Plant Location and layout

Plant Location Factors affect location of Industries:

>>Relating to raw material. Production and delivery of product

Proximity to raw material site.

Availability of favorable labor force and labor [social, political, etc.)

Climate condition: temperature, humidity, rainfall, etc.

Availability of energy sources.

Availability of water supply and waste disposal.

Proximity to market.

Transportation facility.

Plant Location Factors affect location of Industries:

>>Relating to requirement of men (workforce)

a) Educational facilities for the children of the staffs.

b) Recreational facilities.

c) Market and health facilities.

d) Communication facilities (mail, telephone, internet, etc.)

e) Social life of the area.

f) Transportation facilities for the personnel, etc.

>> Other related factors:

a) Taxes and Govt. /regional laws applicable to area.

b) Cost of land

c) Future expansion facilities

d) Community attitude, etc.

Justification of Locations

Refineries at Potenga:

Raw materials source is outside the country and comes in bulk by ship, processes inflammable materials, so should be far away from the locality and near huge source required to put off fire if caught.

Justification of Locations

Garment factories in town areas:

For availability of labor, to avoid providing accommodation, health, transportation, recreational and other related services to labor force, uses non weight loosing raw etc.

Electrical goods industries in town areas:Town area is favorable for getting skilled and semi-skilled workforce, does not take big area to build industry, can be expanded vertically if needed as these are not categorized as heavy industries.

Justification of Locations

Sugar mills in North Bengal Areas:

The industry using weight loosing raw materials, by establishing at the site area saves money for material transportation, it is economic to transport sugar than to transport sugarcane, sugarcanes are available at that area. Jute mills in Chittagong, Dhaka, Khulna areas:

Raw material jute is available mostly around the Dhaka within a radius of around 50 to 100km but the market for jute was outside the country when the industries were established. Since jute is not a weight loosing material it is same if the jute is carried to mill and jute products are carried to near to sea port area for export.

Justification of Locations

Do you consider the location of CUET is appropriate? Justify your answer.

Layout Layout is the arrangements of facilities in an area,

e.g. arrangement of machineries inside a plant, arrangements of buildings inside a factory premises. Generally factory layout means the layout or arrangement of machineries in a room.

Types of Layout Process/Functional layout: Machine doing similar

types of works are grouped in one place.

Hospital – some processes (e.g. X-ray machines and laboratories) are required by several types of patient; some processes (e.g. general wards) can achieve high staff and bed utilization.

Types of Layout Product layout: Machines are arranged

according to the requirements of progress in product making. Examples of product layout include the following:

Automobile assembly – almost all variants of the same model require the same sequence of processes.

Self-service cafeteria – generally the sequence of customer requirements (starter, main course, dessert, drink) is common to all customers, but layout also helps control customer flow.

Types of Layout Fixed position layout: Required

machineries are bought to the place of making the product as the final product big, heavy and requires large space. For example:

motorway construction – the product is too large to move

shipbuilding – the product is too large to move

Types of Layout Group Technology layout: Industries making verities of products

sometimes make group of products requiring similar operations. So machineries required for a particular group of products are grouped in one place.

Hybrid layout: Sometimes layout combines element of both product and process layout. This intermediate strategy calls hybrid layout, which arranges some portion of facility as process layout and other portion as a product layout.

Effect of bad layout:

If the layout is not proper then the following problem may rise: More time is required for material handling causing increase in

manufacturing time and thus production rate decreases cost increases.

Hampers production as each workstations required standard space for the best performance which might not be available.

Space for in process inventory might not be available near the required workstation causing temporary obstruction in production.

Congested layout or unscientific layout is not helpful for healthy work environment which cause s decline in workers motivation

In case of any accidents/ emergency, bad layout delay in rescue or stopping the causes, etc.

 >> Comparison between process layout and Product layout:

Product layout Process layoutIf one worker remains absent, production is delayed until a substitute is arranged

Such problem does not arise

Workers become expert in only the operation he does and so if he quits or remains absent the authority must teach another employee the operation to be done

As workers doing similar jobs work in one place, they become expert by getting help from seniors and in case anybody quits or remains absent, others do the job and due to that no temporary vacuum arise.

Is not helpful for training purpose Helpful for employee trainingLess floor space is needed, so material handling cost is less

Ore floor space is needed and material handling cost is comparatively more

Not enough space is needed for keeping in process inventory

Space for keeping in process inventory needed

Design of material handling system is easier

Fixed material handling system can always be used.

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