An Application Of Cost Analysis In LCM Plant Layout Evaluation

Plant layout is one of the most important areas in Industrial Engineering. It focuses on how to optimize the facilities layout on the premise of identification of investment, and its evaluation is only to evaluate the program of facilities layout design. But optimizing the plant layout can not offer to a competitive advantage evidence on the investment and manufacturing costs. Actually, the investment in factories needed the overall optimizing of investment program and plant layout, therefore, in addition to the establishment of qualitative and quantitative indicators to evaluate facilities layout design, it is very of importance how to use the method of forecasting cost analysis to evaluate investment program and plant layout.This paper, aiming at LCM plant characteristics, put forward LCM facilities layout design, how to plan the products and capacity, technique process, equipment selection and facilities layout, running time and arrangement the rest-shift model etc. And it combined literature research in plant layout and evaluation methods theory, from three areas of manufacturing efficiency, use of space and manufacturing quality to establish LCM plant layout evaluation indicators and evaluation methods. It used the methods of engineering economic and cost analysis, from the numerous manufacturing cost items identified the cost of items directly affected by investment solution and facilities layout design to build the manufacturing costs model affected by the plant layout factors.With the actual case, this paper put forward a LCM plant planning program, and offers a reference for decision-making according to the indicators evaluation and cost analysis at investment and facilities layout design.