Production​ ​Operation​ ​Management​ ​Project

Agriculture​ ​Industry
October,​ ​2017
 
 
 
Submission​ ​Date:​ ​11/11/17
Submitted​ ​to:​ ​Dr.​ ​Richa​ ​Agarwal

Group​ ​Number:​ ​4
Group​ ​Leader:​ ​Aayushi​ ​Chandwani

Group​ ​Members:
Aayushi​ ​Chandwani
Bhavesh​ ​Jain
Nayank​ ​Mehta
Parth​ ​Nandwani
Esha​ ​Doshi
 
ACKNOWLEDGEMENT
We would like to acknowledge our module leader Dr. Richa Agarwal of
module “Production & Operations Management”, for giving us such real
life based applicative project, which have helped us understand all the
concepts taught in class clearly. We would heartily Thank Dr. Richa
Agarwal for guiding us in correct direction throughout this project.
Moreover, we as a group would like to Acknowledge our group leader
Aayushi,​ ​to​ ​coordinate​ ​everyone.

2
DECLARATION  
 
I student of Auro University Surat, hereby declare that the project report on
“Production Operations and management of Agriculture industry” has been
undertaken as a part of 3rd Semester of Bachelor of Business Administration
(BBA) syllabus hereby declare that the project work presented on above topic is
chosen by own and is submitted by us to “Auro University” towards partial
fulfilment​ ​of​ ​BBA​ ​programme.

This project is entirely the outcome of our efforts and report prepared is based
on​ ​knowledge​ ​and​ ​work​ ​done​ ​by​ ​us​ ​in​ ​this​ ​project.

We further declare that to the best of our knowledge that this report has not been
submitted​ ​to​ ​any​ ​other​ ​university​ ​or​ ​institute​ ​for​ ​any​ ​other​ ​purpose.

Aayushi​ ​Chandwani​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​_________________

Bhavesh​ ​Jain​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​_________________

Nayank​ ​Mehta​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​________________

Parth​ ​Nandwani​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​_________________

Esha​ ​Doshi​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​_________________

3
 INDEX
Sr.no Content
1. Executive​ ​Summary
2. Introduction
3. Nature​ ​&​ ​Scope​ ​of​ ​Prom:
i. Conversion​ ​process
ii. Production
iii. Productivity
iv. Agriculture​ ​Efficiency​ ​&​ ​Effectiveness
v. Production​ ​Type
4. Design​ ​of​ ​Production​ ​System:
​ ​ ​ ​i.​ ​Process​ ​Design
​ ​ ​ii.​ ​Production​ ​Design
​ ​iii.​ ​Packaging
​ ​iv.​ ​Process​ ​Planning
5. Long​ ​Range
​ ​i.​ ​Types​ ​of​ ​capacity
​ ​ii.​ ​Long​ ​term​ ​capacity​ ​plan
​ ​iii.​ ​Long​ ​term​ ​effect
​ ​iv.​ ​Economies​ ​&​ ​Diseconomies​ ​of​ ​Scale
​ ​v.​ ​Economies​ ​of​ ​Scope

6. Plant​ ​Location

i.​ ​Steps​ ​in​ ​location​ ​selection

ii.​ ​Importance​ ​of​ ​location​ ​factors
iii.​ ​Plant​ ​location​ ​methodology:​ ​Center​ ​of​ ​gravity​ ​method

7. Plant​ ​Layout
i. Factors​ ​Influencing​ ​plant​ ​layout
ii. Principles​ ​of​ ​plant​ ​layout
iii. Basic​ ​Production​ ​layout​ ​format:​ ​Process​ ​layout​ ​/​ ​Static​ ​layout

4
 8. ISO​ ​Standards
9. References

EXECUTIVE​ ​SUMMARY
 
Our project on “Agriculture Sector” commence with a basic introduction in
which you will come to know about the nature and scope of its operational
management​ ​.

The conversion process , agriculture effectiveness and efficiency , productivity

and producibility and the production type are the most important aspects related
to our project . Also , the important elements such as design of production
system which includes process design , production design and production
process have also been added to the project report . We have also included
different types of capacity planning , long term effect of planning as well as
economies and diseconomies of scale and its scope which makes clear on part of
planning​ ​under​ ​agriculture​ ​sector​ ​.

The two most important factor in production and operation management is plant
location and plant layout . We have discussed upon the steps required to select
agriculture location and even mentioned the importance of location factors and
plant location methodology(Centre of Gravity Method) . We also came up with
our agriculture layout and what all are the factors that influence the agriculture
layout . The Principles of Layout and Basic Production Layout Formats have
also​ ​been​ ​discussed​ ​under​ ​same​ ​context​ ​.

5
INTRODUCTION
India is the world's second or third largest producer of several ​dry fruits​,
agriculture-based ​textile raw materials, ​roots and ​tuber crops, ​pulses​, farmed
fish​, ​eggs​, ​coconut​, ​sugarcane and numerous ​vegetables​. India ranked in the
world's five largest producers of over 80% of agricultural produce items,
including​ ​many​ ​cash​ ​crops​​ ​such​ ​as​ ​coffee​​ ​and​ ​cotton​.

In India, the agricultural sector occupies a vital position in the overall economy
of the country as would be clear from the Share of Agriculture in National
Income.​ ​Agriculture​ ​has​ ​got​ ​a​ ​prime​ ​role​ ​in​ ​Indian​ ​economy.

Agriculture and allied sectors like forestry and fisheries accounted for 13.7% of
the GDP (Agriculture and allied sectors like forestry and fisheries accounted for
13.7% of the GDP (gross domestic product) in 2013, about 50% of the
workforce. The economic contribution of agriculture to India's GDP is steadily
declining with the country's broad-based economic growth.oss domestic
product) in 2013, about 50% of the workforce. The economic contribution of
agriculture to India's GDP is steadily declining with the country's broad-based
economic​ ​growth.

6
NATURE​ ​&​ ​SCOPE
OF​ ​PRODUCTION
AND​ ​OPERATIONS
MANAGEMENT

7
 CONVERSION​ ​PROCESS
INPUTS-

1. LAND-​ ​a​ ​farming​ ​field​ ​with​ ​soil

2. LABOUR-​ ​farmers​ ​needed​ ​for​ ​manual​ ​work

3. MANAGERIAL​ ​SKILLS​ ​OF​ ​FAMRERS

4. CAPITAL-​ ​warehouse​ ​for​ ​storing​ ​machines,​ ​pesticides,​ ​herbicides,

seeds,​ ​etc.

CONVERSION​ ​PROCESS

a. Ploughing

b. Sowing

c. Harvesting

d. Fertilizing

OUTPUTS-

a. Grains​ ​(Wheat​ ​and​ ​Rice)

b. Milk

c. Poultry

d. Cash​ ​earned​ ​from​ ​the​ ​sale​ ​of​ ​grain

8
RANDOM​ ​FLUCTUATION
● Weather​ ​conditions(droughts/floods)

● Inflation​ ​(high​ ​rise​ ​in​ ​price​ ​resulting​ ​in​ ​lower​ ​demand​ ​of​ ​crops)

● Farmer’s​ ​strike/suicide

● Government​ ​control​ ​(price​ ​ceiling)

● Equipment​ ​breakdown

● Natural​ ​calamities

FEEDBACK
● Observation​ ​of​ ​crop​ ​and​ ​soil​ ​conditions

● Prices​ ​received

● Production​ ​level​ ​(how​ ​much​ ​crop​ ​is​ ​produced)

● Ample​ ​amount​ ​of​ ​water​ ​supply

● Fertilization

9
PRODUCTION
​ ​Production​ ​is​ ​an​ ​organized​ ​activity​ ​of​ ​transforming​ ​raw​ ​materials​ ​into​ ​finished
products​ ​which​ ​have​ ​higher​ ​value.

Agriculture​ ​involves​ ​various​ ​organized​ ​activities​ ​such​ ​as​ ​farming,​ ​tillage,​ ​pest
control,​ ​nutrient​ ​management,​ ​water​ ​management,​ ​etc​ ​which​ ​involves
transforming​ ​of​ ​raw​ ​materials​ ​such​ ​as

● Seeds​ ​for​ ​planting

● Pesticides,​ ​insecticides,​ ​herbicides
● ​ ​Fertilizers
● Adequate​ ​water​ ​supply​ ​and​ ​sunlight
● Harvesters​ ​for​ ​tilling​ ​the​ ​soil​ ​according​ ​to​ ​the​ ​specific​ ​crop​ ​that​ ​is​ ​to​ ​be
grown

Into​ ​finished​ ​products​ ​that​ ​are​ ​CROPS​ ​themselves​ ​which​ ​are​ ​of​ ​higher
value.

PRODUCTIVITY
Productivity​ ​aims​ ​at​ ​the​ ​maximum​ ​utilization​ ​of​ ​resources​ ​for​ ​yielding​ ​as​ ​many
goods​ ​and​ ​services​ ​as​ ​possible.

​ ​According​ ​to​ ​agriculture​ ​sector,​ ​increase​ ​in​ ​production​ ​does​ ​not​ ​always​ ​lead​ ​to
increase​ ​in​ ​productivity.

For​ ​example,​ ​If​ ​a​ ​farmer​ ​unwantedly​ ​or​ ​unintentionally​ ​increases​ ​its​ ​labor​ ​or
any​ ​of​ ​the​ ​factors​ ​of​ ​production​ ​which​ ​leads​ ​to​ ​increase​ ​in​ ​production​ ​does​ ​not
necessarily​ ​increase​ ​in​ ​productivity.

Productivity​ ​is​ ​the​ ​ratio​ ​of​ ​outputs​ ​and​ ​one​ ​of​ ​the​ ​factors​ ​of​ ​production.​ ​For
example,​ ​land,​ ​labor,​ ​machinery,​ ​seeds,​ ​etc.

10
 Mathematically,​ ​ ​ ​ ​OUTPUT​ ​VALUE
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​INPUT​ ​VALUE

​​AGRICULTURE​ ​EFFECTIVENESS
Agricultural​ ​effectiveness​ ​can​ ​be​ ​defined​ ​as​ ​growing​ ​the​ ​right​ ​quality​ ​and​ ​right
quantity​ ​of​ ​crops.
(doing​ ​the​ ​right​ ​things)
​ ​such​ ​as
a) ​ ​How​ ​well​ ​the​ ​set​ ​of​ ​crops​ ​are​ ​grown
b) How​ ​well​ ​are​ ​the​ ​raw​ ​materials​ ​utilized

AGRICULTURAL​ ​EFFICIENCY
Agricultural​ ​efficiency​ ​can​ ​be​ ​defined​ ​as​ ​growing​ ​a​ ​certain​ ​number​ ​of​ ​crops
with​ ​the​ ​minimum​ ​raw​ ​material.
(doing​ ​things​ ​right)

It​ ​is​ ​the​ ​ratio​ ​of:

​ ​ ​ ​ ​ ​OUTPUTS​ ​(Finished​ ​crops)
​ ​ ​ ​ ​ ​ ​INPUTS​ ​(Raw​ ​materials​ ​like​ ​seeds,​ ​pesticides,​ ​etc.)

11
​ ​PRODUCTION​ ​TYPE

Agricultural​ ​sector​ ​falls​ ​under​ ​MASS​ ​PRODUCTION​ ​SYSTEM​.

REASON
As​ ​agricultural​ ​products​ ​are​ ​generally​ ​manufactured​ ​in​ ​large​ ​quantities​ ​and​ ​that
with​ ​similar​ ​quality,​ ​it​ ​comes​ ​under​ ​MASS​ ​production​ ​type.
As​ ​these​ ​products​ ​are​ ​produced​ ​in​ ​bulk,​ ​there​ ​may​ ​be​ ​some​ ​instances​ ​that​ ​some
part​ ​of​ ​the​ ​production​ ​may​ ​not​ ​be​ ​according​ ​to​ ​the​ ​standard.

On​ ​the​ ​other​ ​hand,​ ​mass​ ​production​ ​helps​ ​in​ ​reducing​ ​the​ ​cost​ ​of​ ​the​ ​product.

12
 DESIGN​ ​OF
PRODUCTION
SYSTEM

13
PROCESS​ ​DESIGN
Process​ ​design​ ​is​ ​concerned​ ​with​ ​the​ ​overall​ ​sequence​ ​of​ ​operations​ ​required​ ​to
achieve​ ​the​ ​design​ ​specification​ ​of​ ​the​ ​product.
Workstations-​ ​Machines
Type​ ​of​ ​process​ ​tech-​ ​Manual​ ​and​ ​mechanized

Rice​ ​husk​ ​contains​ ​about​ ​30-50%​ ​of​ ​organic​ ​carbon​ ​and​ ​have​ ​high​ ​heat​ ​value​ ​of
13-16​ ​MJ​ ​per​ ​kg.​ ​It​ ​can​ ​be​ ​used​ ​to​ ​generate​ ​fuel,​ ​heat​ ​or​ ​electricity​ ​through
thermal,​ ​chemical​ ​or​ ​bioprocesses.​ ​The​ ​energy​ ​conversion​ ​processes​ ​of​ ​rice
husk​ ​are​ ​presented​ ​as:-

14
Process​ ​design​ ​of​ ​wheat:

15
PRODUCT​ ​DESIGN
Factors​ ​Influencing​ ​product​ ​design-

a) Customer​ ​Requirements-​ ​Rice,​ ​milk,​ ​vegetables,​ ​fruits,​ ​cotton,​ ​wheat,​ ​etc

are​ ​some​ ​of​ ​the​ ​agricultural​ ​products​ ​which​ ​are​ ​required​ ​by​ ​the
customers.

b) Convenience​ ​of​ ​the​ ​operator​ ​or​ ​user-​ ​Example-​ ​Milk​ ​production​ ​by​ ​the
farmer​ ​and​ ​then​ ​contacting​ ​and​ ​of​ ​the​ ​production​ ​unit​ ​or​ ​store​ ​for
packaging​ ​so​ ​that​ ​it​ ​becomes​ ​convenient​ ​for​ ​the​ ​operator​ ​or​ ​user.

c) Trade-off​ ​between​ ​function​ ​and​ ​form-​ ​The​ ​trade​ ​off​ ​between​ ​function​ ​and
form​ ​also​ ​occurs​ ​in​ ​agricultural​ ​industry.​ ​For​ ​example,​ ​Milk,​ ​providing
fresh​ ​milk​ ​without​ ​packaging​ ​signifies​ ​form​ ​whereas​ ​providing​ ​milk​ ​into
tetra-packs​ ​signifies​ ​function.

d) Product​ ​Quality-​ ​The​ ​specific​ ​traits​ ​of​ ​ ​an​ ​agricultural​ ​products​ ​determine
what​ ​the​ ​product​ ​can​ ​be​ ​used​ ​for.​ ​Wheat​ ​is​ ​an​ ​excellent​ ​crop​ ​for​ ​baked
products​ ​due​ ​to​ ​a​ ​specific​ ​type​ ​of​ ​proteins​ ​that​ ​no​ ​other​ ​crop​ ​contains​ ​and
that​ ​helps​ ​the​ ​dough​ ​to​ ​raise​ ​and​ ​keep​ ​its​ ​shape.

e) Effects​ ​on​ ​existing​ ​product

Agro-Inputs Existing​ ​Regime Current​ ​Regime Effect

Fertilizers Enjoys​ ​bulk​ ​of If​ ​exemptions

subsidy​ ​tax are​ ​removed,
concession incidence​ ​of
taxation​ ​will
increase​ ​on
farmers
Irrigation Electricity Electricity​ ​will
be​ ​kept

Machinery No​ ​excise​ ​and Zero​ ​related

custom​ ​duties

16
 Agricultural Exempted Increase​ ​of
Service taxation​ ​on
farmers

f) Types​ ​of​ ​Material​ ​used-​ ​Agriculture​ ​farming​ ​products​ ​and​ ​equipment​ ​also
influence​ ​the​ ​product​ ​design.​ ​Agricultural​ ​inputs​ ​such​ ​as​ ​raw​ ​materials,
seeds​ ​pesticides,​ ​labor,​ ​etc​ ​and​ ​equipment​ ​such​ ​as​ ​tractors,​ ​water​ ​pump,
ploughing,​ ​etc.​ ​are​ ​some​ ​of​ ​the​ ​raw​ ​materials​ ​used.

g) Packaging​ ​Protection-​ ​Agricultural​ ​products​ ​are​ ​packaged​ ​effectively​ ​and

successfully​ ​using​ ​stand​ ​up​ ​bags,​ ​also​ ​known​ ​as​ ​stand​ ​up​ ​pouches​ ​or
stand​ ​pouches.​ ​The​ ​product​ ​needs​ ​to​ ​be​ ​protected​ ​and​ ​the​ ​stand​ ​pouch​ ​not
only​ ​protects​ ​but​ ​also​ ​keeps​ ​these​ ​items​ ​for​ ​fresh​ ​for​ ​longer​ ​period​ ​of
time.

Packaging
Bags​ ​have​ ​become​ ​an​ ​integral​ ​part​ ​of​ ​the​ ​transportation​ ​of​ ​wheat​ ​and​ ​other
grains.​ ​Whether​ ​we​ ​take​ ​jute​ ​bags,​ ​paper​ ​bags​ ​or​ ​polypropylene​ ​bags(PP​ ​bags),
LC​ ​packaging​ ​supplies​ ​them​ ​in​ ​all​ ​possible​ ​types​ ​and​ ​sizes.
Agricultural​ ​products​ ​deserve​ ​optimum​ ​packaging.
Different​ ​product​ ​groups​ ​include
● Plastic​ ​bags
● Woven​ ​bags
● Paper​ ​bags
● Four​ ​loops​ ​bulk​ ​bags

The​ ​shelf​ ​life​ ​of​ ​whole​ ​intact​ ​grains,​ ​like​ ​wheat​ ​berries​ ​or​ ​brown​ ​rice,​ ​is​ ​a​ ​bit
longer​ ​than​ ​flours.​ ​If​ ​stored​ ​properly​ ​in​ ​airtight​ ​containers,​ ​intact​ ​grains​ ​will
keep​ ​for​ ​up​ ​to​ ​six​ ​months​ ​on​ ​a​ ​cool​ ​day​ ​pantry​ ​shelf​ ​or​ ​upto​ ​a​ ​year​ ​in​ ​the
freezer.

17
Packaging​ ​Requirements
To​ ​maintain​ ​product​ ​quality,​ ​a​ ​functional​ ​package
● Should​ ​have​ ​the​ ​ability​ ​to​ ​protect​ ​the​ ​content​ ​from​ ​spoilage​ ​and​ ​spillage
● Should​ ​offer​ ​protection​ ​against​ ​environmental​ ​conditions​ ​(should​ ​be​ ​a
good​ ​barrier​ ​to​ ​moisture)
● Should​ ​prevent​ ​insect​ ​infestation​ ​and​ ​insect​ ​damage​ ​(should​ ​have​ ​good
insect​ ​resistance​ ​property)
● Should​ ​offer​ ​protection​ ​against​ ​micro-organisms​ ​(should​ ​be​ ​oxygen
barrier​ ​to​ ​prevent​ ​their​ ​growth)
● Should​ ​process​ ​necessary​ ​strength​ ​properties​ ​to​ ​withstand​ ​mechanical
hazards​ ​during​ ​transportation​ ​and​ ​storage.
● Should​ ​assist​ ​in​ ​selling​ ​by​ ​attractive​ ​graphics
● Should​ ​be​ ​economical​ ​and​ ​easily​ ​available

Merits​ ​and​ ​Demerits​ ​of​ ​Jute​ ​Bags​ ​and​ ​Woven​ ​sacks​.

JUTE​ ​SACKS-

Merits-​ ​Good​ ​stack​ ​stability;​ ​good​ ​breathability

​ ​Demerits-​ ​poor​ ​moisture​ ​protection;​ ​higher​ ​incidence​ ​of​ ​bag​ ​damage​ ​indicating
poor​ ​end​ ​use​ ​performance.

PP​ ​WOVEN​ ​SACKS-

Merits-​ ​Better​ ​endurance​ ​and​ ​recyclable;​ ​good​ ​breathability​ ​in​ ​unlined​ ​woven
sacks;​ ​good​ ​moisture​ ​protection​ ​in​ ​lined​ ​woven​ ​sacks.
Demerits-​ ​poor​ ​stacking​ ​and​ ​de-stacking​ ​(unstable​ ​stacks​ ​with​ ​perpetual​ ​chances
of​ ​stack​ ​collapse)

18
PROCESS​ ​PLANNING
PROCESS:

A​ ​process​ ​is​ ​a​ ​sequence​ ​of​ ​activities​ ​that​ ​is​ ​intended​ ​to​ ​achieve​ ​some​ ​result,​ ​for
example,​ ​to​ ​create​ ​added​ ​value​ ​for​ ​the​ ​customers.
Process​ ​Planning:​ ​It​ ​is​ ​concerned​ ​with​ ​planning​ ​the​ ​conversion​ ​process​ ​related
to​ ​convert​ ​the​ ​raw​ ​materials​ ​into​ ​finished​ ​products.

GROWING:

​ ​Rice​ ​can​ ​only​ ​be​ ​grown​ ​on​ ​soils​ ​that​ ​are​ ​deemed​ ​suitable​ ​by​ ​the​ ​irrigation
corporations.​ ​It​ ​is​ ​concentrated​ ​in​ ​the​ ​area​ ​where​ ​availability​ ​of​ ​large​ ​areas​ ​of
flat​ ​land,​ ​suitable​ ​clay-based​ ​soils,​ ​the​ ​availability​ ​of​ ​water,​ ​and​ ​the
development​ ​of​ ​storage​ ​and​ ​milling​ ​infrastructure​ ​on​ ​or​ ​near​ ​the​ ​regional​ ​towns.
Rice​ ​seeds​ ​are​ ​planted​ ​in​ ​September.​ ​Through​ ​September​ ​until​ ​February,​ ​the
rice​ ​plant​ ​grows​ ​on​ ​a​ ​main​ ​stem​ ​and​ ​number​ ​of​ ​tillers.​ ​Each​ ​rice​ ​plant​ ​will
produce​ ​four​ ​or​ ​five​ ​tillers.​ ​Each​ ​tiller​ ​grows​ ​a​ ​flowering​ ​head​ ​or​ ​panicle.​ ​The
panicle​ ​produces​ ​the​ ​rice​ ​grains.​ ​Rice​ ​crops​ ​are​ ​grown​ ​in​ ​5-25​ ​cm​ ​of​ ​water
depending​ ​on​ ​growing​ ​conditions.

HARVESTING:-

​ ​As​ ​the​ ​grains​ ​began​ ​to​ ​mature,​ ​the​ ​farmers​ ​‘lock​ ​up’​ ​the​ ​water​ ​on​ ​the​ ​bays.​ ​This
means​ ​no​ ​water​ ​leaves​ ​the​ ​paddock,​ ​it​ ​is​ ​fully​ ​utilized​ ​by​ ​the​ ​rice​ ​plants.​ ​The
soil​ ​then​ ​dries​ ​out​ ​in​ ​time​ ​for​ ​commence.​ ​Farmers​ ​use​ ​large,​ ​conventional​ ​grain
harvesters​ ​to​ ​mechanically​ ​harvest​ ​rice​ ​in​ ​autumn.​ ​Once​ ​harvested,​ ​the​ ​rice​ ​is
commonly​ ​named​ ​paddy​ ​rice.

STORING​ ​RICE:-

​ ​Once​ ​harvested,​ ​a​ ​truck​ ​transports​ ​it​ ​to​ ​one​ ​of​ ​the​ ​industry’s​ ​storage​ ​facilities
where​ ​segregation​ ​occurs​ ​according​ ​to​ ​variety.​ ​Rice​ ​storage​ ​bins​ ​are​ ​filled​ ​with
computer​ ​linked​ ​sensors​ ​that​ ​monitor​ ​grain​ ​storage​ ​conditions​ ​and​ ​keep​ ​the​ ​rice
at​ ​a​ ​suitable​ ​temperature​ ​and​ ​moisture​ ​level.

MILLING​ ​RICE:-

​ ​Step​ ​one-​ ​Removal​ ​of​ ​the​ ​hard​ ​protective​ ​husk.​ ​The​ ​rice​ ​husk​ ​is​ ​the​ ​protective
layer​ ​surrounding​ ​the​ ​grain.​ ​Once​ ​removed,​ ​the​ ​rice​ ​grain​ ​is​ ​packed​ ​as​ ​brown

19
rice.​ ​Brown​ ​rice​ ​is​ ​healthy​ ​because​ ​it​ ​still​ ​contains​ ​the​ ​rice​ ​germ​ ​and​ ​outer​ ​bran
layers-​ ​important​ ​for​ ​healthy​ ​body​ ​functions.
Step​ ​two-​ ​Removal​ ​of​ ​the​ ​germ​ ​and​ ​the​ ​brown​ ​layers.​ ​Gentle​ ​milling​ ​removes
the​ ​germ​ ​and​ ​bran​ ​layers​ ​from​ ​the​ ​grain​ ​to​ ​expose​ ​a​ ​white​ ​starch​ ​center.​ ​The
polished​ ​white​ ​starch​ ​center​ ​is​ ​what​ ​we​ ​know​ ​as​ ​white​ ​rice.

STEP​ ​BY​ ​STEP​ ​PRODUCTION

a) Pre​ ​Planting-​ ​It​ ​involves​ ​choosing​ ​the​ ​right​ ​variety,​ ​developing​ ​a​ ​cropping
calendar​ ​and​ ​preparing​ ​the​ ​rice​ ​field​ ​for​ ​planting.

b) Post​ ​Production-​ ​After​ ​harvesting,​ ​the​ ​rice​ ​paddy​ ​undergoes​ ​post​ ​harvest
process,​ ​including​ ​drying,​ ​storage​ ​and​ ​milling​ ​to​ ​ensure​ ​good​ ​eating
quality​ ​and​ ​marketability.

c) Growth-​ ​Important​ ​management​ ​factors​ ​should​ ​be​ ​considered​ ​during​ ​the

growth​ ​of​ ​the​ ​rice​ ​crop.​ ​These​ ​include​ ​planting​ ​method,​ ​water,​ ​fertilizers,
weeds,​ ​pests​ ​and​ ​diseases.

20
 LONG​ ​RANGE
CAPACITY​ ​PLANNING
Capacity​ ​planning​ ​is​ ​referred​ ​to​ ​as​ ​producing​ ​maximum​ ​output​ ​which​ ​can​ ​be
attained​ ​with​ ​a​ ​normal​ ​working​ ​schedule​ ​or​ ​in​ ​a​ ​specific​ ​period​ ​of​ ​time.
Capacity​ ​planning​ ​is​ ​a​ ​process​ ​which​ ​is​ ​used​ ​to​ ​determine​ ​how​ ​much​ ​capacity​ ​is
needed​ ​(and​ ​when)​ ​in​ ​order​ ​to​ ​manufacture​ ​greater​ ​product​ ​or​ ​begin​ ​production
of​ ​a​ ​new​ ​product.
So,​ ​for​ ​agriculture​ ​industry​ ​there​ ​are​ ​number​ ​of​ ​factors​ ​that​ ​affect​ ​capacity​ ​such
as​ ​number​ ​of​ ​workers,​ ​utilization​ ​of​ ​resources,​ ​proper​ ​ways​ ​of​ ​equipment​ ​like
machinery​ ​or​ ​tractor,​ ​productivity,​ ​government​ ​regulations,​ ​etc.

Capacity​ ​planning​ ​is​ ​based​ ​on​ ​the​ ​timeline​ ​which​ ​is​ ​classified​ ​into​ ​three​ ​main
categories​ ​:-

a) Long​ ​Range​ ​Capacity​ ​Planning​-​ ​It​ ​is​ ​a​ ​process​ ​which​ ​deals
with​ ​investment​ ​in​ ​new​ ​facilities​ ​and​ ​equipment​ ​covering​ ​the
requirements​ ​for​ ​at-least​ ​two​ ​years​ ​in​ ​the​ ​future.​ ​It​ ​is​ ​also​ ​dependent​ ​on
various​ ​other​ ​capacities​ ​like​ ​design​ ​capacity​ ​and​ ​effective​ ​capacity.
In​ ​agriculture​ ​industry,​ ​The​ ​Mahindra​ ​group​ ​invested​ ​$1​ ​million​ ​in
MeraKisan-​ ​a​ ​startup​ ​that​ ​sources​ ​fresh​ ​vegetables​ ​and​ ​fruits​ ​directly
from​ ​farmers​ ​and​ ​sells​ ​them​ ​to​ ​customers-​ ​in​ ​September​ ​last​ ​year.​ ​The
upcoming​ ​investments​ ​too​ ​are​ ​likely​ ​to​ ​be​ ​in​ ​the​ ​range​ ​of​ ​$1-5​ ​million.
The​ ​Mahindra​ ​group​ ​is​ ​also​ ​considering​ ​co-investing​ ​with​ ​other​ ​venue
capital​ ​funds​ ​for​ ​bigger​ ​cheque​ ​in​ ​the​ ​space.
But​ ​investments​ ​apart,​ ​the​ ​group​ ​is​ ​actively​ ​working​ ​in​ ​the​ ​agri-tech
space​ ​to​ ​harbor​ ​its​ ​startup​ ​dreams.​ ​The​ ​group​ ​has​ ​launched​ ​My​ ​Agri
Guru,​ ​an​ ​agricultural​ ​advisory​ ​platform​ ​that​ ​helps​ ​farmers​ ​manage​ ​their
crops​ ​by​ ​providing​ ​information​ ​on​ ​prices,​ ​weather,​ ​etc.

b) Intermediate​ ​Range​ ​Capacity​ ​Planning​-​ ​It​ ​usually​ ​covers

period​ ​between​ ​2-12​ ​months.​ ​Intermediate​ ​range​ ​capacity​ ​planning
includes-
● Manpower​ ​utilization​ ​9regular​ ​time,​ ​overtime)
● Outsourcing​ ​(buying​ ​from​ ​a​ ​third​ ​party)
● Inventory​ ​(​ ​carrying​ ​product​ ​for​ ​later​ ​periods)
● Backlog​ ​(satisfying​ ​the​ ​demand​ ​for​ ​earlier​ ​periods)
21
In​ ​India,​ ​the​ ​production​ ​of​ ​wheat​ ​and​ ​rice​ ​usually​ ​takes​ ​place​ ​in​ ​the​ ​month​ ​of
winters​ ​i.e​ ​between​ ​September​ ​to​ ​December.​ ​Since​ ​the​ ​period​ ​of​ ​production
takes​ ​place​ ​for​ ​four​ ​to​ ​five​ ​months,​ ​so​ ​the​ ​manpower​ ​utilization​ ​can​ ​be
maximized​ ​and​ ​satisfying​ ​the​ ​demand​ ​of​ ​the​ ​earlier​ ​periods​ ​can​ ​also​ ​be​ ​fulfilled.
As​ ​the​ ​production​ ​of​ ​main​ ​crops​ ​is​ ​for​ ​a​ ​short​ ​period​ ​of​ ​time,​ ​the​ ​output
generated​ ​can​ ​be​ ​in​ ​large​ ​numbers​ ​depending​ ​upon​ ​the​ ​demand​ ​situation​ ​and​ ​if
there​ ​is​ ​excess​ ​of​ ​outcomes​ ​produced​ ​during​ ​those​ ​months,​ ​the​ ​inventory
(carrying​ ​product​ ​for​ ​later​ ​periods)​ ​can​ ​be​ ​used​ ​to​ ​fulfill​ ​the​ ​next​ ​demanding
period​ ​or​ ​as​ ​a​ ​storage.

c) Short​ ​Range​ ​Capacity​ ​Planning​-​ ​It​ ​is​ ​a​ ​type​ ​of​ ​planning
which​ ​focuses​ ​on​ ​work-form​ ​size,​ ​overtime​ ​budgets,​ ​inventories,​ ​etc.​ ​It
includes

● Machine​ ​loading
● Work​ ​scheduling
● Order​ ​quantities

In​ ​agricultural​ ​sector,​ ​short​ ​range​ ​capacity​ ​planning​ ​can​ ​be​ ​the​ ​number​ ​of​ ​hours
a​ ​particular​ ​machinery​ ​would​ ​work(tractor),​ ​the​ ​number​ ​of​ ​labors​ ​that​ ​will​ ​be
required​ ​in​ ​a​ ​day​ ​to​ ​work​ ​on​ ​the​ ​field​ ​or​ ​machinery,​ ​the​ ​proper​ ​management​ ​of
water​ ​supply​ ​for​ ​particular​ ​period​ ​of​ ​hours​ ​in​ ​a​ ​day​ ​and​ ​how​ ​much​ ​quantity​ ​of
crops​ ​produced​ ​during​ ​a​ ​month.

TYPES​ ​OF​ ​CAPACITY

Capacity​ ​of​ ​a​ ​plant​ ​is​ ​the​ ​ability​ ​of​ ​it​ ​to​ ​meet​ ​the​ ​demand​ ​in​ ​terms​ ​offered​ ​by​ ​the
plant.

Type​ ​of​ ​Business Input​ ​measure​ ​of Output​ ​Measure​ ​of

Capacity Capacity
Agriculture Land​ ​Fertility Quality​ ​of​ ​wheat
Types​ ​of​ ​Pesticides Kgs/tonnes​ ​of​ ​wheat
Irrigation​ ​facility Wheat​ ​produced

22
LONG​ ​TERM​ ​CAPACITY​ ​PLAN
It​ ​deals​ ​with​ ​investments​ ​in​ ​new​ ​facilities​ ​and​ ​equipment​ ​covering​ ​requirements
for​ ​at​ ​least​ ​two​ ​years​ ​in​ ​the​ ​future.​ ​Three​ ​major​ ​decisions​ ​are-

a) How​ ​much​ ​capacity​ ​to​ ​be​ ​installed?

Depends​ ​on​ ​the​ ​size​ ​of​ ​the​ ​land​ ​used​ ​for​ ​the​ ​production​ ​and​ ​also​ ​the​ ​types
of​ ​inputs​ ​used.
b) When​ ​to​ ​increase​ ​capacity?
As​ ​most​ ​of​ ​the​ ​agricultural​ ​products​ ​are​ ​needed​ ​throughout​ ​the​ ​year,​ ​the
capacity​ ​remains​ ​increased​ ​or​ ​at​ ​its​ ​peak​ ​only​ ​so​ ​that​ ​some​ ​amount​ ​can
also​ ​be​ ​shifted​ ​to​ ​buffer​ ​stock​ ​which​ ​may​ ​help​ ​in​ ​difficult​ ​situations.
c) How​ ​much​ ​to​ ​increase?
Depends​ ​upon​ ​the​ ​availability​ ​of​ ​land​ ​and​ ​also​ ​the​ ​profit​ ​margin.

LONG​ ​TERM​ ​EFFECT

a) Finance
● Land​ ​in​ ​acre
● Investment
● Investment​ ​in​ ​tools​ ​and​ ​irrigation​ ​if​ ​wanted
● Employees(labor)

b) Source​ ​of​ ​Finance-​ ​Government​ ​assistance,​ ​subsidies,​ ​rent​ ​facility,

bank​ ​loan​ ​or​ ​any​ ​other​ ​loan​ ​forms.

Capacity​ ​of​ ​wheat​ ​and​ ​rice​ ​may​ ​be​ ​adjustable​ ​depending​ ​upon​ ​the
demand​ ​of​ ​the​ ​products​ ​so​ ​hence​ ​the​ ​part

Actual​ ​Output-​ ​20​ ​bushels/acre​ ​because​ ​of​ ​delayed​ ​maintenance​ ​of​ ​crop
after​ ​harvesting

Efficiency​ ​=​ ​Actual​ ​Output

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Effective​ ​capacity

23
 FACTORS​ ​AFFECTING​ ​EFFECTIVE​ ​CAPACITY
a) Facilities-​ ​Current​ ​availability​ ​of​ ​size​ ​of​ ​land​ ​for​ ​expansion​ ​in​ ​future.

b) Product-​ ​Product​ ​mixes-different​ ​types​ ​of​ ​quality​ ​of​ ​product.

c) Human​ ​Resource-​ ​Helping​ ​employees​ ​to​ ​increase​ ​productivity​ ​of

crops​ ​and​ ​best​ ​way​ ​to​ ​harvest.

d) External​ ​Forces-​ ​New​ ​government​ ​legislation,​ ​floor​ ​price​ ​and​ ​base

price​ ​of​ ​product.

ECONOMIES​ ​AND​ ​DISECONOMIES​ ​OF​ ​SCALE

Economies​ ​of​ ​scale​ ​refers​ ​to​ ​average​ ​cost​ ​per​ ​unit​ ​of​ ​production​ ​decreases​ ​when
the​ ​size​ ​of​ ​the​ ​farm​ ​increases.​ ​It​ ​occurs​ ​when​ ​the​ ​farmer​ ​is​ ​able​ ​to​ ​spread​ ​more
production​ ​over​ ​the​ ​same​ ​level​ ​of​ ​fixed​ ​expenses​ ​or​ ​when​ ​he​ ​is​ ​able​ ​to​ ​obtain
volume​ ​discounts​ ​for​ ​inputs​ ​such​ ​as​ ​seed​ ​or​ ​fertilizers.

Economies​ ​of​ ​scale​ ​has​ ​always​ ​existed​ ​in​ ​the​ ​agricultural​ ​sector.Farming​ ​on​ ​a
large​ ​scale​ ​has​ ​always​ ​been​ ​more​ ​beneficial​ ​and​ ​effective​ ​than​ ​farming​ ​on​ ​a
small​ ​scale.

TYPES​ ​OF​ ​ECONOMIES​ ​OF​ ​SCALE

a) Internal​ ​Economies-​ ​It​ ​arises​ ​from​ ​the​ ​expansion​ ​of​ ​the​ ​land​ ​used
to​ ​produce​ ​the​ ​crops.​ ​It​ ​arises​ ​from​ ​the​ ​growth​ ​of​ ​the​ ​organization.

b) External​ ​Economies-​ ​It​ ​arises​ ​from​ ​the​ ​outside​ ​of​ ​the​ ​organization
within​ ​the​ ​industry​ ​that​ ​benefits​ ​the​ ​organization.
When​ ​the​ ​agricultural​ ​industry​ ​expands,​ ​the​ ​farmer​ ​benefits​ ​from
better​ ​transportation,​ ​network,​ ​infrastructure​ ​and​ ​other​ ​factors​ ​that
help​ ​in​ ​decreasing​ ​the​ ​cost​ ​of​ ​the​ ​organization.

24
DISECONOMIES​ ​OF​ ​SCALE
After​ ​increasing​ ​the​ ​inputs,​ ​if​ ​the​ ​cost​ ​per​ ​unit​ ​goes​ ​up​ ​it​ ​results​ ​in​ ​diseconomies
of​ ​scale.

TYPES​ ​OF​ ​DISECONOMIES​ ​OF​ ​SCALE

a) Internal Diseconomies- The cost of production of an

organization. Main factors that include the cost of production
are lack of division, supervision over the crops as well as the
labors​ ​technical​ ​difficulties,​ ​etc.
b) External Diseconomies- Limits the expansion of an organization
or industry. The factors included are increased cost of
production, scarcity of raw materials, low supply of skilled
labor.

​​​ ​ECONOMIES​ ​OF​ ​SCOPE

​ ​ ​ ​It​ ​refers​ ​to​ ​the​ ​reduced​ ​cost​ ​for​ ​using​ ​resources​ ​by​ ​spreading​ ​the​ ​resourced
over​ ​more​ ​than​ ​one​ ​enterprise.

Scale​ ​spreads​ ​fixed​ ​resources​ ​over​ ​more​ ​units​ ​of​ ​output​ ​whereas​ ​scope​ ​spreads
the​ ​cost​ ​of​ ​a​ ​given​ ​set​ ​of​ ​resources​ ​or​ ​skills​ ​over​ ​more​ ​than​ ​one​ ​production.

25
 PLANT​ ​LOCATION
STEPS​ ​IN​ ​LOCATION​ ​SELECTION
One​ ​should​ ​be​ ​very​ ​systematic​ ​in​ ​choosing​ ​the​ ​location​ ​of​ ​a​ ​plant​ ​because​ ​it​ ​is
one​ ​of​ ​the​ ​most​ ​important​ ​factor​ ​in​ ​efficient​ ​and​ ​effective​ ​going​ ​of​ ​any​ ​business.
As​ ​our​ ​topic​ ​is​ ​agriculture,​ ​we​ ​must​ ​start​ ​with​ ​the​ ​following​ ​steps:-

a) Within​ ​the​ ​country​ ​or​ ​outside​-​ ​For​ ​current​ ​situation,​ ​we​ ​cannot​ ​think
of​ ​going​ ​global​ ​because​ ​we​ ​face​ ​some​ ​financial​ ​and​ ​legal​ ​issues.
Although​ ​cultivation​ ​of​ ​wheat​ ​and​ ​rice​ ​is​ ​great​ ​in​ ​India,​ ​we​ ​must​ ​do​ ​it
within​ ​the​ ​country​ ​as​ ​the​ ​fertility​ ​of​ ​land​ ​in​ ​India​ ​is​ ​very​ ​rich​ ​and​ ​all​ ​the
other​ ​factors​ ​of​ ​production​ ​can​ ​be​ ​arranged​ ​cheaply.

b) Selection​ ​of​ ​Region​-​ ​the​ ​selection​ ​of​ ​a​ ​particular​ ​region​ ​out​ ​of​ ​many
natural​ ​regions​ ​of​ ​a​ ​country​ ​is​ ​the​ ​second​ ​step​ ​in​ ​plant​ ​location.​ ​Hence
taking​ ​all​ ​the​ ​below​ ​points​ ​into​ ​consideration,​ ​we​ ​choose​ ​PUNJAB​ ​as​ ​our
region.

Top​ ​10​ ​wheat​ ​producing​ ​states​ ​in​ ​2016

26
27
 I. Availability​ ​of​ ​Raw​ ​Materials-​ ​Location​ ​should​ ​be​ ​chosen​ ​in​ ​such​ ​a
way​ ​where​ ​supply​ ​of​ ​raw​ ​material​ ​is​ ​assured​ ​at​ ​minimum​ ​transport
cost​ ​and​ ​also​ ​regulate​ ​and​ ​proper​ ​supply​ ​of​ ​materials​ ​uninterrupted
by​ ​transportation​ ​breakdowns.​ ​Raw​ ​materials​ ​used​ ​are​ ​:-​ ​rice​ ​seeds
or​ ​seedlings,​ ​herbicides,​ ​pesticides,​ ​fertilizers​ ​and​ ​especially​ ​land
and​ ​labor.​ ​All​ ​these​ ​resources​ ​can​ ​be​ ​easily​ ​available​ ​in​ ​Punjab​ ​as​ ​it
is​ ​already​ ​producing​ ​major​ ​part​ ​of​ ​rice​ ​in​ ​India.

II. Nearness​ ​to​ ​the​ ​Market-​ ​Since​ ​goods​ ​are​ ​produced​ ​normally​ ​for
sales,​ ​hence​ ​it​ ​is​ ​very​ ​essential​ ​that​ ​the​ ​factory​ ​should​ ​be​ ​located
near​ ​the​ ​market.​ ​It​ ​should​ ​be​ ​kept​ ​in​ ​mind​ ​that​ ​the​ ​location​ ​of
production​ ​must​ ​not​ ​be​ ​near​ ​industries​ ​which​ ​may​ ​dump​ ​their
waste​ ​and​ ​may​ ​reduce​ ​the​ ​quality​ ​of​ ​the​ ​production.

III. Availability​ ​of​ ​Power-​ ​The​ ​use​ ​pf​ ​power​ ​in​ ​agricultural​ ​sector​ ​is
also​ ​one​ ​of​ ​the​ ​most​ ​important​ ​criteria.​ ​Power​ ​is​ ​most​ ​used​ ​in
irrigation​ ​as​ ​we​ ​cannot​ ​depend​ ​only​ ​on​ ​rainfall​ ​as​ ​it​ ​is​ ​natural​ ​so​ ​we
must​ ​be​ ​ready​ ​for​ ​other​ ​plan​ ​for​ ​providing​ ​water​ ​to​ ​the​ ​crops.
Hence​ ​irrigation​ ​is​ ​important.​ ​Also​ ​power​ ​is​ ​used​ ​in​ ​warehouse
where​ ​the​ ​production​ ​is​ ​stored​ ​at​ ​required​ ​temperature​ ​and​ ​can​ ​be
easily​ ​transported​ ​when​ ​needed.

IV. Transport​ ​facilities-​ ​As​ ​discussed​ ​earlier,​ ​transport​ ​facilities​ ​are

important​ ​for​ ​bring​ ​the​ ​raw​ ​material​ ​and​ ​men​ ​to​ ​location​ ​and​ ​also
carrying​ ​the​ ​finished​ ​product​ ​to​ ​the​ ​market.​ ​A​ ​place​ ​which​ ​is​ ​well
connected​ ​to​ ​rail,​ ​road​ ​and​ ​water​ ​transport​ ​is​ ​ideal​ ​with
well-developed​ ​means​ ​of​ ​transportation.

V. Suitability​ ​of​ ​Climate-​ ​Climate​ ​is​ ​utmost​ ​important​ ​in​ ​this​ ​field.
Places​ ​which​ ​were​ ​considered​ ​as​ ​climatically​ ​unsuitable​ ​are​ ​now
selected​ ​as​ ​Punjab​ ​has​ ​an​ ​average​ ​rainfall​ ​of​ ​500mm​ ​which​ ​may
not​ ​be​ ​suitable​ ​for​ ​rice​ ​production​ ​but​ ​the​ ​irrigation​ ​facility​ ​made​ ​it
possible.

VI. Government​ ​Policy-​ ​The​ ​influence​ ​of​ ​government​ ​and​ ​programs​ ​on
plant​ ​location​ ​is​ ​apparent​ ​in​ ​every​ ​country​ ​particularly​ ​in​ ​ours.

VII. Competition​ ​between​ ​states-​ ​various​ ​states​ ​offer​ ​subsides​ ​and​ ​sales
taxes​ ​exemption​ ​to​ ​new​ ​units.

28
 c) Selection​ ​of​ ​community​-​ ​It​ ​is​ ​the​ ​third​ ​step​ ​in​ ​the​ ​location​ ​process
I. Availability​ ​of​ ​labor-​ ​In​ ​agriculture​ ​industry,​ ​labor​ ​is​ ​the​ ​most
important​ ​raw​ ​material​ ​and​ ​thus​ ​the​ ​location​ ​of​ ​the​ ​farm​ ​should
be​ ​set​ ​where​ ​there​ ​is​ ​sufficient​ ​labor​ ​to​ ​work.​ ​Also,​ ​skilled​ ​and
qualified​ ​labor​ ​who​ ​is​ ​aware​ ​of​ ​using​ ​all​ ​the​ ​technological
machines​ ​should​ ​be​ ​hired​ ​or​ ​else​ ​the​ ​quality​ ​of​ ​the​ ​crop​ ​would
be​ ​affected,​ ​though​ ​it​ ​is​ ​difficult​ ​to​ ​find​ ​skilled​ ​labor
everywhere​ ​in​ ​our​ ​country.​ ​Punjab​ ​is​ ​thus​ ​the​ ​best​ ​option​ ​as​ ​it
has​ ​enough​ ​labor​ ​and​ ​people​ ​are​ ​well​ ​educated​ ​there​ ​about​ ​this
industry.​ ​It​ ​has​ ​also​ ​been​ ​a​ ​hub​ ​for​ ​skilled​ ​and​ ​unskilled​ ​labors
coming​ ​in​ ​from​ ​the​ ​poorer​ ​parts​ ​of​ ​India​ ​since​ ​green​ ​revolution.
These​ ​workers​ ​do​ ​engage​ ​themselves​ ​into​ ​low​ ​paid​ ​agriculture
sector​ ​related​ ​activities​ ​both​ ​regular​ ​and​ ​seasonal.

Table:​ ​Sectoral​ ​distribution​ ​of​ ​casual​ ​labourers​ ​in​ ​terms​ ​of​ ​availability
of​ ​work​ ​in​ ​sampled​ ​villages​ ​in​ ​Punjab​ ​as​ ​in​ ​2007

No.​ ​of​ ​days​ ​per​ ​month

Groups
8-10 10-20 20+ Total
67​ ​(56.78) 141​ ​(24.57) 02​ ​(5.88)
Agriculture 210
[31.91] [67.14] [0.95]
22​ ​(18.64) 245​ ​(42.68) 27​ ​(79.41)
Non-Agriculture 294
[7.48] [83.33] [9.19]
Both​ ​Agriculture​ ​and 29​ ​(24.58) 188​ ​(32.75) 05​ ​(14.71)
222
Non-Agricultural [13.06] [84.69] [2.25]
726
Total 118​ ​[16.26] 574​ ​[79.06] 34​ ​[4.68]
(100.00)
Note:​ ​Figures​ ​in​ ​lower​ ​and​ ​upper​ ​brackets​ ​indicates​ ​column-wise​ ​and
row-wise​ ​percentage​ ​share,​ ​respectively.

II. Civic​ ​amenities​ ​for​ ​workers-​ ​The​ ​labors​ ​must​ ​be​ ​provided​ ​with
proper​ ​health​ ​care​ ​as​ ​the​ ​use​ ​of​ ​hazardous​ ​materials​ ​like
pesticides​ ​and​ ​other​ ​chemicals​ ​might​ ​have​ ​some​ ​affect​ ​if​ ​steps
not​ ​followed.​ ​Apart​ ​from​ ​this,​ ​the​ ​labors​ ​in​ ​Punjab​ ​are​ ​also
provided​ ​with​ ​lunch​ ​included​ ​bases​ ​upon​ ​the​ ​skills​ ​of​ ​the
worker.

29
 III. Existence​ ​of​ ​complementary​ ​and​ ​competing​ ​industries-​ ​The
existence​ ​of​ ​complementary​ ​industries​ ​is​ ​favourable​ ​to​ ​the
location​ ​of​ ​industries​ ​because​ ​and​ ​industrial​ ​unit​ ​along​ ​with
other​ ​units,​ ​can​ ​get​ ​the​ ​following​ ​benefits:-
● In​ ​Agriculture​ ​industry,​ ​when​ ​one​ ​or​ ​more​ ​farmers​ ​come
together​ ​to​ ​produce​ ​crops,​ ​they​ ​can​ ​get​ ​benefit​ ​by​ ​securing​ ​a
large​ ​scale​ ​of​ ​raw​ ​materials​ ​in​ ​variety​ ​offered​ ​by​ ​the​ ​suppliers.
● It​ ​can​ ​also​ ​help​ ​the​ ​farmers​ ​to​ ​attain​ ​labor/workers​ ​easily​ ​at​ ​one
large​ ​land.
● If​ ​a​ ​number​ ​of​ ​farmers​ ​come​ ​together​ ​to​ ​work,​ ​they​ ​can​ ​easily
acquire​ ​loan​ ​from​ ​the​ ​banks​ ​nearby.

This​ ​can​ ​be​ ​seen​ ​as​ ​an​ ​increase​ ​in​ ​competition​ ​but​ ​if​ ​the​ ​farmers
come​ ​together,​ ​it​ ​would​ ​result​ ​in​ ​their​ ​benefit​ ​only.​ ​They​ ​would
face​ ​less​ ​problems​ ​relating​ ​to​ ​acquirement​ ​and​ ​maintenance​ ​of​ ​raw
materials​ ​such​ ​as​ ​seeds,​ ​fertilizers​ ​and​ ​labor.​ ​Government
restrictions​ ​can​ ​also​ ​be​ ​easily​ ​looked​ ​after.

IV. Finance​ ​and​ ​research​ ​Facilities-​ ​Punjab​ ​is​ ​a​ ​place​ ​where​ ​almost
all​ ​the​ ​facilities​ ​for​ ​producing​ ​a​ ​good​ ​quality​ ​crop​ ​is​ ​available,
be​ ​it​ ​adequate​ ​supply​ ​of​ ​labor​ ​from​ ​all​ ​over​ ​India,​ ​land​ ​with
great​ ​quality​ ​soil​ ​along​ ​with​ ​the​ ​seeds​ ​and​ ​sufficient
technological​ ​upgradation.
V. Availability​ ​of​ ​water​ ​and​ ​fire-fighting​ ​facilities-​ ​In​ ​agricultural
industry,​ ​water​ ​is​ ​the​ ​most​ ​important​ ​element​ ​for​ ​a​ ​good​ ​quality
crop​ ​to​ ​be​ ​produced​ ​and​ ​sold​ ​in​ ​the​ ​market.​ ​In​ ​Punjab,​ ​even
though​ ​the​ ​natural​ ​source​ ​of​ ​water​ ​(rainfall)​ ​is​ ​not​ ​high​ ​enough,
other​ ​sources​ ​of​ ​irrigation​ ​facility​ ​are​ ​developed​ ​well​ ​enough.
VI. Momentum​ ​of​ ​an​ ​Early​ ​start-​ ​This​ ​is​ ​a​ ​considerable​ ​influence​ ​n
the​ ​plant​ ​location.​ ​Agriculture​ ​has​ ​always​ ​been​ ​a​ ​major​ ​industry
in​ ​Punjab​ ​and​ ​thus​ ​transport,​ ​banking​ ​and​ ​other​ ​facilities​ ​are
easily​ ​available​ ​there.
VII. Personal​ ​Factors-​ ​The​ ​origin​ ​of​ ​the​ ​farmer​ ​and​ ​his​ ​family
background​ ​also​ ​matters​ ​in​ ​the​ ​location​ ​selection.​ ​A​ ​place​ ​where
there​ ​is​ ​no​ ​facilities​ ​easily​ ​available,​ ​but​ ​is​ ​the​ ​location​ ​of
farmers​ ​family​ ​with​ ​his​ ​inherited​ ​land​ ​might​ ​be​ ​his​ ​ideal
location​ ​selection​ ​due​ ​to​ ​personal​ ​factors.

d) ​ ​Selection​ ​of​ ​the​ ​Site​-​ ​The​ ​selection​ ​of​ ​an​ ​exact​ ​site​ ​in​ ​a​ ​chosen
location​ ​is​ ​the​ ​final​ ​step​ ​in​ ​plant​ ​location.​ ​The​ ​selection​ ​of​ ​site​ ​is
influenced​ ​by​ ​following​ ​considerations.

30
 I. Soil,​ ​size​ ​and​ ​topography-​ ​The​ ​fertile​ ​soil​ ​is​ ​necessary​ ​for​ ​ensuring
a​ ​strategic​ ​plant​ ​location.​ ​The​ ​fertility​ ​of​ ​soil​ ​in​ ​most​ ​areas​ ​in
Punjab​ ​is​ ​available​ ​in​ ​abundance​ ​hence​ ​Punjab​ ​is​ ​one​ ​of​ ​the​ ​perfect
locations​ ​for​ ​production​ ​of​ ​wheat​ ​and​ ​rice.
The​ ​area​ ​of​ ​the​ ​land​ ​should​ ​be​ ​such​ ​as​ ​to​ ​accommodation​ ​not​ ​only
existing​ ​production​ ​but​ ​offer​ ​scope​ ​for​ ​future​ ​expansion​ ​also.​ ​The
cost​ ​of​ ​land​ ​is​ ​between​ ​Rs.15000-Rs.53000​ ​per​ ​acre​ ​per​ ​year.​ ​But
the​ ​location​ ​must​ ​enjoy​ ​all​ ​the​ ​facilities.
The​ ​topography​ ​of​ ​place​ ​also​ ​deserves​ ​consideration​ ​to​ ​some
extent.​ ​The​ ​land​ ​must​ ​be​ ​selected​ ​keeping​ ​in​ ​mind​ ​the​ ​sunshine,
temperature,​ ​soil​ ​and​ ​type​ ​of​ ​the​ ​area.

II. Disposal​ ​of​ ​waste-​ ​The​ ​site​ ​selected​ ​should​ ​have​ ​provision​ ​for
disposal​ ​of​ ​waste.​ ​Rice​ ​has​ ​many​ ​types​ ​of​ ​waste​ ​such​ ​as​ ​straw,
husk,​ ​ash,​ ​bran,​ ​broken​ ​rice.​ ​Straw​ ​can​ ​be​ ​used​ ​for​ ​burning​ ​or
animal​ ​feeding.​ ​Husk​ ​can​ ​be​ ​used​ ​for​ ​poultry​ ​farming,​ ​etc.​ ​It​ ​can
also​ ​be​ ​used​ ​as​ ​biomass.

31
RELATIVE​ ​IMPORTANCE​ ​OF
LOCATION​ ​FACTORS
1. The​ ​major​ ​wheat​ ​growing​ ​areas​ ​are​ ​all​ ​in​ ​the​ ​north,​ ​and​ ​therefore,
unlike​ ​rice,​ ​wheat​ ​has​ ​a​ ​relatively​ ​narrow​ ​geographic​ ​land​ ​base​ ​of
production.​ ​Wheat​ ​is​ ​a​ ​temperate​ ​crop​ ​requiring​ ​low​ ​temperatures,​ ​and
most​ ​of​ ​the​ ​country​ ​is​ ​tropical.

2. Even​ ​within​ ​many​ ​of​ ​these​ ​states​ ​the​ ​wheat​ ​areas​ ​are​ ​limited​ ​and​ ​overall
only​ ​about​ ​18%​ ​of​ ​the​ ​net​ ​cropped​ ​area​ ​is​ ​planted​ ​under​ ​wheat.

3. Again​ ​Uttar​ ​Pradesh​ ​contributes​ ​the​ ​largest​ ​share​ ​with​ ​36%​ ​of
production,​ ​followed​ ​by​ ​Punjab​ ​with​ ​19%​ ​and​ ​Haryana​ ​with​ ​11%.
These​ ​three​ ​northern​ ​states​ ​together​ ​contribute​ ​two-thirds​ ​of​ ​the
production​ ​of​ ​wheat.​ ​These​ ​are​ ​followed​ ​by​ ​Madhya​ ​Pradesh​ ​11%,
Rajasthan​ ​10%.​ ​All​ ​the​ ​rest​ ​contribute​ ​only​ ​13%.​ ​

4. Soil​ ​of​ ​prairies​ ​has​ ​high​ ​phosphorous​ ​content​ ​and​ ​thus​ ​good​ ​for​ ​wheat.
The​ ​centuries​ ​of​ ​rotting​ ​grass​ ​has​ ​made​ ​the​ ​soil​ ​fertile.​ ​Topography
suitable​ ​for​ ​wheat​ ​cultivation​ ​as​ ​wheat​ ​cannot​ ​tolerate​ ​stagnant​ ​water.
Small​ ​landholdings​ ​means​ ​that​ ​machines​ ​can’t​ ​be​ ​used​ ​at​ ​every​ ​stage
this​ ​affects​ ​the​ ​requirement​ ​of​ ​labourers​ ​at​ ​each​ ​stage.

5. Rail​ ​and​ ​road​ ​connectivity​ ​is​ ​high​ ​and​ ​even​ ​produce​ ​from​ ​remote
regions​ ​can​ ​reach​ ​the​ ​market.

6. Food​ ​processing​ ​infrastructure​ ​present​ ​at​ ​railways​ ​e.g.​ ​Grain​ ​elevator

storage​ ​where​ ​wheat​ ​is​ ​cleaned,​ ​graded,​ ​processed​ ​and​ ​sold.​ ​Railways
are​ ​also​ ​connected​ ​to​ ​waterways​ ​for​ ​transport​ ​and​ ​export.

7. Wheat​ ​board​ ​is​ ​a​ ​statutory​ ​body​ ​that​ ​is​ ​sole​ ​purchaser​ ​and​ ​exporter.
Farmers​ ​are​ ​given​ ​schedules​ ​to​ ​minimize​ ​price​ ​fluctuations​ ​and
distribution​ ​inefficiencies.​ ​Quality​ ​control​ ​for​ ​exported​ ​wheat​ ​is​ ​seen.

32
PLANT​ ​LAYOUT

33
FACTORS​ ​INFLUENCING​ ​FACILITY
LAYOUT
A​ ​Farm​ ​layout​ ​refers​ ​to​ ​the​ ​compiling​ ​of​ ​physical​ ​structures​ ​such​ ​as
homesteads,​ ​outbuildings,​ ​waterways,​ ​contours,​ ​camps,​ ​water​ ​supply​ ​roads​ ​and
the​ ​layout​ ​of​ ​orchards,​ ​vineyards​ ​or​ ​lands.

However,​ ​the​ ​area​ ​where​ ​the​ ​farm​ ​is​ ​situated,​ ​the​ ​topography,​ ​the​ ​availability​ ​of
natural​ ​resources,​ ​the​ ​farming​ ​practices,​ ​the​ ​different​ ​enterprises,​ ​the​ ​availability
of​ ​capital​ ​and​ ​the​ ​preference​ ​of​ ​the​ ​farmer/owner​ ​will​ ​also​ ​affect​ ​the​ ​farm
layout.

1. Policies​ ​of​ ​management:

Various​ ​managerial​ ​policies​ ​relate​ ​to​ ​future​ ​volume​ ​of​ ​production​ ​and
expansion,​ ​integration​ ​of​ ​production​ ​processes;​ ​facilities​ ​to​ ​employees​ ​etc.
In​ ​case​ ​of​ ​agriculture​ ​managerial​ ​policies​ ​can​ ​be​ ​affected​ ​in​ ​several​ ​ways​ ​for
example​ ​due​ ​to​ ​any​ ​political​ ​or​ ​natural​ ​factor​ ​(draught)​ ​if​ ​the​ ​field​ ​is​ ​lacking
availability​ ​of​ ​water​ ​it​ ​will​ ​lead​ ​to​ ​less​ ​production​ ​of​ ​crops,​ ​no​ ​scope​ ​of
expansion​ ​and​ ​also​ ​thereby​ ​leading​ ​to​ ​less​ ​sales​ ​and​ ​unsatisfied​ ​income​ ​to
farmer​ ​and​ ​his​ ​employees.

2. Plant​ ​location:

Location​ ​of​ ​a​ ​plant​ ​greatly​ ​influences​ ​the​ ​layout​ ​of​ ​the​ ​plant.​ ​Topography,
shape,​ ​climate​ ​conditions,​ ​and​ ​size​ ​of​ ​the​ ​site​ ​selected​ ​will​ ​influence​ ​the​ ​general
arrangement​ ​of​ ​the​ ​layout​ ​and​ ​the​ ​flow​ ​of​ ​work​ ​in​ ​and​ ​out​ ​of​ ​the​ ​building.
In​ ​case​ ​of​ ​agriculture​ ​plant​ ​location​ ​or​ ​field​ ​location​ ​for​ ​instance​ ​plays​ ​the​ ​most
important​ ​location​ ​as​ ​it​ ​will​ ​directly​ ​affect​ ​the​ ​productivity​ ​of​ ​crops​ ​if​ ​the​ ​ideal
weather,​ ​temperature,​ ​sunlight,​ ​soil​ ​and​ ​water​ ​is​ ​not​ ​provided​ ​by​ ​the​ ​location.

3. Nature​ ​of​ ​the​ ​product:

Nature​ ​of​ ​the​ ​commodity​ ​or​ ​article​ ​to​ ​be​ ​produced​ ​greatly​ ​affects​ ​the​ ​type​ ​of
layout​ ​to​ ​be​ ​adopted.​ ​In​ ​case​ ​of​ ​process​ ​sectors​ ​such​ ​as​ ​agriculture,​ ​the​ ​nature​ ​of
product​ ​affects​ ​the​ ​plant​ ​layout​ ​as​ ​the​ ​products​ ​are​ ​crops,​ ​every​ ​product​ ​is
different​ ​and​ ​has​ ​different​ ​plant​ ​layout​ ​requirements​ ​and​ ​will​ ​affect​ ​accordingly.

34
 4. Materials:

Materials​ ​in​ ​agricultural​ ​sector​ ​refers​ ​to​ ​the​ ​raw​ ​materials​ ​or​ ​the​ ​pre-requisites
of​ ​the​ ​crop.​ ​The​ ​availability​ ​of​ ​raw​ ​materials​ ​in​ ​agricultural​ ​sector​ ​affects​ ​a​ ​lot
on​ ​the​ ​plant​ ​layout​ ​as​ ​suitable​ ​conditions​ ​and​ ​appropriate​ ​raw​ ​materials​ ​like
seeds,​ ​fertilizers,​ ​machinery​ ​etc.​ ​are​ ​required​ ​to​ ​carry​ ​out​ ​agricultural​ ​activities.

5. Infrastructure​ ​and​ ​machinery:

a) Infrastructure​ ​influence​ ​productivity,​ ​yield,​ ​cost,​ ​quality​ ​and​ ​other

agricultural​ ​inputs​ ​in​ ​the​ ​following​ ​ways:
● Better​ ​infrastructure​ ​and​ ​machinery​ ​will​ ​ensure​ ​a​ ​better​ ​quality​ ​product.
● Yields​ ​can​ ​be​ ​enlarged​ ​due​ ​to​ ​the​ ​better​ ​management​ ​and​ ​application​ ​of
the​ ​necessary​ ​inputs.
● The​ ​cost​ ​can​ ​be​ ​controlled​ ​as​ ​the​ ​damage​ ​to​ ​products​ ​is​ ​reduced​ ​and
better​ ​machinery​ ​make​ ​it​ ​easier​ ​to​ ​achieve​ ​the​ ​production​ ​goals.

6. ​ ​Workers

workers​ ​in​ ​agricultural​ ​sector​ ​are​ ​farmers​ ​and​ ​Farmers​ ​make​ ​decisions​ ​about
what​ ​to​ ​grow,​ ​what​ ​animals​ ​to​ ​keep,​ ​the​ ​level​ ​and​ ​type​ ​of​ ​inputs​ ​and​ ​the
methods​ ​they​ ​will​ ​use.​ ​The​ ​farmers’​ ​attitudes​ ​and​ ​level​ ​of​ ​knowledge​ ​are​ ​also
important​ ​and​ ​also​ ​greatly​ ​affects​ ​the​ ​plant​ ​layout.

Principles​ ​of​ ​Layout

1. The​ ​Principle​ ​of​ ​Minimum​ ​Travel

The​ ​Principle​ ​of​ ​minimum​ ​travel​ ​says​ ​that​ ​the​ ​inputs​ ​such​ ​as​ ​labor​ ​and
materials​ ​should​ ​travel​ ​the​ ​distance​ ​between​ ​operations​ ​so​ ​as​ ​to​ ​avoid
wastage​ ​of​ ​labor​ ​,​ ​time​ ​and​ ​minimize​ ​the​ ​cost​ ​of​ ​material​ ​handling​ ​.​ ​In
our​ ​project​ ​,​ ​the​ ​plant​ ​location​ ​clear​ ​signifies​ ​that​ ​the​ ​materials​ ​or
equipments​ ​that​ ​will​ ​be​ ​used​ ​for​ ​the​ ​production​ ​of​ ​crops​ ​would​ ​not​ ​result
in​ ​wastage​ ​of​ ​time​ ​because​ ​the​ ​production​ ​of​ ​crops​ ​is​ ​fixed​ ​in​ ​a​ ​specific
location​ ​.

2. Principle​ ​of​ ​Sequence

35
 The​ ​Principle​ ​of​ ​Sequence​ ​says​ ​that​ ​machines​ ​and​ ​operations​ ​should​ ​be
arranged​ ​in​ ​sequential​ ​order​ ​.​ ​In​ ​Agriculture​ ​,the​ ​process​ ​needed​ ​for​ ​the
production​ ​of​ ​crops​ ​is​ ​always​ ​fixed​ ​as​ ​it​ ​requires​ ​a​ ​proper​ ​set​ ​of
sequences​ ​such​ ​as​ ​Ploughing​ ​,​ ​Sowing​ ​,​ ​Cultivating​ ​,​ ​Harvesting​ ​which
leads​ ​towards​ ​the​ ​production​ ​of​ ​crops​ ​.

3. Principle​ ​of​ ​Safety​ ​and​ ​Satisfaction

The​ ​Principle​ ​of​ ​safety​ ​and​ ​satisfaction​ ​says​ ​that​ ​the​ ​layout​ ​should​ ​contain
built​ ​in​ ​provisions​ ​for​ ​safety​ ​of​ ​labor​ ​.​ ​It​ ​should​ ​be​ ​planned​ ​on​ ​the​ ​basis​ ​of
the​ ​comfort​ ​and​ ​convenience​ ​of​ ​the​ ​labors​ ​so​ ​that​ ​they​ ​feel​ ​satisfied​ ​.
Viewing​ ​of​ ​our​ ​plant​ ​layout​ ​,​ ​the​ ​layout​ ​itself​ ​has​ ​been​ ​designed​ ​in​ ​such
manner​ ​that​ ​labor​ ​would​ ​feel​ ​extremely​ ​safe​ ​and​ ​as​ ​the​ ​labor​ ​are​ ​one​ ​of
the​ ​most​ ​important​ ​factor​ ​,​ ​the​ ​needs​ ​and​ ​wants​ ​of​ ​labor​ ​can​ ​easily​ ​be
satisfied.
4. Principle​ ​of​ ​Flexibility

The​ ​Principle​ ​of​ ​Flexibility​ ​says​ ​that​ ​the​ ​layout​ ​should​ ​permit​ ​revisions
with​ ​least​ ​difficulty​ ​and​ ​at​ ​minimum​ ​cost​ ​.​ ​In​ ​Agriculture​ ​,​ ​ ​as​ ​there
would​ ​be​ ​no​ ​much​ ​duplication​ ​of​ ​machineries​ ​and​ ​also​ ​the​ ​process​ ​is
fixed​ ​,​ ​flexibility​ ​can​ ​be​ ​easily​ ​generated​ ​without​ ​making​ ​any​ ​of​ ​the​ ​major
changes​ ​and​ ​can​ ​lead​ ​to​ ​maximum​ ​production​ ​of​ ​crops​ ​at​ ​minimum​ ​cost.

5. Principle​ ​of​ ​Minimum​ ​Investment

The​ ​principle​ ​of​ ​minimum​ ​investment​ ​says​ ​that​ ​the​ ​layout​ ​should​ ​result​ ​in
savings​ ​in​ ​fixed​ ​capital​ ​investment​ ​,​ ​not​ ​by​ ​avoiding​ ​installation​ ​of​ ​the
necessary​ ​facilities​ ​but​ ​by​ ​an​ ​intensive​ ​use​ ​of​ ​available​ ​facilities​ ​.​ ​The
capital​ ​investment​ ​in​ ​agriculture​ ​can​ ​be​ ​easily​ ​reduced​ ​because​ ​the
machines​ ​or​ ​inputs​ ​or​ ​equipments​ ​used​ ​are​ ​always​ ​fixed​ ​during​ ​the
processes​ ​which​ ​will​ ​hardly​ ​lead​ ​to​ ​damage​ ​or​ ​break​ ​down​ ​of​ ​any​ ​of​ ​the
facilities.

36
Basic​ ​Production​ ​Layout​ ​Formats
i. Process​ ​Layout
Process​ ​layout​ ​is​ ​a​ ​process​ ​in​ ​which​ ​inputs​ ​such​ ​as​ ​machines​ ​perform​ ​a​ ​similar
type​ ​of​ ​operations​ ​which​ ​are​ ​gathered​ ​at​ ​one​ ​location​ ​and​ ​different​ ​products​ ​can
be​ ​made​ ​through​ ​without​ ​changing​ ​the​ ​arrangement​ ​of​ ​machines​ ​.
In​ ​Agriculture​ ​process​ ​layout​ ​,​ ​as​ ​our​ ​field​ ​will​ ​used​ ​for​ ​the​ ​production​ ​of​ ​crops
such​ ​as​ ​wheat​ ​,​ ​rice​ ​etc​ ​so​ ​we​ ​will​ ​be​ ​needing​ ​tractors​ ​for​ ​the​ ​leveling​ ​of​ ​the
field​ ​or​ ​animals​ ​such​ ​as​ ​cows​ ​for​ ​cultivation​ ​of​ ​the​ ​crops​ ​.​ ​Also​ ​,​ ​we​ ​are​ ​mainly
focusing​ ​on​ ​production​ ​for​ ​two​ ​crops​ ​i.e.,​ ​wheat​ ​and​ ​rice​ ​so​ ​will​ ​be​ ​requiring
process​ ​over​ ​the​ ​products​ ​as​ ​after​ ​ploughing​ ​,​ ​sowing​ ​,​ ​harvesting​ ​the​ ​crops​ ​will
get​ ​produced.

Advantages​ ​of​ ​Process​ ​layout​ ​in​ ​Agriculture

1. In Agriculture Sector, crop production includes inputs such as labor,
fertilizers, machines (tractors) etc. So, the number of inputs required for
the production of crops can be optimized so that with minimum
requirement​ ​of​ ​inputs,​ ​maximum​ ​number​ ​of​ ​output​ ​can​ ​be​ ​generated.

2. There can be flexibility in production while producing a crop because the

machines or any of the inputs require to produce one crop can also be
used for the production of any other crops without making any major
changes.

3. The total investment over the equipment used for the production can be
reduced because there will be less duplications of machineries which can
be easily replaced or transferred to any other equipment if one equipment
gets​ ​damaged​ ​or​ ​break​ ​down.

4. There can be a better utilization of resources or equipment in agriculture

and also there can be better control over complicated or precision
processes​ ​especially​ ​where​ ​much​ ​inspection​ ​is​ ​required.

ii. Static​ ​Product​ ​or​ ​Project​ ​Layout

37
In​ ​this​ ​type​ ​of​ ​layout​ ​the​ ​major​ ​component​ ​remain​ ​in​ ​a​ ​fixed​ ​location,​ ​other
materials,​ ​parts,​ ​tools,​ ​machinery,​ ​manpower​ ​and​ ​other​ ​supporting​ ​equipment’s
are​ ​brought​ ​to​ ​this​ ​location​ ​and​ ​the​ ​the​ ​product​ ​gets​ ​completed​ ​staying​ ​at​ ​one
place​ ​.
The​ ​major​ ​component​ ​or​ ​body​ ​of​ ​the​ ​product​ ​remain​ ​in​ ​a​ ​fixed​ ​position​ ​because
it​ ​is​ ​too​ ​heavy​ ​or​ ​too​ ​big​ ​and​ ​as​ ​such​ ​it​ ​is​ ​economical​ ​and​ ​convenient​ ​to​ ​bring
the​ ​necessary​ ​tools​ ​and​ ​equipment’s​ ​to​ ​workplace​ ​along​ ​with​ ​the​ ​man​ ​power.

Advantages​ ​of​ ​Static​ ​Product​ ​or​ ​Project​ ​Layout

1. As​ ​in​ ​agriculture​ ​sector​ ​,​ ​the​ ​crop​ ​production​ ​takes​ ​place​ ​in​ ​a​ ​particular
field​ ​so​ ​the​ ​movement​ ​of​ ​materials​ ​or​ ​inputs​ ​can​ ​be​ ​reduced​ ​which​ ​can
help​ ​in​ ​saving​ ​time​ ​and​ ​utilizing​ ​that​ ​part​ ​of​ ​time​ ​for​ ​even​ ​producing
more​ ​number​ ​of​ ​crops.

2. A​ ​capital​ ​investment​ ​over​ ​the​ ​equipment/tools​ ​for​ ​agricultural​ ​products

can​ ​be​ ​reduced​ ​because​ ​for​ ​growing​ ​up​ ​the​ ​crops​ ​,​ ​a​ ​specific​ ​process​ ​is
followed​ ​in​ ​which​ ​equipment​ ​involved​ ​remains​ ​fix​ ​for​ ​the​ ​entire​ ​process.

3. The​ ​most​ ​important​ ​part​ ​during​ ​the​ ​production​ ​and​ ​after​ ​production​ ​in
agriculture​ ​is​ ​effective​ ​planning​ ​and​ ​loading.​ ​Effective​ ​planning​ ​is​ ​mainly
required​ ​because​ ​the​ ​production​ ​of​ ​crops​ ​per​ ​month​ ​or​ ​per​ ​annum​ ​should
be​ ​planned​ ​which​ ​indirectly​ ​lead​ ​to​ ​loading.​ ​So,​ ​this​ ​both​ ​factors​ ​can
easily​ ​help​ ​to​ ​reduce​ ​the​ ​overall​ ​cost​ ​of​ ​production.

38
 ISO​ ​STANDARD
The new standard, ​ISO 22006:2009, ​Quality management systems –
Guidelines for the application of ISO 9001:2008 to crop production​, can be
used with farm operations of any size, growing all types of food, feed and
non-food​ ​crops.
ISO 22006:2009 provides step-by-step guidance through the requirements of
ISO 9001:2008 with a practical approach to crop operations. The standard
provides pertinent subject-specific tips and suggestions, and uses agricultural
terminology. Among its unique features is a user-friendly flow diagram listing
all the farm operation activities to help determine how they fit together and
where​ ​there​ ​is​ ​need​ ​for​ ​improvement.
Mark Ames, Project Leader, says, “ISO 22006 takes a recognized generic
management solution and turns it into a down-to-earth tool that farmers can link
to​ ​their​ ​particular​ ​needs.”
Richard Cantrill, Convenor of the working group that developed the standard
(ISO/TC 34/WG 12) adds “The standard will give farmers a powerful
advantage. Although the application of a quality management system (QMS)
can take some initial added-effort, overall, this is built from existing activities
and should not cause excessive paperwork or lack of flexibility. On the other
hand, a solid QMS can bring important net benefits, not only to farmers, but to
their​ ​clients​ ​and​ ​customers.”
ISO 22006:2009 highlights the eight quality management principles that provide
a​ ​basis​ ​for​ ​ISO​ ​9001:2008​ ​and​ ​relates​ ​them​ ​to​ ​crop​ ​production:
● Customer​ ​focus
● Leadership
● Involvement​ ​of​ ​people
● Process​ ​approach
● System​ ​approach​ ​to​ ​management
● Continual​ ​improvement
● Factual​ ​approach​ ​to​ ​decision-making
● Mutually​ ​beneficial​ ​supplier​ ​relationships.

39
ISO 22006:2009 does not add or change any of the requirements in ISO
9001:2008 and is not intended for certification, although it can be a useful tool
in​ ​helping​ ​prepare​ ​for​ ​certification​ ​to​ ​ISO​ ​9001:2008.
ISO 22006 is part of the ISO 22000 family of documents developed by ISO
technical committee ISO/TC 34, Food products​, focusing on the food, feed, and
related​ ​supply​ ​chains.​ ​Other​ ​standards​ ​in​ ​the​ ​ISO​ ​22000​ ​currently​ ​include:
● ISO 22000:2005, ​Food safety management systems – Requirements for
any​ ​organization​ ​in​ ​the​ ​food​ ​chain
● ISO 15161:2001, ​Guidelines on the application of ISO 9001:2000 for the
food​ ​and​ ​drink​ ​industry
● ISO/TS 22002-1:2009, ​Prerequisite programmes on food safety – Part 1:
Food​ ​manufacturing
● ISO/TS 22003:2007, ​Food safety management systems – Requirements
for bodies providing audit and certification of food safety management
system
● ISO/TS 22004:2005, Food safety management systems – Guidance on the
application​ ​of​ ​ISO​ ​22000:2005
● ISO 22005:2007, Traceability in the feed and food chain – General
principles​ ​and​ ​basic​ ​requirements​ ​for​ ​system​ ​design​ ​and​ ​implementation.
ISO 22006:2009, ​Quality management systems – Guidelines for the application
of ISO 9001:2008 to crop production, is available from ISO national member
institutes (see the complete list with contact details). It may also be obtained
directly from the ISO Central Secretariat, price 168 Swiss francs, through the
ISO Store or by contacting the Marketing, Communication and Information
department​ ​(see​ ​right-hand​ ​column).

40
 REFERENCES:
● Farmer-friendly ISO standard for crop production quality management​.
ISO​. Retrieved 10 November 2017, from
https://www.iso.org/news/2010/01/Ref1280.html
● ​Iytimg​. ​I.ytimg.com​. Retrieved 4 September 2017, from
https://i.ytimg.com/vi/ilIPJaK9mnU/hqdefault.jpg
● Assignment Studio​. (2017). ​Assignmentstudio.net​. Retrieved 10
September 2017, from
http://assignmentstudio.net/astudio/wp-content/uploads/2017/08/Agricult
ure.jpg
● Top 10 Wheat Producing States of India​. ​Mapsofindia.com​. Retrieved 28
October 2017, from
https://www.mapsofindia.com/top-ten/india-crops/wheat.html
● American International journal​. (2016). ​Iasir.net​. Retrieved 6 October
2017,​ ​from​ ​http://iasir.net/AIJRHASSpapers/AIJRHASS16-160.pdf
● Soilsinew | Now Launching in India​. ​Soilsinew.com​. Retrieved 28
September 2017, from
http://www.soilsinew.com/now-launching-in-india/
● Biotechnology Products. Retrieved 29 September 2017, from
http://onlinelibrary.wiley.com/doi/10.1021/bp0701517/abstract

41