plant layout and plant location

 Plant Location is the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors:

Plant location decisions are strategic, long term and non-repetitive in nature. Without sound and careful location planning in the beginning itself, the new facility may pose continuous operating disadvantages, for the future operation. A right selection of a plant location can make and a wrong decision mar an organization. Location decision are affected by many factors such as technology used, the capacity, the financial position, the work force required and also by economic, political and social conditions in the various localities. 

GENERAL FACTORS AFFECTING PLANT LOCATION DECISION:

• INPUT CONSIDERATIONS

• • Material- Quantity, quality, cost and regular supply.

• • Land- Site availability and cost, cost of construction, constructional regulations.

• • Equipment- Cost and availability.

• • Plant utilities- Water, electricity, gas, coal etc.

• • Labor- Availability, skill, wage rates etc.

 

• PROCESSING CONSIDERATIONS

• • Production analysis

• • Process analysis

• • Forecasting and scheduling

• • Production control

• • Maintenance

• • Cost control

 

• OUTPUT CONSIDERATIONS

• • Distribution- Distribution and storage facilities

• • Transportation- Facilities and cost

• • Present and future market potential

• • Local rates

• • Local taxes

 

• OTHER CONSIDERATIONS

• • Community attitude towards industry and company

• • Public and community services

• • Stockholder interests

• • Organizational decentralization policies.

• • Political situation

• Environmental standards

PLANT LAYOUT

• Layout refers to the arrangement of facilities in a particular workstation. It may be plant layout, office layout, auditorium layout etc.

• Plant Layout implies the physical arrangement of machines, equipment and other industrial facilities on the factory floor in such a manner that they may be handled efficiently.

• 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 cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product.

• Layout is a Fundamental of every organization and enterprise.

• Kitchen, Retailers, offices, service organization and all the enterprises have a specific layout.

• Previously Layouts were based on intuition, experience and judgment.

• With the complexities and competition now scientific methods are used.

• The Layout comes in picture after the location has been finalized.

• Development of good layout depends on decisions already taken on location, capacity, facility, manufacturing method and material handling techniques.