Facility location/ plant location
-
Upload
shillu-blue -
Category
Small Business & Entrepreneurship
-
view
265 -
download
6
description
Transcript of Facility location/ plant location
S.ESTHER SHILPA
“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.
“Plant location is often result of
compromise among conflicting social,
economic and geographical conditions.”
- Lansburg
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
• 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
• 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
• 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
• Construction costs
• Land costs
• Raw material and finished goods shipment modes
• Proximity to raw materials
• Utilities
• Labor availability
• E.g. machines, engines parts
• 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
• Population
• Accessibility
• Visibility
• Parking
• Competition
• Safety & Security
• MULTIFACTOR RATING
• DECISION TREE
• BREAK-EVEN ANALYSIS