AMBO UNIVERSITY

HACHALU HUNDESSA CAMPUS

INSTITUTE OF TECHNOLOGY (HHIoT)

SCHOOL OF MECHANICAL AND INDUSTRIAL

ENGINEERING
DEPARTMENT: INDUSTRIAL ENGINERRING

Internship project and report at: Addis machine and spare part
manufacturing industry addis abeba

Title:- Improving the layout arrangement of machine case on:

(Addis machine and spare part manufacturing industry).
Group member ID No.
1) Ashenafi Girma…………………………Brt/0372/10
2) Genet tesfaye…………………………...Brt/0627/10
3) Hana zewdie……………………………Brt/0670/10
Advisor name: - Mr. Negasa Feyisa(Msc)

2013 E.C

i
 Declaration
We are fourth year industrial engineering student, whom we took internship experience
from Addis machine and spare part manufacturing industry from the period of July 1 to
October 30 2021G.C under the guidance of MR. NEGASA FEYISA (Advisor) and MR
YONAS BIRHANU(company supervisor)
All relevant resources of information used in this paper have been duly acknowledged.

Name of students signature Date

1)………………… ……………… ……………….

2)………………… ……………… ……………….
3)………………… ……………… ……………….

This is to certify that the above statement made by the candidate is correct to the best of our
knowledge and belief. This report has been submitted for presentation with our approval.

Mentor name signature Date

1)…………….. …………….. ……………

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 Acknowledgement

First of all, we would like to give our greatest thanks to almighty “GOD” for his endless
support to complete this final report, thanks for ambo university hachalu hundessa campus
to enhance the knowledge of the students by proposing internship program. And we would
sincerely like to express our appreciation to all the precision manufacturing factory workers
and factory with whom we have had the opportunity to work for the 4 month. It is the vast
diversity of our ideas that has allowed us to have the insight necessary to write this report.
And then we would like to thank our academic advisor MR NEGASA FEYISA support and
encouragement while doing the project. He helped us to acquire lots of knowledge and skills
during stay in Addis machine and spare part manufacturing Industry. And we really thank
our company advisor MR YONAS BIRHANU for his great support. Finally, we would like
to thank our friends who give us moral and encouragement while doing this project.

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 Abstract
Facility planning is a broad area to work. Many activities are carried out in facility planning. In
broad terms, the decisions regarding plant locations, plant design which consists of structural, layout
and handling systems design. The brief review of selected literature in the area of facility layout
problem. The main aim of this study is improving or enhancing the existing layout arrangement of
machine to decrease transportation cost and distance travelled in the manufacturing industry addis
Abeba .The manufacturing industry is considered as back bone of growth and development
of a nation. The study used quantitative approaches and obtained the relevant data through, formal
interview and observation t. secondary data are obtained from internet and different book and journal
articles. The collected data have been analyzed by analytical tool, which is found Microsoft Excel
named CRAFT tool and to draw the existing layout and the improved or proposed layout we were
use designing software AutoCAD 2020 version. Since the total transportation cost of the precision
manufacturing industry 7832.34 birr/day whereas, after improving the existing layout of machines
we get the total transportation cost is 4658.56 birr/day which is decrease by 40.5% and the existing
total distance from one machine to another machine is 229.11 whereas, in the improved layout the
total distance from one machine to another machine is decrease to 192.75 which is 15.9% of the total
value and save 36.36m space. Finally the conclusions and recommendations are drawn out by
considering the fact that a well design layout or arrangement of machines increase the overall
productivity of the company by cutting down unnecessary cost.
.
Key words: CRAFT, AutoCAD, facility planning, layout.

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Table of contents
Declaration ............................................................................................................................. i

Acknowledgement............................................................................................................... iii

Abstract ................................................................................................................................ iv

List of Tables......................................................................................................................... x

List of Figure ........................................................................................................................ xi

List of Acronyms .............................................................................................................. xiii

CHAPTER ONE ................................................................................................................... 1

INTRODUCTION ................................................................................................................ 1

1.1Background and justification of the study ................................................................... 1

1.2 Problem statement ....................................................................................................... 2

1.3Objective ...................................................................................................................... 2

1.3.1General objective .................................................................................................. 2

1.3.2Specific objective .................................................................................................. 2

1.4Scope and Limitation of the study ............................................................................... 2

1.5 Significance of the study ............................................................................................. 3

1.6Organization of the study ............................................................................................. 3

CHAPTER TWO .................................................................................................................. 4

LITERATURE REVIEW...................................................................................................... 4

2.1 Facility layout Design ................................................................................................. 4

2.2.1 Hierarchy of Facility Planning: ............................................................................ 5

2.2 Facility layout objective .............................................................................................. 6

2.3 Factor affecting Facility layout ................................................................................... 6

2.4 classes of Facility layout ............................................................................................. 6

2.5 Types of Layout .......................................................................................................... 7

2.5.1 Line or Product layout.......................................................................................... 7

2.5.2 Process layout ...................................................................................................... 8

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 2.5.2.1 Approaches to process layout ......................................................................... 10

2.5.3 Fixed layout ........................................................................................................ 10

2.5.4 Group or cellular layout ..................................................................................... 11

2.6 Approach to planning facility layout......................................................................... 13

2.7 Facility layout planning using Design algorithm ...................................................... 14

2.7.1 The pair wise Exchange method ........................................................................ 14

2.7.2 The Craft Method ............................................................................................... 15

2.7.3 The Graph Based method ................................................................................... 15

2.7.4 The Blocplan Method......................................................................................... 15

2.7.5 Mixed integer programming .............................................................................. 16

2.8 CRAFT Algorism Software ...................................................................................... 16

2.9 Study of flow analysis ............................................................................................... 17

CHAPTER THREE............................................................................................................. 19

RESEARCH DESIGN AND METHODOLOGY .............................................................. 19

3.1 Research Design ........................................................................................................ 19

3.2 Method of data collection.......................................................................................... 19

3.2.1 Method of collection of primary data................................................................. 19

3.2.2 Method of collection of secondary data ............................................................. 20

3.3 Method of Data analysis ........................................................................................... 20

3.3.1 Designing tool .................................................................................................... 20

CHAPTER FOUR ............................................................................................................... 21

OVERVIEW OF MANUFACTURING INDUSTRY ........................................................ 21

4.1 Background of the hosting company......................................................................... 21

4.1.1 Mission and Vision of the company................................................................... 22

4.1.1.1 Mission ............................................................................................................ 22

4.1.1.2 Vision .............................................................................................................. 22

4.1.2 Objective of the company .................................................................................. 23

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 4.1.3 Input raw materials ............................................................................................. 23

4.1.4 Main Suppliers ................................................................................................... 24

4.1.5 Main product of the company ............................................................................ 24

4.1.6 Main customer of the company .......................................................................... 26

4.1.7 Main service of the company ............................................................................. 26

4.1.8 Organizational structure of the company ........................................................... 26

4.2 Overall Internship experience ................................................................................... 28

4.2.1 How we get into the company............................................................................ 28

4.2.2 The section of company we have been working ................................................ 28

4.2.2.1 Conventional manufacturing Factory .............................................................. 29

4.2.2.1.1 Lathe Machine .............................................................................................. 29

4.2.2.1.2 Milling Machine ........................................................................................... 29

4.2.2.1.3 Drilling Machine .......................................................................................... 30

4.2.2.1.4 Grinding Machine ........................................................................................ 30

4.2.2.2 Precision Manufacturing Factory .................................................................... 31

4.2.2.2.1 CNC machines ............................................................................................. 32

4.2.2.2.2 Heat treatment Workshop ............................................................................ 33

4.2.2.2.3 Gear Workshop ............................................................................................ 37

4.2.2.2.4 EDM machine .............................................................................................. 38

4.2.2.2.5 Universal deburring machine ....................................................................... 38

4.2.2.3 Machine Building Factory............................................................................... 39

4.2.2.4 Machine Body and Structure Factory ............................................................. 39

4.2.2.5 Bolt and Nut Factory ....................................................................................... 39

4.2.3 Work Flow of Precision Manufacturing Factory. .............................................. 40

4.2.4 The work task we have been execute ................................................................. 43

4.2.5 The procedures we have been using while performing our work tasks ............. 43

4.2.6 How good you have been in performing your work tasks ............................... 43

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 4.2.7 The challenges we have been facing while performing our work ..................... 43

4.2.8 Measures we take in order to overcame these challenge ................................... 44

4.3 Overall internship Benefits ................................................................................... 44

4.3.1 In terms of improving practical skill .................................................................. 44

4.3.2 In terms of upgrading theoretical knowledge..................................................... 45

4.3.3 In terms of improving interpersonal communication skill ................................. 45

4.3.4 In terms of improving team playing and leadership skill ................................... 45

4.3.5 In terms of understanding work ethics related issue .......................................... 46

4.3.5.1 Personal ethics ................................................................................................. 46

4.3.5.2 Professional ethics........................................................................................... 47

4.3.6 In terms of entrepreneurship Skill ...................................................................... 47

CHAPTER FIVE................................................................................................................. 48

DATA COLLECTION AND ANALYSIS ......................................................................... 48

5.1 Data Collection.............................................................................................................. 48

5.1.1 The drawback of existing layout ........................................................................ 53

5.2 Data Analysis ............................................................................................................ 54

5.2.1 Work station area, maintenance area, and aisle area of machinery ................... 54

5.3 Proposed solution ...................................................................................................... 62

5.3.1 Solution for enhancing productivity .................................................................. 62

5.4 cost analysis .............................................................................................................. 79

5.4.1 Transportation cost ............................................................................................. 79

5.4.2 Machine pluck cost ............................................................................................ 80

5.4.3 Machine plantation cost ..................................................................................... 81

5.4.4 Building cost ...................................................................................................... 81

CHAPTER SIX ................................................................................................................... 83

RESULT AND DISCUSSION ........................................................................................... 83

6.1 Result and discussion ................................................................................................ 83

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CHAPTER SEVEN............................................................................................................. 86

CONCLUSION AND RECOMMENDATION .................................................................. 86

7.1 Conclusion ................................................................................................................ 86

7.2 Recommendation....................................................................................................... 86

7.3 Future work ............................................................................................................... 87

Reference............................................................................................................................. 88

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List of Tables
Table 1.1 main supplier of raw material ............................................................................. 24
Table 1.2: Effect of carbon content ..................................................................................... 35
Table 1.3: Effect of cooling media ...................................................................................... 35
Table 1.4 Dimension of machines in (M). .......................................................................... 48
Table 1.5 Existing Dimension of machine from wall ......................................................... 48
Table 1.6 Number of workers assigned on machine. .......................................................... 49
Table 1.7 average Number of Flow data from one section to another (from-to-chart) per day.
............................................................................................................................................. 49
Table 1.8 distance data b/n machine. .................................................................................. 50
Table 1.9 Unit transportation cost per distance ................................................................... 50
Table 2.0 Total workstation area ......................................................................................... 56
Table 2.1 Number and number of Grid of each section ...................................................... 59
Table 2.2 centroid for each section ..................................................................................... 59
Table 2.3 Rectilinear distance for existing layout between each department ..................... 60
Table 2.4 cost matrix for existing layout ............................................................................ 61
Table 2.5 centroidal coordination for iteration 1 ................................................................ 63
Table 2.6 rectilinear distance between machine for iteration 1 .......................................... 63
Table 2.7 centroidal coordination for iteration 2 ................................................................ 65
Table 2.8 rectilinear distance between machine for iteration 2 .......................................... 66
Table 2.9 centroidal coordination for iteration 3 ................................................................ 68
Table 3.0 rectilinear distance between machines for iteration 3 ......................................... 68
Table 3.1 centroidal coordination for iteration 4 ................................................................ 71
Table 3.2 rectilinear distance between machines for iteration 4 ......................................... 71
Table 3.3 centroidal coordination for iteration 5 ................................................................ 73
Table 3.4 rectilinear distance between machines for iteration 5 ......................................... 74
Table 3.5 cost analysis. ....................................................................................................... 79
Table 3.6 machine pluck cost .............................................................................................. 80
Table 3.7 machine plantation cost....................................................................................... 81
Table 3.7 improved distance. .............................................................................................. 84
Table 3.8 improved cost. ..................................................................................................... 85

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List of Figure
Fig 1.1 Hierarchy of facility planning. (Heragu, 1997) ........................................................ 5
Fig 1.2 a typical Product layout. ........................................................................................... 8
Fig 1.3 A typical process layout. ......................................................................................... 10
Fig 1.4 Fixed position layout. ............................................................................................. 11
Fig 1.5 Group or cellular layout. ......................................................................................... 13
Fig 1.6 the impact of interrupted on flow path.................................................................... 17
Fig 1.7 Raw materials. ....................................................................................................... 24
Fig 1.8 Chain used for sugar factories. ............................................................................... 25
Fig 1.9 Bolts. ....................................................................................................................... 25
Fig 2.0 Nuts. ........................................................................................................................ 26
Fig 2.1 Organizational structure of the company. ............................................................... 27
Fig 2.2 Conventional lathe machine.................................................................................... 29
Fig 2.3 Conventional Milling Machine. .............................................................................. 30
Fig 2.4 Drilling Machine. .................................................................................................... 30
Fig 2.5 Cylindrical Grinding Machine. ............................................................................... 31
Fig 2.6 CNC lathe machine. ................................................................................................ 32
Fig 2.7 CNC milling Machine. ............................................................................................ 33
Fig 2.8 Heat Furnace. .......................................................................................................... 37
Fig 2.9 Gear Hobbling Machine.......................................................................................... 38
Fig 3.0 EDM machine. ........................................................................................................ 38
Fig 3.1 universal deburring machine. .................................................................................. 39
Fig 3.2 Thread Making Machine. ........................................................................................ 40
Fig 3.3 Nut making machine. .............................................................................................. 40
Fig 3.4 General work flow of PMF. .................................................................................... 42
Fig 3.5 Existing layout arrangement of machine. ............................................................... 53
Fig3.6 grid Table of existing layout by CRAFT. ................................................................ 57
Fig 3.7 Iteration 1. ............................................................................................................... 63
Fig 3.8 Iteration 2 ................................................................................................................ 65
Fig 3.9 Iteration 3 ................................................................................................................ 68
Fig 4.0 Iteration 4. ............................................................................................................... 71
Fig 4.1 Iteration 5 ................................................................................................................ 73
Fig 4.2 the new improved layout model By AutoCAD 2020. ............................................ 76

xi
Fig 4.4 activity relationship chart. ...................................................................................... 79

xii
 List of Acronyms

BNW……………………………..bolt and nut workshop

CAD……………………………….computer aided design
CMF……………………………...conventional manufacturing factory
CNC………………………………computer numerical control
CRAFT……………………………computer relative allocation of facility technique
EDM……………………………..Electrical Discharge machine
FLP………………………………..Facility layout planning
GT…………………………………Grouping technology
HSS……………………………….high speed steel
MBF……………………………...Machine building factory
MBSF…………………………….Machine body and structure factory
NC………………………………...numerical control
PMF………………………………precision manufacturing factory
TTC………………………………total transportation cos

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 CHAPTER ONE

INTRODUCTION
1.1 Background and justification of the study
Facility layout planning and material handling is using of organizations’ tangible fixed asset
to best support of the organization’s objective and emphasis on flow design, layout
selection, storage and warehouse design, and material handling selection and design. The
application of facility planning is broad ranging from considering the improvement of the
existing operation system, whether manufacturing or service organization, to the design of
new facility layouts, materials and mechanisms. Facility is anything created to serve a
particular function. Or it is an entity that facilitates the performance of any job. It could be
a machine tool, a work center, a manufacturing cell, a machine shop, a department or a
warehouse (Heragu, 1997). Facilities can be broadly defined as a building where people,
material and machine come together for a stated purpose-typically to make a tangible
product or provide service(Heragu, 1997). Shayan and Chittilappilly (2016) defined the
facility layout problem as an optimization problem that tries to make layouts more efficient
by taking into account various interactions between facilities and material handling systems
while designing layouts For an organization to have an effective and efficient manufacturing
unit, it is important that special attention is given to facility layout. Facility lay out is an
arrangement of different aspect of manufacturing in an appropriate manner as to achieve
desired production results. Facility lay out considers available space, final product, safety
of users and facility and convenience of operations. An effective facility lay out ensures that
there is a smooth and steady flow of production materials, equipment and manpower at
minimum cost. Facility layout looks at physical allocation of space for economic activity in
the plant. Facility planning is an overall approach concerned with the design, layout and
incorporation of people, machines and activities of a system. Huang emphasizes that facility
layout design defines how to organize, locate, and distribute the equipment and support
activities in a manufacturing facility to accomplish minimization of overall production time,
maximization of operational efficiency, growth of revenue and maximization of factory
output in conformance with production and strategic goals. Therefore, main objective of the
facility layout planning is to design effective workflow as to make equipment and workers
more productive. Facility layout planning (FLP) involves the process of physically
arranging all the production factors that make up the production system so it can suitably
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and efficiently comply with the organization’s strategic objective. In our case company there
are a lot of different machine with poor layout arrangement or settlement i.e. some of the
machines are placed far to each other so the aim of this study focus on improving the layout
arrangement of machines to decrease transportation cost and to minimize the total distance
or to maximize space utilization .
1.2 Problem statement
Addis machine and spare part manufacturing industry is one of the major manufacturing
industry found under Ethio engineering group. Within the industry there are five main
factories one of them is precision manufacturing factory in precision manufacturing factory
mostly mold and dies are made by different machines in different workshop within factory,
however poor layout arrangement of machines and slow production process is one of the
overall factory problem we have seen that have a significant effect in production process
and increasing waiting time. The space between one machine and next machine is not
standardize settled i.e. Too much distance between them when they are transfer unfinished
product from one machines to another there is a huge space gap between machines this
create slow production process and increase transportation cost, so this project aims to
improve the existing lay out arrangement of machines and workshop to minimize the
distance between them which have more flow and decrease the transportation cost.

1.3 Objective
1.3.1 General objective
The general objective of this project is improving the existing layout arrangement of
machines.
1.3.2 Specific objective
 Minimize the distance or the gap between machines.
 Redesign of the existing machine layout.
 Maximize space utilization.
 Minimize the transportation cost of precision manufacturing factory.
1.4 Scope and Limitation of the study
The scope of the study is improving layout arrangement of machine in addis machine and
spare part manufacturing industry. As per identified problems, and objective, the project
used CRAFT algorism software to do data analysis and AutoCAD 2020 is used to draw the
existing and improved layout. Addis machine and spare part manufacturing industry has

2
five main work stations and this project only improve the layout arrangement of machines
in precision manufacturing factory. In our project we have tried to minimize the distance
and transportation cost as much as possible. This research has mostly time limitation to
collect the data.

1.5 Significance of the study

The outcome of this project is expected to provide important suggestion or recommendation
to addis machine and spare part manufacturing industry to minimize the transportation cost.
The findings from this project can also be used as a bench mark in order to implement the
concept of CRAFT in other manufacturing industry in Ethiopia. Similarly the findings of
the study would contribute a part of knowledge by filling the gaps in awareness about
facility lay out design with respect to its multi-dimensional impacts on workers and
productivity of Company.

1.6 Organization of the study

The chapters wise detail of the project are as follows: chapter one discuss the introduction
and objectives of the paper, chapter two deals with the literature studies conducted by
various researches in the area of facility layout design, types of layout, and productivity
related to layout and the methodology that how to conduct this project is described in
chapter three, the overall of manufacturing industry has been discussed in chapter four,
chapter five the data collection and analysis part, and chapter six refers to the result and
discussion. Chapter seven about conclusion and recommendation.

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 CHAPTER TWO

LITERATURE REVIEW
2.1 Facility layout Design
Facility layout is the most effective physical arrangement of machines, processing
equipment’s and service departments to have greatest coordination and efficiency of man
power, machine and materials in a plant. (S.C. SHARMA, (2016). A good placement of
facilities contributes to the overall efficiency of operations and can reduce up to 50% the
total operating expenses (Tompkins et al., 1996). Many researchers have been done in
facility planning area. Effective facility planning can reduce significantly the operational
costs of a company by 10-30%.Proper analysis of facility layout design could result in the
improvement of the performance of production line. This can be realized by optimizing the
capacity of a bottleneck; minimizing material handling costs; reducing idle time;
maximizing the utilization of labor, equipment and space. Facility planning is an overall
approach concerned with the design, layout and incorporation of people, machines and
activities of a system. Huang emphasizes that facility layout design defines how to organize,
locate, and distribute the equipment and support activities in a manufacturing facility to
accomplish minimization of overall production time, maximization of operational
efficiency, growth of revenue and maximization of factory output in conformance with
production and strategic goals. For an organization to have an effective and efficient
manufacturing unit, it is important that special attention is given to facility layout. Facility
layout is an arrangement of different aspects of manufacturing in an appropriate manner as
to achieve desired production results. Facility layout considers available space, final
product, safety of users and facility and convenience of operations. An effective facility
layout ensures that there is a smooth and steady flow of production material, equipment and
manpower at minimum cost. Facility layout looks at physical allocation of space for
economic activity in the plant. Therefore, main objective of the facility layout planning is
to design effective workflow as to make equipment and workers more productive. Azadivar
and Wang (2018) defined that the facility layout problem as the determination of the relative
locations for, and allocation of, the available space among a given number of facilities.
Placement of required facilities in specified area of plant is called as facility layout problem
(Reza Zanjirani Farahani, 2018) provides review in multi criterion facility location problems
and has categorized multi criterion facility problems in to three categories, which are bi-

4
objective, multi objective and multi-attribute. The authors also discussed about
methodology to be used to solve these categories problems and briefly mentioned about
criteria’s that are used in literature to solve facility location problems. As per changing
market, product mix and quantities, changes in plant layout are essential. These types of
facility layout problems are called as dynamic layout problems. Alireza and Reza (2019)
reviewed different dynamic layout problems in literature and suggested uncertainty of future
parameters must be considered while developing the model for solution of dynamic layout
problems. The Authors have given brief overview of mathematical models formations for
solving dynamic facility layout problems with number of case studies.
2.2.1 Hierarchy of Facility Planning:

Facility planning is a broad area to work. Many activities are carried out in facility planning;
same is classified below:

Fig 1.1 Hierarchy of facility planning. (Heragu, 1997)

Plant Location: Location is the placement of a facility with respect to customers,

suppliers, and other facilities with which it interfaces. Decision regarding plant location is
taken by considering various factors.

Facility location is generally first step in facility planning.

Structure: Structure consists of the buildings and utilities (e.g., gas, water, power, heat,
light, air, sewage).

Layout: Layout consists relative placements of all equipment, machinery, and furnishings
within the structure.

Handling System: Handling System consists of the mechanism by which all interactions
required by the flow.

5
2.2 Facility layout objective
A model facility layout should be able to provide an ideal relationship between raw material,
equipment, manpower and final product at minimal cost under safe and comfortable
environment. An efficient and effective facility layout can cover following objectives:
 To provide optimum space to organize equipment and facilitate movement of goods
and to create safe and comfortable work environment.
 To promote order in production towards a single objective
 To reduce movement of workers, raw material and equipment
 To promote safety of plant as well as its workers
 To facilitate extension or change in the layout to accommodate new product line or
technology up gradation
 To increase production capacity of the organization(Tompkins et al,1996)
An organization can achieve the above-mentioned objective by ensuring the following:
 Better training of the workers and supervisors.
 Creating awareness about of health hazard and safety standards
 Optimum utilization of workforce and equipment
 Encouraging empowerment and reducing administrative and other indirect work

2.3 Factor affecting Facility layout

Facility layout designing and implementation is influenced by various factors (Korhan,
1982). These factors vary from industry to industry but influence facility layout. These
factors are as follows:

 The design of the facility layout should consider overall objectives set by the
organization.
 Optimum space needs to be allocated for process and technology.
 A proper safety measure as to avoid mishaps.
 Overall management policies and future direction of the organization

2.4 classes of Facility layout

 Minor changes in the existing layout

In most industrial and service plants minor changes in layout rearrangements are made for
several reasons. These layout changes require minimal planning and few human resources
to develop a workable solution. Most facility layout problems fall into this category.

6
  Rearrangement of existing layout

The problem of rearrangement of existing departments occurs when there are frequent
product resource design changes. There are methods and procedures to implement
department rearrangements. Whether to abandon obsolete processes and methods is an issue
that arises when department rearrangement is considered.

 Relocating into existing facilities

The movement of existing facilities to a new building or a new location is a much more
complex procedure. The facility layout is generated using methods and processes that will
minimize the expense and avoid obsolescence in the future.

 Building a new plant

The building of a new plant requires generating a detailed plan for auxiliary areas necessary

to make the plant a complete and integrated operation. The detailed plan enclosing the

facilities.

2.5 Types of Layout

Facility layout is the one among the constraints in the efficiency and productivity
achievement in both manufacturing and service industries. Facility Layout problem involves
the location of departments (or sections) within the facility and the arrangement of people
and equipment within each department. Facility layout decision will certainly affect the
Flow of materials, in-plant Transportation cost, equipment utilization, and general
productivity and effectiveness of the business.
A plant layout can be classified according to different production process but mainly
there are four types of layout used (S Anil kumar and N suresh, 2018).
1) line or product layout
2) functional or process layout
3) fixed layout
4) group or cellular layout
A definition is given below.
2.5.1 Line or Product layout
This layout is advisable for mass production, on the operating area only one type of product
is produced in addition the machines are arranged in the order in which they are used in the
process. The arrangement is also known as synthetic system, all subassemblies are started

7
at right time to be ready and available at the end of assembly line. In this type of layout,
machines and auxiliary services are located according to the processing sequence of the
product. If the volume of production of one or more products is large, the facilities can be
arranged to achieve efficient flow of materials and lower cost per unit. Special purpose
machines are used which perform the required function quickly and reliably.
The product layout is selected when the volume of production of a product is high such that
a separate production line to manufacture it can be justified. In a strict product layout,
machines are not shared by different products. Therefore, the production volume must be
sufficient to achieve satisfactory utilization of the equipment.
Advantages:
 Low cost of material handling, due to straight and short route and absence of
backtracking
 Smooth and uninterrupted operations, Continuous flow of work
 Lesser investment in inventory and work in progress
 Optimum use of floor space
 Shorter processing time or quicker output
 Less congestion of work in the process
 Simple and effective inspection of work and simplified production control
 Lower cost of manufacturing per unit
Disadvantages:

 High initial capital investment in special purpose machine

 Heavy overhead charges
 Breakdown of one machine will hamper the whole production process
 Lesser flexibility as specially laid out for particular product.

Fig 1.2 a typical Product layout.

2.5.2 Process layout

In this arrangement each department or section is responsible for carrying out a particular
process and not a particular product as in line type of layout. The machine and other

8
equipment’s are arranged depending upon the functional basis it is also called analytical
layout. In process Layout Similar equipment and similar operations are grouped together in
the process or functional layout. It is particularly useful where low volume is required.
Process layout is recommended for batch production. All machines performing similar type
of operations are grouped at one location in the process layout e.g., all lathes, milling
machines, etc. are grouped in the shop will be clustered in like groups.
Thus, in process layout the arrangement of facilities are grouped together according to their
Functions. The flow paths of material through the facilities from one functional area to
another vary from product to product. Usually the paths are long and there will be possibility
of backtracking.
Process layout is normally used when the production volume is not sufficient to justify a
Product layout. Typically, job shops employ process layouts due to the variety of products
Manufactured and their low production volumes.
Advantages
 . In process layout machines are better utilized and fewer machines are
required.
 Flexibility of equipment and personnel is possible in process layout.
 Lower investment on account of comparatively less number of machines and lower
cost of general purpose machines.
 Higher utilization of production facilities.
 A high degree of flexibility with regards to work distribution to machineries and
workers.
 The diversity of tasks and variety of job makes the job challenging and interesting.
 Supervisors will become highly knowledgeable about the functions under their
department
Disadvantage
 A breakdown of one machine in a product line may cause stoppages of machines
in the downstream of the line.
 A change in product design may require major alterations in the layout.
 The line output is decided by the bottleneck machine.
 Comparatively high investment in equipment is required.
 Lack of flexibility. A change in product may require the facility modification.

9
2.5.2.1 Approaches to process layout
When designing a process layout, the most common tactic is to arrange departments or work
centers so that the costs of material handling is minimum. For this, departments with large
flows of parts or people between them should be placed next to one another.
Material handling costs in this approach depend on:
1) The number of loads or people to be moved between two departments during some
period of time
2) The distance linked costs of moving loads or people between departments. Cost is
considered to be a function of distance between departments.
The objective function can be written as follows:

Minimize cost = ∑𝑛𝑖=1 ∑𝑛𝑗=1 𝑥𝑖𝑗 𝑐𝑖𝑗

Where n= total number of total number of work center or departments
i, j = individual department
Xij= number of load moved from department i to department j
Cij= cost to move a load from department I to department j

Fig 1.3 A typical process layout.

2.5.3 Fixed layout

This is also called the project type of layout. In this type of layout, the material, or major
components remain in a fixed location and tools, machinery, men and other materials are
brought to this location. This type of layout is suitable when one or a few pieces of identical
heavy products are to be manufactured and when the assembly consists of large number of
heavy parts, the cost of transportation of these parts is very high. This layout is mainly used

10
for heavy manufacturing processes such as aircraft, ship vessel and pressure vessel
manufacturing; and product materials. In fixed-position layout, the material or major
component remains in a fixed location, and tools, machinery, men as well as other pieces of
material are brought to this location. Typical examples are ship building, construction
industries, aircraft building and bench work exercises. This type of layout is not frequently
used in industrial enterprises.

Advantages:
 It saves time and cost involved on the movement of work from one workstation to
another.
 The layout is flexible as change in job design and operation sequence can be easily
incorporated.
 It is more economical when several orders in different stages of progress are being
executed simultaneously.
 Adjustments can be made to meet shortage of materials or absence of workers by
changing the sequence of operations.
Disadvantages:
 Production period being very long, capital investment is very heavy
 Very large space is required for storage of material and equipment near the product.
 As several operations are often carried out simultaneously, there is possibility of
confusion and conflicts among different workgroups.

Fig 1.4 Fixed position layout.

2.5.4 Group or cellular layout

There is a trend now to bring an element of flexibility into manufacturing system as regards

11
To variation in batch sizes and sequence of operations. A grouping of equipment for
performing a sequence of operations on family of similar components or products has
become all the important.
Group Technology (GT) is the analysis and comparisons of items to group them into
families with similar characteristics. GT can be used to develop a hybrid between pure
process layout and pure flow line (product) layout. This technique is very useful for
companies that produce variety of parts in small batches to enable them to take advantage
and economics of flow line layout.
The application of group technology involves two basic steps; first step is to determine
component families or groups. The second step in applying group technology is to arrange
the plants equipment used to process a particular family of components. This represents
small plants within the plants. The group technology reduces production planning time for
jobs. It reduces the set-up time.
Thus group layout is a combination of the product layout and process layout. It combines
the advantages of both layout systems. If there are m-machines and n-components, in a
group layout (Group-Technology Layout), the m-machines and n-components will be
divided into distinct number of machine-component cells (group) such that all the
components assigned to a cell are almost processed within that cell itself. Here, the objective
is to minimize the inter cell movements.
The basic aim of a group technology layout is to identify families of components that require
Similar of satisfying all the requirements of the machines are grouped into cells. Each cell
is capable of satisfying all the requirements of the component family assigned to it.
The layout design process considers mostly a single objective while designing layouts. In
process layout, the objective is to minimize the total cost of materials handling. Because of
the nature of the layout, the cost of equipment will be the minimum in this type of layout.
In product layout, the cost of materials handling will be at the absolute minimum. But the
cost of equipment would not be at the minimum if the equipment are not fully utilized.
In-group technology layout, the objective is to minimize the sum of the cost of transportation
and the cost of equipment. So, this is called as multi-objective layout.
Advantage
Group Technology layout can increase:
 Component standardization and rationalization.
 Reliability of estimates.
 Effective machine operation and productivity.
12
  Customer service.
It can decrease the:
 Paper work and overall production time.
 Work-in-progress and work movement.
 Overall cost
Disadvantage
 This type of layout may not be feasible for all situations. If the product mix is
completely dissimilar, then we may not have meaningful cell formation.

Fig 1.5 Group or cellular layout.

2.6 Approach to planning facility layout

To provide an improved facilities layout, the following steps must be followed according to
Tompkins (Tompkins et al., 2010):

1. Define the Problem

Define the objective of the facility and how the facility best supports the objective of what
is being produced. The requirements for the products must thus be defined as well as the
primary and support activities needed to be performed to produce product.
2. Analyses the Problem
Determine how production activates interact with each other and support one another within
the facility, qualitatively and quantitatively.
3. Determine the Space Requirements
The space requirements for all the activities must be determined, taking into account all
equipment, personnel and material requirement.

13
 4. Evaluation of Alternative Layouts
Alternative Layout plans must be raked and compared according to acceptable and
applicable criteria, and subjective factors also need to be taken into account when evaluating
alternatives and the effects thereof.
5. Selection of Preferred Layout Design
Determine and select the layout plan that will be the most acceptable in satisfying the
objectives of the facility and act as the best possible solution for the problem initially
defined.
6. Implement the Design
Planning must be done for the physical implementation of the new facility layout.
7. Maintain and Adapt the Facility Plan
Any new requirements or changes within the facility must be taken into account and the
facility plan changed accordingly.
8. Redefine the Objective of the Facility
Once again changes in facility requirements or product design will have to be taken into
account and the layout modified accordingly.

2.7 Facility layout planning using Design algorithm

Tompkin states that the relative positioning of departments or workstations in the facility,
on the basis of distance and material flow intensities can be reduced to an algorithmic
process for the purpose of constructing a new layout or to improve an existing layout. The
algorithms discussed by Tompkins and below, provide a formal procedure for layout
development and also an objective criteria to facilitate the evaluation of alternative layouts.
These algorithms can be executed by hand or through the aid of a computer. They are as
follows (Tompkins et al., 2017)

2.7.1 The pair wise Exchange method

This method is primarily used to improve an existing facility layout. The objective of this
method is usually based on the distance travelled within the facility and aims to reduce or
minimize this distances. All possible exchanges between departments are considered and
the exchange that results in the travelling cost reduction is selected. In Tompkins it is
assumed for simplicity that all departments in the facility is equal is size for this method,
where departments of different sizes are incorporated within the Craft method (Tompkins
et al., 2017). When deciding on which algorithm approach to use one must consider that this

14
method does not guarantee on providing the optimal layout as the improved layout is directly
dependent on the original layout.

2.7.2 The Craft Method

This method is also used for the purpose of improving and existing facility’s layout with a
From- to Chart as the input and foundation for this method. As mentioned above it is not
required or assumed that all the departments be equal in size or in a rectangular form. This
method follows an iterative process where the rectilinear distances between the centroids of
the departments are firstly calculated and then stored within a distance matrix. Thereafter
possible department exchanges, both two-way and three-way, are considered where the best
exchange option that will result in the largest layout cost reduction, is selected. This process
is repeated until an optimal layout is gained. Once again, the Craft method is greatly affected
by the initial layout due to the fact that the process is very path-dependent. This method also
rarely generates a layout with straight line and uninterrupted oaths, which in reality is mostly
unpractical.
2.7.3 The Graph Based method
The graph based method can be used without requiring an initial layout and can thus be used
for the construction of a layout and not only for improvements. The objective used for this
method is usually adjacency based. It is recognized as a useful mathematical tool which can
be used to obtain a solution for facilities planning problems. It is noted that the distance
travelled is not taken into account during the implementation of this method, nor does it
account relationships other than the relationships between adjacent departments. The
department’s dimensional specifications are also not taken into account as this must be
determined externally from the method and due to physical requirements or limitations. The
best strategy followed for the evaluation of the layout is to iteratively construct an adjacency
graph for layout alternatives in order to identify the maximally weighted planar adjacency
graph that will represent the best layout from all alternatives.
2.7.4 The Blocplan Method
This method arranges all departments in bands. Blocplan firstly uses the input data from a
Relationship Chart and a From-To Chart to assign each department to a band. The entire
layout is then developed through the use of computation of bandwidths where after the
departments are arranged optimally within each band.

15
2.7.5 Mixed integer programming
This also is a mathematical programming tool used for the construction of layout types.
Unfortunately, this method can only be used if all the departments are rectangular shaped.
A model where the objective is distance based and incorporates material flow intensities,
can be developed using mixed integer programming to determine the optimal layout.
For the purpose of this project the pairwise exchange method will be used when evaluating
the alternative layouts. Distance travelled and space requirements will be taken into account
before and during the development of the alternative layout.

2.8 CRAFT Algorism Software

CRAFT (computerized relative allocation of facilities technique) algorithm approach is
introduced in 1963 by Armor and Vollmansto interchange the existed plant layout. This
approach is recommended to use the tool by computer. However, this project run the
approach even though there is an error which is occurred during operation.
These sub-sections, described there, are not arranged systematically when it was planted
and all these sections have no equal area. Hence, CRAFT improvement type is found more
reliable than pair wise exchange method to redesign the process layout of addis machine
and spare part manufacturing Industry in production department because Pair wise
interchange method is mostly available for departments which have equal area. Therefore,
to reduce back tracking this approach is necessary. A directed flow path progressing from
origination to destination is a flow path without backtracking. Back tracking increases the
length of the flow path.
Principles of CRAFT are area of department, no. of grids, scale, common border,
departmental centroids, rectilinear distance b/n centroids, and material flow from dep’t to
dep’t and transportation cost.
1 Rectilinear distance: If (xi, yi) and (xj, yj) represent the coordinates of two locations i
and j then the distance model can be measured using rectilinear distance method. And this
given by:
Rd= |xA-xB| + |yA-yB| B

A
2 Transportation cost: is the cost financed for workers and is given by:

16
 Where, f-is no. of flow
c-is unit cost and
d-is distance b/n two consecutive sections
Aisle/path/ determination: An aisle is, in general (common), a space for walking with rows
of seats on both sides or with rows of seats on one side and a wall on the other. Aisles can
separate work areas.

2.9 Study of flow analysis

A directed flow path is an uninterrupted flow path progressing directly from origination to
destination. An uninterrupted flow path is a flow path that does not intersect with other
paths. The figure below illustrates the congestion and undesirable intersections that may
occur when flow paths are interrupted.

Fig 1.6 the impact of interrupted on flow path.

The principle of minimizing the cost of flow may be viewed from either following two
perspectives.
1. Minimizing manual handling by minimizing walking, manual travel distance and
motions.
2. Eliminate manual handling by mechanizing or automating flow to allow workers
to spend full time on their assigned tasks.
In my project I have tried not to eliminate back tracking, rather I have tried to minimize
the distance of backtracking and the cost as much as possible.

17
 Flow can be measured into two ways
1 Quantitatively: in terms of pieces per hour, moves per day, pounds per week. In
this case flow may be measured quantitatively in terms of the amount moved
between departments. The chart most often used to record these flows is from-to-
chart.
2 Qualitatively: in terms of an absolute necessity that two departments be close to
each other or a reference that two departments not to be close to each other. Flows may be
measured qualitatively using the closeness relationships values developed by Muther.
Therefore, the aims of facility layout planning and design is to improve reliability and
optimize the cost effectiveness of different layout. When performed effectively it were result
decrease transportation cos, processing time, and the gap or space between different
facilities.

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design
Many definitions of research design have been proposed by different researchers and
scholars, working in many other fields. A research design is simply the framework or plan
for a study that is used as a direct in collecting and analyzing the data. It is a blueprint that
is followed in completing a study. The research design is the blueprint for collection
measurement and analysis of data. It is a map that is usually developed to guide the research.
In this study quantitative approach is implemented. This research will be conducted in a
survey research method.

3.2 Method of data collection

There are two categories for data collection in carrying out a study, that is primary and
secondary data collection. The primary data are those which are collected afresh and for the
first time, and thus happen to be original in character. The secondary data, on the other hand,
are those which have already been collected by someone else and which have already been
passed through the statistical process. The methods of collecting primary and
secondary data differ since primary data are to be originally collected, while in case of
secondary data the nature of data collection work is merely that of compilation.
3.2.1 Method of collection of primary data
During this internship period we have been used different methods for collecting data from
primary data sources that used for our report and project, some of this methods are listed
below.
1) Observation method
We have got much information by observed precision manufacturing factory raw material
store, materials, spare parts, inventory systems, materials flow and work flows in the
company, number of machine available in the factory by observing such things we collect
the relevant information which is useful for our project and reports.

2) Interview method
The methodology to collect these data is asking all company department employees or
machinist, operators, shift leaders, precision manufacturing head directly face to face
question and answer. They gave a brief data related with their works (eg. how many Flow

19
between one departments to another or one machine to another machine, the mechanism of
machines, transportation cost from machine to machine.)
3) Using measuring device
We have got the dimension of each and every machine by measuring them by meter.
3.2.2 Method of collection of secondary data
Secondary data are collected from technical documents and annual reports that help to cross
check the official information and to get details concerning the study.
Our secondary way of data collection is:-
-Internet (from the internet we collect different articles on facility planning)
-Different Projects (we get some literature from another research paper on facility layout
design and planning)
-Books and magazines
Documented data/ Document analysis: we have get information from company document
and documents that are used for workers as a manual. It has all work flow of the production.
In this document the executing tasks each station are listed.

3.3 Method of Data analysis

To analyses data we use CRAFT algorithm Software which is useful for improving the
existing layout and analyses the data. It is found in MS-Excel.
3.3.1 Designing tool
For draw the existing layout and improved layout we use AutoCAD 2020.

20
 CHAPTER FOUR

OVERVIEW OF MANUFACTURING INDUSTRY

4.1 Background of the hosting company
Addis machine and spare part manufacturing industry is administer under ethio engineering
groups and established ween the agreement of Czechoslovakian government and Ethiopia
government at addis abeba. Originally the company was established with different names
such as “Addis Engineering”, “Hibret Machine Tools Engineering complex” under the
ministry of defense industries in 1945 E.C.
The major reason for establishment of the industry is to occurrence of foreign invention
for different time and it is easy the importance of establishing an ammunition factory for
organization of modern army when thinking of the establishment of ammunition factory in
1945 during emperor hailesilassie. Among the minister established by the proclamation
issue during Emperor minilik II in 1990 was established of the modern government system
was ministry of army and in 1928 the Italian fascist army used fighter aircraft to invade
Ethiopian. It was obvious that the major problem faced by our patriotic during the war
happened shortage of weapon and ammunition, when our patriotic returned after defeated
the enemy. They bought an idea of establishing ammunition industry. After emperor
hailesilassie conclude contractual agreement with Czechoslovakian to manufacture
ammunition for light weapon locally. The FDRE defense industries coordination decides
since 2000 E.C coming out part of this part history, currently the complex was structured to
industry. It is given a version Metal and Engineering corporation to meet the target it
established for:
 To design manufacturing industries, installation and commissioning to mass
production.
 To produce industry machineries and industrial spare parts improvement of
manufacturing industries and corporation to be sufficient also production of
capital material and spare parts developing engineering and technology in
the industry. Production of military materials and spare parts for defense and
security for domestic and other countries.
But in 2021G.C it is renamed its name as Ethio engineering group Addis machine and
spare part manufacturing industry, since it has got a new version and direction from the
federal democratic republic of Ethiopia (FDRE). And it’s enforced to restructure itself under

21
the scope of Metal and Engineering Corporation mandates activities so as to address its
establishment objectives. It is organized by incorporate five intuitive factories and it
executes different high value activities in order to ensure and enhance industrial machinery
technology and address national capital goods demand.

LOCATION: - Ethio engineering group addis machine and spare part manufacturing
industry is located in Addis abeba, lideta sub city kebele 07, around Mexico square and it
covers an area of 97,025 square meter.
Financial Status
Establishment cost…………………………….200, 000.00 birr
Invested capital … …………………………….2, 000,000.00birr
Expanded cost………………………………….82,000,000.00 birr
Addis machine and spare part manufacturing industry has strong financial background and
the annual revenue is growing fast from year to year. For instance the annual sales revenue
of the last budget year is 593,204,718.56 birr.
EMPLOYEES:- Ethio engineering group Addis machine and spare part manufacturing
industry has total of 1600 employees , 62% are male ,and 38% are female.
Engineers…………………………….8 %
Technicians………………………….80 %
Labor………………………………....12%
4.1.1 Mission and Vision of the company
4.1.1.1 Mission
Establish production factories, build industrial machineries, produce and address
capital goods and spare parts under internationally accepted quality and competitive price.
So as to realize national transformation in industrializing the country. Address our FDRE
ministry of defense demand; perform continues capacity building and technology
development activities in military aspect.
4.1.1.2 Vision
 To see prosperous Ethiopia in industrial machine and manufacturing
technologies.
 Establish the country as a progressive and an industrialized nation through
manufacturing technology.

22
4.1.2 Objective of the company
Ethio engineering group Addis machine and spare part manufacturing industry has many
objective those are:-
 To build erect and commission industrial manufacturing factories in all
cities. To ensure and address in industrial machineries spare parts and capital
goods requirement across the country and in the continent.
 Produce different items varying in shapes size, material design, and
production technology according to their engineering application.
 Minimize foreign exchanges.
4.1.3 Input raw materials
Addis machine and spare part manufacturing industry uses the following raw materials:-
1) Steel
- Carbon steel
- 12050 steel
- Stainless steel
2) Bronze
3) Aluminium
4) Brass

23
 Fig 1.7 Raw materials.

4.1.4 Main Suppliers

Table 1.1 main supplier of raw material
Raw materials supplier
12050 (D2,D3) Europe
Carbon steel, stainless steel China
Brass, bronze, aluminium china

4.1.5 Main product of the company

The major product of Ethio engineering group Addis machine and spare part manufacturing
industry are the following:-

 Spare parts
 Bolt and nut (from M6 to M16)
 Ball bearing
 Roll bearing
 Taper roller
 Industrial machinery
 Different type of gear (spur gear, bevel
gear, helical gear etc.)
 Break pad
 Different type of actuator

24
Fig 1.8 Chain used for sugar factories.

Fig 1.9 Bolts.

25
 Fig 2.0 Nuts.

4.1.6 Main customer of the company

The main customers or the end user of this company are:
 Sugar factories like Fincha sugar factories, metehara sugar factories, wenji
sugar factories e.t.c.
 Cement factories like Abyssinia cement factories, mossobo cement factories,
and muger cement e.t.c.
 Textile and tannery industries like bahirdar textile, kombolcha garment and
alemda textile e.t.c.
 Leather industries like Ethio leather industry, Anbessa shoe and tikur abay
shoe e.t.c.
 Ethiopian electric power corporation.
 Eyayu urea factory.
 Sheger bus.
 Ethio plastic
4.1.7 Main service of the company
 Upgrading conventional machine NC to CNC
 Consultancies on machine tool engineering
 Machine erection and commissioning
 Hardening, surface treatment ,and Normalizing
 Metallurgical and chemical analysis
 Case hardening
4.1.8 Organizational structure of the company
Addis machine and spare part manufacturing industry and spare parts has an excellent and
well-structural settlement as a company. This structure is shown below.

26
 General Manager

Design and
Financial audit
Development

Safety and Quality

security management

Office Contract and

administration law service
and MIS

Marketing Human resource

Finance and Operation
department and development
logistics

Finance PMF Contract and General Service

follow

CMF
Material Sales HR-adm
resource department
MBF
Budget and
Market research
planning Supply department
MBSF and business
development
Purchasing Human resource
BNW CS and
department development
Production

Fig 2.1 Organizational structure of the company.

27
4.2 Overall Internship experience
4.2.1 How we get into the company
Like any other students, after university gives us the application paper for the companies
we were searching the company which can accept and change our theoretical knowledge in
to practical. And we were thinking how we can get the chance to tests our self. We applied
for different companies in Addis Ababa for internship then after we decided to be here we
applied to Ethio- engineering group Addis machine and spare part Manufacturing industry
and their response was positive.
4.2.2 The section of company we have been working
Addis machine and spare part manufacturing industry have five different factories these
are:-
1) Conventional manufacturing factory
2) Precision manufacturing factory
3) Machine building factory
4) Machine body and structure manufacturing factory
5) Bolt and Nut Work shop

By the time of my internship experience we have been working in all factories, but we get
the chance to join in precision manufacturing factory. It consists of different room this are:-
 Quality control room
 Maintenance room
 Heat treatment workshop
 Grinding machine room
 CNC milling machine room
 Lathe Machine room (both CNC and conventional)
 Welding and cutting room
 Spare part section and tool sharping room
 Raw material room
 Gear workshop
 Safety and security room

28
4.2.2.1 Conventional manufacturing Factory
As the name implies; in this factory only conventional machines are available those are lathe
machine, milling machine, grinding machine and drilling machine.
4.2.2.1.1 Lathe Machine
Lathe machine is also known as “the mother or father of the entire tool family.” The lathe
is one of the most important machines in any workshop. Its main function is to remove
material from outside by rotating the work against a cutting tool. It is a power driver, well
purpose machine tool, which is used for producing cylindrical work piece.

Fig 2.2 Conventional lathe machine.

4.2.2.1.2 Milling Machine

Milling machines are very versatile. They are usually used to machine flat surfaces on
square or rectangular parts, but can also produce many unique and irregular surfaces. They
can also be used to drill, bore, produces slots, pockets and many other shapes. A milling
machine removes metal by rotating a multi-toothed cutter that is fed into the moving work
piece. A machine operation in which a work part is fed past a rotating cylindrical tool with
multiple edges.

29
 Fig 2.3 Conventional Milling Machine.

4.2.2.1.3 Drilling Machine

Drilling is an operation of making a circular hole by removing a volume of metal from the
job by cutting tool called drill. A drill is a rotary end-cutting tool with one or more cutting
lips and usually one or more flutes for the passage of chips and the admission of cutting
fluid. A drilling machine is a machine tool designed for drilling holes in metals. It is one of
the most important and versatile machine tools in a workshop.

Fig 2.4 Drilling Machine.

4.2.2.1.4 Grinding Machine

Grinding machines are also available in my host company. Grinding machines are used for
cutting off steel, especially tubes, structural shapes, and hard metals. At our host company
two types of grinding machines are available. They are: cylindrical and surface grinding
machine.
1) Cylindrical grinding machine

30
The cylindrical grinder is a companion machine to the engine lathe; shafts, cylinders, rods,
studs, and a wide variety of other cylindrical parts are first roughed out on the lathe, and
then finished accurately to size by the cylindrical grinder. The work is carried on centres,
rotated slowly, and traversed past the face of a grinding wheel. Universal grinders are
cylindrical machines arranged with a swivelling table so that both straight and taper internal
and external work can be ground.

Fig 2.5 Cylindrical Grinding Machine.

2) Surface Grinding Machine

It is also classified in to two: horizontal and vertical surface grinding machine. Horizontal
surface grinders range from small capacity, used mainly in tool making or small production
work, to large sizes used for production work. Vertical surface grinders are used for
producing flat surfaces on production work. Vertical and horizontal disk grinders are used
for surfacing.
4.2.2.2 Precision Manufacturing Factory
Precision manufacturing factory is one of among five factories in the industry it consist
different CNC machines that do more complex precise work up to 0.001 µm, and the
products made in this factory are:-
 Vehicles and trucks spare parts
 Molds, dies, punches, jigs, and fixtures
 Farm machineries and other huge parts and the conventional accessories
finished

31
4.2.2.2.1 CNC machines
When the activities of a Numerical Control machine is administered by a dedicated
computer, it is known as Computer Numerical Control machine tool. The functions of the
machine tool are controlled by the instructions stored as programs in the computer. CNC
(Computer Numerical Control) machine is one of the machines available in our host
company. Conventionally, an operator decides and adjusts various machines parameters like
feed, depth of cut etc. depending on the types of job, and controls the slide movements by
hand. In a CNC machine functions and slide movements are controlled by motors using
computer programs.

There are many different types of CNC machines used in the precision factory, such as:

 CNC lathe machine

 CNC milling machine

Fig 2.6 CNC lathe machine.

.

32
 Fig 2.7 CNC milling Machine.

4.2.2.2.2 Heat treatment Workshop

The term heat treatment may be defined as an operation or a combination of operations,
involving the heating and cooling of a metal or an alloy in the solid state for the purpose of
obtaining certain desirable conditions or properties without change in chemical
composition. The aim of heat treatment is to achieve one or more of the following objects:
1. To increase the hardness of metals.
2. To relieve the stresses set up in the material after hot or cold working.
3. To improve machinability.
4 To soften the metal.
5. To modify the structure of the material to improve its electrical and magnetic properties.
6. To change the grain size.
7. To increase the qualities of a metal to provide better resistance to heat, corrosion and
wear.
This factory mainly consists of electric furnaces having different size and temperature range.
The quenching media used are water, oils and air as per the specification of drawing. The
hardness is checked by rock well.
Service provided in this factory’s are:
 Tempering
 Hardening
 Annealing
 Normalizing
Tempering
The steel hardened by rapid quenching is very hard and brittle. It also contains internal
stresses which are severe and unequally distributed to cause cracks or even rupture of
hardened steel. In general, tempering restores ductility and reduces hardness and results in
some decrease in hardness.
Therefore, the process tempering done for the following reasons:
1. To reduce brittleness of the hardened steel and thus to increase ductility.
2. To remove the internal stresses caused by rapid cooling of steel.
3. To make steel tough to resist shock and fatigue.
4. To give the metal right structural condition.
The tempering treatment requires:
33
1. Reheating the steel after hardening to temperatures below critical point.
2. Holding it for a considerable time.
3. Slow cooling.
The exact tempering temperature depends upon the purpose for which the article or tool is
to be used. According to the heating temperatures, ranges of which are specified in the lower
part of tempering is classified into three types:
1. Low- temperature tempering
2. Medium- temperature tempering
3. High- temperature tempering
Low- temperature tempering:- is the level of temperature which is ranges from 150 to 250
degree Celsius. The purpose of this procedure is to relieve internal stresses and to increase
the ductility without appreciably reducing it is hardness. This Low- temperature tempering
is applied in the heat treatment of carbon and low alloy steel cutting tools, as well as
measuring tools and parts that have been carburized and surface hardened.
Medium- temperature tempering:- is the level of temperature which is ranges from 350
to 450 degree Celsius. The structure of steel is changed by this procedure. Martensite is
transformed in to secondary trostite. The results are a reduction in hardness and strength of
the metal and increase in elongation and ductility. This medium temperature tempering is
mainly applied to the articles and parts which are subjected to impact loads; hammers,
springs etc.
High- temperature tempering:- is the level of temperature which is ranges from 500 to
650 degree Celsius. At these temperatures internal stresses are almost completely
eliminated.
High temperature tempering imparts high ductility to parts, yet permits them to retain
adequate hardness. This is applied to machine parts which are subjected to high stresses and
impact; gear wheels, shafts, connecting rods etc.
Hardening
The operation of hardening is applied to all tools and some important machine parts intended
for especially heavy duty service as well as to all machine parts made of alloy steel. With
many components, hardening is virtually the final process and great care must take to protect
the surface from degradation and decarburization.
The main objects of hardening are:
1. To increase the hardness of the metal so that it can resist wear.
2. To enable it to cut other metals i.e. to make it suitable for cutting tools.
34
The process of hardening consists of
1) Heating the metal to a temperature from 30 to 50°C above the upper critical point
for hypoeutectic steels and by the same temperature above the lower critical point
for hypereutectoid steels.
2) Keeping the metal at this temperature for a considerable time, depending upon its
thickness.
3) Quenching (cooling suddenly) in a suitable cooling medium like water, oil or brine.
The low carbon steels cannot be hardened appreciably, because of the presence of ferrite
which is soft and is not changed by the treatment. As the carbon content goes on increasing,
the possible obtainable hardness also increases.
The greater the rate of quenching, results the harder is the resulting structure of steel. For
hardening alloy steels and high speed steels, they are heated from 1100°C to 1300°C
followed by cooling in a current of air.

Table 1.2: Effect of carbon content

Types steel Carbon content (%) Effect of heating and
quenching (rapid cooling)

Mild steel Below 0.25 Negligible

Low carbon 0.3 – 0.5 Becomes tougher

Medium carbon 0.5 – 0.9 Becomes hard

High carbon 0.9 – 1.3 Becomes very hard

Table 1.3: Effect of cooling media

Carbon content Quenching bath Required treatment

0.3 – 0.5 Oil Toughening

0.5 – 0.9 Oil Toughening

0.5 – 0.9 Water Hardening

0.9 – 1.3 Oil Hardening

35
  below 0.5 per cent carbon content, steels are not hardened as cutting tool, so
water hardening has not been included.
 above 0.9 per cent carbon content, any attempted to harden in water could
lead to cracking.
Annealing
The main objects of annealing are:
1. To soften the steel so that it may be easily machined or cold worked.
2. To refine the grain size and structure to improve mechanical properties like strength and
ductility.
3. To relieve internal stresses which may have been caused by hot or cold working or by
unequal contraction in casting.
4. To alter electrical, magnetic or other physical properties.
To remove gases trapped in the metal during initial casting.
The annealing process is of the following two types:
1. Full annealing
When an annealed part is allowed to cool in the furnace, it is called a full annealing. It is the
process of wipes out all traces of previous structure by complete phase recrystallization.
The purpose of full annealing is to soften the metal to refine the grain structure, to relieve
the stresses and to remove trapped gases in the metal. Medium and high carbon steels,
requires full annealing for recrystallization.
Full annealing consists of:
a) Heating the steel slightly
b) Holding it at desired temperature for a considerable period. Not less than 3 to 4
minutes for each millimetre of section of the largest piece being heat treated.
c) Slowly cooling.
2. Process annealing
The process annealing is used for relieving the internal stresses previously set up in the
metal and for increasing the machinability of the steel. In this process, steel is heated to a
temperature below or close to the lower critical temperature, held at this temperature for
some time and then cooled slowly. This cause complete recrystallization in steels which
have been severely cold worked and a new grain structure is formed. The process annealing
is commonly used in the sheet and wire industries.

36
Normalizing

The main objects of normalizing are:

1. To refine the grain structure of the steel to improve machinability, tensile strength
and structure of weld.
2. To remove internal stresses that may have been caused by working; which makes
the metal brittle and unreliable.
3. To improve the mechanical properties of the steel.

The process of normalizing consists of:

 Heating the steel from 30 to 50°C above its upper critical temperature.
 Holding at this temperature for a short time about 15 minutes.
 Cooling in air.

Fig 2.8 Heat Furnace.

4.2.2.2.3 Gear Workshop

Gear workshop room is another workshop found in precision factory and different gears are
made by different gear making machine. Gear hobbing machine is used to change circular
material in to gear in a unique gear making principle or calculation. The gear making
principle is different for different types of gear like spur, helical, bevel, worm and so on we
will adjust this gear making machine with another gear set principle. We will use HSS (high
speed steel) as a cutter while working on this machine we noticed a problem which is safety
hazard for the worker there is shielding material to cover the front portion of the machine
and the other problem was coolant but we suggested so solutions for the above problem.

Types of gear are:-

 Helical gear

37
  Bevel gear
 Spur gear etc.

Fig 2.9 Gear Hobbling Machine.

4.2.2.2.4 EDM machine

This is the most precise machine that exist in that company which can do any complex and
intricate shape, the wire is assembled vertically so that the work piece is fitted in the middle.
The unique thing about this machine is electrical current will do most of the cutting because
the wire is positive and the work piece is negative so due to this property the work piece
will melt down in very smooth and small scale so it can have the desired accuracy.

Fig 3.0 EDM machine.

4.2.2.2.5 Universal deburring machine

Deburring is the secondary operation of machining process that enhance the final quality of
the product by removing raised edges and unwanted piece of materials, knowns as burrs,
left by the initial machining process. Deburring machines are used to remove burrs by
mechanical, electrochemical, and thermal methods.

38
 Fig 3.1 universal deburring machine.

4.2.2.3 Machine Building Factory

Previously in this factory, Medals and badges are made along with different signs and
writings. The products are produced by engraving and pressing, heat treatment, and surface
treatment.
Currently working on:
 A small scale building machineries vehicles and trucks spare part,
Construction and industrial machineries.
 Upgrading of the machines to CNC (Computerized Numerically Controlled)
machines and others parts.
Generally, in this factory different machines are build and assemble, and produce for
marketing examples lathe machine, milling machine, grinding machine, drilling machine
etc.
4.2.2.4 Machine Body and Structure Factory
Machine body and structure manufacturing factory is another factory found in the industry,
body of different machine and structural work is done.
4.2.2.5 Bolt and Nut Factory
Bolt and nut are one of the major product of the company, they are made in the workshop
called bolt and nut, within the factory a number of bolt with nuts are made in different size
and shape from M6 up to M16 by using bolt and nut making machine.

39
 Fig 3.2 Thread Making Machine.

Fig 3.3 Nut making machine.

4.2.3 Work Flow of Precision Manufacturing Factory.

The work flow of PMF is as follow:

Customer join the system

Customers are welcomed by

marketing and sales section

Customers order receiving is done by marketing and sales section

The marketing section checks whether the order is done in here or not by
its technicians
40
 yes Or. Done ? No

Order accepted
Customer order is rejected and the flow stops here.

If the customers come with the The customers may come with the
prototype the marketing section will design
check type of materials using
spectrometer and structural
micrometer. For this process the
customers pays a service charge.

Prototype or design is taken to the design and development section then change the
sample or idea to detail drawing language.

Cost factor is done by considering every process and operation that are required

PPC checked everything done by marketing

and sales section

Job order is determined The necessary improvements

and Performa is prepared are done.
for the customers.
41
 PPC gave the Performa to
the customer.

PPC lead the work to the production The flow stops here.
shop and production started.

Finishing

The product is took to the store

Customers come on the delivery date to the marketing

section

The marketing section delivers the product to the customer

Customers leave the system

Fig 3.4 General work flow of PMF.

42
4.2.4 The work task we have been execute

 Drilling.
 Carry many types of metal from one place to another place.
 Turning operation on lathe machine.
 Carry scrap from main work station to temporary storage.
 Making thread by thread cutting machine.
 Grinding of different metal.
 Put metal in the furnace to increase its strength.
 Change different spare of machine.
 Welder.

4.2.5 The procedures we have been using while performing our work tasks
While we do turning operation we follow these procedure:
1. Set the compound rest at 30 degrees.
2. Attach a roughing or finishing tool. Use a right-handed turning tool if feeding the saddle
in the direction of the headstock.
3. Move the tool post to the left hand side of the compound rest and set the tool bit to right
height centre.
4. Set the lathe to the correct speed and feed for the diameter and type of material being cut.
5. Start the lathe and take a light cut about .005 inch and .250 inch long at the right hand
end of the work piece.
6. Stop the lathe, but do not move the cross feed screw handle
Generally we were use different procedure to perform our task.
4.2.6 How good you have been in performing your work tasks
As per stay in the company we are gaining many knowledge and we have been a good
capability while performing turning and welding operation rather than grinding of metal.
And we were good in changing spare part of Conventional lathe machine.
4.2.7 The challenges we have been facing while performing our work
During our internship period there was different challenges existing to decline our moral to
minimum point, some of this are:
 Huge lack of safety materials during the time of performing the high risk
activities.

43
  There is no full internet access.
 There are no professionals on Industrial engineering profession so; their point of
view is a little bit different from our profession. Because our supervisor was
engineer but he graduated in mechanical engineering and a huge
misunderstanding between us when we talk about how to gather data about that
company this makes a problem.
 Shortage of knowledge about the practical aspect.
 We didn’t get documented data for overall production processes of each
machine.
 We didn’t use workers bus.
 Poor response from each stages of work (they are not kind to give full
information).
 Noises of production machineries.
 Challenge on the front door while entering to the company from the securities.
4.2.8 Measures we take in order to overcame these challenge
 For the safety problem we used our own shoe and close.
 Being patient to get something what we want.
 To get into the company freely we attach our internship file and send to the
company human resource department after that we were given the company
ID card, so that we can enter to the company freely like other workers.
 Asking them repeatedly without saying it is boring.
 Make close relationship with each of workers and operator of the company.
 To solve the limitation of internet access we try to use different places
outside of the company.
4.3 Overall internship Benefits
4.3.1 In terms of improving practical skill
As per stay in addis machine and spare part manufacturing industry, Basically improving
practical skill is made from participating in every of the activities performed or done in our
stay in this company we have improved our practical skill in term of digging out the problem
that company faced as well as giving the solution for the problems that we gained from the
company and also by working together with factory workers and the production planning
and control, the quality control, the maintenance group, the store room, design and develop
with them and it made very confident. The activities naturally employed in the

44
manufacturing facilities in production process and the system design in order to obtain
substantially demand through system knowledge and practical skills. For sufficient handling
of assigned work in the field of production planning or other like operational managements
as well as in producing products the practical skill is very important besides the technical
department we trained how the machines are upgraded to computerized by operating on a
machine like lathe machine and also with maintenance department team and subordinates
provided us with opportunities to understand and gate experienced how and when the
maintenance activities done.
4.3.2 In terms of upgrading theoretical knowledge
One of the aims of this internship program is to develop the theoretical knowledge in to
practical one, and also encourages the theory that we have learnt in the class .Therefore in
our stay in the company we develop the knowledge that we know in theory with the
participating in the factory’s working condition of the production planning, in design and
development, in quality control, store system, and also in maintenance activity besides this
we gathered the relevant information which is important to understand the theory for
practical application.
Basically the theoretical knowledge that we managed to exploit from the available sources
is considerable and determined through the background in the system. Moreover, steps and
techniques in planning and scheduling, applicable procedure, and regulation in the
manufacturing industry and such development have been very crucial in maximizing our
scope of knowledge in manufacturing industry field and general outstanding knowledge of
the company. Therefore generally we acquire to upgrade our theoretical skill in different
ways of situations by participation in our hosting company.
4.3.3 In terms of improving interpersonal communication skill
When we was in the internship session we did too many formal and informal communication
with the company manager and the personnel’s and the workers of the company, production
manager, quality heads, shift leaders and as well as the factory team leaders that could help
me to develop my communications skills very well.
4.3.4 In terms of improving team playing and leadership skill
In Addis machine and spare part manufacturing industry every work from the design up to
the final product is done by teams that are dedicated to each task. That helps us to understand
team working benefits because when we are working in teams it means that different people
with different skills and background aiming to achieve similar goals. While being a team

45
leader helps us to practice our leadership skills and develop them. Learn how to be a good
leader which requires being devoted to the task working together rather than being bossy,
share ideas, presentation and defense skills and others.
4.3.5 In terms of understanding work ethics related issue
Ethics is a branch of philosophy that defines morality and determines the meaning and
rational justification of the right way to live, correct values as well as correct ways of treating
other. As workers were made to specialize in different fields, specific codes of contact were
expected from each worker. In today’s complex world, ethical conduct of worker is very
important for developing healthy working environment and increasing productivity. Ethical
work conduct enables workers to possess appropriate behaviors and so as to develop proper
relationships with co-worker and help them to create good industrial environment.
Actually any people should have ethics not only in the social life but also in the work place.
Because of it indicates that a good personality. In our understanding work ethics is a set of
values on hard work and diligence it also believe in normal benefit of work and its ability
to enhance.
Two types of ethics mostly exist. These are,
 Personal ethics
 Professional ethics
4.3.5.1 Personal ethics
All human beings as rational creatures are expected to exhibit certain personal principles of
ethics. These principles of personal ethics are values which are expected to be possessed by
all individuals in their life, and contribute a lot for a smooth interaction among individuals
and peaceful coexistence of a society. These principles of personal ethics include:
 Concern for the well-being of other
 Honesty and Integrity
 Fairness
 Compliance to the law
 Benevolence (doing good)
 Refusing to take un-fair advantage
 Respecting the Autonomy of others
 Respect other peoples work
 Understanding customers filling

46
4.3.5.2 Professional ethics
Professional ethics refers to the standard or a set of moral principles for regulating behavior
of a certain defined profession. In order to consider that an activity to be a profession, it
should be carried out by one who has advanced education, knowledge and skill. Thus, for
developing healthy working environment and increase productivity, ethical work conduct is
necessary. The following are some of the common ethical principles which are apply in each
Company.
Transparency and openness
 Integrity
 Avoiding potential or apparent conflict of inter
 Not absent (except for special cases )
 Accountability and responsibility
 Be responsible for the property of the company
4.3.6 In terms of entrepreneurship Skill
When we have been doing the work the potentials and how to perform once self is designed
out inside us to re habilitate in the future for job creation opportunities being an entrepreneur
person. And also we come up with the ideas alternatives to improve production and
minimization of costs and avoidance of wastage happened during production system.
Therefore in terms of gaining the entrepreneur skill this internship program made us
confident for the work.

47
 CHAPTER FIVE

DATA COLLECTION AND ANALYSIS

5.1 Data Collection

To measure and put the dimension of the machines we use meter, pen, and computer to put
data and drawing.
Table 1.4 Dimension of machines in (M).
No Name of machine Quantity Length( Width( Area(m2) Total
. M M) area
1. CNC lathe 5 1 2 2m2 10m2
2. Universal 1 3 1 3m2 3m2
deburring
3. Surface grinding 2 1.5 4 6m2 12m2
4. CNC milling 3 2 1.5 3m2 9m2
5. Gear hobbling 4 1 1.5 1.5m2 6m2
6. Plasma cutting 1 4 1.5 6m2 6m2
7. Slotting 2 1.5 3 4.5m2 9m2
8. EDM machine 3 2 2 4m2 12m2
9. Drilling machine 3 1 1.5 1.5m2 4m2
10. Raw material 1 18 6 128m2 128m2
room
11. Total 25 35 24 159.5m2 199m2

Table 1.5 Existing Dimension of machine from wall

No Wall to machine Dimension(m)
1. wall→lathe 0.92m
2. wall→deburring 0.92m
3. Wall →surface grinding 0.92m
4. wall→CNC mill 0.92m
5. wall→plasma 0.92m

48
 6. wall→drilling 0.92m
7. Wall→gear hobbling 0.92m
8. wall→raw materials 0.92m

Table 1.6 Number of workers assigned on machine.

No. Name of machine Number of worker
1 CNC lathe 5
2 Universal deburring 1
3 Surface grinding 2
4 Gear hobbling 6
5 CNC mill 3
6 Plasma cutting 2 by shift
7 Drilling 3
8 Slotting 2
9 EDM 3

Table 1.7 average Number of Flow data from one section to another (from-to-chart) per day.
No From→to (A) (B) (C) (D) (E) (F) (G) (H) (I) (J)
1. CNC 0 0 4 10 0 0 1 0 3 0
lathe(A)
2. Universal 0 0 0 0 0 0 3 0 0 0
deburring(B)
3. Surface 0 0 0 4 0 0 0 0 0 0
Grinding(C)
4. CNC 6 0 4 0 0 0 0 0 2 0
mill(D)
5. Gear 0 0 0 2 0 0 0 0 0 0
Hobbling(E)
6. Plasma 6 0 0 4 0 0 0 0 0 0
cutting(F)
7. Slotting(G) 0 0 0 0 0 0 0 0 2 0
8. EDM (H) 0 0 2 0 0 0 0 0 0 0

49
 9. Drilling(I) 0 0 7 0 0 0 2 0 0 0
10. Raw 6 0 0 0 0 5 0 0 0 0
material
room(J)

Table 1.8 distance data b/n machine.

From A B C D E F G H I J
to

A - - 8.08 13.7 - - 23.3 - 11.06 -

B - - - - - - 19.6 - - -

C - - 5.63 - - - - - -

D 13.65 - 5.63 - - - - - 12.94 -

E - - - 4.5 - - - - - -

F 24.15 - - 10.49 - - - - - -

G - - - - - - - - 12.51 -

H - - 8.65 - - - - - - -

I - - 7.3 - - - 12.56 - - -

J 16 - - - - 20 - - - -

Table 1.9 Unit transportation cost per distance

From A B C D E F G H I J

To
A - - 4 6.75 - - 11.5 - 5.5 -
B - - - - - - 9.8 - - -
C - - 2.75 - - - - - -
D 6.75 - 2.75 - - - - - 6.25 -
E - - - 2.25 - - - - - -
F 11.75 - - 5 - - - - - -
G - - - - - - - - 6 -

50
 H - - 4.25 - - - - - - -
I - - 3.5 - - - 6 - - -
J 8 - - - - 8 - - - -

REMARK: flow measured quantitatively in terms of amount moved per day between
departments the chart most often used to record these flow is a from-to chart.

51
52
 Fig 3.5 Existing layout arrangement of machine.

KEY

=CNC lathe machine =CNC mill machine

= universal deburring machine =plasma cutting machine

=Gear hobbling =Surface grinding machine

= Slotting machine =EDM machine

= Drilling machine = Raw material storage

5.1.1 The drawback of existing layout

In the above figure show that the existing layout of the PMF or the existing arrangement of
machines of PMF there are twenty four different machines and one big raw material storage
room however, the layout arrangement of machines have many drawbacks one of the main
drawback is high transportation cost i.e. the cost to move one finished material or semi-
finished material from one machine to another machine is very high due to too much space
gab between machines the materials moved by either manpower, carts, or forklift. When
the distance between machines is getting high transportation cost also increase as well as
time also increase so this is the main problem or drawback of the existing layout. Another
drawback of the existing layout is there is no maintenance place around machine when
machines are getting failure due to some mechanical or electrical problems they are going
to stop their daily function because of too far maintenance room this leads to increase
processing time and slow down productivity of the factory. The next drawback is some
machines are not standardize settled the gap between some of them is correct or standardize
and some are not. So those are the drawback of the existing layout. In the new layout those
problems will be solved.

53
5.2 Data Analysis
Before data analysis the following activities enabled to analyse the recorded data
5.2.1 Work station area, maintenance area, and aisle area of machinery
The work station area of the company is the summation of the machinery area, the aisle for
the movement of workers and product from one machine (area) to another machine (area)
and maintenance area of the machine. But here the aisle for transporting equipment is
included in to the aisle for the workers. So 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.
Standards
 Between stationary object and machine we can take 92cm or 0.92m.
 Between operating machine we can take 107cm or 1.07m.
 Maintenance area of the operating machine is 50cm or 0.5m.( S.C sharma,2016)

1) CNC lathe machine

Length =0.92m+1 m+1.07m+1m=3.99m
Width=0.92m+2m+1.07m+2m=5.99m
A1=L*W=3.99m*5.99m=23.9 approximate=24m2
But we calculate the area by dividing the space in to two so,
A2=L*W
L=1.07m+1m=2.07m
W=2m
A2=L*W=2.07m*2m=4.14m2
Total area= A1+A2=24m2+4.14m2=28.14m2
2) Universal deburring machine
Length= 1.07m+3m+0.5m=4.57m
Width=0.92m+1m=1.92m
A=L*W=4.57m*1.92m=8.7744m2
3) Surface Grinding machines
Length=1.07m+1.5m+1.07m+1.5m+0.5+0.92m=6.56m
Width=0.92m+4m=4.92m
A=L*W=6.56m*4.92m=32.2752m2

54
4) Gear hobbling Machines
Length=0.92m+1m+1.07m+1m+1.07m+1m+1.07m+1m+0.5m=8.63m
Width=1.07m+1.5m=2.57m
A=L*W=8.63m*2.57m=22.1791m2
5) CNC mill Machines
Length=0.92m+2m+1.07m+2m+1.07m+2m+0.5=9.56m
Width=1.07m+1.5m=2.57m
A=L*W=2.57m*9.56m=24.5692m2
6) Plasma cutting machine
Length=0.92m+4m+0.5=5.42m
Width=1.07m+1.5m=2.57m
A= L*W=5.42m*2.57m=13.9294m2
7) Slotting machines
Length=1.07m+1.5m+1.07m+1.5m+0.5=5.64m
Width=1.07m+3m=4.07m
A=L*W=5.64m*4.07m=22.9548m2
8) EDM Machine
Length=1.07m+2m+0.92m+0.5=4.49m
Width=1.07m+2m+1.07m+2m+1.07m+2m=9.21m
A=L*W= 41.3529m2

9) Drilling machines
Length=0.92m+1m+1.07m+1m+1.07m+1m+0.5m=6.56m
Width= 1.07m+1.5m=2.57m
A=L*W=2.57m*6.56m=16.8592m2

10) Raw materials room

Length=1.07m+18m=19.07m
Width=1.07m+6m=7.07m
A=L*W=19.07m*7.07m=134.8249m2

55
Table 2.0 Total workstation area
No Name of machines Quantity Workstation
area(m2)
1. CNC lathe 5 28.14
2. Universal deburring 1 8.8
3. Surface grinding 2 32.3
4. Gear hobbling 4 22.2
5. CNC mill 3 24.6
6. Plasma cutting 1 14
7. Slotting 2 23
8. EDM 3 41.4
9. Drilling machine 3 16.9
10. Raw material storage 1 134.8
11. Total area 346.14m2

Therefore,
Work station area =346.14m2
It is discussed that the working floor layout should be done by CRAFT exchange method.
For instance, the following existed layout shows, concretely, the working area of each sub
-section by switching off the aisle to do the CRAFT well and the steps enable to
perform/decide the best working floor layout. The following gridded table illustrates the
existed working departments of production department.

1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 1 1 1 1 1 10 10 10 10 10 10 10 10 10
2 1 1 1 1 1 10 10 10 10 10 10 10 10 10
3 1 1 1 1 1 10 10 10 10 10 10 10 10 10
4 1 1 1 1 1 10 10 10 10 10 10 10 10 10
5 1 1 1 1 1 10 10 10 10 10 10 10 10 10
6 1 1 1 1 2 10 10 10 10 10 10 10 10 10
7 2 2 2 2 2 10 10 10 10 10 10 10 10 10
8 2 2 2 3 3 9 9 9 9 9 10 10 10 10
9 3 3 3 3 3 9 9 9 9 9 10 10 10 10
10 3 3 3 3 3 9 9 9 9 9 10 10 10 10

56
 11 3 3 3 3 3 8 8 8 9 9 10 10 10 10
12 3 3 3 3 3 8 8 8 8 8 10 10 10 10
13 3 3 3 3 3 8 8 8 8 8 10 10 10 10
14 3 3 3 3 3 8 8 8 8 8 10 10 10 10
15 3 4 4 4 4 8 8 8 8 8 10 10 10 10
16 4 4 4 4 4 8 8 8 8 8 10 10 10 10
17 4 4 4 4 4 8 8 8 8 8 10 10 10 10
18 4 4 4 4 4 8 8 8 8 8 10 10 10 10
19 4 4 4 4 5 7 8 8 8 8 10 10 10 10
20 5 5 5 5 5 7 7 7 7 7 10 10 10 10
21 5 5 5 5 5 7 7 7 7 7 10 10 10 10
22 5 5 5 5 5 7 7 7 7 7 10 10 10 10
23 5 5 5 5 5 7 7 7 7 7 10 10 10 10
24 5 5 5 5 6 6 6 6 7 7 10 10 10 10
25 6 6 6 6 6 6 6 6 6 6 10 10 10 10

Fig3.6 grid Table of existing layout by CRAFT.

Remark: each dimension of 1 grid represents 100cm or 1m on the ground and the operation
may be starting from CNC machine or another machine and ends at temporary ware house
or inventory. If a piece of metal product is not completed at a time, it is put at temporary
storage section. Due to this number of workers are assigned to accomplish the desired
product per a day, this causes transportation cost because of departmental distance flow
from department to department.

CRAFT calculation
To find out the best layout using CRAFT interchange method, we have to apply the
following Procedures
1. Determine department centroids.
2. Calculate rectilinear distance between centroids.
3. Calculate transportation cost for the layout.
4. Consider department exchanges of either equal area departments or departments sharing
a common border.
5. Determine the estimated change in transportation cost of each possible exchange.
6. Select and implement the departmental exchange that offers the greatest reduction in
transportation cost.

57
7. Repeat the procedure for the new layout until no interchange is able to reduce the
transportation cost.
1) Centroidal distance: to find the distance between two sections first the center of each
Section must be known. Center of a body in two dimension(X and Y) axis a(x, y), is given
by:

X= Total moment along -x- axis and

Total area of a section

Y= Total moment along -y- axis

Total area of a section
If there are two or more rectangles/regions/ for a section to find the center of that body, it is
Advisable to breakdown the rectangles/regions/ into a rectangle/a region/ so that center can
be Obtained easily along x, y axis.

2. Rectilinear distance: If (xi, yi) and (xj, yj) represent the coordinates of two locations i
and j then the distance model can be measured using rectilinear distance method. And is
given by
B
Rd= |xa - xb| + |ya -yb| A

3. Transportation cost: is the cost financed for workers and is given by:
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑

Where, f- is no. of flow

c-is unit cost of a grid represent 1 meter on the ground.
d-is distance between two consecutive sections

58
Table 2.1 Number and number of Grid of each section
No Section Symbol by number Number of grid

1 CNC lathe 1 29

2 Universal deburring 2 9

3 Surface grinding 3 33

4 Gear hobbling machine 4 23

5 CNC milling 5 25

6 Plasma cutting 6 14

7 Slotting machine 7 23

8 EDM machine 8 42

9 Drilling machine 9 17

10 Raw material storage 10 135

Centroid for each section

Table 2.2 centroid for each section

coordinates
Machines
x-centroid y-centroid
CNC lathe 2.43103456 2.91379309
Universal deburring 2.38888884 6.72222233
Surface grinding 2.530303 10.893939
Gear hobbling 2.5 16.5
CNC milling 2.50000024 21.2999992
Plasma cutting 5.28571415 24.2142849
Slotting 7.54347849 21.108696
EDM 7.47619057 14.5952377
Drill 7.67647076 8.73529434
Raw 10.833333 10.166667

59
Rectilinear distance
Rectilinear distance between CNC lathe and Universal deburring is calculated below
Rd of A to B =|xA - xc| + |yA - yc|
=|2.43103456-2.530303| + |2.91379309-10.893939|
=8.07941435
Based on this step the rectilinear distance of the rest department can be calculated easily.
And the Following table summarizes the rectilinear distance between each department for
iteration 1.
Table 2.3 Rectilinear distance for existing layout between each department
From A B C D E F G H I J

To
A - - 8.08 13.7 - - 23.3 - 11.06 -
B - - - - - - 19.6 - - -
C - - 5.63 - - - - - -
D 13.65 - 5.63 - - - - - 12.94 -
E - - - 4.5 - - - - - -
F 24.15 - - 10.49 - - - - - -
G - - - - - - - - 12.51 -
H - - 8.65 - - - - - - -
I - - 7.3 - - - 12.56 - - -
J 16 - - - - 20 - - - -

The total transportation cost is:

Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*8.08=129.2birr/day
A-D=10*6.75*13.7=924.75birr/day
A-G=1*11.5*23.3=268.03birr/day
A-I=3*5.5*11.06=182.6birr/day
B-G=3*9.8*19.6=574birr/day
C-D=4*2.75*5.63=62birr/day

60
D-A=7*6.75*13.65=645.20birr/day
D-C=4*2.75*5.63=62.00birr/day
D-I=2*6.25*12.94=161.8birr/day
E-D=2*2.25*4.56=21.59birr/day
F-A=6*11.75*24.15=1702.5birr/day
F-D=4*5*10.49=209.9birr/day
G-I=2*6*12.51=150.08birr/day
H-C=2*4.25*8.65=73.50birr/day
I-C=7*3.5*7.3=178.9birr/day
I-G=2*6*12.56=150.08birr/day
J-A=6*8*16=768birr/day
J-F=5*8*20=800birr/day

TTC= 7832.38birr/day
For the existing layout the company expends 7832.38 birr/day for transportation cost. So,
we Can do a propose solution depending on the existing layout cost and information.

Table 2.4 cost matrix for existing layout

From A B C D E F G H I J

to
A - - 129.2 924.75 - - 268.03 - 182.6 -
B - - - - - - 574 - - -
C - - 62 - - - - - -
D 645.20 - 62 - - - - - 161.8 -
E - - 21.59 - - - - - -
F 1702.5 - - 209.9 - - - - - -
G - - - - - - - - 150.08 -
H - - 73.50 - - - - - - -
I - - 178.9 - - - 150.08 - - -
J 768 - - - - 800 - - - -

61
5.3 Proposed solution
5.3.1 Solution for enhancing productivity
As we shown from the above solution Depending on the existing layout analysis the
maximum transportation cost held between department F-A the transportation cost 6-1 or
(F-A) is 1702.5 birr/day.
Now interchange (switch) department 1 and 2 since it is help to reduce material flow. change
department 1-3 or 3-5 impossible because the departments have no common border so that
the exchange of department 1-2 is very important to minimize transportation cost. Now
interchange or switch (1-2)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 1 1 1 2 2 10 10 10 10 10 10 10 10 10
2 1 1 1 2 2 10 10 10 10 10 10 10 10 10
3 1 1 1 2 2 10 10 10 10 10 10 10 10 10
4 1 1 1 2 2 10 10 10 10 10 10 10 10 10
5 1 1 1 1 2 10 10 10 10 10 10 10 10 10
6 1 1 1 1 1 10 10 10 10 10 10 10 10 10
7 1 1 1 1 1 10 10 10 10 10 10 10 10 10
8 1 1 1 3 3 9 9 9 9 9 10 10 10 10
9 3 3 3 3 3 9 9 9 9 9 10 10 10 10
10 3 3 3 3 3 9 9 9 9 9 10 10 10 10
11 3 3 3 3 3 8 8 8 9 9 10 10 10 10
12 3 3 3 3 3 8 8 8 8 8 10 10 10 10
13 3 3 3 3 3 8 8 8 8 8 10 10 10 10
14 3 3 3 3 3 8 8 8 8 8 10 10 10 10
15 3 4 4 4 4 8 8 8 8 8 10 10 10 10
16 4 4 4 4 4 8 8 8 8 8 10 10 10 10
17 4 4 4 4 4 8 8 8 8 8 10 10 10 10
18 4 4 4 4 4 8 8 8 8 8 10 10 10 10
19 4 4 4 4 5 7 8 8 8 8 10 10 10 10
20 5 5 5 5 5 7 7 7 7 7 10 10 10 10
21 5 5 5 5 5 7 7 7 7 7 10 10 10 10
22 5 5 5 5 5 7 7 7 7 7 10 10 10 10
23 5 5 5 5 5 7 7 7 7 7 10 10 10 10
24 5 5 5 5 6 6 6 6 7 7 10 10 10 10

62
 25 6 6 6 6 6 6 6 6 6 6 10 10 10 10

Fig 3.7 Iteration 1.

N.B: The calculation is in similar manner that we do for existing layout for all iteration
Table 2.5 centroidal coordination for iteration 1
coordinates

Machines x-centroid y-centroid

CNC
lathe 2.43103456 2.91379309
Universal
deburring 2.38888884 6.72222233
Surface
grinding 2.5 10
Gear
hobbling 2.5 16.5
CNC
milling 2.4 20.5
Plasma
cutting 5 24
Slotting 7.5 20.5
EDM 7.4 14
Drill 7.5 8.7
Raw 9.5 10.1667

Table 2.6 rectilinear distance between machine for iteration 1

From A B C D E F G H I J
to

A - - 7.16 13.65 - - 22.5 - 11.8 -

B - - - - - - 18.7 - - -
C - - 6.5 - - - - - -
D 13.6 - 6.5 - - - - - 12.8 -

63
 E - - - 4.1 - - - - - -
F 23.5 - - 10.0 - - - - - -
G - - - - - - - - 11.7 -
H - - 8.9 - - - - - - -
I - - 6.3 - - - 11.8 - - -
J 14.3 - - - - 18.3 - - - -

Transportation cost
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*7.16=114.56birr/day
A-D=10*6.75*13.65=921.375birr/day
A-G=1*11.5*22.5=258.75birr/day
A-I=3*5.5*11.8=194.7birr/day
B-G=3*9.8*18.7=549.78birr/day
C-D=4*2.75*6.5=71.5birr/day
D-A=7*6.75*13.6=642.6birr/day
D-C=4*2.75*6.5=71.5birr/day
D-I=2*6.25*12.8=160birr/day
E-D=2*2.25*4.1=18.45birr/day
F-A=6*11.75*23.5=1656.75birr/day
F-D=4*5*10.0=200birr/day
G-I=2*6*11.7=140.4birr/day
H-C=2*4.25*8.9=75.65birr/day
I-C=7*3.5*6.3=154.35birr/day
I-G=2*6*11.8=141.6birr/day
J-A=6*8*14.3=686.4birr/day
J-F=5*8*18.3=732birr/day

TTC=6790.34birr/day
From the existing layout transportation cost which is 7832.38birr/day decrease to 6790.34
birr/day and save1042.04birr/day we can do propose better by changing or switch adjacent
section are or machinery area or we can change departments or section which have common
border or have equal area.

64
Now switch 1 and 3 or
Switch CNC lathe and surface grinding machine
1 2 3 4 5 6 7 8 9 10 11 12 13 14
3 3 3 2 2 10 10 10 10 10 10 10 10 10
3 3 3 2 2 10 10 10 10 10 10 10 10 10
3 3 3 2 2 10 10 10 10 10 10 10 10 10
3 3 3 2 2 10 10 10 10 10 10 10 10 10
3 3 3 3 2 10 10 10 10 10 10 10 10 10
3 3 3 3 3 10 10 10 10 10 10 10 10 10
3 3 3 3 3 10 10 10 10 10 10 10 10 10
3 3 3 3 3 9 9 9 9 9 10 10 10 10
3 3 1 1 1 9 9 9 9 9 10 10 10 10
1 1 1 1 1 9 9 9 9 9 10 10 10 10
1 1 1 1 1 8 8 8 9 9 10 10 10 10
1 1 1 1 1 8 8 8 8 8 10 10 10 10
1 1 1 1 1 8 8 8 8 8 10 10 10 10
1 1 1 1 1 8 8 8 8 8 10 10 10 10
1 4 4 4 4 8 8 8 8 8 10 10 10 10
4 4 4 4 4 8 8 8 8 8 10 10 10 10
4 4 4 4 4 8 8 8 8 8 10 10 10 10
4 4 4 4 4 8 8 8 8 8 10 10 10 10
4 4 4 4 5 7 8 8 8 8 10 10 10 10
5 5 5 5 5 7 7 7 7 7 10 10 10 10
5 5 5 5 5 7 7 7 7 7 10 10 10 10
5 5 5 5 5 7 7 7 7 7 10 10 10 10
5 5 5 5 5 7 7 7 7 7 10 10 10 10
5 5 5 5 6 6 6 6 7 7 10 10 10 10
6 6 6 6 6 6 6 6 6 6 10 10 10 10

Fig 3.8 Iteration 2

Table 2.7 centroidal coordination for iteration 2
coordinates
Machines
x-centroid y-centroid

65
 CNC lathe 2.43103456 10.89
Universal deburring 2.388884 2.5
Surface grinding 2.530 4.5
Gear hobbling 2.5 16.5
CNC milling 2.5 20.5
Plasma cutting 5 24
Slotting 7.5 20.5
EDM 7.5 14.13
Drill 7.5 9
Raw 9.5 11

Table 2.8 rectilinear distance between machine for iteration 2

From A B C D E F G H I J
to

A - - 6.49 5.68 - - 14.67 - 1.89 -

B - - - - - - 23.1 - - -
C - - 12.03 - - - - - -
D 5.68 - 12.03 - - - - - 12.5 -
E - - - 4 - - - - - -
F 15.67 - - 10.0 - - - - - -
G - - - - - - - - 11.5 -
H - - 14.6 - - - - - - -
I - - 9.47 - - - 11.5 - - -
J 7.18 - - - - 17.5 - - - -

Transportation cost
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*6.49=103.84birr/day
A-D=10*6.75*5.68=383.4birr/day
A-G=1*11.5*14.67=168.7birr/day
A-I=3*5.5*1.89=31.185birr/day
B-G=3*9.8*23.1=679.14birr/day

66
C-D=4*2.75*12.03=132.33birr/day
D-A=7*6.75*5.68=268.38birr/day
D-C=4*2.75*12.03=132.33birr/day
D-I=2*6.25*12.5=156.25birr/day
E-D=2*2.25*4=18birr/day
F-A=6*11.75*15.67=1104.7birr/day
F-D=4*5*10.0=200birr/day
G-I=2*6*11.5=138birr/day
H-C=2*4.25*14.6=124.1birr/day
I-C=7*3.5*9.47=232.0birr/day
I-G=2*6*11.5=138birr/day
J-A=6*8*7.18=344.64birr/day
J-F=5*8*17.5=700birr/day
TTC=5054.995birr/day
From the first iteration transportation cost which is 6790.34 birr/day decrease to
5054.995birr/day save1735.35birr/day we can do propose better by changing or switch
adjacent section are or machinery area or we can change departments or section which have
common border or have equal area.
Now switch 10 and 7
Or raw material storage and surface grinding
1 2 3 4 5 6 7 8 9 10 11 12 13 14
3 3 3 2 2 10 10 10 10 10 10 10 10 7
3 3 3 2 2 10 10 10 10 10 10 10 10 7
3 3 3 2 2 10 10 10 10 10 10 10 10 7
3 3 3 2 2 10 10 10 10 10 10 10 10 7
3 3 3 3 2 10 10 10 10 10 10 10 10 7
3 3 3 3 3 10 10 10 10 10 10 10 10 7
3 3 3 3 3 10 10 10 10 10 10 10 10 7
3 3 3 3 3 9 9 9 9 9 10 10 10 7
3 3 1 1 1 9 9 9 9 9 10 10 10 7
1 1 1 1 1 9 9 9 9 9 10 10 10 7
1 1 1 1 1 8 8 8 9 9 10 10 10 7
1 1 1 1 1 8 8 8 8 8 10 10 10 7
1 1 1 1 1 8 8 8 8 8 10 10 10 7

67
 1 1 1 1 1 8 8 8 8 8 10 10 10 7
1 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 5 10 8 8 8 8 10 10 10 7
5 5 5 5 5 10 10 10 10 10 10 10 10 7
5 5 5 5 5 10 10 10 10 10 10 10 10 7
5 5 5 5 5 10 10 10 10 10 10 10 10 7
5 5 5 5 5 10 10 10 10 10 10 10 10 7
5 5 5 5 6 6 6 6 10 10 10 10 10 10
6 6 6 6 6 6 6 6 6 6 10 10 10 10

Fig 3.9 Iteration 3

Table 2.9 centroidal coordination for iteration 3
coordinates
Machines

x-centroid y-centroid
CNC lathe 2.43103456 10.89
Universal deburring 2.40 2.5
Surface grinding 2.54 4.5
Gear hobbling 2.5 16.5
CNC milling 2.5 20.50
Plasma cutting 5.0 24
Slotting 13.5 13.5
EDM 7.5 14.13
Drill 7.5 9
Raw 9 11.5

Table 3.0 rectilinear distance between machines for iteration 3

From A B C D E F G H I J
to

68
 A - - 6.49 5.68 - - 13.7 - 6.9 -
B - - - - - - 20 - - -
C - - 12.04 - - - - - -
D 5.68 - 12.04 - - - - - 12.5 -
E - - - 4 - - - - - -
F 15.67 - - 10.0 - - - - - -
G - - - - - - - - 10.5 -
H - - 14 - - - - - - -
I - - 9.45 - - - 10.5 - - -
J 7.1 - - - - 16.5 - - - -

Transportation cost
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*6.49=103.84birr/day
A-D=10*6.75*5.68=383.4birr/day
A-G=1*11.5*13.7=157.55birr/day
A-I=3*5.5*6.9=113.85birr/day
B-G=3*9.8*20=588birr/day
C-D=4*2.75*12.04=132.44birr/day
D-A=7*6.75*5.68=268.38birr/day
D-C=4*2.75*12.04=132.44birr/day
D-I=2*6.25*12.5=156.25birr/day
E-D=2*2.25*4=18birr/day
F-A=6*11.75*15.67=1104.7birr/day
F-D=4*5*10.0=200birr/day
G-I=2*6*10.5=126birr/day
H-C=2*4.25*14=119birr/day
I-C=7*3.5*9.45=231birr/day
I-G=2*6*10.5=126birr/day
J-A=6*8*7.1=340birr/day
J-F=5*8*16.5=660birr/day
TTC= 4960.85 birr/day

69
From the second iteration transportation cost which is 5054.995 birr/day decrease to
5054.995 birr/day save1735.35birr/day we can do propose better by changing or switch
adjacent section are or machinery area or we can change departments or section which have
common border or have equal area.
Now interchange or switch 5 and 6
Or CNC mill and plasma cutting machine

1 3 3 3 2 2 10 10 10 10 10 10 10 10 7
2 3 3 3 2 2 10 10 10 10 10 10 10 10 7
3 3 3 3 2 2 10 10 10 10 10 10 10 10 7
4 3 3 3 2 2 10 10 10 10 10 10 10 10 7
5 3 3 3 3 2 10 10 10 10 10 10 10 10 7
6 3 3 3 3 3 10 10 10 10 10 10 10 10 7
7 3 3 3 3 3 10 10 10 10 10 10 10 10 7
8 3 3 3 3 3 9 9 9 9 9 10 10 10 7
9 3 3 1 1 1 9 9 9 9 9 10 10 10 7
10 1 1 1 1 1 9 9 9 9 9 10 10 10 7
11 1 1 1 1 1 8 8 8 9 9 10 10 10 7
12 1 1 1 1 1 8 8 8 8 8 10 10 10 7
13 1 1 1 1 1 8 8 8 8 8 10 10 10 7
14 1 1 1 1 1 8 8 8 8 8 10 10 10 7
15 1 4 4 4 4 8 8 8 8 8 10 10 10 7
16 4 4 4 4 4 8 8 8 8 8 10 10 10 7
17 4 4 4 4 4 8 8 8 8 8 10 10 10 7
18 4 4 4 4 4 8 8 8 8 8 10 10 10 7
19 4 4 4 4 5 10 8 8 8 8 10 10 10 7
20 6 6 6 5 5 10 10 10 10 10 10 10 10 7
21 6 6 6 5 5 10 10 10 10 10 10 10 10 7
22 6 6 6 5 5 10 10 10 10 10 10 10 10 7
23 6 6 6 5 5 10 10 10 10 10 10 10 10 7
24 6 6 5 5 5 5 5 5 10 10 10 10 10 10
25 5 5 5 5 5 5 5 5 5 5 10 10 10 10

70
 Fig 4.0 Iteration 4.
Table 3.1 centroidal coordination for iteration 4
coordinates
Machines

x-centroid y-centroid
CNC lathe 2.5 10.89
Universal deburring 2.40 2.5
Surface grinding 2.54 4.5
Gear hobbling 2.5 16.5
CNC milling 2.5 21.5
Plasma cutting 1.5 21.5
Slotting 13.5 13.5
EDM 7.5 14
Drill 7.5 9
Raw 9 11.5

Table 3.2 rectilinear distance between machines for iteration 4

From A B C D E F G H I J
to

A - - 6.43 5.61 - - 13.61 - 6.89 -

B - - - - - - 20 - - -
C - - 12.04 - - - - - -
D 5.61 - 12.04 - - - - - 12.5 -
E - - - 5 - - - - - -
F 11.61 - - 6.0 - - - - - -
G - - - - - - - - 10.5 -
H - - 14.5 - - - - - - -
I - - 9.46 - - - 10.5 - - -
J 7.1 - - - - 17.5 - - - -

71
Transportation cost
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*6.43=102.88birr/day
A-D=10*6.75*5.61=378.6birr/day
A-G=1*11.5*13.61=156.515birr/day
A-I=3*5.5*6.89=113.685birr/day
B-G=3*9.8*20=588birr/day
C-D=4*2.75*12.04=132.44birr/day
D-A=7*6.75*5.61=265.07birr/day
D-C=4*2.75*12.04=132.44birr/day
D-I=2*6.25*12.5=156.25birr/day
E-D=2*2.25*5=22.5birr/day
F-A=6*11.75*11.61=818.505birr/day
F-D=4*5*6=120birr/day
G-I=2*6*10.5=126birr/day
H-C=2*4.25*14.5=123.25birr/day
I-C=7*3.5*9.46=231.7birr/day
I-G=2*6*10.5=126birr/day
J-A=6*8*7.1=340birr/day
J-F=5*8*17.5=700birr/day
TTC=4658.56birr/day
From the third iteration transportation cost which is 4960.85 birr/day decrease to 4658.56
birr/day save302.29birr/day we can do propose better by changing or switch adjacent section
are or machinery area or we can change departments or section which have common border
or have equal area.
Now interchange 10 and 3
Or raw material storage section and surface grinding machine

10 10 10 2 2 10 10 10 10 10 10 10 10 7
10 10 10 2 2 10 10 10 10 10 10 10 10 7
10 10 10 2 2 10 10 10 10 10 10 10 10 7
10 10 10 2 2 10 10 10 10 10 10 10 10 7
10 10 10 10 2 10 10 10 10 10 10 10 10 7

72
 10 10 10 10 10 10 10 10 10 10 10 10 10 7
10 10 10 10 10 10 10 10 10 10 10 10 10 7
10 10 10 10 10 9 9 9 9 9 10 10 10 7
10 10 1 1 1 9 9 9 9 9 10 10 10 7
1 1 1 1 1 9 9 9 9 9 10 10 10 7
1 1 1 1 1 8 8 8 9 9 10 10 10 7
1 1 1 1 1 8 8 8 8 8 10 10 10 7
1 1 1 1 1 8 8 8 8 8 10 10 10 7
1 1 1 1 1 8 8 8 8 8 10 10 10 7
1 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 4 8 8 8 8 8 10 10 10 7
4 4 4 4 5 10 8 8 8 8 10 10 10 7
6 6 6 5 5 10 10 10 10 10 10 10 10 7
6 6 6 5 5 10 3 3 3 3 3 3 3 7
6 6 6 5 5 3 3 3 3 3 3 3 3 7
6 6 6 5 5 3 3 3 3 3 3 3 3 7
6 6 5 5 5 5 5 5 3 3 3 3 3 3
5 5 5 5 5 5 5 5 5 5 3 3 3 3

Fig 4.1 Iteration 5

Table 3.3 centroidal coordination for iteration 5
coordinates
Machines

x-centroid y-centroid
CNC lathe 2.5 10.89
Universal deburring 2.40 2.5
Surface grinding 2.54 4.5
Gear hobbling 2.5 16.5
CNC milling 2.5 21.5
Plasma cutting 1.5 21.5
Slotting 13.5 13.5

73
 EDM 7.5 14
Drill 7.5 9
Raw 9 11.5

Table 3.4 rectilinear distance between machines for iteration 5

From A B C D E F G H I J
to

A - - 7.101 5.24 - - 15.71 - 7.73 -

B - - - - - - 13.6 - - -
C - - 12.3 - - - - - -
D 5.26 - 12.3 - - - - - 14 -
E - - - 5.5 - - - - - -
F 13.24 - - 6.0 - - - - - -
G - - - - - - - - 10.63 -
H - - 15.5 - - - - - - -
I - - 10 - - - 11.5 - - -
J 7.72 - - - - 18 - - - -

Transportation cost
Min Z = ∑𝑚
𝑖=1 𝑓 ∗ 𝑐 ∗ 𝑑
A-C=4*4*7.101=113.616birr/day
A-D=10*6.75*5.24=353.7birr/day
A-G=1*11.5*13.71=157.665birr/day
A-I=3*5.5*7.73=127.55birr/day
B-G=3*9.8*15.71=461.847birr/day
C-D=4*2.75*12.3=135.3birr/day
D-A=7*6.75*5.26=248.54irr/day
D-C=4*2.75*12.3=135.3birr/day
D-I=2*6.25*14=175birr/day
E-D=2*2.25*5.5=24.75birr/day
F-A=6*11.75*13.24=933.42birr/day

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F-D=4*5*6=120birr/day
G-I=2*6*10.63=127.6birr/day
H-C=2*4.25*15.5=131.8birr/day
I-C=7*3.5*10=245birr/day
I-G=2*6*11.5=138birr/day
J-A=6*8*7.72=370.56birr/day
J-F=5*8*18=720birr/day
TTC= 4719.65birr/day
At this iteration or stage the total transportation cost is increased from 4658.56 to 4719.65
the iteration should stop hear because the total cost is increased and never get less cost than
4658.56. So, this is the last iteration the total transportation cost is decrease.
So iteration 4 is the final layout which transportation cost is decrease. The following
improved layout has prepared and reduced the cost incurred 7832.34 birr/day to
4658.56birr/day.

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Fig 4.2 the new improved layout model By AutoCAD 2020.

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REMARK : in the above improved layout figure:
 All dimensions are in meter (M)
 Distance between machine to machine is 1.07m
 The small black box is machine maintenance are its dimension is 0.5*0.5m
 Distance between upper, left, and bottom machine are 0.92m.
 Distance between from the flow department to department is calculated on the
layout.
 We are not change the type of layout still its follows process layout on the existing
and improved layout.
KEY

= surface grinding machine(3) = Universal deburring machine (2)

= raw material storage(10) =slotting machine(7)

= lathe machine (2) = drilling machine(9)

EDM machine(8) = Gear hobbling machine (4)

CNC milling machine (5) =Plasma cutting machine (6)

= Maintenance area

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 1 3

5
2
4

7
10

Fig 4.3 flow diagram.

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 A=10 flow
E=7, 6 flow
I=5, 4, 3 flow
O=2, 1 flow
U= 0 flow

Fig 4.4 activity relationship chart.

5.4 cost analysis

5.4.1 Transportation cost
The existed layout costs is much amount of money due too much distance from department
to department. To overcome this problem improve the existing layout of machines
arrangement is the better solution to minimize total transportation cost and space between
machine.
Generally, it is described under the following table.
Table 3.5 cost analysis.
COST(BIRR//DAY)
Existing Improved Difference
7832.34 4658.56 3173.78

The transportation cost financed per year is calculated as:

 Working day per month: 26 days/month
 Month per year: 12month/year
 Company expenditure for transporting case per day: 3173.78 birr/day
 Total annual transportation cost is a product of these parameters listed prior.
 Total annual transportation cost = 26*12*3173.78
 Total annual transportation cost =990,219.36 birr/year
Therefore, this factory transportation cost 990,219.36 birr/annual which is unnecessary cost
financed for transporting case.

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 1) Improved cost by percent
Total existing cost=7832.34birr/day=100%
Improved cost=4858.56birr/day
Difference =7832.34-4658.56=3173.78birr/day
So 3173.78*100/7832.34=40.5% saved
2) Improved distance by percent
Total existing distance=229.11m=100%
Improved distance=192.75m
Difference=229.11m-192.75=36.36m
36.36m*100%/229.11m=15.9% saved
5.4.2 Machine pluck cost
To remove or pluck one machine from its place to another place there are a lot of costs are
rise these are electrical cost, labor or operator cost.
So electrical cost= 2000 birr
Labor cost= 4000 birr
4000+2000=6000birr/machine so
Table 3.6 machine pluck cost
No. Name of machine Quantity Total Total
Electrical Labor
cost cost
1. CNC lathe 5 10,000 20,000
2. Universal deburring 1 2000 4000
3. Surface grinding 2 4000 8000
4. CNC milling 3 6000 12000
5. Gear hobbling 4 8000 16000
6. Plasma cutting 1 2000 4000
7. Slotting 2 4000 8000
8. EDM machine 3 6000 12000
9. Drilling machine 3 6000 12000
10. Raw material room 1 2000 4000
11. Total 25 50,000birr 100,000b
irr

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Total machine pluck cost= total electrical cost+ total labor cost
=50000+100000=150000birr
5.4.3 Machine plantation cost
To install or plant existing machine on the new place there are three costs are rised
Those are material cost, electrical cost, labor cost
To plant one machine
Material cost=2500 birr
Labor or operator cost=4000 birr
Electrical cost= 2000 birr
Total cost=material cost+ labor cost+ electrical cost
=2500+4000+2000
=8500 birr/machine so for the whole machine is as follow
Table 3.7 machine plantation cost
No. Name of machine Quantity Electrical Labor Material
cost/ma cost/mac cost/ma
1. CNC lathe 5 10,000 20,000 12500
2. Universal deburring 1 2000 4000 2500
3. Surface grinding 2 4000 8000 5000
4. CNC milling 3 6000 12000 7500
5. Gear hobbling 4 8000 16000 10000
6. Plasma cutting 1 2000 4000 2500
7. Slotting 2 4000 8000 5000
8. EDM machine 3 6000 12000 7500
9. Drilling machine 3 6000 12000 7500
10. Raw material room 1 2000 4000 2500
11. Total 25 50,000birr 100,000b 62,500
irr birr

Total machine plantation cost= total material cost+ total labor cost +total electrical cost
50,000 birr+ 100,000 birr+62,500 birr
=212, 500birr
5.4.4 Building cost
To build 18*6*2 volume of raw material room

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 1) One sack of cement is 300 birr/cement for finishing work of removing wall and to
build 18*6*2.
Total sack of cement=50 sack
So total cost of cement=300*50=15,000birr.
2) To build 18*6*2 room totally needs 2000 block
Cost of one block=20
Total cost block=20*2000=40000birr
Total Labor cost= 3000 birr
Total building cost=total cement cost+ total block cost+ total labor cost
=40000+15,000+3000=58,000 birr
Total cost= total machine plantation cost+ total machine pluck cost+ total building cost
= 212,500+15000+58,000
= 420,500 birr
To apply or to implement the new layout design or to apply the new arrangement of
machine the company will expend 420,500 birr.

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 CHAPTER SIX

RESULT AND DISCUSSION

6.1 Result and discussion
From the previous chapter i.e. data collection and analysis we get the following results by
using CRAFT tool. First the space or the gap between each and every machines is minimized
in the new layout, but from the previous arrangement of machine the rectilinear distance
from lathe to surface grinding machine is 8.07m, from lathe to gear hobbling is 13.07m,
from lathe to slotting machine is 23.3m, from lathe to drilling,11.06m, from universal
deburring to slotting machine is 19.06m ,from surface grinding to gear hobbling is 5.63m,
from gear hobbling to lathe machine is 13.65m, from gear hobbling to surface grinding
machine is 5.63m, from gear hobbling to drilling machine is 12.94m, from milling to gear
hobbling is 4.5m,from plasma cutting to lathe machine is 24.15m,from plasma cutting to
gear hobbling is 10.49m, from slotting machine to drilling machine 12.51m,from EDM to
grinding machine is 8.65m,drilling to grinding machine is 7.3m, from drilling to slotting
machine is 12.56m,from raw material to lathe machine is 16m, and from raw material to
plasma cutting machine is 20m.the total distance is become 229.11m this is the overall
distance of each and every machine which have the most flow of materials or loads, but
when we come to the improved layout or the new layout the space or the distance between
each and every machine is minimize. So, the result is lathe to surface grinding machine is
6.49m, from lathe to gear hobbling is 5.68m, from lathe to slotting machine is 13.7m, from
lathe to drilling,6.9m, from universal deburring to slotting machine is 20m ,from surface
grinding to gear hobbling is 12.04m, from gear hobbling to lathe machine is 5.68m, from
gear hobbling to surface grinding machine is 12.04m, from gear hobbling to drilling
machine is 12.5m, from milling to gear hobbling is 4m,from plasma cutting to lathe machine
is 15.67m,from plasma cutting to gear hobbling is 10m, from slotting machine to drilling
machine 10.5m,from EDM to grinding machine is 14m,drilling to grinding machine is
9.45m, from drilling to slotting machine is 10.5m,from raw material to lathe machine is
7.1m, and from raw material to plasma cutting machine is 16.5m.the total distance is become
192.75m

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Table 3.7 improved distance.
Distance between each and every machine(m)
Existing Improved Difference
229.11m 192.75m 36.36m
As we shown from the above table the overall distance between each and every machine is
decreased by 36.36m.
The transportation cost of the existing layout of from machine to machine is as follow lathe
to surface grinding machine is 129.2 birr or 1.65%, from lathe to gear hobbling is 924.75
birr or 11.08%, from lathe to slotting machine is 268.03 birr or 3.42%, from lathe to drilling
182.6 birr or 2.33%, from universal deburring to slotting machine is 574 birr or 7.33% ,from
surface grinding to gear hobbling is 62 birr or 0.8%, from gear hobbling to lathe machine is
645.20 birr or 8.42%, from gear hobbling to surface grinding machine is 62 birr or 0.8%,
from gear hobbling to drilling machine is 161.8 birr or 2.07%, from milling to gear hobbling
is 21.59 birr or 0.3%,from plasma cutting to lathe machine is 1702.5 birr or 21.74 % m ,from
plasma cutting to gear hobbling is 209.9 birr or 2.7%, from slotting machine to drilling
machine 150.08 birr or 1.92%,from EDM to grinding machine is 73.5 birr or 0.94%,drilling
to grinding machine is 178.9 birr or 2.3%, from drilling to slotting machine is 150.08 birr
or 1.92%,from raw material to lathe machine is 768 birr or 9.8%m, and from raw material
to plasma cutting machine is 800 birr or 10.2% the total transportation cost is 7832.38
birr/day, but from the improved layout of the company the transportation cost is as follow
lathe to surface grinding machine is 102.88 birr or 2.21%, from lathe to gear hobbling is
378.6 birr or 8.13%, from lathe to slotting machine is 156.515 birr or 3.4%, from lathe to
drilling 113.685 birr or 2.44%, from universal deburring to slotting machine is 588 birr or
12.62% ,from surface grinding to gear hobbling is 132.44 birr or 2.84%, from gear hobbling
to lathe machine is 265.07 birr or 5.7%, from gear hobbling to surface grinding machine is
132.44 birr or 2.84%, from gear hobbling to drilling machine is 156.25 birr or 3.4%, from
milling to gear hobbling is 22.5 birr or 0.5%,from plasma cutting to lathe machine is 818.505
birr or 17.6 % ,from plasma cutting to gear hobbling is 120 birr or 2.58%, from slotting
machine to drilling machine 126 birr or 2.7%,from EDM to grinding machine is 123.25 birr
or 2.65%,drilling to grinding machine is 231.7 birr or 4.97%, from drilling to slotting
machine is 126 birr or 2.7%,from raw material to lathe machine is 340 birr or 7.3%, and
from raw material to plasma cutting machine is 700 birr or 15.03% the total transportation
cost is 4658.56. as we shown from the above result the transportation cost is decrease from

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7832.38 birr/day to 4658.56 birr /day the difference of the two is 3173.78 birr/day so the
distance and the transportation cost of the company is decrease by 3173.78 amount.
Table 3.8 improved cost.
COST(BIRR//DAY)
Existing Improved Difference
7832.34 4658.56 3173.78

85
 CHAPTER SEVEN

CONCLUSION AND RECOMMENDATION

7.1 Conclusion
This project has been conducted and written in relation to enhancing productivity
through layout arrangement of machines in the case company addis machine and spare part
manufacturing industry. The problems in these study include high transportation cost, poor
layout arrangement of machines, lack of skill, and knowledge on jobs and theoretical
training for workers. To overcome the above problems we use CRAFT tool and to minimize
the transportation cost and to make better layout improvement. As an industrial engineer we
conclude the company; it can increase productivity by improving Layout design of the
machine which are found in precision manufacturing factory. So the company must Use this
layout to improve its productivity or this project can make the company profitable Process
layout is constructed using CRAFT improvement exchange method and this improved
Layout can save 3173.78birr/day. Thus, if a Company runs this project it can save
990,219.36 birr/year because it minimizes the distance between departments/sub-work
stations. Generally, the Company can enhance or improve the productivity in the production
section when it applies this project.
7.2 Recommendation
We recommend the company; it should increase productivity by improving layout design of
the production factory.
 The Company better use this project, because it can save 3173.78 birr/day that the

Cost incurred due to poor layout of the production section.

 The company should use craft algorism to improve the layout of machines
The other thing that we want recommend is employees that are hired by Metal Fabrication
Industry Should do their responsibility on the given time and successfully to reach on design
capacity of the Company.
Addis machine and spare part manufacturing industry is profitable through proper
coordination and through hard working. Even if, the factory has made many efforts to effect
the production system, it has a number of problems.
This prohibits it not to use its full potential. Hence, as a train we will recommend for the
factory to avoid these problems.

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  The factory should implemented or introduce a new mechanism to effect material
handling process.
 The factory should make a plan or mechanism how to keep the cleanness of the
working area of each production line.
 The factory should implement lighting system and ventilation system.
 The factory workers wage should increase.
 The company should use this project before implementing their new layout
arrangement of machines
 The company should use modernize material handling system
 They need to use ergonomics principle
 I have seen proverb of safety first but there is lack of safety but some workers ware
close and some of them is not. So if they use safety shoes and overall safety,
productivity of the workers are increases. So, they need safety material.
 The company need to use preventive maintenance and follow replacement analysis
for their machines the company should built proper and standard raw material and
finished product store the company should arrange store for scrap because the scrape
gain a huge income for the company.
 In addition to these the company must use the industrial linkage program and must
solve the coming challenges and problems the students face during their internship
times. And give the appropriate working environment for the students, and must
have each needed departments.
7.3 Future work
In this study it is attempted to improve the existing layout arrangement of machines to
minimize transportation cost specifically in precision manufacturing factory. Finally, based
on the results and findings of the study, an approach of improving layout arrangement is
developed. However, this study never touch every aspect of the company or the industry
regarding to layout. The following areas aspect are indicated as if additional studies were
conducted they could come up with better understanding on the issue.
 Improve the facility layout of bolt and nut manufacturing factory through facility
layout technique.
 Minimizing of backtracking through better layout design.
 Productivity improvement by minimizing the processing time and improve the
facility layout.

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