Plant location for Ship building yard

Plant location refers to the choice of region and the selection of a particular site for setting up a manufacturing 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 all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Companies try to make an attempt for 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 and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production. LOCATIONAL ANALYSIS for Shipyard Locational analysis is a dynamic process where companies analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following: SELECTION CRITERIA The important considerations for selecting a suitable location are given as follows: 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 communication are 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.

j) Government influences: Both positive and negative incentives to motivate a shipbuilding company to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives 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 facilities and employee s amenities are located in a plant. Only the properly laid out plant can ensure the smooth 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 be defined as a technique of locating machines, processes and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. It involves a judicious arrangement of production facilities so that workflow is direct. IMPORTANCE Plant layout is an important decision as it represents long-term commitment. An ideal plant layout should provide the optimum relationship among output, floor area and manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows 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 important because it affects the flow of material and processes, labour efficiency, supervision and control, use of space and expansion possibilities etc. ESSENTIALS An efficient plant layout is one that can be instrumental in achieving the following objectives: a) Proper and efficient utilization of available floor space b) To ensure that work proceeds from one point to another point without any delay c) Provide enough production capacity. d) Reduce material handling costs e) Reduce hazards to personnel

f) Utilise labour efficiently g) Increase employee morale h) Reduce accidents i) Provide for volume and product flexibility j) Provide ease of supervision and control k) Provide for employee safety and health l) Allow ease of maintenance m) Allow high machine or equipment utilization n) Improve productivity.

We use Fixed Position or Location Layout for ship building yards
In this type of layout, the major product being produced is fixed at one location. Equipment labour and components are moved to that location. All facilities are brought and arranged around one work center. This type of layout is not relevant for small scale entrepreneur. The following figure shows a fixed position layout regarding shipbuilding.


Shipbuilding yard

Machinary Equipment

Finished product


Production process in shipyard building Industry
There are several steps what we fallow before launching or delivery of a ship. 1-Decide the infrastructure for shipbuilding yard- the first step is the selection of a location for setting up the shipbuilding yard. 2- Finance we plan for the finance, it include the sources from where we will get the required money for starting the production of a ship. We get the money from the promoters fund /share capital. And through the bank loan, bank provide us 70% of the total requirement. 3- Offer from the purchaser- we have to just wait for the purchaser who is giving the order for the ship, and we get the order through the tender by bidding process, 4- Prebidding meeting- before going for the bid mangers have a meeting they decide how they are going to present their company in this bidding, we see the factors like the financial and technical capacity for timely delivery of the product. 5-Tender contract /agreement- when we get the tender we make an agreement /contract with the company (buyer of the ship). 6-Manufactoring- building processa- in the first part we decide the parts which we are going to manufacture and the spares parts which we are going to import from others countries. b- next thing we have to think about the quality because in ship building quality control is the most important factor ,even one small mistake can create a big problem so here quality assurance should be 99.99%. for this companies have quality assurance team who checks the quality of the production time to time . c- stage by stage certification- we have to get several certificates from different -2 government institute and company have to fallow the quality standard, only then it will be able to proceed further. d- Clearance from authorities- after getting the certificates we need to get the clearance of all the authorities for the delivery of the ship. e- after the clearance from the authority we have a trial period we check whether the ship is ok or not . F- finally we deliver the ship in the river.

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