PLANT LOCATION

PREPARED BY: MS. NAVEEN KAPOOR ASST. PROFESSOR KAPOOR_RITU1234@YAHOO.COM

PLANT LOCATION
Plant Location refers to the area or a place where the

plant will operate to produce the goods or services.

It also refers to the function of determining where

the plant should be located for maximum operating economy & effectiveness.

OBJECTIVES OF LOCATION DECISION

To expand the existing facility To add new location while retaining existing one Shut down at one location and move to another Do nothing and maintain the status quo

OBJECTIVES OF GOOD LAYOUT

Provide enough production capacity
Reduce material handling cost Reduce hazards to personnel

Utilize labour efficiently

Increase employee morale Reduce accidents

Utilize available space effectively & efficiently

OBJECTIVES OF GOOD LAYOUT

Provide ease of supervision Provide for employee safety & health Allow ease of maintenance

Allow high machine/equipment utilization

Improve productivity

SIGNIFICANCE OF LOCATION DECISION

In terms of purely physical factors, location determines:
Whether or not power is purchased. The extent of heating & ventilation requirements. The necessary capacity for the parts made, depending

on the local availability & quality of the raw material. The amount of storage space required to provide for raw material. The types of carriers & equipments

SIGNIFICANCE OF LOCATION DECISION

Each Prospective locations implies a new allocations

of capacity to respective market area. Government sometimes plays an important role in the choice of the location keeping in view the national benefits. Location of plant particularly determines operating and capital costs.

Factors responsible for Plant Location

Availability of raw Material Nearness to the potential Market Location should be near to the source of Operating

requirements Supply of Labour Transport and communication facilities Integration with the other group of companies Suitability of Land and climate Availability of housing, other amenities and services Local Building & Planning regulations Safety requirements Other Consideration for the choice of location