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TK090207 : Manajemen Operasi

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TEACHING TEAMTEACHING TEAM(COORDINATED BY DR. (COORDINATED BY DR. NINIEKNINIEK FAJARFAJAR PUSPITAPUSPITA, , M.ENG)M.ENG)MEMBER MEMBER

Topic: Plant Layout_Tataletak Pabrik

MEMBER: MEMBER: PROF. DR. DANAWATI HPPROF. DR. DANAWATI HP

AUGUST, AUGUST, 20201111NO. VNO. V

GE GAP Guidelines_A Publication of GE Global Asset Protection ServicesGAP.2.5.2 September 3, 2001

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LESSON 7_PLANT LOCATION AND LAYOUT _Abha Kumar

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INTRODUCTION

In the previous unit you have learnt how the entrepreneur conducts the detailed analysis comprising of technical, financial economic and market study before laying down a

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financial, economic and market study before laying down a comprehensive business plan. For implementation of this plan, he has to take various crucial decisions namely location of business, layout (the arrangement of physical facilities), designing the product, production planning and control and maintaining good quality of product. This lesson deals withvarious aspects of plant location and layout. Investment in analyzing the aspects of plant location and the appropriate plant layout can help an entrepreneur achieve economic p y p pefficiencies in business operations. These decisions lay the foundation of the business of small entrepreneurs.

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Tujuan

Kompetensi yang diharapkan: Mampu mendiskripsika konsep lokasi pabrik dan tata letak

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Mampu mendiskripsika konsep lokasi pabrik dan tata letakpabrikMampu mengidentifikasi berbagai faktor yang dipertimbangkan untuk memilih lokasi pabrik dari area kelokasi khususMempu Distinguish diantara pola-pola alternatif dari tataletak pabrikMampu mendiskusikan berbagai faktor-faktor yang mempengaruhi pemilihan tata letak mula-mula danmodifikasi selanjutnya

Lokasi Pabrik6

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Tata Letak Pabrik

The efficiency of production depends on how well the various hi

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machines;production facilities and employee’s amenities are located in a plant. Only the properly laid out plant can ensure the smooth and rapid movement of material, from the raw material stage to the end product stage. Plant layout encompasses new layout as well as improvement in the existing layout.

It may be defined as a technique of locating machines It may be defined as a technique of locating machines, processes and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. It involves a judicious arrangement of production facilities so that workflow is direct.

DEFINISI

Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. with in the factory building in such a manner so as to have quickest flow of material at the lowest

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such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product.

According to Riggs, “the overall objective of plant layout is to design a physical arrangement that most economically meets the required output – quantity and quality.”

According to J L Zundi “Plant layout ideally involves allocation of According to J. L. Zundi, Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized.

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KEPENTINGAN

Plant layout is an important decision as it represents long-term commitment. An ideal plant layout should provide the optimum relationship among output floor area and

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optimum relationship among output, floor area and manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows flexibility of operations, easy production flow, makes economic use of the building, promotes effective utilization of manpower, and provides for employee’s convenience, safety,comfort at work, maximum exposure to natural light and ventilation. It is also important because it affects the flow of material and processes, labor efficiency, supervision and p y pcontrol, use of space and expansion possibilities etc.

ESSENTIALS

Tata letak pabrik yang efisien merupakan sesuatu yang dapat digunakan untuk mencapaitujuan berikut ini:a) Proper and efficient utilization of available floor space

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) p pb) To ensure that work proceeds from one point to another point without any delayc) Provide enough production capacity.d) Reduce material handling costse) Reduce hazards to personnelf) Utilise labour efficientlyg) Increase employee moraleh) Reduce accidents i) Provide for volume and product flexibility) p yj) Provide ease of supervision and controlk) Provide for employee safety and healthl) Allow ease of maintenancem) Allow high machine or equipment utilizationn) Improve productivity

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Tipe Tata Letak

As discussed so far the plant layout facilitates the arrangement of machines, equipment and other physical facilities in a planned manner within the factory premises An entrepreneur must possess

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manner within the factory premises. An entrepreneur must possess an expertise to lay down a proper layout for new or existing plants. It differs from plant to plant, from location to location and from industry to industry. But the basic principles governing plant layout are more or less same.As far as small business is concerned, it requires a smaller area or space and can be located in any kind of building as long as the space is available and it is convenient. Plant layout for Small Scale business is closely linked with the factory building and built up area. From the point of view of plant layout we can classify small business From the point of view of plant layout, we can classify small business or unit intothree categories:

1. Manufacturing units2. Traders3. Service Establishments

1. Manufacturing units

In case of manufacturing unit, plant layout may be of four types:

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c s o u c u g u , p you y o ou yp s(a) Product or line layout (b) Process or functional layout (c) Fixed position or location layout(d) Combined or group layout

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(a) Product or line layout:

Under this, machines and equipments are arranged in one line

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U s, c s qu p s g odepending upon the sequence of operations required for the product. The materials move form one workstation to another sequentially without any backtracking or deviation. Under this, machines are grouped in one sequence. Therefore materials are fed into the first machine and finished goods travel automatically from machine to machine, the output of one machine becoming input of the next, e.g. in a paper mill, bamboos are fed into the machine at

d d t t th th d one end and paper comes out at the other end.

The raw material moves very fast from one workstation to other stations with a minimum work in progress storage and material handling.

The grouping of machines should be done keeping in mind the following general principles.

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a) All the machine tools or other items of equipments must be placed at the point demanded by the sequence of operations

b) There should no points where one line crossed another line.

c) Materials may be fed where they are required for assembly but not necessarily at one point.

d) All the operations including assembly, testing packing must be included in the line

A line layout for two products is given below.

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Advantages: Product layout provides the following benefits:15

a) Low cost of material handling, due to straight and short route and absence of backtracking

b) Smooth and uninterrupted operationsc) Continuous flow of workd) Lesser investment in inventory and work in progresse) Optimum use of floor spacef) Shorter processing time or quicker outputg) Less congestion of work in the rocessg) Less congestion of work in the processh) Simple and effective inspection of work and simplified production

controli) Lower cost of manufacturing per unit

Disadvantages: Product layout suffers from following drawbacks:a. High initial capital investment in special purpose machine

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g p p p pb. Heavy overhead chargesc. Breakdown of one machine will hamper the whole production

processd. Lesser flexibility as specially laid out for particular product.

Suitability: Product layout is useful under following conditions:1) Mass production of standardized products2) Simple and repetitive manufacturing process3) Operation time for different process is more or less equal4) Reasonably stable demand for the product5) Continuous supply of materials

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Therefore, the manufacturing units involving continuous manufacturing process, producing few standardized products

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continuously on the firm’s own specifications and in anticipation of sales would prefer product layout e.g. chemicals, sugar, paper, rubber, refineries, cement, automobiles, food processing and electronics etc.

(b) Process layout:

In this type of layout machines of a similar type are arranged together at

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one place. E.g. Machines performing drilling operations are arranged in the drilling department, machines performing casting operations be grouped in the casting department. Therefore the machines are installed in the plants, which follow the process layout.

Hence, such layouts typically have drilling department, milling department,welding department, heating department and painting department etc. The process or functional layout is followed from historical period. It evolved from the handicraft method of production. The work has to be allocated to each department in such a way that no machines are chosen to do as many different job as possible i.e. the emphasis is on general purpose machine.

The work, which has to be done, is allocated to the machines according to loading schedules with the object of ensuring that each machine is fully loaded. Process layout is shown in the following diagram.

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Process layout showing movement of two products

The grouping of machines according to the process has to be done keeping inmind the following principles

a) The distance between de a tments should be as sho t as ossible fo

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a) The distance between departments should be as short as possible for avoiding long distance movement of materials

b) The departments should be in sequence of operations

c) The arrangement should be convenient for inspection and supervision

Advantages: Process layout provides the following benefits

a) Lower initial capital investment in machines and equipments. There is high degree of machine utilization, as a machine is not blocked for a single productproduct

b) The overhead costs are relatively low

c) Change in output design and volume can be more easily adapted to the output of variety of products

d) Breakdown of one machine does not result in complete work stoppage

e) Supervision can be more effective and specialized

f) There is a greater flexibility of scope for expansion.

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Disadvantages: Product layout suffers from following drawbacksa. Material handling costs are high due to backtrackingb More skilled labour is required resulting in higher cost

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b. More skilled labour is required resulting in higher cost.c. Time gap or lag in production is higherd. Work in progress inventory is high needing greater storage spacee. More frequent inspection is needed which results in costly supervision

Suitability: Process layout is adopted when 1. Products are not standardized 2. Quantity produced is small3. There are frequent changes in design and style of product3. There are frequent changes in design and style of product4. Job shop type of work is done5. Machines are very expensive

Thus, process layout or functional layout is suitable for job order productioninvolving non-repetitive processes and customer specifications and nonstandardized products, e.g. tailoring, light and heavy engineering products, made to order furniture industries, jewelry.

(c) Fixed Position or Location Layout

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In this type of layout, the major product being produced is fixed at one location. Equipment labour and components are moved to that location. All facilities arebrought and arranged around one work center. This type of layout is not relevantfor small scale entrepreneur. The following figure shows a fixed position layoutregarding shipbuilding.

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Advantages: Fixed position layout provides the following benefits

a) It saves time and cost involved on the movement of work from one workstation to another.

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b) The layout is flexible as change in job design and operation sequence can be easily incorporated.

c) It is more economical when several orders in different stages of progress are being executed simultaneously.

d) Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations.

Disadvantages: Fixed position layout has the following drawbacks

P d ti i d b i l it l i t t i ha. Production period being very long, capital investment is very heavy

b. Very large space is required for storage of material and equipment near the product.

c. As several operations are often carried out simultaneously, there is possibility of confusion and conflicts among different workgroups.

Suitability: The fixed position layout is followed in following conditions

1. Manufacture of bulky and heavy products such as locomotives, ships, boilers generators wagon building aircraft manufacturing etc

(d) Combined layout

C t i f t i it i ll th l

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Certain manufacturing units may require all three processes namely intermittent process (job shops), the continuous process (mass production shops) and the representative process combined process [i.e. miscellaneous shops].

In most of industries, only a product layout or process layout or fixed location layout does not exist. Thus, in manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed. Generally, a combination of the product and process layout or other combination are combination of the product and process layout or other combination are found, in practice, e.g. for industries involving the fabrication of parts and assembly, fabrication tends to employ the process layout, while the assembly areas often employ the product layout. In soap, manufacturing plant, the machinery manufacturing soap is arranged on the product line principle, but ancillary services such as heating, the manufacturing of glycerin, the power house, the water treatment plant etc. are arranged on a functional basis.

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2. Traders When two outlets carry almost same merchandise, customers usually buy in the one that is o li g to th Th s sto s tt t d d k t b good l o t i

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is more appealing to them. Thus, customers are attracted and kept by good layout i.e. good lighting, attractive colours, good ventilation, air conditioning, modern design and arrangement and even music. All of these things mean customer convenience, customer appeal and greater business volume. The customer is always impressed by service, efficiency and quality. Hence, the layout is essential for handling merchandise, which is arranged as per the space available and the type and magnitude of goods to be sold keeping in mind the convenience of customers. There are three kinds of layouts in retail operations today.

1. Self service or modified self service layout2. Full service layout3 S i l l t3. Special layouts

The self-service layouts, cuts down on sales clerk’s time and allow customers to select merchandise for themselves. Customers should be led through the store in a way that will expose them to as much display area as possible, e.g. Grocery Stores or department stores. In those stores, necessities or convenience goods should be placed at the rear of the store. The use of color and lighting is very important to direct attention to interior displays and to make the most of the stores layout.

All operations are not self-service. Certain specialty enterprises sell to fewer numbers of customers or higher priced product, e g Apparel office machines sporting goods fashion items

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e.g. Apparel, office machines, sporting goods, fashion items, hardware, good quality shoes, jewelry, luggage andaccessories, furniture and appliances are all examples of products that require time and personal attention to be sold. These full service layouts provide area and equipment necessary in such cases.

Some layouts depend strictly on the type of special store to be set u e g TV e ai sho soft ice c eam sto e and d ive in set up, e.g. TV repair shop, soft ice cream store, and drive-in soft drink stores are all examples of business requiring special design. Thus, good retail layout should be the one, which saves rent, time and labour.

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3. Services centers and establishment

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Services establishments such as motels, hotels, restaurants, must give due attention to client convenience, quality of service, efficiency in delivering services and pleasing office ambience. In today’s environment, the clients look for ease in approaching different departments of a service organization and hence the layout should be designed in a fashion, which allows clients quick and convenient access to the facilities offered by a service establishment.

FAkTOR-FAKTOR YANG MEMPENGARUHI TATALETAKa) Bangunan pabrik:

Sifat dan ukuran bangunan menentukan ketersediaan ruang lantai untuktataletak Perancangan pabrik perlu mempertimbangkan kebutuhan AC

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tataletak. Perancangan pabrik perlu mempertimbangkan kebutuhan AC, pengendalian debu, pengendalian humiditas dll.

b) Sifat produk: product layout is suitable for uniform products whereas process layout is more appropriate for custom-made products.

c) Proses produksi: In assembly line industries, product layout is better. In job order or intermittent manufacturing on the other hand, process layout is desirable.

d) Tipe permesinan: ) p pGeneral purpose machines are often arranged as per process layout while special purpose machines are arranged according to product layout

e) Perbaikan dan perawatan: machines should be so arranged that adequate space is available between them for movement of equipment and people required for repairing the machines.

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f) Human needs: Adequate arrangement should be made for cloakroom, washroom, lockers drinking water toilets and other employee facilities proper

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lockers, drinking water, toilets and other employee facilities, proper provision should be made for disposal of effluents, if any.

g) Plant environment: Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint shops and plating section should be located inanother hall so that dangerous fumes can be removed through proper ventilation etc. Adequate safety arrangement should also be made.

Thus, the layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and diversification may also be considered while planning factory layout.

Dinamika Tata Letak Pabrik

Plant layout is a dynamic rather than a static concept meaning thereby if once done it is not permanent in nature rather improvement or revision in the existing plant layout must be made by keeping a track with development

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g p y y p g pof new machines or equipment, improvements in manufacturing process, changes in materials handling devices etc. But, any revision in layout must be made only when the savings resulting from revision exceed the costs involved in such revision.

Revision in plant layout may become necessary on account of the followingreasons: a) Increase in the output of the existing productb) Introduction of a new product and diversification c) Technological advancements in machinery, material, processes, product design, fuel etc. d) Deficiencies in the layout unnoticed by the layout engineer in the beginning.

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Penerapan Tata Letak pabrik

Plant layout is applicable to all types of industries or plants. Certain plantsrequire special arrangements which, when incorporated make the layout look distinct form the types already discussed above. Applicability of plant

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yp y pp y playout in manufacturing and service industries is discussed below.

In case of the manufacturing of detergent powder, a multi-storey building isspecially constructed to house the boiler. Materials are stored and poured into the boiler at different stages on different floors. Other facilities are also provided around the boiler at different stations.

Another applicability of this layout is the manufacture of talcum powder. Here machinery is arranged vertically i.e. from top to bottom. Thus, Here machinery is arranged vertically i.e. from top to bottom. Thus, material is poured into the first machine at the top and powder comes out at the bottom of the machinery located on the ground floor.

Yet another applicability of this layout is the newspaper plant, where the time element is of supreme importance the accomplishment being gapped

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time element is of supreme importance, the accomplishment being gapped in seconds. Here plant layout must be simple and direct so as to eliminate distance, delay and confusion. There must be a perfect coordination of all departments and machinery or equipments, as materials must never fail.

Plant layout is also applicable to five star hotels as well. Here lodging, bar,restaurant, kitchen, stores, swimming pool, laundry, shaving saloons, shopping arcades, conference hall, parking areas etc. should all find an appropriate place in the layout. Here importance must be given to cleanliness, elegant appearance, convenience and compact looks, which tt t t attract customers.

Similarly plant layout is applicable to a cinema hall, where emphasis is oncomfort, and convenience of the cinemagoers. The projector, screen, sound box, fire fighting equipment, ambience etc. should be of utmost importance.

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A plant layout applies besides the grouping of machinery, to an arrangement for other facilities as well. Such facilities include receiving and dispatching points, inspection facilities, employee facilities, storage etc.

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p p p y g

Generally, the receiving and the dispatching departments should be at either end of the plant. The storeroom should be located close to the production, receiving and dispatching centers in order to minimize handling costs. The inspection should be right next to other dispatch department as inspections are done finally, before dispatch.

The maintenance department consisting of lighting, safety devices, fire protection, collection and disposal of garbage, scrap etc. should be located in protection, collection and disposal of garbage, scrap etc. should be located in a place which is easily accessible to all the other departments in the plant. The other employee facilities like toilet facilities, drinking water facilities, first aid room, cafeteria etc. can be a little away from other departments but should be within easy reach of the employees. Hence, there are the other industries or plants to which plant layout is applicable.

CHECK YOUR PROGRESS 1. The aim of a good store layout should be

a. Customer convenience

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a. Customer convenienceb. Stocking as much merchandise as can be placed in the storec. The elimination of stockroom spaced. All of the above

2. one way to increase and direct customer traffic through the store is to

a. Make merchandise difficult to reachb. Keep goods that are in heavy demand in convenient locationsc Place items that are used together in different parts of the storec. Place items that are used together in different parts of the stored. Organize the store so that customers do not have a view of the entire department

3. Which of the following stores would find the self-service type of layout most convenient?

a. A jewelry store c. A shoe storeb. A supermarket d. A coffee shop

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4. You have come across various key words in this section. Pick up the words, which do not belong to this section.

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Process layout Product mix Job shops Production capacity Handling cost Market segment Special layout Employee morale Demographic analysis

5. True or False:

(a) Product Layout is followed by those manufacturing units, which involve y y gproduction of non-standardized products

(b) High Capital investment is required for the product manufactured under product layout

(c) The fixed position layout is applied to the manufacturing of light and heavy engineering products

6. Match the following:

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ACTIVITY

Visit a restaurant that you can classify as being in the small sector. Comment upon how has the layout of facilities added to or detracted from the ease of movement? Could you suggest some

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detracted from the ease of movement? Could you suggest some alternative layout?

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SUMMARY

In this lesson you have observed that the entrepreneur has to make decisions regarding plant location, which refers to the selection of a particular site for setting up a business or factory But before making

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particular site for setting up a business or factory. But before making such a choice, he has to go through the detailed locational analysis considering various factors, which influence his decision. It is a long-term strategic decision, which cannot be changed once taken. An optimum location can reduce the cost of production and distribution to a great extent. Thus great care and appropriate planning is required to select the most appropriate location.

The efficiency of production depends on how well the various machines production facilities and amenities are located in a plant machines; production facilities and amenities are located in a plant. An ideal plant layout should provide the optimum relationship among the output, floor area and manufacturing process.

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An efficient plant layout is one that aims at achieving various objectives likeefficient utilization of available floor space, minimizes cost, allows flexibility

f ti id f l i i d ti it

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of operation, provides for employees convenience, improves productivity etc. The entrepreneurs must possess the expertise to lay down a proper layout for new or existing plants.

It differs from one plant to another. But basic principles to be followed are more or less same.

From the point of view of plant layout, we can classify small business into three categories i.e.

(a) manufacturing units ( ) g

(b) traders

(c) service establishments.

Designing of layout is different in all above three categories e.g. manufacturing unit may follow one of Product, Process, and fixed position or

bi d l t th b T d i ht ith f lf i

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combined layout, as the case may be. Traders might go either for self serviceor full service or special layouts whereas service establishments such asmotels, hotels, and restaurants must give due attention to customer convenience, quality of service, efficiency in delivering the service etc. While deciding for layout for factory or unit or store, a small entrepreneur has to consider the factors like the nature of the product, production process, size of factory building, human needs etc.

Plant layout is applicable to all types of industries or plants. At the end, the l t h ld b d i t h lth d f t f l It h ld layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and diversification may also be considered while planning factory layout.

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GLOSSARY

The various key words, which arise in this Lesson, are:

Business Environment – Implies aggregate of all forces, factors and

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us ss o p s gg g o o c s, c o sinstitutions, which are external to and beyond the control of business organizations and their management

Continuous process - A process, which involves mass production of,standardized product repetitively.

Diversification – A process of entering into a field of business, which is new in terms of the market or technology or both

Expansion Consists of increasing the sales revenue profits and Expansion – Consists of increasing the sales revenue, profits and market share of existing product line or service

Entrepreneur - A person who is skilled at identifying new products (or sometimes new method of production), setting up operations for setting up new products, marketing the product and arranging the finance for the operations.

GLOSSARY

Handling cost - Cost of carrying material or storage cost.

Intermittent process –Is a process in which raw materials are

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p oc ss s p oc ss c sconverted into components or parts for stock. But they are combined according to customer orders.

Manufacturing – General term for the process of producing or assembling goods by hands or machines for sale to others.

Overhead cost – Operating costs of a business enterprise, which cannot be directly traced to a particular unit of product

Production capacity Ability to produce in terms of unitsProduction capacity- Ability to produce in terms of units

Trader – A person who is engaged in buying and selling of goods.

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SELF ASSESSMENT QUESTIONS

1. Describe the factors that should be taken into account in deciding the location of plant?

2. What is the importance of location in business?

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p3. The governing principle is that a plant should be so located as to permit the

production of the product at the lowest cost per unit.” Comment.4. What do you mean by locational analysis?5. Explain the meaning and significance of plant location .How will you decide the

location of a mini steel plant in India? 6. Define the plant layout.7. What are the various factors influencing the layout of grocery store?8. What are the principles for planning the layout of a new factory?9. Explain process layout? State its advantages and disadvantages in briefp p y g g10. Distinguish between product layout and process layout?11. Explain the suitability of fixed position layout12. Write about any two types of plant layout13. What is plant layout? Discuss the objectives and advantages of a good layout

FURTHER READINGS AND SOURCES

Charantinath M Poornima, Entrepreneurship Development Small Business Enterprises: Pearson Education First Impression, 2006Florence. P. Sargent, Investment, Location and Size of plant, London: Cambridge University Press, 1984

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1984Government of India (Office of the Economic Adviser), Location of Industries in India, New Delhi, 1963Lundy, James. L. Effective Industrial Management, New Delhi: Eurasia Publishing House, New Edition, 1984Sreekantaradhya, B.S., Regional Dispersal of Industries, New Delhi; Deep and Deep, 1985Weber, Alfred, Theory of Location of Industries, Chicago: The University of Chicago Press, 1929Asian Productivity Organisation, Production Engineering, Manila: APO, 1981 Buffa Elwood S., Operations Management, New Delhi: Wiley Eastern, 1986 Kumar Anil, S.C. Purnima, Abrahim Mini K, K Jayashree, “Entrepreneurship development”: New p p pAge International Private Limited Publisher, 2003Read Ruddel R., Plant Layout – Factors, Principles and Techniques, Illinois: Richard D. Irwin, 1978Gupta C.B. and Khanka S.S., Entrepreneurship and small business management: Sultan Chand and Sons 2003Shubin John A. and H. Madeheim, Plant Layout, New Delhi: Prentice Hall of India, 1986Gupta and Srinivasan, Entrepreneurial Development: Sultan Chand and Sons 1995

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Brandt, Steven C.,The 10 Commandments for Building a Growth Company: Third Edition, Macmillan Business Books, Delhi 1977Bhide, Amar V.,The Origin and Evolution of New Business: Oxford University Press,

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, , g y ,New York, 2000Desai, Vasant, Small Scale Enterprises Vols. 1-12, Mumbai: Himalaya Publishing House, Latest EditionDollinger, Marc J., Entrepreneurship: Strategies and Resources, Illinois, Irwin, 1955Taneja, Staish and Gupta SL, Entrepreneurship Development and New VentureCreation: Galgotia Publishing Co 2001Holt, David H., Entrepreneurship: New Venture Creation, Prentice-Hall of India, New Delhi, Latest Edition Panda, Shiba Charan, Entrepreneurship Development, New Delhi: Anmol Publications, Latest EditionPatel VG The Seven Business Crises and How to Beat Them Tata McGraw New Patel, V.G. The Seven Business Crises and How to Beat Them: Tata-McGraw, New Delhi, 1995Verma, J.C., and Gurpal Singh, Small Business and Industry – A handbook forEntrepreneurs, New Delhi, Sage, 2002Ghosh, Bishwanath entrepreneurship development in India: National publishinghouse, Jaipur and New Delhi 2000

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GE GAP GuidelinesA Publication of GE Global Asset Protection Services_GAP.2.5.2 September 3, 2001

OIL AND CHEMICAL PLANT LAYOUT AND SPACING

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SPACING

INTRODUCTIONLoss experience clearly shows that fires or explosions in congested areas of oil and chemical plants can result in extensive losses. Wherever explosion or fire hazards exist,

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p p ,proper plant layout and adequate spacing between hazards are essential to loss prevention and control. Layout relates to the relative position of equipment or units within a given site. Spacing pertains to minimum distances between units or equipment.GE Global Asset Protection Services (GE GAP Services) layout and spacing recommendations are for property loss prevention purposes only and are intended for existing and new oil and chemical facilities. These guidelines are intended to limit explosion overpressure and fire exposure damage. They do not address shrapnel damage. If these guidelines cannot be followed, then additional loss control measures, such as fire proofing, waterspray or blast hardening will be necessary.GE GAP Services guidelines only address spacing and layout within a plant and are GE GAP Services guidelines only address spacing and layout within a plant and are mostly applicable to open structures. An open air design favors vapor dissipation, provides adequate ventilation, reduces the size of the electrically classified area, and increases firefighting accessibility. Additional information can be found in several publications.

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POSITION

Management ProgramsManagement program administrators should report to top management through the minimum number of steps They should also institute loss

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through the minimum number of steps. They should also institute loss prevention inspection and audit programs to communicate program effectiveness to top management. This management feedback is a key feature of GAP.1.0.1 (OVERVIEW). In developing a program, pay particular attention to the following important areas:Hazard Identification and Evaluation ProgramDetermine the plant layout and spacing necessary to limit loss size based on worst case scenarios for vapor cloud, vessel and building explosions, and for fires. Calculate overpressure circles. See GAP.8.0.1.1 for hazard analysis and evaluation methods applicable to various explosion or fire scenarios. This

l i b l t d i di ti ith GE GAP S i l analysis can be completed in coordination with GE GAP Services loss prevention personnel.Management of ChangeConduct a Hazard Identification and Evaluation program for all new processes or for any modification to an existing process prior to completing final site selection and equipment layout. Determine the need for changes to spacing or layout.

Duplication of FacilitiesFor large-scale chemical and petrochemical plants, provide multiple process trains. In large scale plants, duplicate, with installed spares, equipment that is highly susceptible to loss or important for continued operations. For smaller scale or batch type plants, install processes important to production in the form of multiple small-scale units rather than a single large unit hysically separate duplicated units process trains or equipment with adequate

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GeneralConsider the following when determining the layout and the separation required:High hazard operations (see Appendix A)Grouped operationsCritical operationsNumber of personnel at riskConcentration of property and business

Market share concernsFire and explosion exposuresCorrosive or incompatible materials exposuresVapor cloud explosionsSources of ignitionMaintenance and emergency accessibilityDrainage and grade slopingPrevailing wind conditions

unit. hysically separate duplicated units, process trains or equipment with adequate spacing in accordance with this section or compartmentalize with blast resistant construction

p p yinterruption valuesEquipment replacement and installation timeInterdependency of facilitiesCritical customer or supplier relationships

Prevailing wind conditionsNatural hazards and climateFuture expansions

External exposuresReview the various hazards and loss potentials to establish the degree of separation required between units and equipment. Consult Tables 1, 2 and 3 in this guide for minimum spacing guidelines based on fire and vessel explosion hazards. Increase spacing where appropriate.

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TABLE 1. Inter-Unit Spacing Recommendations For Oil And Chemical Plants.

1 ft = 0.305 m/ = no spacing requirements

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* = spacing given in Table 3Examples:

50 ft separation between two cooling towers

300 ft separation between service building and flare

TABLE 2. Intra-Unit Spacing Recommendations For Oil And Chemical

1 ft = 0.305 m/ = no spacing

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/ = no spacing requirements

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TABLE 3. Storage Tank Spacing Recommendations For Oil And Chemical Plants.

D = Largest Tank Diameter1 barrel = 42 gallons = 159 L

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°C = (°F-32) x 0.5551 ft = 0.305 m

*For Class II, III products, 5 ft spacing is acceptable.

**Or Class II or III operating at temperatures > 200°F.

Where large amounts of flammable vapors could be released and a vapor cloud explosion could occur, perform a more detailed hazard analysis and evaluation per GAP8 0 1 1

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detailed hazard analysis and evaluation per GAP.8.0.1.1. Calculate the vapor cloud explosion overpressure circles. Where applicable, base the minimum spacing required between units upon the following criteria:

Do not locate critical equipment of adjacent units within the 3 psi (0.21 bar) overpressure circle.Design equipment or structures of adjacent units within the 1 psi (0.07 bar) overpressure circle to withstand the calculated vapor cloud overpressure.p

If the minimum spacing requirements based on a vapor cloud explosion differ from the minimum spacing required by the spacing tables, use the greater of the two.

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Overall Plant Layout

Initially, base site selection on exposure from uncontrollable factors, such as floods, earthquakes, tidal waves, subsidence, hurricanes, and adjacent oil and chemical plants

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adjacent oil and chemical plants.Once a site has been selected, arrange layout and spacing to reduce the effect of some of the following controllable and uncontrollable factors that contribute to losses:

Uncontrollable factors include site slope, climate, exposure to natural hazards, wind direction and force. However, locating ignition sources upwind of potential vapor leaks or locating the tank farm downhill of essential units may reduce the loss potential from an explosion or fire. Figure 1 illustrates a good layout based on the prevailing wind.Controllable factors include process design parameters maintenance Controllable factors include process design parameters, maintenance, spare parts supply, control logic and automation, fire protection design, spare production capacity, flammable liquid holdups, spill control and the type of process. Use proper drainage and separation to control spills and fire spread. Refer to GAP.2.5.3 and GAP.8.0.1.2.

Figure 1. Good Layout Example.Reprinted by permission of NOVACOR Chemical Ltd.

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Use a hazard assessment of each plant operation to help establish the layout or orientation of blocks or unit battery limits within the plant.

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Review the possible loss events and the consequences for eachproposal. Select a layout which will minimize the overall property damage and related business interruption should an incident occur.

Subdivide the overall site into general areas dedicated to process units, utilities, services and offices. Since each area or unit block generally has a rectangular shape, keep the maximum unit size to300 ft × 600 ft (92 m × 183 m) for firefighting purposes.

Provide access roadways between blocks to allow each section of the plant to be accessible from at least two directions.

Avoid dead end roads.

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Size road widths and clearances to handle large moving equipment and emergency vehicles or to a minimum of 28 ft (8.5 m), whichever is greater.Maintain sufficient overhead and lateral clearances for trucks and cranes to avoid hitting piping racks, pipe ways, tanks or hydrants.Do not expose roads to fire from drainage ditches and pipeways.Slightly elevate roads in areas subject to local flooding.Locate hydrants and monitors along roads to allow easy hook-up of firefighting trucks.Provide at least two entrances to the plant for emergency vehicles to prevent the possibility ofvehicles being blocked during an incident, e.g., open bridge, railway.Plan and implement a “Roadway Closure” permit system authorized and controlled by sitep y p y yEmergency Response personnel as part of the site impairment handling system.

Provide spacing between units based upon the greater of either Table 1 or a hazard assessment. The space between battery limits of adjoining units should be kept clear and open. Do not consider the clear area between units as a future area for process expansion

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Process Units

Evaluate the process hazards and, depending on the results of such review, classify them in high, intermediate and moderate hazard groups as shown in GAP2 5 2 A Consult the table in

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hazard groups as shown in GAP.2.5.2.A. Consult the table in this section to determine the spacing required between the various blocks based upon the relative hazard of each process.Separate hazardous units from other hazardous units to avoid fire spread. “Separate” or “buffer” high hazard units by using moderate or even lower hazard units as a way to reduce such exposure, e.g., separate a DNT plant from a TDA plant by placing a sulfuric or nitric acid unit between them.Locate equi ment o st uctu es common to multi le ocess Locate equipment or structures common to multiple process units, such as large compressors and turbines, central control rooms and fired heaters, so as to prevent a single event from impairing the overall operation and causing extensive business interruption.

Lay out the equipment within a unit in one of two general ways.

U d l t h i il i t i d t th

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Use grouped layout, where similar equipment is grouped together to ease operation, maintenance and control.Use flow line layout, where equipment is arranged in a sequence similar to the process flow diagram.

Wherever it does not conflict with loss control, consider accessibility for maintenance and operations in determining spacing and layout. Locate equipment needing frequent overhaul, maintenance or cleaning at unit boundaries. Locate large vessels or equipment close to unit boundaries to allow large vessels or equipment close to unit boundaries to allow easy access of cranes.Use Table 2 for minimum spacing guidelines for spacing within process units. The recommended separations are the clear, horizontal distances between adjacent edges of equipment.

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Hazard Classification

The following hazard classifications are for equipment and processes:Reactors:

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Classify process reactors as moderate, intermediate or high hazard. The relative hazard classification is detailed in GAP.2.5.2.A.

High hazard pumps:Handle flammable and combustible liquids, operate at temperatures above 500°F (260°C) or above the product autoignition temperature. Handle flammable and combustible liquids and operate at pressures above 500 psi (34.5 bar).Handle liquefied flammable gases.

Intermediate hazard pumps:Intermediate hazard pumps:All other pumps handling flammable or combustible liquids. Canned and magnetic pumps have a lower fire hazard, and therefore, there are no specific spacing requirements.

Intra-Unit SpacingFor proper intra-unit layout, include the following principles:

Do not group pumps and compressors handling flammable products in one single area Do not locate them under piperacks air cooled heat exchangers and vessels

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area. Do not locate them under piperacks, air cooled heat exchangers and vessels. Orient pump and driver axes perpendicular to piperacks or other equipment to minimize fire exposure in case of a pump seal failure. Separate high pressure charge pumps from any other major process equipment and other pumps by at least 25 ft (7.5 m).

Locate compressors at least 100 ft (30 m) downwind from fired heaters and at least 30 ft (7.5 m) from any other exposing equipment. To avoid unnecessary exposure, do not locate lube oil tanks and pumps directly under any compressor.

D h h d f f h l l h fDetach heaters and furnaces from the unit or at least locate them at one corner of the unit. Locate continuous ignition sources upwind of the process units.

If increased spacing for very high hazard equipment susceptible to explosions, such as reactors, is not possible, separate them from other areas by blast resistant walls.

Keep flammable products storage to a minimum within the process unit boundaries. Install tanks, accumulators or similar vessels with flammable liquid holdups at grade, if possible.

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The preferred layout of a process unit is a piperack located in the center of the unit with large vessels and reactors located outwards of

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the central piperack. Place pumps at the outer limits of the processarea. Limit the stacking of equipment in process structures to equipment with no fire potential. Slope the ground surface so that liquids drain away from the center of the unit. Do not put drainage trenches under piperacks. Put cable trays in the top tier of the piperacks.

Utilities

Locate central services, such as cooling towers, boilers, power stations and electrical substations, away from hazardous areas so

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they will not be affected by a fire or explosion within the plant nor be a source of ignition for any potential flammable liquid or gas release. Maintain adequate separation between different utility services because utility losses could then lead to unsafe conditions in other plant units, possibly creating fires or explosions. Increase the reliability of the utilities by keeping adequate spacing between boilers or generators.

P l i i d ith NFPA 4963 t Properly pressurize in accordance with NFPA 4963 or separate electrical substations and motor control centers. Locate substations away from hazardous areas to increase the reliability of the powersupplies should a loss occur. Bury electrical distribution cables to limit their exposure to explosions, fires, storms and vehicles, and to ease firefighting accessibility.

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Control RoomsLocate and construct control rooms, motor control centers, and other essential facilities to allow operators to safely shut down units under

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essential facilities to allow operators to safely shut down units under emergency conditions. Locate the control building where it will not be exposed by fires or explosions. If separation is not feasible, design the building to withstand potential explosion overpressure. Where control rooms are exposed to fires or blast overpressures, locate the emergency loss control coordination center in a safe area.Consider unmanned satellite computer rooms, terminal rooms and i/o rack rooms equivalent to motor control centers for the purpose of this guideline.

ServicesKeep warehouses, laboratories, shops, fire brigade stations and offices away from process areas. Welding equipment, cars and trucks as well as large numbers of people can become “uncontrollable ignition sources.”

Loading and Unloading

Space loading racks, piers and wharves well away from other areas

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Sp c o g cks, p s s y o o sdue to large numbers of trucks, rail cars, barges or ships carrying large amounts of flammable or combustible liquids. Reduce planttraffic to ease emergency vehicle movement and limit accident hazards by locating loading and off-loading operations at the plant perimeter close to the entry gate.

Locate flares according to Table 1 or to API 521, 4 whichever is greater.

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Tank Farms

Consult Table 3 for general recommendations for spacing aboveground storage tanks in the oil and chemical industry. The spacing is given as a distance from tank shell to tank shell and is a

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spacing is given as a distance from tank shell to tank shell and is a function of the largest tank diameter. If there are adverse conditions, such as poor fire protection water supply, difficult firefighting, poor accessibility, poor diking or poor drainage, increase the spacing by at least 50%. Treat crude oil as a flammable liquid.See Table 1 for minimum spacing between tank farms and other units.Do not group or dike different types of tanks and contents together.Locate storage tanks at a lower elevation than other occupancies to g pprevent liquids or gases from flowing toward equipment or buildings and exposing them. Locate tanks downwind of other areas.Arrange atmospheric storage tanks and pressure vessels in rows not more than two deep and adjacent to a road or accessway for adequate firefighting accessibility.

Tank Farms

Since piping involved in ground fires usually fails within 10 or 15 min of initial exposure, locate an absolute minimum amount of piping, valves and flanges within dikes Install pumps valve manifolds and

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valves and flanges within dikes. Install pumps, valve manifolds, and transfer piping outside dikes or impounding areas.Provide tanks with proper dikes or drainage to a remote impounding facility.Where tanks over 500,000 bbl (80,000 m3 ) are present, increase minimum distances to 1000 ft (305 m) spacing between them.Space tanks so the thermal radiation intensity from an exposing fire is too low to ignite the contents of the adjacent tanks. Tolerances of tanks to thermal radiation can be increased by:y

Painting vessels a reflective color (generally white or silver).Providing a fixed water spray or tank shell cooling system. Refer to GAP.12.2.1.2 for additional guidance.Insulating or fireproofing the tank shell. Guidance can be found in GAP.2.5.1.

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Atmospheric Storage Tanks

Classify internal floating roof tanks as floating roof tanks when pontoon internal floaters are provided When plastic aluminum or a steel pan

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internal floaters are provided. When plastic, aluminum or a steel pan are used in the construction of the internal floater, classify the tank as a cone roof tank for spacing purposes.

Floating roof tanks: Store crude oil and flammable liquids (Class I) in floating roof or internal floating roof tanks. Arrange floating roof tanks in excess of 300,000 barrels (47,700 m) in a single row. If multiple rows are necessary, space tanks farther than one diameter apartapart.

Atmospheric Storage Tanks

Cone roof tanks: Combustible liquids (Class II and III) may be stored in cone roof tanks with the following limitations or exceptions:

Cone roof tanks in excess of 300 000 barrels (47 700 m3 ) present an

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Cone roof tanks in excess of 300,000 barrels (47,700 m3 ) present an unacceptable amount of potentially explosive vapor space, even if storing heavy oils. In such cases, use only floating roof tanks.Do not store liquids with boil over characteristics in cone roof tanks larger than 150 ft (45.8 m) in diameter, unless an inerting system is provided.Avoid storage of flammable liquids (Class I) in cone roof tanks. If cone roof tanks are used for flammable liquids storage, restrict the tank size to less than 150,000 barrels (23,850 m), provide an inert gas blanket, and increase the spacing.Space cone roof tanks storing Class IIIB liquids, operating at ambient p g q , p gtemperatures, as “floating and cone roof tanks smaller than 3000 barrels (480 m3).”Increase separation of cone roof tanks in excess of 10,000 barrels (1590 m ) containing combustible liquids stored at a temperature higher than 200°F (93°C).

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Pressurized and Refrigerated Storage Tanks

Spheres and spheroids : Provide spacing between groups of vessels of at least 100 ft (30 m) or h l k di Li i h k i f i

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the largest tank diameter. Limit each tank group to a maximum of six vessels. See Table 3 for the minimum spacing between vessels.

Drums and bullets: Limit horizontal pressurized storage vessels to not more than six vessels or 300,000 gal (1136 m3) combined capacity in any one group. Provide at least 100 ft (30 m) or the largest tank diameter between groups. Align vessels so that their ends are not pointed toward process areas or other storage areas, as these vessels tend to rocket if they fail during a fire. Avoid multiple row configurations. Do not locate pressurized storage vessels above each other See also GAP8 2 0 1vessels above each other. See also GAP.8.2.0.1.

Refrigerated dome roof tanks: Provide spacing between groups of vessels of at least 100 ft (30 m) or the largest tank diameter. Limit each tank group to a maximum of six vessels. Provide greater spacing if exposed combustible insulation is used on the tanks.

DISCUSSION

A good layout and sufficient spacing between hazards, equipment and units will have the following benefits:

L l i d O t d b l i d

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Less explosion damage. Overpressures created by an explosion decrease rapidly as the distance from the center of the explosion increases. The mathematical relationship between overpressures and their distances from the explosion center is given in GAP.8.0.1.1.Less fire exposure. Radiation intensity from a fire decreases as the square of the separation distance.Higher dilution of gas clouds or plumes. Gas concentration decreases as the distance from the emission source increases.Easier access to equipment for maintenance, inspection and firefighting purposespurposes.Easier spill and spill fire control in open areas.Lower concentration of values, resulting in a lower property damage loss estimates should a given incident occur. GE GAP Services typically establishes a probable maximum loss (PML) and maximum foreseeable loss (MFL) estimates based upon a vapor cloud explosion where such a hazard exists. An adequate spread of values and good spacing between explosion hazard areas will lower the PML and MFL.

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DISCUSSION

Extensive spacing might increase the initial investment required to build a given plant. More land will be required. More piping, cabling, roads and

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larger drainage systems will be required. Additional or larger pumps or compressors might be required as friction loss increases with the piping length and, therefore, operating costs increase. However, the loss control benefits outweigh the additional costs due to less disruption to production when the incident occurs.

Proper layout and separation distances should be designed into a plant during the very early planning stages of the project. This will require preliminary identification of hazards inherent to the operations and of the

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p y pnatural hazards. A good layout may not automatically increase the construction cost because proper separation between hazards can decrease the exposure protection required. For example, a control room unexposed by a process unit would have no need to be explosion resistant. Optimum layout will achieve a balance among loss prevention, construction, maintenance and operation requirements.Computer-aided design (CAD) generates three dimensional layouts which have proven effective for visualizing the proposed spatial arrangement of a unit or plant. High equipment concentration and plant congestion are spotted easily by these computer generated techniques. The use of CAD p y y p g qallows operators, maintenance and loss prevention personnel to easily comment and make appropriate recommendations. Scale models offer similar benefits.Vapor cloud calculations could indicate that an even greater separation between some units is needed because of higher than normal explosion damage potential and business interruption.

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Other hazard assessment methods can provide good loss potential evaluations and are described in various Center for Chemical Process Safety publications, in the DOW Fire & Explosion Index, or in API RP 752.

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p pTable 1 provides minimum inter-unit spacing which should be increased where a hazard analysis shows that larger separation distances are required. Unfavorable conditions, such as inadequate sloping, poor drainage and critical operations, can increase the exposure between units, thus requiring higher separation distances. All distances between units are measured from battery limits. “Battery limits” as defined by GE GAP Services are imaginary lines surrounding a unit. This line is typically box shaped and encloses equipment required for the operation of the unit. Cooling towers,maintenance buildings or other structures not integral to the unit are considered to be independent and should not be included in the battery p ylimits. This line crosses utility, service, raw material and finished product piping.The processing units are generally the most hazardous operations in a plant. For operational purposes, the process units are generally grouped together and arranged in accordance with the general process flow.

Often, fire protection spacing requirements will exceed maintenance accessibility requirements. The relative location of equipment depends on its

b bl l f fl bl t i l it fl bl li id h ld d it

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probable release of flammable materials, its flammable liquid holdup, and its potential to be a source of ignition. A domino effect loss is possible withinprocess units.

NFPA 30 defines flammable liquids as Class I materials, and combustible liquids as Class II and III materials. The classification depends on the flash point of the product. In some very hot climates, Class II liquids could behave as flammable liquids because the storage temperature could exceed theflashpoint temperature. Unstable liquids or gases and monomer storage

i i l ti d t dd d i T bl 3require special precautions and are not addressed in Table 3.

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GE GAP Guidelines ReferencedGAP.2.5.1Fireproofing For Oil And Chemical Properties

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Fireproofing For Oil And Chemical Properties.GAP.2.5.2.AHazard Classification Of Process Operations For Spacing Requirements.GAP.2.5.3Drainage For Outdoor Oil And Chemical PlantsGAP.8.0.1.1Oil And Chemical Properties Loss Potential Estimation Guide.GAP.8.0.1.2Liquid Holdup EstimationGAP.12.2.1.2Water And Spray Deluge Protection For Oil And Chemical Plants.

REFERENCES1. Hazard Survey of the Chemical and Allied Industries, Technical Survey No. 3 , 1968, American Insurance Association, New York, NY.

An Engineer’s Guide To Process-Plant Layout , F.F. House, July 28, 1969, Chemical Engineering, McGraw Hill, New York, NY.

Process Plant Layout , by J.C. Mecklenburgh, John Wiley & Sons, New York, NY.

Loss Prevention In The Process Industries F P Lees Volumes 1 & 2 Butterworths Boston MA

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Loss Prevention In The Process Industries , F. P. Lees, Volumes 1 & 2, Butterworths, Boston, MA.

Loss Prevention Fundamentals For The Process Industry , O. M. Slye Jr., Loss Prevention Symposium, March 1988, American Institute of Chemical Engineers, New York, NY.

NFPA 30-2000, Flammable And Combustible Liquids Code , National Fire Protection Association, Quincy, MA.

NFPA 58-2001, Liquefied Natural Gas , National Fire Protection Association, Quincy, MA.

2. OVERVIEW

, GE Global Asset Protection Services.

3. NFPA 496-1998,

Purged And Pressurized Enclosures For Electrical Equipment In Hazardous (Classified) Locations, National Fire Protection Association, Quincy, MA.

4. API RP 521-1982:

Guide For Pressure-Relieving And Depressurizing Systems , American Petroleum Institute, Washington, DC.

5. Center for Chemical Process Safety, American Institute of Chemical Engineers, New York, NY.

6 Fire & Explosion Index Hazard Classification Guide6. Fire & Explosion Index, Hazard Classification Guide

, Dow Chemical Company, Sixth edition, available from the American Institute of Chemical Engineers, New York, NY.

7. API RP 752-1995:

Management of Hazards Associated with Location of Process Plant Buildings, American Petroleum Institute, Washington, DC.

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Plant Layout and Modelling79

Peter Watermeyer, Handbook for Process Plant Project Engineers, Professional Engineering Publishing Limited London, page 105~(2002)

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