Redesign the Plant layout for Efficiency Improvement and Cost Reduction: A Case Study


  • Belachew Mebrat Dawa University, Ethiopia
  • Lijalem Assefa Dawa University, Ethiopia
  • Teshale Gezehagan Dawa University, Ethiopia
  • Gedefaye Achamu Dawa University, Ethiopia
  • K.Balasundaram Dawa University, Ethiopia



Plant layout, layout redesign, Workflow, Efficiency improvement


In a global market the manufacturing industries have to minimized the production cost and improve the efficiency. The effective design of plant layout can significantly minimized the operational costs of manufacturing companies. An adequate plant layout design can improve the performance of the production line, their flexibility, efficiency.  Proper plant layout design is one of the keys of success in factory management. In this study ongoing production process layout are studied and a new layout will be developed to improve the efficiency and reduce the production cost. The major problem faced by the workshop is high flow intensity between machines which have high interrelationship. This leads to high travelling time and high travelling cost. Two alternative layouts are developed by using Systematic Layout Planning, which is a systematic way of generating layout alternatives. The alternative layout involves transferring the machines which have high interrelationship close to each other. The alternative layouts are evaluated using weighting placement value (WPV) and placement rating (PR) in Computerized Relationship Layout Planning (CORLAP) algorithm. The best alternative is chosen based on the performance measures which have the most significant improvement, total travel distance, total travel time, total travel cost, number of cross-over, output, average resource utilization, total average WIP level, total average waiting time and total time spent in the system. The constructed layout of the workshop efficiency is 30.16% while the alternative 1 and alternative 2 layouts is 71.4% and 73% respectively. The annual production saving cost of the alternative layout is 34,982 birr.


. Priyanka Yadav, Suman Sharma “To compare production efficiency of manual plant layout and computerized plant layout using ARENA software,” international journal of engineering research and general science volume 4, issue 4, july-august, 2016.

. Sanjeev .B. Naik ; Dr. Shrikant Kallurkar, “A literature review on efficient plant layout design”. (IJIERD) volume 7; Issue 2 ; may -august 2016.

. Daniel Back, Peter Johansson. “Effective development of plant layout and material handling system” September 2006.

. W. Wiyaratn, A. Watanapa, and P. Kajondecha. “Improvement plant layout based on systematic layout planning”. INCSIT, vol.5, No.1, February 2013.

. W. Wiyaratn and A. Watanapa, “Improvement plant layout using systematic layout planning (SLP) for increased productivity,” in Proc World Academy of Science, Engineering and Technology, vol. 36, pp. 269-273, December 2010.

. Riyad H., Kamruzzaman R., Subrata T., Increasing productivity through facility layout improvement using systematic layout planning pattern theory, Global Journal of Researches in Engineering: J - General Engineering 2014.

. Naik B.S., Kallurkar S., A literature review on efficient plant layout design, International Journal of Industrial Engineering Research and Development 2016


How to Cite

Belachew Mebrat, Lijalem Assefa, Teshale Gezehagan, Gedefaye Achamu, & K.Balasundaram. (2020). Redesign the Plant layout for Efficiency Improvement and Cost Reduction: A Case Study. International Journal of Advances in Scientific Research and Engineering (IJASRE), ISSN:2454-8006, DOI: 10.31695/IJASRE, 6(11), 46–54.