Feasibility factors presented by s. satyaveni
LOCATION   An industrial feasibility  study refers to the appropriate location selection ,that is where the project should be located, because the site may significantly influence the  cost of production and distribution ,distribution efficiency ,the operating environment ,etc
Factors   Raw Material Supply Proximity of Markets Transportation Facilities Power and Fuel Supply Water & Manpower Labour Laws Government Policies Natural & Climatic factors Strategic considerations Taxes & Fees Incentives & Disincentives Site & Services Socio-economic & political factors Other Miscellaneous factors
Factory Design   Factory design refers to plan for a particular  type of building , arrangement of machinery and equipment, provision of service facilities, lighting , heating , ventilation etc in the building. It influences the  operational costs of the enterprise.
Factory layout It is a floor plan for  determining and arranging the desired machinery and equipment of a plant. Factors like  nature of product, volume of production, material handling ,type of equipment, factory building , system of manufacture, service facilities, etc .,  should be taken into consideration while choosing a layout.
Importance Factory design and layout should be flexible so that it may be adapted easily to  technological change, modernization , diversification and expansion with minimum cost and time.
Optimum size   The size and the scale of operations of the unit determines its  efficiency and profitability This is determined by the  laws of returns to  achieve  equi-marginal  returns from all resources or factors of production.  It indicates a rational allocation of resources and a combination of inputs to secure maximum outputs under existing economic conditions and maximum profit due to the lowest average cost.
Measure of size INPUT Net worth Size of asset Employment Raw Material required Power needed Number & capacity of plant OUTPUT Volume of output Value of output
Thank you !

Ed

  • 1.
  • 2.
    LOCATION An industrial feasibility study refers to the appropriate location selection ,that is where the project should be located, because the site may significantly influence the cost of production and distribution ,distribution efficiency ,the operating environment ,etc
  • 3.
    Factors Raw Material Supply Proximity of Markets Transportation Facilities Power and Fuel Supply Water & Manpower Labour Laws Government Policies Natural & Climatic factors Strategic considerations Taxes & Fees Incentives & Disincentives Site & Services Socio-economic & political factors Other Miscellaneous factors
  • 4.
    Factory Design Factory design refers to plan for a particular type of building , arrangement of machinery and equipment, provision of service facilities, lighting , heating , ventilation etc in the building. It influences the operational costs of the enterprise.
  • 5.
    Factory layout Itis a floor plan for determining and arranging the desired machinery and equipment of a plant. Factors like nature of product, volume of production, material handling ,type of equipment, factory building , system of manufacture, service facilities, etc ., should be taken into consideration while choosing a layout.
  • 6.
    Importance Factory designand layout should be flexible so that it may be adapted easily to technological change, modernization , diversification and expansion with minimum cost and time.
  • 7.
    Optimum size The size and the scale of operations of the unit determines its efficiency and profitability This is determined by the laws of returns to achieve equi-marginal returns from all resources or factors of production. It indicates a rational allocation of resources and a combination of inputs to secure maximum outputs under existing economic conditions and maximum profit due to the lowest average cost.
  • 8.
    Measure of sizeINPUT Net worth Size of asset Employment Raw Material required Power needed Number & capacity of plant OUTPUT Volume of output Value of output
  • 9.

Editor's Notes