By :Nidhi Gupta

Machinery & Equipment

To determine the kinds of machinery and
equipment required for a manufacturing industry
following procedure may be followed:-
 Estimate the likely levels of production over time.
 Define the various machining and other
operations.
 Calculate the machine hours required for each
operation.
 Select machinery and equipment required for
each function.
Constraints in Selecting Machinery
and Equipment
 There may be limited availability of power to
setup an electricity intensive plants.
 There may be difficulty in transporting heavy
equipment to a remote location.
 Worker may not be able to operate.
 The import policy of the government may
preclude the import of certain machinery and
equipment.
 Procurement of Plant &
Machinery
For procuring plant and machinery order for
different items of plant and machinery may be
placed with different suppliers. The factors to be
considered in selecting the suppliers are:-
 Desired quality of machinery
 Level of technological sophistication
 Reputation of the supplier
 Expected delivery schedule
 Preferred payment system
 Required performance guarantee
 Structures & Civil Works
It can be divided in three categories:-
 Site preparation & development
 Building & structures
 Outdoor works
 Site Preparation & Development
This covers the following:-
 Grading and leveling of the site
 Removal of the existing structures
 Relocation of the existing pipelines, cables, roads
etc.
 Reclamation of swamps and draining and
removal of standing water
 Connections for the electric power, water,
communication, roads etc.
 Other site preparation work
 Building & Structures
It can be divided into following parts:-
 Factory or process buildings
 Ancillary buildings required for stores,
warehouses, laboratories etc.
 Administrative buildings
 Residential buildings
 Outdoor Works
It covers :-
 Supply and distribution of utility like water
and power
 Handling and treatment of wastage
 Transportation and traffic signal
 Outdoor lightening
 Environmental Aspects
The key issues to be considered are:-
 What are the types of emission generated
 What needs to be done for disposal of
emission
 Will the project be able to secure or
environmental clearances
 Project Charts & Layouts
The important charts and layouts:-
 General functional layout:
It shows the general relationship
between equipment, building and civil works. In
this we primary consider smooth and economical
movement of raw material , work in progress and
finished goods
 Material Flow Diagram :
It shows the flow of materials,
utilities, final products, by products and emission
 Cont…….
 Production line diagram :-
It shows how the production
would progress along the key information.
 Transport Layout :-
It shows the distances and means
of transport outside the production line.
 Utility Consumption Layout :-
It shows the principals
consumption points of utilities like power, water
etc. and there required quantity and qualities.
 Cont……
 Communication Layout :-
It shows how the various parts
of the project will be connected with
telephone, internet etc.
 Plant Layout :-
It is concerns with the physical
layout of the factory.
 Schedule of Project
implementation
For project implementation schedule the
following information are required:-
 List of all possible activities from project
planning to starting of production.
 The sequence in which various activities have
to be performed.
 The time required for performing every
activities.
 The resources required
 Work Schedule
It reflects the plan of work concerning
installation as well as initial operation. The
purpose of work schedule is:-
 To anticipate problems likely to arise
 To establish the phasing of investments taking
into account the availability of finance.
 To develop a plan of operations
Need for Considering Alternatives
The alternatives may be different in one or more of the
following aspects :-
 Nature of Project:-
The project can be of manufacturing
of all the parts or it may consist of an assembly type
unit. These alternatives are available with respect to
the nature of project.
 Production Process :-
The availability and characteristics of
raw materials, the cost structures and the nature of
markets served are the factors that needsto be
considered.
 Cont……..
 Product Quality :-
the quality and product range
decisions would depend on the characteristics of
the market, elasticity of demand, consumer
preferences and nature of competition.
 Scale of operation & Time Phasing :-
The choice of a particular scale
would depend on the financial resources
available, the nature of competition and the
economies of scale.
 Cont………
 Location :-
Location and size are closely inter related.
Perhaps the same demand could be satisfied by :-
 A single plant for the whole market
 One large plant for the bulk of market with a few
smaller plants for the remaining markets.
 Several plants of similar size spread over the market
areas.
 The choice would depend mainly on the trade off
between economies of scale in manufacturing and
economies of distribution.