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The idea of this project was to find a better way of arranging equipment and departments in a plastic manufacturing facility so that transportation cost can be minimized in the transporting of the raw material from the source to the factory and throughout the manufacturing process until the finished product was achieved. A case study was made on VIP Plastics Ghana ltd and it was found that one of the key determinants of the unit cost of the finished product was transportation of the material/unfinished product. A research was made on types of vehicles which are more economical, reliable and environmental friendly. Different types of factory layouts were also studied by considering the production process of the factory. Data collected was used to optimize the current product- oriented facility layout of the factory.

In conclusion in order for VIP Plastics Ghana Ltd to compete more efficiently in the Ghanaian market more environmental friendly and smart carriage vehicles were proposed. Moreover, the current facility layout of the factory was developed and optimized to minimize transportation cost so that VIP Plastics Ghana Ltd managers can make optimum allocation of departments/equipment. This will enable the factory to meet production capacity and customer demand at a low transportation and production cost.


1 1.1 Aims and Objectives
1.2  Scope of Studies
1.3  Limitations of Studies
1.4  Literature Sources
1.5       Description of the Transportation in Ghana
1.6       Brief Description of Company

2.1       Brief History of Transportation System
2.2       Factory Location
2.3       Factory Layouts
            2.3.1    Layouts Objectives
            2.3.2    Layouts Types
            2.3.3    Process Oriented Layout
            2.3.4    Product Oriented Layout
            2.3.5    Assembly Line Balancing
            2.3.6    An Example of Assembly Line Balancing
            2.3.7    Data Analysis
2.4       Road Accidents in Ghana
2.5       Sustainable Transportation
2.6       Environmental Pollution
2.7       Addressing C02 Emissions

3.1 Factory Layout
3.2   Calculations
3.3   Finding Minimum Cost by Switching Departments
3.4   Optimization for Maximum Profit on Main Products
3.5   Balancing VIP Plastics Production Line




Transportation is the movement of goods, people, animals or services from one place to another. The different modes of transport are air, rail, road and sea. The field of transportation can be divided into infrastructure, vehicles and operations. Transportation is very important in the life of any business or company and better planning and utilization of transport increases a company`s profit and reduces cost.

Factories and businesses are mostly faced with economic optimization such as minimizing cost of non-economic items like goods or services that are very important to the growth and existence of the factory or business. Transportation models are mostly concerned with the best possible way a material or product can be transported from a source also known as supply origin to a customer also known as demand destination. The main objective of a transportation model is to fully satisfy the demand requirement of a company within its production capacity constraints at a least possible cost.

Anytime there is a physical movement of goods or material from a source to a destination through a medium or variety of means, there is a need to reduce the cost of transportation so that profit on sales can increase. The problem is a linear programming which deals with transporting goods from source to destinations. The problem determines truck schedules that reduce transportation cost and at the same time satisfying supply and demand limits.

1.1 Aims and Objectives
The main aim of this thesis is to find a better way of transporting plastic raw materials

from a source to the factory of the company in such a way that transportation cost will

be reduced and profit will increase. Moreover transportation of raw materials will meet

production capacity and demand.

This includes

Design a well defined transportation model for the company that will sustain the transportation planning of the company.

·         Propose a better means of transport for the company that will improve delivery performance, reduce unnecessary transportation cost and reduce harmful gas emission to comply with international regulations.

·         Propose a good factory layout for locating the departments and production equipment in the factory.

1.2 Scope of Studies
This thesis is to help companies to identify different transportation models and different kinds of factory layouts. Readers can find the best way and means of transporting goods or materials from a source to a destination at a possible minimal cost by taking the distance and other factors such as road and vehicle types into consideration. Readers may further know how to calculate transportation cost manually and find smart heavy goods vehicle types which are environmentally friendly in terms of pollution by gas emissions.

1.3 Limitation of Studies
The biggest drawback of this thesis was the inability to get more information from the company personnel on economic data. Data collection from transport organizations in Ghana was also not sufficient to know accident prone vehicles and pollution vehicles used on the road since owners were not ready to co-operate. Most of the information was also through the internet and phone calls which encountered break-ups, interruption and interferences making delays in getting expected information.

1.4 Literature Sources
The source of information was gathered through the internet from Transportation regulation bodies’ journals, websites, mathematics and logistics books. The author also read from other similar international thesis, VIP Company of Ghana management staff and other personnel, Building and Road Research Institute (BRRI), and the Driver and Vehicle Licensing Authority (DVLA) of Ghana.

1.5 Description of the Transportation in Ghana
Kumasi is 251 kilometers from Accra the capital city and 269 kilometers from Tema the industrial city in Ghana. Kumasi is about 254 km2 and a population of about...

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