The document discusses factors to consider when determining the optimal location for a manufacturing plant. It notes that location should allow for profitable product sales, low production costs, and interest from local inhabitants. Additionally, the decision often requires balancing social, economic and geographic conditions. The document outlines numerous internal factors the founder of a company should evaluate according to the "10 M's" model, as well as external environmental considerations.

1. S.ESTHER SHILPA

2. “A Plant should be located at a place
where inhabitants are interested in its
success, the product can be sold profitably
and production cost is minimum.”
- Dr. Vishweshwarya.

3. “Plant location is often result of
compromise among conflicting social,
economic and geographical conditions.”
- Lansburg

4. Dr. Vishweshwarya says that decision of
plant location is based on 10 M’s,
Man
Money
Material
Means of Power
Momentum to
early start
Market
Motive
 Means of
Communication
Management
Machinery

5. • Heavy-manufacturing facilities
– large, require a lot of space, and
are expensive
• Light-industry facilities
– smaller, cleaner plants and
usually less costly
• Retail and service facilities
– smallest and least costly

6. • Government stability
• Government regulations
• Economic stability and
growth
• Exchange rates
• Culture
• Climate
• Export import regulations,
duties and tariffs
• Raw material
availability
• Number and proximity
of suppliers
• Transportation and
distribution system
• Labor cost and
education
• Available technology
• Technical expertise
• Cross-border trade
regulations

7. • Labor
• Proximity of
customers
• Number of customers
• Construction costs
• Land cost
• Financial services
• Climate
• Modes and quality of
transportation
• Transportation costs
• Proximity of suppliers
• Education system
• Raw material
availability
• Commercial travel

8. • Construction costs
• Land costs
• Raw material and finished goods
shipment modes
• Proximity to raw materials
• Utilities
• Labor availability
• E.g. machines, engines parts

9. • Transportation costs
• Proximity to markets
• Frequency of delivery required by
customer
• Land costs
• Easily accessible geographic region
• Education and training capabilities
• E.g. Manufacture of clothes, furniture,
consumer electronics and home
appliances

10. • Population
• Accessibility
• Visibility
• Parking
• Competition
• Safety & Security

11. • MULTIFACTOR RATING
• DECISION TREE
• BREAK-EVEN ANALYSIS