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How should we plan for plant expansion?
June 28, 2007

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Question: My company is growing, which is a good “problem” to have. But we’re running out of room and need more square footage. How do I begin designing our new production space?

Answer: According to plant layout expert Hal Ettinger, president of RBE Co.:

Your primary objective should be twofold: 1) to move materials and people in the most direct and efficient manner, and 2) to allow for growth—i.e., new production equipment, new or expanding departments—without altering aisles established for material handling and practices (assuming they’re working) or reducing square footage of work-in-process and staging areas.

4 guidelines
Movement of product and potential for growth should be the two standards to guide you in evaluating your existing layout and when expanding or moving operations. You can use these four principles as a guide:

1. Establish department and area adjacencies. Placing office, prepress and production areas close to each other increases communication (verbal, visual), reduces travel time for product and people, and makes moving materials more efficient.

2. Consider location of building columns to ensure they will not make operating areas around equipment too tight or limit placing new production equipment.

3. Establish dedicated aisles to make it easier and faster to move people, raw materials, staging, work-in-process and finished goods.

4. Use full building height. Going up instead of out will reduce square footage in raw materials and finished goods.

To expand or move?
So, what will your new space look like when you’re finished? That depends on your expansion plans or, more often, on the expansion options you may be faced with. Will you be expanding your present building or converting another existing building into a printing facility? Will you be building a new plant?

If not expanding or moving, will you be looking to extend the shelf life of your building? You can put off an expansion or move for the time being by re-laying out existing operations to better utilize plant floor space and improve operating efficiencies.

Whether attempting to extend the shelf life of an existing building, expand or relocate to newer quarters, it turns out that the least sexy part of the building—the shipping and receiving dock locations—often drive the plant layout. That’s because the receiving docks start the movement of product (i.e., raw materials), and shipping docks complete it (i.e., finished goods).

Shaping your workflow
As a result, you have three basic plant layout possibilities: 1) U-shape (shown below) where docks are on the same side of building; 2) straight-line where shipping and receiving docks are on opposite ends of the building; or 3) L-shaped where shipping and receiving docks are separated but not on opposite ends.

(Click on image for a larger version.)

Think ahead
Planning for expansion is a final point for consideration. Maintain established department/area adjacencies, common staging areas (i.e., paper to press) and good materials handling. Planning ahead also keeps aisles from being compromised or negatively impacted when new equipment is installed or market forces create new departments or grow existing ones.


Posted by Mark Vruno on June 28, 2007 | Comments (1)


June 28, 2007
In response to: How should we plan for plant expansion?
Tom Southworth commented:

I would first challenge the assumption that more space is needed. As Hal says “You can put off an expansion or move for the time being by re-laying out existing operations to better utilize plant floor space and improve operating efficiencies.”

Do you have minimal inventories and continuous flow? Too often companies have excess storage (RM, WIP, and FG) space that can be converted into revenue generating production space but they fail to see it.

Use some of the same guidelines that Hal lists to get rid of all wasted space and movement in the current operation before you consider any expansion. You’ll not only save capital expense but you’ll also avoid all of the headaches and interruptions that always crop up and irritate your customers. You’ll also free up cash and that’s not a bad thing, either.





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