facility location/ plant location
DESCRIPTION
“Plant location is often result of compromise among conflicting social, economic and geographical conditions.”TRANSCRIPT
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S.ESTHER SHILPA
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“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.
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“Plant location is often result of
compromise among conflicting social,
economic and geographical conditions.”
- Lansburg
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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
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• 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
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• 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
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• 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
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• Construction costs
• Land costs
• Raw material and finished goods shipment modes
• Proximity to raw materials
• Utilities
• Labor availability
• E.g. machines, engines parts
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• 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
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• Population
• Accessibility
• Visibility
• Parking
• Competition
• Safety & Security
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• MULTIFACTOR RATING
• DECISION TREE
• BREAK-EVEN ANALYSIS
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