when we want to start business then first think in your mind is factor affecting plant location. I hope its help in your business.

1. Roll No: 1729
A
PROJECT REPORT ON
“Factor Affecting On Plant Layout ”
Submitted By:
Sanket.A. Pawar
Submitted To:
Mr.Nirav Halwadiya sir
PGDM AGRI BUSINESS MANAGEMENT 2017-2019
In partial fulfillment of the requirements for Operational Management
(Semester2)

2. TABLE OF CONTENTS
Title
1. Availability of Raw Materials
2. Government factor
3. Cultural/political factor
4. Availability of Manpower
5. Matarial Handaling
6. Climate
7. Repair and Maintainances
8. Ecological and Environmental Factor
9. competition

3. Availability of Raw Materials
 This is more important factor in the location of plant.
 The biggest advantage of availability of raw material at the location of
industry is that it involves less cost in terms of ‘transportation cost.
 If the raw materials are perishable and to be consumed as such, then the
industries always tend to locate nearer to raw material source.
 Example: MRF limited
 Tyre industry is highly row material intensive ,row material cost accounts for
approx. 63% of tyre industry turnover and 72%of production cost.

4. Government polices,tax,incentive:
 Ex.
 India Government To Build World’s Largest Solar Power Plant In
Rajasthan
 Government reduce solar power taxes in the country.
 The project will be spread across 23,000 acres of land belonging to the
state-run Sambhar Salts Ltd, near the Sambhar Lake, which is about 47 miles
away from Jaipur, Rajasthan’s capital city.
 The first phase of the project, which will be for 1,000 megawatt capacity, is
expected to be completed in three years and will be run by a joint venture
of five state-run utilities, including BHEL, Power Grid Corporation of
India and Solar Energy Corporation of India.
 However, the government aims to increase the current capacity of 1,700
megawatts of solar power to 20,000 megawatts of solar energy by 2020,
through its ambitious project, the national solar mission.

5. Political cultural
 Ex .Cattle slaughter plant in Maharashtra
 in India because of the cattle's traditional status as an endeared and
respected living being to many in Hinduism, Sikhism, Jainism and
Buddhism, in contrast to cattle being considered as a religiously
acceptable source of meat by many in Islam, Christianity as well as some
in Hinduism and other Indian religions.
 More specifically, the cow's slaughter has been shunned because of a
number of reasons such as being associated with god Krishna in
Hinduism, cattle being respected as an integral part of rural livelihoods
and an essential economic necessity
 . Historically, cattle slaughter has also been opposed by various Indian
religions because of the ethical principle of Ahimsa (non-violence) and
the belief in the unity of all life.
 Article 48 of the Constitution of India mandates the state to prohibit the
slaughter of cows and calves and other milch and draught cattle
 . On 26 October 2005, the Supreme Court of India, in a landmark
judgement upheld the constitutional validity of anti-cow slaughter laws
enacted by different state governments in India
 24 out of 29 states in India currently have various regulations prohibiting
either the slaughter or sale of cows.
 Kerala, West Bengal, Arunachal Pradesh, Mizoram, Meghalaya,
Nagaland, Tripura and Sikkim are the states where there are no
restrictions on cow slaughter

6. Availability of Manpower:
 Manpower required in the plant may be highly skilled, semiskilled, or
unskilled. On certain particular machines, where high precision work is
done, only services of experienced highly skilled workers can be utilized.
 Routine work may affect the routing procedure in context to manpower
are job incentives, lot size, light, heavy or medium sized work etc
 Ex .Adani Power plant ,ahmeadabad.GJ.

7. Handaling material
 Mainly deals with the movement of men and materials.
 A good layout should ensure short moves and should always tend towards
completion of product.
 It also includes interdepartmental movements and material handling
equipment.
 This includes the flow pattern reduction of unnecessary handling, space
for movement and analysis of handling methods.
 Ex Parle agro mumbai. ,Maharashtra.

8. Climate:
o Ex .automatic weather station.
 An automatic weather station (AWS) is an automated version of the
traditional weather station, either to save human labour or to enable
measurements from remote areas.
 An AWS will typically consist of a weather-proof enclosure containing the data
logger, rechargeable battery, telemetry (optional) and the meteorological
sensors with an attached solar panel or wind turbine and mounted upon a mast.
 The specific configuration may vary due to the purpose of the system
 The system may report in near real time via the Argos System and the Global
Telecommunications System, or save the data for later recovery.

9. Repair and maintainance of machine:
 Plant layout designed in such manner to take proper care with regarding
repair and maintainance of different types of machines.
 Ex .Maintainace of sugar factory.

10. Ecological and Environmental Factors:
 In case of certain industries, the ecological and environmental factors like water
and air pollution may turn out to be negative factor in deciding enterprise
location.
 For example, manufacturing plants apart from producing solid waste can also
pollute water and air. Moreover, stringent waste disposal laws, in case of such
industries, add to the manufacturing cost to exorbitant limits.
 In view of this, the industries which are likely to damage the ecology and
environment of an area will not be established in such areas. The Government
will not grant permission to the entrepreneurs to establish such industries in
such ecologically and environmentally sensitive areas.
 Ex .jaitapur nuclear power plant,Maharashtra.

11. Competition:
 Entry and exist barrier of new enterprises depend on degree of
competition.many enterprises revenue of a particular area depends on
the degree of competition from other competitors’ location nearby
plays a crucial role in selecting the location of an enterprise.
 The areas where there is more competition among industries, the new
units will not be established in these areas.
 On the other hand, the areas where there is either no or very less
competition, new enterprises will tend to be established in such areas.
 Ex.UBER and OLA company in Mumbai.