The document outlines a case study on the location selection for a new facility of HAL, emphasizing its strategic importance in the aerospace and defense sector within India. Key factors influencing the selection include governmental incentives, labor availability, and transportation links, ultimately leading to the decision to establish the facility in Jaipur due to its logistical advantages and proximity to defense resources. The initiative aligns with the 'Make in India' program aimed at boosting domestic manufacturing and reducing reliance on imports.

1. FACILITY LOCATION
SELECTION : A CASE STUDY

2. Location selection –
Accessories &
Maintenance Division
PRESENTED BY : KHUSHBOO CHOUDHARY

3. HAL-HINDUSTAN AERONAUTICS LIMITED
 An Aerospace and Defence company
 PROFILE - Designing, Manufacturing, Maintenance and Assembly
 ARTEFACT - Aircraft, Jet Engines, Helicopters ,Communication & Navigation
equipments, and the spare parts.
 CREATION - HF-24 Marut, Bristol Siddeley Orpheus jet engines, Tejas, Dhruv, MiG-
21 Bison, GTSU-110 , PSLV, GSLV etc.
 CUSTOMERS - Indian Defence Services, Cost Guards and Border Security Forces.
 PURVEYOR/CONTRACTS - Airbus, Boeing and Honeywell to manufacture aircraft
spare parts and engines.
 COLLABORATION - RSK MiG, BAE Systems, Sukhoi Aviation Corporation, Airbus,
Boeing, etc.
 Transport Aircrafts and Helicopters have also been supplied to Airlines as well as State
Government of India. The Company has achieved a foothold in export in more than 30
countries, having demonstrated its quality price competitiveness.

5. LOCATION SELECTION!. WHY?
WHAT’S THE NEED??
 Make in India is an initiative launched by the Government of India to
encourage multi-national as well as national companies to manufacture their
products in india.
 HAL has set up MAKE IN INDIA CELL at its manufacturing divisions, R&D
centers to boost Import Substitution, R&D and Technology Development to
achieve self reliance, a step towards “MAKE IN INDIA”.
 Nodal Officers across HAL manufacturing divisions and its R&D centers are
furnished so that the Private Vendors can contact HAL to take up indigenization
and R&D Projects.

6.  Invitation for “Empanelling Vendors for Make in India Programme for SU-30
MkI” was given.
 By 2012, HAL was reportedly been bogged down in the details of production and
has been slipping on its schedules.
 To cope up with the schedules and to meet the commitments on time, we have
decided to setup the facility on favorable location.
 The choices that we have are : JAIPUR, JODHPUR, & BIKANER.

7. Factors That Affect Location Decisions
 Country Decisions
 Government rules, attitudes, stability, incentives
 Cultural and economic issues
 Location of markets
 Labor availability, attitudes, productivity, costs
 Availability of supplies, communications, energy
 Exchange rates
 Site Decisions
 Site size and cost
 Air, rail, waterway systems
 Zoning restrictions
 Nearness of services/supplies needed
 Environmental impact issues

8. Factors That Affect Location Decisions (cont.)
 Region/Community Decisions
 Corporate desires
 Attractiveness of region (culture, taxes, climate, etc…)
 Labor availability, costs, attitudes towards unions
 Cost and availability of utilities
 Environmental regulations of state and town
 Government incentives
 Proximity to raw materials and customers
 Land/construction costs

9. Costs: Tangible Vs. Intangible
 Utilities
 Labor
 Material
 Taxes
 Depreciation
 Other costs that accounting can
easily identify
 Quality of education
 Public transportation facilities
 Community attitudes toward the
industry and the company
 Quality and attitude of prospective
employees
 Climate
 Foreign exchange
Tangible- readily identifiable and
precisely measured Intangible- not easily quantifiable

10. Factor Rating Method
 List relevant factors
 Assign importance weight to each factor (0-1)
 Develop scale for each factor (1-100)
 Score each location using factor scale
 Multiply scores by weights for each factor & total
 Select location with maximum total score.

12. Cost-Volume Analysis
 Determine fixed and variable costs for each
location
 Plot total costs for each location
 Select location with lowest total cost for
expected production volume
-must be above break-even

14. Graph

15. Center-of-Gravity Method
x - coordinate =
∑dixQi
∑Qi
i
i
∑diyQi
∑Qi
i
i
y - coordinate =
where dix = x-coordinate of location i
diy = y-coordinate of location i
Qi = Quantity of goods moved to or from
location i

16. X=(200*75)+(100*105)+(250*135) /(75+105+135) =188.0952381
Y=(200*75)+(500*105)+(600*135)/(75+105+135)=471.4285714

17. Graph
200, 200
100, 500
250, 600
188.1, 471.4
0
100
200
300
400
500
600
700
0 50 100 150 200 250 300
Miles
Miles
Center Of Gravity
Locations
Center Of Gravity

18. Conclusion:
New facility location: JAIPUR
 Better co-ordination
 Improved quality of work
 Better supervision and use of machinery.
 Flexibility
 Uniformity in action
 Reduced cost
 Prime Location ( Airport -22kms, Railway station -21kms)
 Railway connectivity and Air connectivity to PAN idea and to major countries.
 Dry shipping port
 Standby Airport for Delhi.
 Defence Strategic Point of view - Peaceful state
 Simplified regulatory and statuary requirements of state government.

19. Conclusion (cont.):
New facility location: JAIPUR
 Support to Aircrafts of BSF will be easily extended
 Since more than 20% of Indian Defence is in Rajasthan – Best Asset !
 It will work as an resettlement of Retired Defence personnel from Rajasthan.
 North Hub Connectivity
 Rajasthan has one of the largest Army Command of the country.
 Very approachable in view of Operational activities for IAF and BSF base.
 Testing of flights can be carried at Various AF bases and Pokaran.
 Best connectivity with other HAL divisions : Accessories Division Lucknow,
Aircraft Division Nasik, Aircraft Division Bangalore, Avionics Division
Hyderabad, Avionics Division Korwa, Engine Division Bangalore, Foundry and
Forge Division Bangalore ,Engine Division Koraput, Helicopter Division
Bangalore, Overhaul Division Bangalore, Transport Aircraft Division Kanpur,
Industrial & Marine Gas Turbine Division Bangalore.

20. Thank You