Manufacturing Facility Layout Design and Optimization Using Simulation S. M. Kadane 1 and S. G. Bhatwadekar 2 The present paper deals with the design of manufacturing facilities layout with the consideration of downtime of facilities and space utilization. Facility layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in 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 raw material to the delivery of the final product. Keywords: Facility layout, optimization, ABC analysis, simulation, FLEXSIM. 1. INTRODUCTION THE plant layout is a very critical part of running an efficient and cost effective business. All work areas, production lines, material storage facilities, etc. should be designed to perform to the highest rate and the corresponding shortest cycle time. When designing a plant layout it is necessary to take into account all the functions within the business. The design must include not only the needs for the present business levels but should also have provisions for future expansion. This is included to avoid frequent and costly changes to the design as demand increases. Plant Layout is the physical arrangement of equipment and facilities within a plant. i.e. the grouping of equipment and operations in a factory for the greatest degree of efficiency. The Plant Layout can be indicated on a floor plan showing the distances between different features of the plant. Optimizing the layout of a plant can improve productivity, safety and quality of Products. Unnecessary efforts of materials handling can be avoided when the Plant Layout is optimized. This is valid for: 1. Distances through which the material has to move 2. Distances equipment has to move 3. Distances operators have to move 4. Types of handling equipment needed 5. Energy required to move items against resistance (i.e. gravity). 1 Assistant Professor, 2 Associate Professor, Department of Production Engineering, Kolhapur Institute of Technology, Kolhapur, Maharashtra, Shivaji University, ( 1 smkadane@gmail.com) ( 2 sgbhatwadekar@rediffmail.com) International Journal of Advanced Manufacturing Systems Volume 2 G Number 1 G January-June 2011 G pp. 59-65 © International Science Press I J A M S