Plant layout

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Plant layout

  1. 1.  Introduction  Factors affecting plant location decisions  Study of plant locations of three business organizations  Amader boutique  SSP Associates  Supreme Industries Ltd.  Plant layout  Study of plant layout of Durgapur Steel Plant  Conclusion
  2. 2.  Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. These decisions are strategic, long term, non repetitive decisions. Types of plant locations:-  Localization/ centralization:- This refers to the establishment of similar types of industries at a particular place.  Delocalization/ decentralization:- Refers to the setting up of similar industries at different places.
  3. 3.  Natural or climatic conditions.  Nearness to source of raw materials and other resources.  Transportation and communication facilities and nearness to market.  Availability of banking and financial institutions.  Availability of skilled and non-skilled labour and technically qualified and trained managers.
  4. 4. STUDY OF PLANT LOCATION OF THREE BUSINESS ORGANIZATIONS
  5. 5. Address :- 12A, Chaitanya Avenue, Durgapur- 713205 The location of the boutique was decided in May 2012 and the boutique opened on 22nd October 2012. Factors considered while deciding the location:-  Cost of construction and land aquisition is nil.  Nearness to the transportation facility.
  6. 6. Merits of the location decision:-  The boutique attracts a lot of customers as it is located in a busy location (opposite to Pranavananda Vidya Mandir and also near D.A.V. Model School) Competetive advantages of this location:-  No other boutiques in this locality .  The prices are reasonable as compared to others. Disadvantages of this location:-  The location is far away from the market place.
  7. 7. Address:- RC -39 Urvashi, Bengal Ambuja,City Centre, Durgapur-713216. The organization was set up in the year 2009. Factors considered while deciding the location:-  Availability of all types of transportation facilities nearby.  Recurring cost for rent is relatively low compared to the local market.
  8. 8. Merits of the plant location decision:-  Cost-efficient.  Transportation facility is smooth.  The firm is located in the heart of the city. Competitive advantages of the location:-  The firm is set up in a posh area, and there are no such competitive firm close to it.  The firm has an eye-catching decoration, impressive outlook.
  9. 9. Address :- EPIP, Durgapur-713212 The organization was set up in the year 2001 Factors considered while deciding the location:-  Large hinterland of business area such as Bengal, Bihar, Orisha & Jharkhand.  Availability of skilled labour at low cost.  Availability of good infrastructural facilities.
  10. 10. Merits of the plant location decision:-  Government promotion package is provided.  Availability of stable electricity and water supply.  Presence of high skilled human resource. Competitive disadvantages of this plant location:-  The production line is new in the region for which familiarity for day to day production process and skilled labour partially mismatch .
  11. 11.  Refers to the arrangement of machinery, equipments and other industrial facilities for acheiving the smoothest and quickest production at the least cost. Principles of plant layout :-  Principle of minimum travel  Principle of sequence  Principle of usage  Principle of compactness  Principle of safety
  12. 12.  Principle of flexibility  Principle of minimum investment Types of layout:-  Product / Line layout  Process / Functional layout  Fixed position / Location layout  Combined layout  Cellular / Group technology layout
  13. 13.  The plant location is an important entrepreneurial decision as it influences cost of production and distribution to a great extent.  In some cases, the location may contribute to even 10% of cost of manufacturing and marketing.  Poor plant location often leads to higher costs,difficult marketing and transportation and competitive disadvantage.
  14. 14.  Plant layout is fundamental of every organisation and business. Layout problems greatly impact the system performance. Plant layout is an important decision as it represents long term commitment.  A well planned layout contributes to the efficiency of the operations and can also reduce the operating costs by 50%.  Therefore, the plant location and layout decisions has to be taken carefully for growth and efficiency of the business organization.
  15. 15. THANK YOU !!!

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