What is plant location in production management. Plant location analysis 2022-10-10
What is plant location in production management Rating:
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Plant Location/Site Location
For finding this, statistical analysis, questionnaire survey or other techniques may be employed. Now Total cost of production and distribution, i. Market Location : ADVERTISEMENTS: To solve such problems a market analysis of the area is conducted and answers of the following questions can be found out: 1. Nearness to Markets: It reduces the cost of transportation as well as the chances of the finished products getting damaged and spoiled in the way especially perishable products. Location at the main roads or corner is best suited, if finances allow. Location of the plant itself becomes a very important factor concerning service facilities, as the plant location decisions are strategic and long-term in nature.
Plant Location: Importance, Techniques and Procedure
Since the products of one plant feed into the other plant, this strategy requires much-centralized coordination of the manufacturing activities from the corporate office who are expecting to understand the various technological and resources nuances of all the plants. So the trend is towards sub-urban areas, which take advantage of both the areas and eliminate limitations. Procedure for Selecting a Site: For selecting a site following procedure should be followed: 1. The cost of land is high and rates are liable to increase further. Raw material cost is a part of total production cost. The major reasons are, 1.
It is, therefore, very essential that utmost care should be exercised in the initial stages to select a proper place. Transport facilities are essential for bringing raw materials and men to the factory and for carrying the finished products from the factory to the market. Disadvantages of urban areas: After few years the sub-urban area may developed into an urban area with its advantages and disadvantages. A homebuilder might be interested in proximity to schools, while a commercial spot will want high visibility. Land for expansion is not available at reasonable rates. Examples are shoes, furniture, glassware industries.
Location Theories of Production and Operation Management
Definition According to B. For example - If management installs its plant in an underdeveloped country, they will choose a labor-intensive process to take benefit of the availability of low-cost labor. Plant location may be understood as a function of determining where the plant should be located for the best operating costs and effectiveness. Adequacy of labor supply at reasonable wages is very essential for the smooth and successful working of an organization operational management ii Civic Amenities for Workers Besides good working conditions inside the factory, the employees require certain facilities outside it. This is necessary because countries across the world are varying with each other to attract foreign investments. ADVERTISEMENTS: The rate of return is highest at Delhi due to the following reasons: 1. Depending on the industry, your choices may already be made when it comes to the location of that industry.
In other words, places with well-developed means of transport attract industries. BPA Educators offers Basic and advanced courses in Course Offered:- 1 PAP 2 PAP + 3 MIS 4 GST Practical Training and E-filling 5 Direct Tax Practical Training and E-Filling 6 MS Office Basic and Advance 7 IELTS 8 BCOM Coaching 9 CA,CS,CMA Coaching 10 11 Tally. If the ratio is small then this factor is not important. More problems about labour and employer relations. Possibility of a reduction in labor cost by using better methods or better quality of labor. It is sometimes possible that all the requirements and features of ideal site may not be available at one particular location but then it will be advantageous to find out suitable site with combinations of all essential requirements of the particular industry to be established as explained in following paras. An offer of a factory site or an existing plant.
Step 1: Find the important factors. A new enterprise may be suffered throughout its life due to unfavourable location. Finally add the weighted points to find the best site. Marketing, transportation, quality, customer satisfaction are some of the other factors which are greatly influenced by the plant location decisions — hence these decisions require in-depth analysis. For this, multiply each un-weighed point rating with the appropriate weighted.
What is facility location in operational management ?
Labour is cheaply available. It is a good labour market, where all types of labour available. In simple words, the area or location where the firm set up its plant is called a plant location. It also reduces transportation cost. The selection of the site is influence by the following considerations: Soil, Size, and Topography For factories producing engineering goods, the fertility or otherwise of the soil may not be a factor influencing plant location. But for a big company, the amount of investment is large.
Land: ADVERTISEMENTS: Topography, area, the shape of the site, cost, drainage and other facilities, the probability of floods, earthquakes from the past history etc. For achieving this objective, small-scale business can make use of location analysis for this purpose. Because of high standard of living, higher wages of labour will have to be paid. The first renting contract with owner must not exceed one year or so, and commitments for five or ten years must not be made until success of the projects is certain. Climatic Conditions: ADVERTISEMENTS: With the developments in the field of heating, ventilating and air- conditioning, climate of the region does not present much problem. Degglommeration occurs when companies and services leave because of over concentration of industries or of the wrong types of industries, or shortages of labour, capital, affordable land, etc. Community Attitude and Few Others.
There are some consistencies, though. However, laying miles of pipe or running power lines to the facility can take a lot of time and cost a lot of money. It may not be proper to have too many contradictions such as sophisticated and old equipment, highly skilled and not so skilled personnel, delicate processes and those that could permit rough handling, all under one roof and one set of managers. For example, a high-quality precision product-line should preferably not locate along with other product-line requiring a little emphasis on precision. Weber also examined factors leading to the diversification of an industry in the horizontal relations between processes within the plant. Location in rented premises is always better than purchasing. It may be said that industry follows transportation.