PLANT LOCATION

Plant or facility location

problem

 Strategic level decision

 Key decision
Need for Selecting a Suitable
Location

 For the first time

 For existing organizations

 Global Locations
Location Identification for the
First Time
 Region
 Choice of a site within the region
 Dimensional Analysis
Location Choice for Existing
Organizations

 Plant manufacturing distinct products.

 Manufacturing plant supplying to specific

market area.
Global Location

 Tangible Reasons

 Intangible Reasons
FACTORS INFLUENCING PLANT LOCATION

 General Locational Factors

 Specific Locational Factors
Factors in selection of Location

 Selection of Region:
 Availability of raw material
 Nearness to the market
 Availability of Power
 Transport Facilities
 Suitability of Climate
 Government policies/ taxes / restrictions
 Availability of Water & Fire-fighting facilities
Factors in selection of Location

 Selection of the site:

 Soil, size & topography
 Disposal of waste
Factors in selection of Location

 National Decision
 Political Stability
 Currency & Exchange Rates
 Cultural & Economic peculiarities
 Natural environment
General Locational Factors

 Controllable Factors
 Proximity to markets
 Supply of materials
 Transportation facilities
 Infrastructure availability
 Labour and wages
 External economies
 Capital
General Locational Factors

 Uncontrollable Factors
 Government policy
 Climate conditions
 Supporting industries and services
 Community and labour attitudes
 Community Infrastructure
Specific Locational Factors

 Dominant Factors
 Favorable labour climate
 Proximity to markets
 Quality of life
 Proximity to suppliers and resources
 Utilities, taxes, and real estate costs

 Secondary Factors