1. 1-The load-distance method is a mathematical model used to evaluate locations based on
proximity factors. The objective is to select a location that minimizes the total weighted loads
moving into and out of the facility. The distance between two points is expressed by assigning
the points to grid coordinates on a map. An alternative approach is to use time rather than
distance.
To calculate a load-distance for any potential location, we use either of the distance measures
and simply multiply the loads flowing to and from the facility by the distances travelled. These
loads may be expressed as tones or number of trips per week. This calls for a practical example
to appreciate the relevance of the concept.
2-Facility location may be defined as a place where the facility will be set up for
producing goods or services. The need for location selection may arise under any of
the following conditions:
a. When a business is newly started.
b. When the existing business unit has outgrown its original facilities and
expansion is not possible; hence a new location has to be found.
c. When the volume of business or the extent of market necessitates th
establishment of branches.
d. When the lease expires and the landlord does not renew the lease.
e. Other social or economic reasons.
Need for Facility Location Planning
1- Facility location planning is also required for providing a cost benefit to the
organisation.
2- The location planning should help in reducing the transportation cost for the
organisation. This ultimately helps in decreasing the cost of production and
generating cost advantage for the organisation.
3- It is also needed to identify proximity to the sources of raw materials and
transportation facilities.
4- A facility should ideally be located at a place where raw materials are available.
This is necessary for maintaining continuity in the production process.
3-
1. Selection of Region:
Availability of Raw Materials: ...
Proximity to Markets: ...
Transport Facilities: ...
Availability of Power, Fuel or Gas: ...
Water Supply: ...
Disposal Facility for Waste Products: ...
Climatic and Atmospheric Conditions: ...
Availability of Labour:
2. 2.Township Selection:
(i) Availability of men power of requisite skill
(ii) Competitive wage rates of workers
(iii) Other enterprises which are complementary or supplementary regarding raw materials, other
input, labour and skill required.
(iv) Moderate taxes and the absence of restricting laws.
(v) A favourable cooperative and friendly attitude towards the industry.
(vi) Favourable living conditions and standards keeping in view the availability of medical and
educational facilities, housing, fire service, recreational facilities, cost of living etc.
3. Question of Urban and Rural Area:
4. Location of a Factory in a Big City:
5. Location of an Industry in Small Town:
6. The Sub-urban Location for a Factory:
4-Factor Rating Technique
This method involves qualitative and quantitative inputs, and evaluates alternatives based on
comparison after establishing a composite value for each alternative. Factor Rating consists of
six steps
0. Determine relevant and important factors.
1. Assign a weight to each factor, with all weights totaling 1.00.
2. Determine common scale for all factors, usually 0 to 100.
3. Score each alternative.
4. Adjust score using weights (multiply factor weight by score factor); add up scores
for each alternative.
5. The alternative with the highest score is considered the best option.
3. Question-
Answer-
5-
Pros And Cons Of Process Layout In Short:
Pros
- It is flexible and can be easily expanded as per the requirement
- There will be no stoppage in the production process
- Less supervision and control is required because of specialization
- It fully utilizes the machines, equipment and devices in the work station
- It minimizes the overhead costs
Cons:
- It requires more investment
- More space is needed to arrange machines and equipment
4. - Due to long processing time, cost of production will be increased
- Ir requires more inspection costs than product layout
