Facility Location Decision.

• Mule Rutuja Santosh. (712120)

• Nandankar Tejas Nagoji. (712121)
• Narwade Mayuri Devidas. (712122)
Facility or plant location:

 Facilitylocation is the process of

identifying the best geographic location for
a service or production facility.
 Selectingsuitable location for economic
and effective operations.
Need for selecting a suitable site or
location:

 While starting a new factory.

 During the expansion of the existing plant.
 When the existing plant is to be re-located at
some other place, to remove the drawbacks of
the present location or to gain the benefits of a
still better location.
 Expiry of lease and the non renewal.
Objectives in location decision:
 Reduce operating cost and capital investment.
 Effective plant layout.
 Coordinating with government policies.
 Employee Security, welfare and public needs.

 STEPS IN LOCATION SELECTION:

1. With in the country or outside.

2. Selection of the region.
3. Selection of locality or community.
4. Selection of the exact site.
With in the country or outside:

 Domestic OR International?
 Which country?
 And the decision is taken on the basis of:
1. Political/legal concerns.
2. Export or import quotas.
3. Currency exchange rate.
4. Cultural issues.
Selection of the region:

 Availability of resources(raw materials, HR) and

customers.
 Market facilities.
 Transportation and climate.
 Government incentives.
 Economic and environmental conditions.
Selection of locality or community:

 Availability of work force.

 Complementary business in the area.
 Availability of safety needs and basic needs of
employees.
 Tax in the area.
 Effectiveness in the initial stages.
Selection of the exact site:

 Waste disposal.
 Soil and topology.

 TYPES OF FACILITIES:

1. Heavy manufacturing facilities. (Large, require space, expensive.)

2. Light industry facilities. (Smaller, cleaner plants, less costly.)
3. Retail and service facilities. (Smallest and least costly.)
Thank You…