mmpc

1. AN ONLINE COUNSELLING
ON
MMPC 009 (Management of Machines and Materials)
Dr. VINAY ARYA
ASSISTANT PROFESSOR
MEERUT COLLEGE,
MEERUT
IGNOU LSC 2728
MBA PROGRAMME

2. Facility Location

4. Importance of Plant Location
For Long Life
Heavy Capital Investment
Plant Layout is based on Location
Non-repetitive in nature
Minimise the cost

5. Need for Selection of the Location
New enterprise is to set up
New branch is to set up
Expiry of Lease

6. Steps taken in the Selection of the Location
Selection of the Nation
Selection of the Region
Selection of the
Community/Locality
Selection of the Site

7. Factors Affecting Plant Location
 Availability of Raw Material
 Availability of Labour
 Transportation Facility
 Availability of Power
 Nearness to Market
 Availability of Finance
 Government Policies
 Possibility of Future Development

8. Elements of Ideal Location
Minimum Production Cost
Large Share in the Market
Lesser Degree of Risk
Lowest per unit Production Cost
Lowest per unit Distribution Cost
Maximum Net Profits

9. Theories of Plant/Facility Location
Weber’s Theory of Plant/Facility Location
Alfred Weber, an eminent German economist gave a theory
on industrial location. This was published in 1909 in German
language and was translated into English in 1929 and was
published by Carl Joachim Fredrick. Weber’s effort was first
systematic approach towards the industrial location.

10. Assumptions of Weber’s Theory
The Market for the Product is Fixed
There is Perfect Competition in the Market
Some are universally accessible and some are
localised raw material
Transportation cost depend on the weight of raw
material
Demand for product will remain same
Labour Centres are fixed and wage rates are same

11. He divided the factors influencing location into two
broad categories
(a) Primary factors influencing the distribution of
industrial units over the different regions.
(b) Secondary factors relating to the redistribution
of industry from the original regions (or become
cause of concentration of industry in one particular
region).

12. Weber divided the raw material into two
categories
(a) localised relating to a particular region e.g., lime stone
used for cement, iron ore, coal and other natural deposits
etc.,
(b) Ubiquitous i.e. which are universally available such as
water, air and bricks etc. Localised factors affect the
location of a plant in different regions, whereas the
second category of factors does not affect.

13. Localised raw materials are further
subdivided into two classes
(i) Gross Raw Materials or weight losing materials, are
those which do not form part of the finished products but
are helpful in shaping the finished product. Most
appropriate example of this type of raw material is coal.
(ii) Pure Raw Materials are directly converted into the
finished product and form the major proportion of the
article produced e.g. cotton, wool, iron ore etc.

14. Criticism of Weber’s theory
Simple and Unreal
Transportation Cost
Ignorance of other Factors
Ignorance of Production Cost

15. Sargant’s Theory of Plant/Facility Location
Sargant Florence has given his theory about
industrial location, which has become popular. He
started with the idea that some of Weber’s
assumptions are not realistic. According to him
geographical location of an industry is not as
important, as the distribution of occupied
population. His main consideration is that
occupational distribution of population should be
the main and primary factor for taking into
consideration the location of an industry

18. Need for Plant Layout
At the time of new establishment
There is change in the line of the product
The enterprise is expanding
The size and number of department is changing
Adding a new product and removing an old product
Open new department and close old department
Use of new technology

19. Advantage of Plant Layout
 Smooth flow of material
 Minimum handling material
 Maintain flexibility in operation
 Converting the process of goods to high turnover
 To ensure effective use of staff, equipment and space
 Uninterrupted operation of machines
 Minimising hazardous effects on employees
 Minimum delay in production
 Prevention of accidents
 Efficient control and supervision

20. Principles of Plant Layout
Principle of space utilisation
Principle of flexibility
Principle of interdependence
Principle of overall integration
Principle of safety
Principle of the economy
Principle of supervision
Principle of satisfaction

21. Features of an ideal Plant Layout
Efficient space utilisation
Accessibility
Economy in handling
Co-ordination
Visibility
Adherence to statutory regulations
Over production
Waiting time

22. Factors influencing Plant Layout
 Factory Building
 Nature of Product
 Production Process
 Type of Machinery
 Repairs and Maintenance
 Management Policies
 Types of Enterprise
 Future Change
 Nature of Material
 Labour

23. Importance of Plant Layout
Savings in Handling
Effective Use of Available space
Minimization of Production Delays
Improved Quality Control
Better Production Control
Improved Utilization of Labour
Improved Employees Morale

24. Scope of Plant Layout
Layout of the Building
Layout of the Machines
Layout of the Utilities

25. Types of Machine Layout
Process Layout
Product Layout
Fixed Position Layout
Combination Layout

26. Elements of Utility Layout
Lightening Arrangement
Ventilation
Air Conditioning
Industrial Cleanliness
Noise Control