PLANT LOCATION AND FACTORS AFFECTING OF PLANT LOCATION

1. PRESENTED BY
SANDIP A. KURIL
MBA- DNC COLLEGE NAGPUR
MOB-8888206626
PRESENTED TO
Dr. TUSHAR TALE SIR

2. What is Plant Location ??
Meaning : The plant location is the physical location,
where the plant of the company is located.
 Plant location refers to selecting an ideal location for
establishing a plant so that it could bring maximum
economic to scale , efficiency and effectiveness in the
operation.

3. What is Plant Location ??
Definition:
According to Prof. Smith and Alwater :-
“ Plant location stands for
that spot where in consideration of the
business as a whole, the total cost of
production and delivering goods to all
the consumers is the lowest.”

4. Need for Selection of Location
Starting New
Organization
Existing
Organization
Global
Location

5. Important of location
 Availability of Resources
 Nearness of Location from Marke
 Better Service to the Customers
 Market Competition
 Select the Best Location

6. Types of Plant Location
 Single Plant
Location
There may be one location
wherein all the different facilities
are available and all the
activities are done under one
roof.

7. Multi-plant Location refers that the
different-different Product are
process multiple location.
Example : Coca- Cola and Pepsi
are used For multi plant location
because reduction overall cost of
the Transportation and other cost.
 Multi-Plant
Location
Types of Plant Location

8. Factors Affecting Plant Location
Decision
1) Internal Factors : Internal factors refers to Plant
or Company internal factors. This factors controllable and
manage. For example Labor, Machinery, Production
Technology etc.
1) External Factors :
External factors are uncontrollable
and out side of the business. This factors
they do not changes. For example Raw
Materials, Availability of labor,
Transportation, Government Policy etc.

9. Factors Affecting Plant Location
Decision
External Factors :
1. Availability Raw Materials
2. Skills Work Forces Labor
3. Nearness of Market
4. Safety Requirements
5. Availability of Useful Services
Power, Gas, Water, Electricity
6. Transportation, Communication
7. Supporting Industrial Relationship
8. Government Policy, rules and
Regulation
9. Social Infrastructural

10. THANK YOU !!!