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What is Plant Location

What is Plant Location

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Published by Aakash Jain

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Published by: Aakash Jain on Jan 01, 2011
Copyright:Attribution Non-commercial


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Plant location for Ship building yard
Plant location refers to the choice of region and the selection of a particular site for setting up amanufacturing shipyard. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at allchanged only at considerable loss, the location should be selected as per its own requirementsand circumstances. Each individual plant is a case in itself. Companies try to make an attemptfor optimum or ideal location.What is an ideal location for ship building yard .An ideal location is one where the cost of the product is kept to minimum, the least risk andthe maximum social gain. It is the place of maximum net advantage or which gives lowest unitcost of production.LOCATIONAL ANALYSIS for ShipyardLocational analysis is a dynamic process where companies analyses and compares theappropriateness or otherwise of alternative sites with the aim of selecting the best site for agiven enterprise. It consists the following:SELECTION CRITERIAThe important considerations for selecting a suitable location are given asfollows:a) Availability of Infrastructural facilities such as land nearness to river ,sea shore/bank.a) Natural or climatic conditions like the river should be tide one.b) Availability and nearness to the sources of raw material.c) Transport costs-in obtaining raw material.f)Availability of electricity, water, public utilities, civil amenities and means of communicationare important, especially for small scale businesses.f) Availability of skilled and non-skilled labour and technically qualified and trained managers.g) Banking and financial institutions are located nearby.i) Strategic considerations of safety and security is given due importance.
) Government influences: Both positive and negative incentives to motivate a shipbuildingcompany to choose a particular location are made available. Positive includes cheap overheadfacilities like electricity, banking transport, tax relief, subsidies and liberalization. Negativeincentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control.
The efficiency of production depends on how well the various machines; production facilitiesand employees amenities are located in a plant. Only the properly laid out plant can ensure thesmooth and rapid movement of material, from the raw material stage to the end product stage.Plant layout encompasses new layout as well as improvement in the existing layout. It may bedefined as a technique of locating machines, processes and plant services within the factory soas to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. It involves a
udicious arrangement of production facilities so that workflow isdirect.IMPORTANCEPlant layout is an important decision as it represents long-term commitment. An ideal plantlayout should provide the optimum relationship among output, floor area and manufacturingprocess. It facilitates the production process, minimizes material handling, time and cost, andallows flexibility of operations, easy production flow, makes economic use of the land ,promotes effective utilization of manpower, and provides for employees convenience, safety,comfort at work, maximum exposure to natural light and ventilation. It is also importantbecause it affects the flow of material and processes, labour efficiency, supervision and control,use of space and expansion possibilities etc.ESSENTIALSAn efficient plant layout is one that can be instrumental in achieving thefollowing ob
ectives:a) Proper and efficient utilization of available floor spaceb) To ensure that work proceeds from one point to another point without any delayc) Provide enough production capacity.d) Reduce material handling costse) Reduce hazards to personnel
f) Utilise labour efficientlyg) Increase employee moraleh) Reduce accidentsi) Provide for volume and product flexibility
) Provide ease of supervision and controlk) Provide for employee safety and healthl) Allow ease of maintenancem) Allow high machine or equipment utilizationn) Improve productivity.
We use Fixed Position or Location Layout for ship building yards
In this type of layout, the ma
or product being produced is fixed at one location. Equipmentlabour and components are moved to that location. All facilities are brought and arrangedaround one work center. This type of layout is not relevant for small scale entrepreneur. Thefollowing figure shows a fixed position layout regarding shipbuilding.LabourMachinary Finished productEquipment
Shipbuilding yard

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