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PLANT LOCATION ----PLANT LOCATION DECISIONS CONCERNS BOTH MANUF.

AND ASSEMBLY UNITS (EG FERTILISER PLANTS,STEELPLANTS, CEMENT FACTORIES, TEXTILE MILLS SUGAR MILLS, BREWERIES REFINERIES,THERMAL AND HYDRO PLANTS AND AUTOMOBILIES) AS WELL AS SERVICE ORGANISATIONS LIKE HOTELS,HOSPITALS, GODOWN WAREHOUSE ETC,) IDEAL PLANT LOCATION IS IMP FOR BUSINESS ACTIVITIES BOTH IN MANUF AND SERVICE PLANT LOCATION DECISIONS BEING STRATEGIC LONG TERM AND NON REPETITIVE REQUIRE DETAILED ANALYSIS OF LONG TERM CONSEQUENCES BECAUSE---(A) POOR LOCATION OF THE PLANT CAN BE CONSTANT SOURCE OF HIGHER COST,DIFFICULT MARKETING AND TRANSPTN,DISSATISFACTION AMONG THE EMPLOYEES AND CUSTOMERS FREQUENT DISTURBANCE IN PRODN,SUBSTANTIAL QUALITY COMPETITIVE DISADVANTAGE ETC (B) ONCE PLANT IS SET UP AT A PARTICULAR LOCATION IT IS COMPARATIVELY IMPOSSIBLE AND CAN BE SHIFTED LATER ONLY AT A CONSIDERABLE COST AND INTERRUPTION OF PRODN. (C) THE INVESTMENT IN LAND AND BUILDING IS QUITE LARGE UB CASE OF BIGGER FIRMS AND ECONOMICS OF ONE LOCATION AGAINST ANOTHER NEEDS TO BE EVALUATED CAREFULLY TO ENSURE FAIR RETURN ON SUCH INVESTMENT. LOCATIONAL DECISIONS OF LARGE PROJECTS LIKE FERTILISER, CEMENTS REFINIERS,STEEL MILLS THERMAL OR HYDRO ELECTRIC OR NUCLEAR POWER STATION INVOLVE ECONOMISTS,GEOGRAPHERS,TOWN PLANNERSM ACCOUNTANTS,LAWYERS,MARKETING EXPERTS, POLITICIANS DEFENCE ANALYSTS ECOLOGISTS ETC.

WHEN DOES A LOCATIONAL DECISION ARISE? LOCATIONAL DECISION GENERALLY ARISE WHEN ----(A) A NEW MANUF OR SERVICING UNIT IS TO BE SET UP (B) EXISTING PLANT OPERATIONS ARE DIFFICULT TO EXPAND DUE TO POOR SELECTION OF THE SITE EARLIER (C) THE GROWTH OF THE BUSINESS MAKES IT ADVISABLE TO ESTABLISH ADDITIONAL FACILITIES IN NEW TERRITORIES (D) THERE IS EMERGENCE OF NEW SOCIAL (CHRONIC LABOUR PROBLEM) POLITICAL (POLITICAL INSTABILITY)OR ECONOMIC CONDITIONS WHICH SUGGEST A CHANGE IN THE LOCATION OF THE EXISTING PLANT, (E) THE PRODUCT DEVELOPMENT HAVE OUTWEIGHED THE ADVANTAGES OF THE EXISTING PLANT (F) THE CHANGES IN THE INDUSTRIAL POLICY OF THE GOVT,FAVOURING DECENTRALISATION AND DISPERSAL OF INDUSTRIES TO ACHIEVE OVERALL DEVELOPMENT OF THE COUNTRY,DO NOT PERMIT EXPANSION OF THE EXISTING PLANT. FACTORS GOVERNING PLANT LOCATION PLANT LOCATION STUDIES ARE CONDUCTED UNDER 1.GENERAL TERRITORY SELECTION 2,COMMUNITY SELECTION 3.SITE SELECTION AND THE LOCATIONAL FACTORS IN GENERAL MAY BE GROUPED UNDER A. REGIONAL FACTORS---DECIDE THE OVERALL AREA WITHIN THE COUNTRY----SUCH FACTORS ARE PROXIMITY TO MARKETS,TO SOURCES OF RAW MATERIALS AVAILABITY OF UTILITIES, TRANSPORT

FACILITIES CLIMATE CONDITIONS, INDUSTRIAL AND TAXATION LAWS. B. COMMUNITY FACTORS--- INFLUENCE SELECTION OF THE PLANT LOCATION WITHIN THE REGIONSUCH FACTORS ARE ---AVAILABILITY OF LABOUR, INDUSTRIAL AND LABOUR ATTITUDES, SOCIAL STRUCTURE SERVICE FACILITIES ETC. C. SITE FACTORS ---- FAVOUR SPECIFIC SITES WITHIN THE COMMUNITY SUCH FACTORS ARE AVAILABITY AND COST OF THE LAND SUITABILITY OF THE LAND ETC. THE ABOVE FACTORS CAN BE SUMMARISED AS FOLLOWS A. PROXIMITY TO MARKET B. PROXIMITY TO SOURCES OF RAW MATERIALS, C. INFRASTRUCTURAL FACILITIES D. TRANSPORT FACILITIES E. LABOUR AND WAGES F. LEGISLATION AND TAXATION G. CLIMATIC CONDITIONS H. INDUSTRIAL AND LABOUR ATTITUDES I. SAFETY REQMTS J. SUPPORTING INDUSTRIES AND SERVICES K. SUITABILITY OF THE LAND L. AVAILABILITY AND COST OF THE LAND ECONOMIC SURVEY OF THE SITE SELECTION 1. PREPARE A LIST OF ALL RELEVANT FACTORS 2. ESTIMATE EXPNS ON MATERIALS, TRANSPORT, WAGES POWER ETC FOR EACH LOCATION ON EACH OF THE ABOVE FACTORS 3. COLLECT DATA ON INTANGIBLE FACTORS, LIKE COMMUNITY FACILITIES, COMMUNITY ATTITUDES ETC. 4. ANALYSE THE TANGIBLE DATA FOR EACH LOCATION AND CALCULATE RATE OF ROI

5. SELECT PROVISIONALLY A LOCATION BASED ON FINANCIAL DATA 6. COMPARE THE INTANGIBLE DATA FOR THE DIFFERENT LOCATIONS AND SELECT THE OPTIMAL LOCATION CONSIDERING TANGIBLE AND INTANGIBLE DATA. URBAN VS RURAL SITE LOCATION URBAN LARGE POPLN CREATES PROBLEM PROBLEM OF AIR R PLN,THERE OF AIR POLLUTION,WATER POLLN GOODFOR THE HLTH ETC.THE URBAN ENVRNMT THERE 2.AVAILABILITY OF TRAINING OF TRAINING SC EGES,HENCE THE FIRM HS TO PROVIDE THE SAME. FORE AFFECTS WORKERS HEALTH. SCHOOLS,COLLEGES,WHICH REDUCES THE COS INTERNAL TRAINING NEEDS 3.HIGHER LABOUR TURNOVER DUE TO LOWER LABOUR TURNOVER PRESENCE OF LARGER NO OF INDUSTRS 4 GOOD TRANSPORT FACILITIES--INADEQUATE TRNSPT HENCE RURAL LESSER POLLN,WATE FORE OF WRKRS. ABSENCE HOOLS,COLL

DIFFICULT TO REACH THE PL . ACE OF WORK. 5.PROXIMITY TO SUPPORTING OF SUPPORTING INDUSTRIES AND SERVICES. INDUSTRIES AND SERVICES 6.GOVT.IMPOSES RESTRICTIONS PROVIDES FINANCIAL ON STARTING NEW INDUSTRIES. INDUSTRIES IN IN URBAN AREAS AREAS. TYPICAL EXAMPLES OF PLANT LOCATION; 1. MOST OF THE STEEL PLANTS ARE LOCATED ALONG THE BIHAR,BENGAL,AND ORISSA BELT, THIS IS BECAUSE THE BASIC RAW MATERIALS INPUT LIKE COAL,LIME STONE AND IRON ORE LOSE CONSIDERABLE WT DURING PROCESS OF TRANSPTN.IT IS THEREFORE MORE ECONOMICAL,TO TRANSPORT FINSISHED GOODS OVER LONGER DISTANCE RATHER THAN THE RAW MATERIALS INPUTS. 2. THE CEMENT PLANT ARE LOCATED NEAR THE LIME COAL DEPOSITS, 3. GAS BASED FERTILISER PLANTS AT NAMROOP AND THAL VALSHET AND COAL BASED FERTILISER PLANTS AT RAMANGUNDAM TALCHE AND SINDRI LIKEWISE ARE LOCATED NEAR THE SOURCE OF RAW MATERIALS (GAS AND COAL) ABSENCE

GOVT TO ATTRACT RURAL

4. IN VIEW OF THE IMPORT OR RAW MATERIALS AT THE PORT THE NAPHTHA OR OIL BASED FERTILISER PLANTS AT MANGALORE MADRAS FERTILISERS, FACT AT COCHIN 5. MACHINE TOOL INDUSTRIES ARE AFFECTED BY FACTORS SUCH AS PROXIMITY TO MARKETS,INFRASTRUCTURE FACILITIES AND LOCATION OF SUPPORTING INDUSTRIES AND SERVICES ETC.HENCE THEY ARE LOCATED OVER DIFF PARTS OF THE COUNTRY. 6. TEXTILE MILLS ARE CLUSTERED IN MUMBAI AND AHMEDABAD BECAUSE OF HUMIDITY REQUIREMENTS. 7. NUCLEAR POWER PLANTS ARE LOCATED IN DIFFERENT PARTS OF THE COUNTRY BASED ON SELECTION AND EVALUATION OF NO OF ENVIRNMTL ,SAFETY,SOCIOECONOMIC AND ENGG FACTORS,

CLASSICAL TYPES OF LAYOUT: THERE ARE THREE CLASSICAL TYPES OF LAYOUT MOST PLANTS TODAY ARE LAID OUT USING COMBN OF THESE CLASSIAL LAYOUTS BUT IN THEIR PURE FORM THEY ARE SELDOM SEEN 1.PRODUCT LAYOUT 2. PROCESS LAYOUT 3. FIXED POSITION LAYOUT THESE CLASSICAL TYPES OF LAYOUT ARE USED WITH FABRICATION OPERATIONS AS WELL AS WITH ASSEMBLY OPERATIONS

PRODUCT LAYOUT OR LINE LAYOUT THIS IS PROBABLY KNOWN AS ASSEMBLY LINE AND IS USED FOR MANUFACTURING MASS QUANTITY OF PRODUCTS SUCH AS CARS,SCOOTERS ETC,ONLY ONE PRODUCT IS ASSEMBLED IN A PREDETERMINED SEQUENCE OF OPERATIONS,THE LAYOUT IS ARRANGED IN SUCH A MANNER THAT RAW MATERIALS /SUBASSEMBLIES/COMPONENTS ARE FOUND AT VARIOUS POINTS ON THE LINE.IT MAY INVOLVE MANY PROCESSES IN A PREDETERMINED SEQUENCE.CHEMICAL INDUSTRIAL PLANTS ARE LAID ON LINE BASIS WITH INTEGRATED EQPT AND MACHINERIES. PROCESS LAYOUT OR FUNCTIONAL LAYOUT THIS IS ALSO CALLED AS FUNCTIONAL LAYOUT AS IT GROUPS TOGETHER ALL OPERATIONS OF THE SAME TYPE IN A DEPARTMENT.FOR E.G ALL STAMPING IS DONE IN PRESS DEPT, ALL MILLING IS DONE IN ONE DEPT IT IS PARTICULARLY USEFUL WHERE LOW VOL IS MORE DESIRABLE BECAUSE IT HAS GREATER FLEXIBILITY THAN THE PRODUCT LAYOUT. FIXED POSITION LAYOUT-OR PROJECT LAYOUT -LARGE SCALE PROJECTS ARE COMMON IN TODAYS ECONOMY.IN TERMS OF FLOW THEY ARE INTERMITTENT OR BATCH PRODN SYSTEM.EG ARE AIRCRAFT ASSEMBLY,SHIP BUILDING OR LARGE CONSTRUCTION PROJECTS.LIKE DAMS BUILDINGS BRIDGES ETC/

ADVANTAGES OF PRODUCT AND PROCES LAYOUT PRODUCT LAYOUT PROCESS LAYOUT 1. LOWER TOTAL MATERIAL HNDLG COST DUPLICATION OF EQPT LESS

HENCE LOWER TOTAL INVEST MENT IN EQPT 2. LOWER TOTAL PRODN TIME FLEXIBILTY OF PRODN 3. LESS WORK IN PROCESS MORE EFFICIENT POSSIBLE THRO OUGH SPECIALIZATION 4.GREAT INCENTIVE FOR GROUPS OF INCENTIVE FOR PERSONS TO RAISE LEVEL OF PERFOR WORKERS TO MANCE. . OF PERFRMNCE 5.LESS FLOOR AREA REQD PER CONTROL OF COMPLICA UNIT OF PRODN PRECISION PROCESSES AREA INSPECTION IS 6/GREATER SIMPLICITY OF PRODN HANDLE BREAK CONTROL FEWER CONTROLS AND EQPT BY TRANSFER RECORDS NEEDED,LOWER CONTROLS TO ANOTHER MA AND RECORDS NEEDED LOWER STATION ACCCOUNTING COST. GREATER INDIVIDUAL RAISE LEVEL BETTER TED WHERE MUCH REQUIRED EASISER TO DOWN OF ERING WORK CHINE OR GREATER BETTER AND SUPERVISION

WORK STATION A WORK PLACE IS THE SPACE OCCUPIED BY A MACHINE OR WORK BENCH NECESSARY RELATED EQPT AND THE OPERATOR OR IT MAY CONSISTS OF A GROUP OF SMALLER MACHINES AND MAY REQUIRE MORE THAN ONE OPERATOR OR IT MAY BE MERELY A PIECE OF FLOOR SPACE WHERE AN OPERATOR WORKS ALONGSIDE A CONVEYOR AS IN ASSEMBLY OPERATION A WORK PLACE DESIGN ACTIVELY INVOLVES THE FOLL 1. ANALYSIS CONCEPTUALISATION AND DESIGN OF THE MOST ECONOMICAL METHOD OF PERFORMING A WORK OR TASK 2. STANDARDIZING THE METHOD 3. ASSISTING IN TRAINING THE OPERATOR IN THE PRESCRIBED METHOD

DATA COLLECTION FOR PLANY LAYOUT FOLLOWING IS THE DATA REQUIRED THROUGH THE SOURCES ALONG WITH 1. PRODUCTION VOLUME TRENDS AND MKT : THROUGH SALES RESEARCH REPORTS : FROM BILL OF

2. MATERIAL TO BE PROCESSED MATERIALS 3.PROCESSES : PROCESS SHEETS 4. EQPT AND MACHINERY : PROCESS SHEETS 5.REQMT IN NO OF MCNS AND EQPT :THROUGH PRODUCTION SHEETS AND PRODN VOLUME 6 TOOLING : PROCESS SHEETS 7.FLOW OF MATERIALS : THROUGH REQMT OF MACHINES AND

8.WATER CONSMPN 9 ELECTRICITY CONSMPN MACHINES AND 1O.FIRE FIGHTING EQPMT FORCE 11.INSTALLATION DETAILS TOOL DATA 12.STROAG E EQPT ANDSPACE VOL,PROCESS CHARTS DETAILS. 13.OTHER SERVICES AND DESIGN FACILITY DETAILS 14.LIGHTING EQPMT DATA SHEETS 15 SPACE REQUIREMENT PLUS STORAGES FACILITIES.

PROCESSES : PROCESS SHEETS ; THROUGH REQMT OF PROCESS : AS PER LAW IN : THROUGH MACHINE :FROM PRODN AND PROCESS : AS PER THE LAYOUT :AS PER ELECTRICAL : OPERATING EQPT PLUS SERVICE

THE DATA ABOVE MAY BE AVAILABLE FROM ENGG DEPT, OR FROM SHOP FLOOR PRODN DEPT AND BY VARIOUS METHODS OF ESTIMATION USING VARIOUS HAND BOOKS

TOOLS AND TECHNIQUES FOR LAYOUT ANALYSIS ; THE DEVELOPMENT OF GOOD LAYOUT IS DEPENDENT UPON THE QUALITY AND QUANTITY OF DATA ON VARIOUS FACTORS, INFLUENCING THE LAYOUT. DATA NEEDS TO BE COLLECTED REGARDING VARIOUS MATERIALS, PROCESSES MATERIAL FLOW SPACE REQUIREMENTS DIFF ACTIVITIES AND THEIR RELATIONSHIP.

IMP TOOLS AND TECHNIQUES HELPFUL IN THE LAYOUT ANALYSIS ARE 1. PROCESS CHARTS 2. DIAGRAMS 3. TRAVEL CHART 4. REL CHART 5. TEMPPLATES 6. SCALE MODELS PROCESS CHARTS; 1. OPERATIONS PROCESS CHARTS : IS THE GRAPHIC REPRESENTATION OF THE MAJOR ACTIVITIES AND ENTRY PT OF MATERIALS.THE CHART DEPICTS THE MAJOR OPERATIONS AND INSPECTIONS PERFORMED ON THE MATERIALS/ 2. FLOW PROCESS CHARTS ; SETS OUT THE FLOW AND ACTIVITIES IOF A COMPONENT/MAN THROUGH A SERIES OF OPERATIONS, INSPECTIONS TRANSPORTATIONS DELAYS AND STORAGES, THE CHART ALSO PROVIDES INFORMATION ON TIME AND DISTANCE DIAGRAMS ---THEY ARE USEFUL TO 1. STUDY DIFFERENT LAYOUT ALTERNATIVES AND THEREBY SELECT THE MOST OPTIMUM LAYOUT 2. STUDY THE EXTENT OF TRAFFIC OVER THE DIFFERENT ROUTES OF THE PLANT 3. STUDY THE ACTIVITY RELATIONSHIPS BETWEEN DEPTS DIAGRAMS ARE OF TWO TYPES 1.FLOW DIAGRAMS 2 STRING DIAGRAMS . FLOW DIAGRAMS --- ARE THE SCALE PLANS ON WHICH THE MOVEMENTS OF AN OBJECT(MEN/MATERIALS ) ARE TRACED BY LINES STRING DIAGRMS--- ARE THE SCALE PLANS ON WHICH THE MOVEMENTS OF AN OBJECT (MEN/MATERIALS) ARE TRACED BY STRINGS/

TRAVEL CHART---PRESENTS THE QUANTITATIVE DATA ON MATERIAL FLOW BY RECORDING DISTANCE AND FREQUENCY OF MOVEMENTS BETWEEN DIFFERENT PARTS OF DEPTS.TRAVEL CHARTS ARE PREPARED IN PROCESS TYPE OF LAYOUTS AND ARE USEFUL TO DETERMINE THE DEGREE OF CLOSENESS DESIRED BETWEEN DIFF DEPTS IN TERMS OF MATERIAL INTERACTION. EFFORTS ARE MADE IN LAYOUT DESIGN TO PLACE THOSE DEPTS CLOSE TO EACH OTHER WHICH HV HIGH DEGREE OF MATERIAL INTERACTION AND THEREBY MINIMISE THE MATERIALS HANDLING. REL CHART--- REL CHART IS KNOWN AS RELATIONSHIP CHART AND IT EXHIBITS THE RELATIONSHIP BETWEEN PAIRS OF DEPTS IN TERMS OF CLOSENESS DESIRED THE CHART EXPRESSES THE ACTIVITY RELATIONSHIPS AS A (ABSOLUTELY ESSENTIAL) E (ESSENTIAL) I(IMPORTANT) O(ORDINARY) U (UNIMPORTANT) AND X(UNDESIRABLE) A TYPICAL REL CHART IS SHOWN TEMPLATES--- ARE TWO DIMENSIONAL CUT OUTS OF CARD BOARD THEY ARE MADE TO SCALE AND ARE PLACED ON THE SCALED PLAN OF BUILDING DRAWN ON A BOARD. TEMPPLATES SHOW THE PLAN OF THE VARIOUS ACTIVITIES LIKE MACHINE TOOLS STORAGE RACKS FITTINGS ETC TEMPLATES OFFER THE FOLL ADVNTGS 1. THE CONGESTION,BOTTLENECKS CAN BE BETTER VISUALIZED WITH TEMPLATES. 2. THEY ARE LESS LABORIUS AND SAVE LOT OF TIME WHICH OTHERWISE IS SPENT MAKING DRAWINGS FOR EACH ALTERNATE PLANT LAYOUT ARRANGEMENT. 3. DISADVANTAGE OF TEMPLATE IS NON TECHNICAL PERSON MAY FIND IT DIFFICULT TO UNDERSTAND THE ARRANGEMENT. SCALE MODELS

THREE DIMENSIONAL MODELS ARE THE SCALE MODELS OF THE FACILITIES RESEMBLING THE ACTUAL IN LENGTH, WIDTH AND HEIGHT,THEY ARE USUALLY MADE UP OF WOOD OR PLASTIC TYPICAL EGS OF THE USES OF THREE DIMENSIONAL MODELS ARE LAYOUT PLNS OF CHEMICAL FACTORIES, REFINERIES ETC. ADVNTGS OF 3 DIMENSIONAL MODELS ARE NON TECHNICAL PERSON CAN UNDERSTAND OVERHEAD FACILITIES CAN BE SHOWN SERVICES LIKE LIGHTING,VENTILATION,SAFETY FEATURES CAN BE EASILY INCORPORATED THE 3 DIMENSIONAL MODELS CAN BE SHIFTED EASILY AND QUICKLY.

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