 31: Foundation and machine installation cost
Machine name Quantity Cost (Birr) Total cost

Tape-plant 1 348,750*0.35=122,063 122,063
Circular loom 33 7,212,150*0.35=2,524,375 2,524,375
Cutter 3 775,500*0.35=271,425 271,425
Sewing 17 177,650*0.35 ------------
Printing 4 341,000*0.35=119,350 119,350
Packing 1 37,025*0.35=12,959 12,959
Crusher 1 22,325*0.35=7,814 7,814
Recycle 1 58,750*0.35=20,563 20,563
Total 3,078,549
Source: www.alibaba.com
Table 32: Office equipment
No Equipment Quantity unit cost birr Total cost

1 Printer 1 12,000 12,000
2 Copy machine 1 15,000 15,000
3 Other office equipment 100,000
Total 127,000
Furnishing
Provide 50 desk and 150chairs, 40 filing cabinets, and 50 tables
Table 33: furniture
Furniture Quantity Average cost birr Total cost

1 Chair 150 550 82,500
2 Table 100 800 80,000
3 Locker 91 3,500 318,500
4 Desk 50 3500 175,000
5 Fill cabinet 40 1600 64,000
6 Computer 15 5,000 75,000
Total 795,000

INDUSTRIAL DESIGN I
Table 34: Vehicle cost
No Type quantity Unit price Total price

1 Lorries 3 10,000,000 30,000,000
2 Bus 3 3,000,000 9,000,000
3 Pick up 1 750,000 750,000
Total 39,750,000
Cost of Land
In Ethiopia, land is public property. Both urban and rural land is available for investment on
leasehold basis. Lease right over land can be transferee, mortgage or sub-leased together with on-
build facilities. The period of lease may also be renewed.
The rental value and the lease period of rural land are determine and fixed by land use regulations
of each regional state.
The total estimated area of land requirement for the plant is 30,000 m² out of which the factory
builds up area is 7,618.89 m2.
According to the Federal Legislation on the Lease Holding of Urban Land (Proclamation No.
721/2004) in principle, urban land permit by lease is on auction or negotiation basis, however, the
time and condition of applying the proclamation shall be determine by the concerned regional or
city government depending on the level of development.
The legislation has also set the maximum on lease period and the payment of lease prices. The
lease period ranges from 99 years for education, cultural research health, sport, NGO, religious
and residential area to 80 years for industry and 70 years for trade while the lease payment period
ranges from 10 years to 60 years based on the towns grade and type of investment.
Urban Lands Lease Holding Proclamation regulation classified the city into three zones.
 Central Market District Zone lease price ranges from Birr 1,686 to Birr 894 per m2.
 Transitional Zone land lease price ranges from Birr 1,035 to Birr 555 per m2
 Expansion Zone, lease price ranges from Birr 355 to Birr 191 per m2
The company is establishes at Bahir Dar, it also one of the expansion zone in Ethiopia. The
minimum lease price is 191 birr/m2.

INDUSTRIAL DESIGN I
Therefore, 1m2=191 birr

30,000m2=X
X=5,730,000 birr
Building and Civil Works
Total land requirement for the company is estimate at 30,000m2, out of which 7,618.89 m2 is a
built-up area. The estimate cost of building construction, at a unit cost of Birr 2,300 per m2.
1m2=2500birr
7,618.89 m2= X
X=19,047,225 birr.
Estimate cost of site preparation, at a unit cost of Birr 55 per m2.
30,000m2*55birr/m2
1,650,000 birr
The total cost of building and civil works =19,047,225 birr+1,650,000 birr
=20,697,225 birr
From the standards negotiation, the working capital of the company is 10%-15% of the sum of
other investment cost (machinery and equipment cost, land and civil work cost). Therefore, the
working capital of the new PP bag factory is 15% of machinery and equipment cost, land cost and
civil work cost.
Total machinery and equipment cost=52,723,699birr
Land cost=5,730,000birr
Civil work cost=20,697,225birr
Working capital=15% (52,723,699+5,730,000+20,697,225)
=0.15(79,150,924)
=11,872,639birr
Total investment cost=11,872,639+5,730,000+20,697,225+7,750,414
=91,023,563birr

INDUSTRIAL DESIGN I
6.2 Total Cost of Production

All manufacturing cost attached to the units produced from external financial reporting. The
resulting unit costs are to inventory valuation on the balance sheet and fore the calculation of the
cost of products sold on the income statement. Manufacturing cost are typically groups into three
categories.
 Direct material
 Direct labor
 Manufacturing overhead
Direct material: -this is the cost of the material, which becomes part of the finished product.
Direct labor: - this is the cost wedge of the individuals who are physically involved in converting
raw materials into finished products.
Manufacturing overhead: -it refers to all other costs incurred in the manufacturing activity, which
cannot directly trace to physical units in an economically feasible way. There are two types of cost
are -
Fixed cost
Fixed costs continue regardless of how much you can sell or not sell, and made up of such
expenses as rent, wages, telephone account and insurance. This cost estimated by using last
year’s figure as a basis, because they typically do not change.
 Salary and wedge

 Overhead cost
 Depreciation cost
Table 35: Workers and labor cost
No. Description No. Req. Monthly Annual

Salary (Birr) Salary (Birr)
1 General Manager 1 15,000 180,000
2 Executive Secretary 1 4,500 54,000
3 Head, Administration & Finance 1 4,500 54,000
4 Secretary 1 3,000 36,000
5 Personnel & General Service 1 3,500 42,000
6 Archive 1 3,000 36,000
7 Personnel Clerk 1 3,200 38,400
8 General Service Clerk 1 3,200 38,400
9 Driver 9 40,500 486,000

INDUSTRIAL DESIGN I
10 Messenger 2 5,000 60,000

11 Guard 10 30,000 360,000
12 Cleaners (Office) 5 10,000 120,000
13 Finance Section Head 1 6,500 78,000
14 Senior Accountant 1 3,500 42,000
15 Accountant 1 3,000 36,000
16 Accounts Clerk 2 5,600 67,200
17 Cashier 1 3,000 18,000
18 Head, Commercial Department 1 3,000 36,000
19 Purchaser 3 10,500 126,000
20 Sales Person 3 10,500 126,000
21 Sales Clerk 1 3,200 38,400
22 Stores Clerk 3 10,500 126,000
23 Store Keeper 3 10,500 126,000
24 Production & Technical Manager 1 7,500 90,000
25 Production Head 1 8,500 102,000
26 Maintenance Head 1 3,500 42,000
27 Mechanical Maintenance Foreman 4 10,000 120,000
28 Electrical Maintenance Foreman 4 10,000 120,000
29 Electrician 2 4,000 48,000
30 Mechanic 4 8,400 100,000
31 Shift Leader 3 7,500 90,000
32 Mechanic Helper 5 10,000 120,000
33 Electrician Helper 2 5,000 60,000
34 Machinist 6 12,000 144,000
25 Operators 324 972,000 11,664,000
Total man power 409
Total cost/month 1,253,600
Total coat/year 15,043,200

Overhead cost
Overhead cost contains the following estimated cost
 Telephone, internet, fax=65,650birr/year
 Insurance cost
 Loire cost
 Promotion and advertisement cost
Insurance cost is estimate as 5% of the total investment cost.
Insurance cost=5%*91,023,563birr/year

INDUSTRIAL DESIGN I
=0.05*91,023,563birr/year
=4,551,178birr/year
The estimate vehicle insurance cost is 2,500,000birr.
The estimate Loire, promotion and advertisement cost is 25,000birr/year
Total overhead cost=7,076,178birr/year
Depreciation cost
Depreciation cost most of the time 10% of the machinery and equipment cost.
Table 36: Depreciation cost
Machine name Quantity Depreciation cost (birr) Total cost (Birr)
Tape-plant 1 34,875 34,875
Circular loom 33 21,855 721,215
Cutter 3 25,850 77,550
Sewing 17 1,045 17,765
Printing 4 8,525 34,100
Packing 1 3,702.5 3,702.5
Crusher 1 2,232.5 2,232.5
Recycle 1 5,875 5,875
Total 61 897,315
Depreciation cost of vehicle, office equipment and furnishing cost
=10 %( 39,750,000+795,000+127,000)
=0.1*40,672,000
=4,067,200birr/year
Total depreciation cost=4,067,200birr/year +897,315birr/year
=4,964,515birr/year
Total fixed cost=4,964,515birr/year +15,043,200birr/year+7,076,178birr/year
=27,083,893birr/year
Variable cost
Variable cost are relate to the volume of sales: that is these cost increase in proportion to the
increase in sales and vice versa.
 Raw material cost
 Utilities
Table 37: Raw material cost per year
Raw material Amount Cost (Birr)

Polypropylene 1,575,000kg 22,365,000
Calcium (deep master batch) 315,000kg 2,072,070

INDUSTRIAL DESIGN I
Color master batch 149,625kg 11,970,000

Total 36,407,070
1tone PP= 14,200 birr

1kg master batch=80birr source: www.alibaba.com
1tone calcium carbonate =6,578birr
Utility cost
The estimate amounts of utilities with their current responding costs are shows in the following
table.
Table 38: Utility cost
Utilities Amount/month Single cost/birr cost/month Cost/year
Electricity 55,761 Kwh 0.92 birr 51,300birr 615,601
Water 315 m3 8.00 birr 2,520 birr 30,240
Lubricant 15,750 liter 35 birr 551,250birr 6,615,000
Ink 10,725 liter 120 birr 1,287,000 15,444,000
Total 22,704,841
Total variable cost=36,407,070birr/year+22,704,841birr/year

=59,111,911birr/year
Total production cost=variable cost + fixed cost
=59,111,911birr/year +27,083,893birr/year
=86,195804birr/year
6.3 Unit Cost

Unit cost is the total expenditure incurred by a company to produce, store and sell one units of a
particular product or service. Unit cost includes all labor costs, or overhead costs, and all variable
costs or direct material costs and direct labor costs, involved in a production. Determining the unit
cost is a quick way to check the efficiency of the company.
Unit cost of the product calculated by dividing the total amounts of variable costs by the total
number of units that are produce from the company.
Total production cost
𝑢𝑛𝑖𝑡 𝑐𝑜𝑠𝑡 =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑

INDUSTRIAL DESIGN I
As mentioned earlier from the sale volume the company designs to produce 26,775,000pieces/year
but there are several types of product under this amount as discussed from the sale volume.
However, to determine the unit cost of each type of the product, first determine the amount of raw
material cost, wedge cost, utility cost, Depreciation cost and overhead cost for each individual.
To determine the unit cost of each type of the product first determines the weighted average size
of the product and the size of each product.
As discussed from the line balance the weight average of one piece of product are 84.3gram and
59.15-*105 cm. i.e. the diameter is 59.15cm and height is 105cm. therefore, area is calculate as
follow.
𝐴 = 𝜋𝑟ℎ
A=3.14*59.15*105
A=19,511cm2
The annual production capacity of the plant is 26,775,000pieces. The average weight and size of
the product are calculates as follow.
1pieces=19,511cm2
26,775,000pieces=X
X=522,407,025,000cm2 it consume 36,407,070birr/year for raw material.
The size of each type of product is shows in the table blow.
Table 39: size of each type of product
Type of product Quantity in pieces The size of the product The total size of the product
(cm2/pieces) (cm2)
50*85 3,925,000 13,345 52,379,125,000
48*95 3,850,000 14,318 55,108,900,000
50*95 3,800,000 14,915 56,677,000,000
61*100 3,825,000 19,154 73,264,050,000
61*110 3,725,000 21,069 78,482,025,000
72*130 3,875,000 29,390 113,886,250,000
72*120 3,745,000 27,130 101,601,850,000

INDUSTRIAL DESIGN I
Production cost for 50*85-product type.

522,407,025,000cm2 =36,407,070birr/year ….for raw material
52,379,125,000cm2=X
X=3,650,354birr/year
In the same way calculate for other production cost and show in the table below.
Table 40: Production cost for 50*85-product type
Type of production cost Amount of cost per year (birr/year)

Raw material cost 3,700,486
Utility cost 2,276,500
Wedge and salary 1,508,306
Overhead cost 709,492
Depreciation cost 497,767
Total 8,692,551
Unit cost for 50*85-product type
8,692,551 birr/year
unit cost =
3,925,000units/year
=2.25 birr/unit
Production cost for 48*95-product type.
522,407,025,000cm2=36,407,070birr/year ….for raw material
55,108,900,000cm2=X
X=3,840,595birr/year
In the same way, calculate other costs for all type of products.
Table 41: Total production cost for 48*95-product type
Type of production cost Amount of cost per year


INDUSTRIAL DESIGN I

Total 9,092825

9,092,825 birr/year
unit cost =
3,850,000units/year
=2.40birr

Total 9,351,557
9,351,557 birr/year
unit cost =
3,800,000units/year
unit cost = 2.50birr/unit

Total 12,088,378

INDUSTRIAL DESIGN I
12,088,378 birr/year
unit cost =
3,825,000units/year

Overhead cost 1,063,065
Total 12,949,331

unit cost =
3,725,000units/year
Type of production Amount of

cost cost per year
Depreciation cost 1,082,279
Total 18,790,935
unit cost =
3,875,000units/year

INDUSTRIAL DESIGN I
Type of production Amount of cost per

cost year
Total 16,764,042

unit cost =
3,745,000units/year
Table 47: The unit cost of the other type is calculates as in the same way.
Type of quantity in pieces Unit cost

product
50*85 3,925,000 2.25
48*95 3,850,000 2.40
50*95 3,800,000 2.50
61*100 3,825,000 3.20
61*110 3,725,000 3.50
72*130 3,875,000 5.00
72*120 3,745,000 4.50
6.4 Selling Price

Selling price is the market value, or agreed exchange value, that will purchase a definite quantity,
weight, or other measure of a good or service. Selling price may be fixing by a contract (such as
sale of good contract). Selling price is the criminal offense to manipulate prices in collusion with
other suppliers and to give misleading induction of price such as charging for items that are
responsibly expects to be included in the advertised, list, or quote price (sale price).

INDUSTRIAL DESIGN I
Determination of selling prices: To determine the selling price manufacturing cost must be
identify. Manufacturing cost is necessary to convert raw material into products.
The marginal selling price of the company is 50% of the unit cost of the product. The formula
shows that the taxpayer is the customer of the company. The tax amount of the factory in Ethiopia
is 30% of the income money.
Selling price/unit =unit cost+ unit cost*profit + unit cost*tax
Selling price for product type 50*85 is
Selling price=2.25birr+50%*2.25birr+30%*2.25
=4.05birr
In the same way calculate for others and show in the table below.
Table 48: Selling price of each type of product
Product type Selling price (birr)

50*85 4.05
48*95 4.35
50*95 4.50
61*100 5.80
61*110 6.30
72*130 9.00
72*120 8.10

INDUSTRIAL DESIGN I
CHAPTER SEVEN
7. ECONOMIC FEASIBILITY ANALYSIS
7.1 Cash Flow
Cash flow is the money that is moving (flowing) in and out of business in a month. Although it
does seem sometimes that cash flow only goes one way - out of the business - it does flow both
ways. Think of 'cash flow' as a picture of the business checking account. If more money is coming
in than is going out, the business is in a "positive cash flow".
As mentioned from the sale volume the production capacity of the company for the first five year
is 70%, 80%, 90%, 95% and 100% consecutively of each product type.
Total revenue of the company
Total revenue for product type 50*85
Year 1=2,747,500*4.05birr Year 3=3,532,500*
=11,127,375birr =14,306,625
Year 2=3,140,000*4.05birr Year 4=3,728,750*4.05
12,717,000birr =15,101,438
Year 5=3,925,000*4.05
=15,896,250
In the same way, calculate for the others

Table 49: selling volume of each product year
Type Year 1 Year 2 Year 3 Year 4 Year 5

50*85 11,127,375 12,717,000 14,306,625 15,101,438 15,896,250
48*95 11,723,250 13,398,000 15,072,750 15,910,125 16,747,500
50*95 11,970,000 13,680,000 15,390,000 16,245,000 17,100,000
61*100 15,529,500 17,748,100 19,963,600 21,075,750 22,185,000
61*110 16,427,250 18,774,000 21,120,750 22,294,125 23,467,500
72*130 24,412,500 27,900,000 31,387,500 33,131,250 34,875,000
72*120 21,234,150 24,267,600 27,301,050 28,817,775 30,350,700
Total 112,424,025 128,484,700 144,542,275 152,575,463 160,621,950

INDUSTRIAL DESIGN I
The revenue starting from the fifth year up to the tenth year is constant. Therefore, the revenue is
160,621,950 birr. The cash flow is compute for ten year considering five-year tax holiday get from
the government.
Table 50: cash flow
Description Years
0 1 2 3 4 5
Investment 91,023,563 0 0 0 0 0
Cash in flow 0 112,424,025 128,484,700 144,542,275 152,575,463 160,621,950
Total revenue 0 112,424,025 128,484,700 144,542,275 152,575,463 160,621,950
Cash out flow 0 68,462,231 73,946,971 78,861,355 81,894,225 84,488,507
Raw material 0 25,484,949 29,125,656 32,766,363 34,586,117 36,407,070
Utility 0 15,893,389 18,163,873 20,434,357 21,569,599 22,704,841
Overhead 0 7,076,178 7,076,178 7,076,178 7,076,178 7,076,178
Salary and 0 15,043,200 15,043,200 15,043,200 15,043,200 15,043,200
wedge
Depreciation 0 4,964,515 4,468,064 4,021,257 3,619,131 3,257,218
Net cash flow -91,023,563 43,961,794 54,537,729 65,680,920 70,681,238 76,133,443
Tax 0 0 0 0 0 0
Profit after tax 43,961,794 54,537,729 65,680,920 70,681,238 76,133,443
Present value -91,023,563 39,965,267 45,072,503 49,347,047 48,276,237 47,272,878
Description Years
6 7 8 9 10
investment 0 0 0 0 0
Cash in flow 160,621,950 160,621,950 160,621,950 160,621,950 160,621,950
Total revenue 160,621,950 160,621,950 160,621,950 160,621,950 160,621,950
Cash out flow 84,162,786 83,869,635 83,605,801 83,368,350 83,154,644
Raw material 36,407,070 36,407,070 36,407,070 36,407,070 36,407,070
Utility 22,704,841 22,704,841 22,704,841 22,704,841 22,704,841
Overhead 7,076,178 7,076,178 7,076,178 7,076,178 7,076,178

INDUSTRIAL DESIGN I
Salary and 15,043,200 15,043,200 15,043,200 15,043,200 15,043,200
wedge
Depreciation 2,931,497 2,638,346 2,374,512 2,137,061 1,923,355
Net cash flow 76,459,164 76,752,315 77,016,149 77,253,600 77,467,306
Tax 22,937,749 23,025,695 23,104,845 23,176,080 23,240,192
Profit after tax 53,521,415 53,726,620 53,911,304 54,077,520 54,227,114
Present value 43,159,205 39,386,074 35,928,602 32,763,068 29,866,700
7.2 Net Present Value

Net present value (NPV) is defining the total present (discounted) value of a time series of cash
flows. NPV aggregates cash flows that occur during different periods during the life of a company
in to a common measuring unit i.e. present value. It is a standard method for using the time value
of money to appraise long-term projects. NPV is an indicator of how much value an investment or
money adds to the capital invested. In principal, the company is accepting if the NPV is non-
negative. By using the following formula, evaluate the net present value
𝑐
NPV = ∑𝑛𝑡=0( 1+𝑖)𝑛
Where
C = cash flow occurring at the end of year t
n = number of years of project life
t = 0, 1, 2… 10
i= cost of capital
The estimate value of i= 10 %
NPV > 0 Accept the project
I = Initial investment
NPV=(C0/(1+i)+C1/(1+i)1+C2/(1+i)2+C3/(1+i)3+C4/(1+i)4+C5/(1+i)5+C6/(1+i)6+C7/(1+i)7+C8/
(1+i)8+C9/(1+i)9+C10) /(1+i)10)
=381,450,819-91,023,563
=290,427,256
7.3 Profitability Index

Profitability Index = (PV of future cash flows) ÷ Initial investment:
Or = (NPV + Initial investment) ÷ Initial Investment
Profitability Index= (290,427,256+91,023,563)/ (91,023,563)
=4.19

INDUSTRIAL DESIGN I
Profitability index is greater than one it indicates that the project is acceptable.
7.4 Breakeven Analysis

Break-even point is a point at which two variables are equal .This means the point at which
revenue from the sale of commodity is equal to the cost of producing commodity or the point
at which the cost of production is identical under two alternative methods of manufacturing.
However, breakeven point is cannot perform for these types of the product because the plant
produces variety of products. Therefor the analysis is perform by payback period analysis.
7.5 Pay Back Period

Payback period in capital budgeting refers to the period of time required recoup the funds
expanded in an investment or to reach the break-even point. The payback period calculate by
using the following formula.
Payback period = Investment Cost
Here TC =TR*n
The project’s initial investment fully recovered within 5 years 100% production capacity of the
plant.
Total cost=Total revenue *PBP
Investment cost +fixed cost +variable cost=total revenue*PBP
91,023,563birr +59,111,911birr +27,083,893birr=160,621,950birr *PBP
177,219367birr =160,621,950birr*PBP
PBP=1.103year
The payback period of the project is 1year, 1 month, 7 day, 4hr. and 47 minute.

INDUSTRIAL DESIGN I
CHAPTER EIGHT
8. DETERMINING THE IMPLEMENTATION SCHEDULE OF THE
PROJECT USING CPM OR PERT
8.1 Critical path method (CPM)
CPM is a set of graphic technique used in planning and controlling project. In any given project
the three factor of concern are time, cost and resource availability. CPM technique is useful to
determine how best to reduce the time required to perform routine production, maintenance and
construction and to minimize the direct and indirect expenses. Activities with their predecessor
and successors
Table 51: Activities with their predecessor and successors
Number Activity Symbol Predecessor Successor Duration
1 Contractor selection A - B 15
2 Site work B A C,D 90
3 Concrete C B E 60
4 Masonry D B F 30
5 Structural and miscellaneous E C G 45

work
6 Wood and plastic F D H,I 60
7 Thermal and moisture work G E K 90
8 Doors and window H F K 35
9 Machinery supplier selection I F J 15
10 Receiving machinery J I L 60
11 Building finishing K G,H N 60
12 Foundation L J M 60
13 Installation M L P 30
14 Mechanical system plumbing N K O 15

and fire protection for the
building
15 Electrical system O N p 30

INDUSTRIAL DESIGN I
16 Testing and inspection both P M,O - 30

machinery and building
8.2 Network diagram, activity on arrow
Figure 19: Network diagram

PERT CALCULATION
Paths
Path 1:1, 2, 3, 5,7,11,14,15,16
Path 2:1, 2, 4, 6,9,10,12,13,16
Path 3:1, 2, 4, 6,8,11,14,15,16
ET (1) =0 ET (6) =ET (4) +TE (4-6)

ET (2) =ET (1) +TE (1-2) =105+30
=0+15 =135
=15 ET (7) =ET (5) +TE (5-7)
ET (3) =ET (2) +TE (2-3) =165+45
=15+90 =210
=105 ET (8) =ET (6) +TE (6-8)
ET (4) =ET (2) +TE (2-4) =135+60
=15+90 =195
=105 ET (9) =ET (6) +TE (6-9)
ET (5) =ET (3) +TE (3-5) =135+60
=105+60 =195
=165 ET (10) =ET (9) +TE (9-10)
=195+15
=210

INDUSTRIAL DESIGN I
ET (11) =ET (7) +TE (7-11) =375

=210+90 LT (14) =LT (15)-TE (14-15)
=300…take max =375-15
=ET (8) +ET (8-11) =360
=195+35 LT (13) =LT (16)-TE (13-16)
=230 =405-30
ET (12) =ET (10) +TE (10-12) =375
=210+60 LT (12) =LT (13)-TE (12-13)
=270 =375-60
ET (13) =ET (12) +TE (12-13) =315
=270+60
=330 LT (11) =LT (14)-TE (11-14)
ET (14) =TE (11) +TE (11-14) =360-60
=300+60 =300
=360 LT (10) =LT (12)-TE (10-12)
ET (15) =TE (14) +TE (15-15) =315-15
=360+15 =300
=375 LT (9) =LT (10)-TE (9-10)
ET (16) =TE (15) +TE (15-16) =300-15
=375+30 =285
=405 …take max. LT (8) =LT (11)-TE (8-11)
=ET (13) +TE (13-16) =300-35
=330+30 =265
=360 LT (7) =LT (11)-TE (7-11)
ET (15) =405 =300-90
LT (16) =ET (16) =210
=405
LT (15) =LT (16)-TE (15-116)
=405-30
LT (6) =LT (9)-TE (6-9) =175
=285-60 LT (3) =LT (5)-TE (3-5)
=225 =165-60
=LT (8)-TE (6-8) =105
=265-60 LT (2) =LT (3)-LT (2-3)
=205 …take min =105-90
LT (5) = LT (7)-TE (5-7) =15 …take min
=210-45 LT (2) =LT (4)-LT (2-4)
=165 =175-90
LT (4) =LT (6)-TE (4-6) =85
=205-30 LT (1) =LT (2)-LT (1-2)

INDUSTRIAL DESIGN I
=15-15
=0
Therefore, the critical path is
Figure 20: Critical path

CPM
Forward calculation
ESi, j=EFi =195
Es1, 2=EF1 ES11, 14=EF7+t7, 11
=0 =210+90
ES2, 3=EF1+t1, 2 =300 …take max
=0+15 ES11, 14=EF8+t8, 11
=15 =195+35
ES2, 4=EF1+t1, 2 =230
= 0+15 ES14, 15=E11+t11, 14
=15 =300+60
ES3, 5=EF2+t2, 3 =360
=15+90 ES15, 16=EF14+t14, 15
=105 =360+15
ES5, 7=EF3+t3, 5 =375
=105+60 ES6, 9=EF4+t4, 6
=165 =105+30
ES7, 11=E5+t5, 7 =135
=165+45 ES9, 10=EF6+t6, 9
=210 =135+60
ES4, 6=E2+t2 4 =195
=15+90 ES10, 12=EF9+t9, 10
=105 =195+15
ES6, 8= E4+t4, 6 =210
=105+30
=135 ES12, 13=EF10+t10, 12
ES8, 11=EF6+t6, 8 =210+60
=135+60 =270

INDUSTRIAL DESIGN I
ES13, 16=EF12+t12, 13 =360

=270+60 ES16=EF15+t15, 16
=330 =375+30
ES16=EF13+t13, 16 =405 …take max
=330+30
EFi, j=ESi, j + ti, j
EF1, 2=ES1, 2 + t1, 2 =230
=0+15 EF11, 14=ES11, 14 + t11, 14
=15 =300+60
EF2, 3=ES2, 3 + t2, 3 =360
=15+90 EF14, 15=ES14, 15 + t14, 15
=105 =360+15
EF3, 5=ES3, 5 + t3, 5 =375
=105+60 EF15, 16=ES11, 16+ t15, 16
=165 =375+30
EF5, 7=ES5, 7+ t5, 7 =405
=165+45 EF6, 9=ES6, 9+ t6, 9
=210 =135+60
EF7, 11=ES7, 11 + t7, 11 =195
=210+90 EF9, 10=ES9, 10 + t9, 10
=300 =195+15
EF2, 4=ES2, 4 + t2, 4 =210
=15+9 EF10, 1 2=ES10, 12 + t10, 12
=105 =210+60
EF4, 6=ES4, 6 + t4, 6 =270
=105+30 EF12, 13=ES12, 13 + t12, 13
=135 =270+60
EF6, 8=ES6, 8 + t6, 8 =330
=135+60 EF13, 16=ES13, 16 + t13, 16
=195 =330+30
EF8, 11=ES8, 11+ t8, 11 =360
=195+35
CPM
Backward calculation
LS i, j=LFi, j-ti, j =375-15
LS 15, 16=LF15, 16-t15, 16 =360
=405-30
=375 LS 11, 14=LF11, 14-t14, 14
LS 14, 15=LF14, 15-t14, 15 =360-60

INDUSTRIAL DESIGN I
=300 =265-60
LS 13, 16=LF13, 16-t13, 16 =205
=405-30 LS 4, 6=LF4, 6-t4, 6
=375 =180-30
LS 12, 13=LF12, 13-t12, 13 =150
=375-60 LS 2, 4=LF2, 4-t2, 4
=315 =150-90
LS 10, 12=LF10, 12-t10, 12 =60
=315-60 LS 7, 11=LF7, 11-t7, 11
=255 =300-90
LS 9, 10=LF9, 10-t9, 10 =210
=255-15 LS 5, 7=LF5, 7-t5, 7
=240 =210-45
LS 6, 9=LF6, 9-t6, 9 =165
=240-60 LS 3, 5=LF3, 5-t3, 5
=180 =165-60
LS 11, 8=LF11, 8-t11, 8 =105
=300-35 LS 2, 3=LF2, 3-t2, 3
=265 =105-90
=15
LS 1, 2=LF1, 2-t1, 2
=15-15
LS 6, 8=LF6, 8-t6, 8 =0
(i, j)= activity (i, j) with tail event I and head event j.
TE OR Ei= earliest occurrence time of event i.
TL or Lj= latest allowable occurrence time of event j.
ES= earliest starting time
Ls=Latest starting time

INDUSTRIAL DESIGN I
REFERENCE
1. Industrial design handbook

2. S.c.sharma, plant layout and material handling, 1stedition
3. Moor James’s, plant layout and design, 1st edition
4. J. Moor Tompkins, Facility planning, 3rd edition
5. Albert Lester, project planning and cost, 3rd edition
6. Max Kurtz, engineering economics for professional examination, 4th edition

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INDUSTRIAL ENGINEERING DESIGN I

TITLE: DESIGN OF PP BAG FACTORY

Abriham Takile 0600095

Sub mitted to: - Ms. Hermela S.

Design of PP Bag Factory I

6. DETERMINATION OF COST AND SELLING PRICE ................................................................... 68

Design of PP Bag Factory II

Table 1: total supply of PP woven bag (pcs) .................................................................................. 2

Design of PP Bag Factory III

Table 43: Total production cost for 61*100-product type ............................................................ 78

Design of PP Bag Factory IV

Figure1: Existing demand and supply diagram .............................................................................. 3

Design of PP Bag Factory V

Advisor name Signature

Addisie Beyaylegn 0600107………………………….

Almaw Gashu 0600178………………………….

Birhanu Chalie 0600436………………………….

Gashaw Dagnew 0600780………………………..

Selamawit Chenille 0502338…………………………

Design of PP Bag Factory VI

Design of PP Bag Factory VII

Design of PP Bag Factory VIII

1.1 Market Analysis

Design of PP Bag Factory 1

Year Local production Import Total supply

Design of PP Bag Factory 2

1.1.2 Projected Demand

Design of PP Bag Factory 3

Table 2: linear recreation

Design of PP Bag Factory 4

Table 3: linear recreation evaluation process

1999 1 87,263,307 87,263,307 1

Design of PP Bag Factory 5

By applying this formula, we can determine the forecasting (projected) demand

Year Projected Demand (pieces)

Design of PP Bag Factory 6

Figure2: Projected demand and supply diagram

1.1.3 Sales Volume

Type of product Quantity in pieces

Design of PP Bag Factory 7

Type of Year 1 Year 2 Year 3 Year 4 Year 5

1.2 Technical Analysis

Type of product Size Weight holding capacity

Design of PP Bag Factory 8

Diner type Calcium amount(kg) Polypropylene amount(kg)

Design of PP Bag Factory 9

Design of PP Bag Factory 10

Quantifying of the Raw Materials

Design of PP Bag Factory 11

 Tape-plate machine  Printing machine

Figure3: Tape-plant machine

Design of PP Bag Factory 12

Figure4: Circular loom machine A

Design of PP Bag Factory 13

– higher operating efficiencies, excellentweaving quality, lower wastage, lower energy

Figure5: Circular loom machine B

Figure6: cutting machine

Design of PP Bag Factory 14

Figure 7: Sewing machine

Figure 8: Packing machine

Design of PP Bag Factory 15

3.2 Determination of Production System

Process capacity of tape-plant= Design capacitytotal time/shiftutilization

SFM A. A= (0.30.5) +( 0.010.6) +( 0.20.9) +( 0.260.7) +( 0.050.2) +( 0.020.8) +( 0.16*0.6)