1. Plant location and
layout planning
BY
PRAGNA PATEL
PGDM 1 YEAR
NOVA BUSINESS SCHOOL

2. PLANT LOCATION
A plant should be located at a place where inhabitants are
interested in it’s success, the product can be sold profitably
and production cost is minimum – DR. Vishweshwarya.
A plant location is often result of compromise among
conflicting social, economic and geographical conditions –
Lansburg.

3. The Principal Factors To Be
Considered Are:
Location, With Respect To The Marketing Area.
Raw Material Supply.
Transport Facilities.
Availability Of Labor.
Availability Of Utilities: Water, Fuel, Power.
Availability Of Suitable Land.
Environmental Impact, And Effluent Disposal.
Local Community Considerations.
Climate.
Political Strategic Considerations

4. LOCATION WITH RESPECT TO MARKETING
AREA:
 For Materials that are produced in bulk quantities such as
cement, mineral acids and fertilizers, the plant should be
located close to the primary market.
RAW MATERIAL SUPPLY:
 The availability and price of suitable raw materials will often
determine the site location. Plants producing bulk chemicals
are best located close to the source of the major raw material.
Ex: Soda Ash plant should be located near the Salt Lakes Or
near Sea, where Sodium Chloride is available abundantly.

5. TRANSPORT:
 The transport of materials and products to and from plant will
be an overriding consideration.
If practicable, a site should be selected that is close to at least
two major forms of Transport: Road, Rail, Waterway Or A
Seaport.
AVAILABILITY OF LABOUR:
 Labor will be needed for construction of the plant and its
Operation. Skilled construction workers will usually be
brought in from put side the site. But there should be adequate
pool of unskilled labor available locally.

6. UTILITIES:
 The Word “Utilities” Is Now Generally Used For The
Ancillary Services Needed In The Operation Of Any
Production Process. These Services Will Normally Be
Supplied From a Central Facility; And Will Include:
 A. electricity
 B. steam for process heating
 C. cooling water
 D. water for general use
 E. refrigeration
 F. effluent disposal facilities

7. ENVIRONMENTAL IMPACT, AND EFFLUENT
DISPOSAL
 All industrial processes produce waste products, and full
consideration must be given to the difficulties and coat of their
disposal. The disposal of toxic and harmful effluents will be
covered by local regulations, and the appropriate authorities
must be consulted during the initial site survey to determine the
standards that must be met.
POLITICAL AND STRATEGIC CONSIDERATIONS
 Capital Grants, Tax Concessions, and other inducements are
often given by governments to direct new investments to
preferred locations such as areas of high unemployment .

8. LOCAL COMMUNITY CONSIDERATIONS:
The plant must be acceptable to local community such that it
should not impose any additional risk to community t should
be available for proposed plan and future expansions.
CLIMATE:
Adverse climatic conditions at site will increase costs.
Abnormally low temperatures will require the provision of
additional insulation and special heating for equipment and
piping. Stronger locations will be needed at locations subject
to high wind loads or earthquakes.

9. LAYOUT PLANNING
 Layout planning in manufacturing and service
organizations involves the physical arrangement of
various resources available in the system to improve
the performance of the operating system, there by
providing better customer service.

10. OBJECTIVES OF PLANT LAYOUT
An efficient layout can be instrumental in the
accomplishment of the following objectives-
 Economies in materials, facilitate manufacturing
process & handling of semi-finished & finished
goods.
 Proper & efficient utilization of available floor
space.
 To avoid congestion & bottlenecks.
 Provision of better supervision & control of
operations.
 Careful planning to avoid frequent changes in
layout which may result in undue increase in cost of
production.

11. OBJECTIVES OF PLANT LAYOUT
 To provide adequate safety to the workers from
accidents.
 To meet the quality & capacity requirements in the
most economical manner.
 Provision of medical facilities & cafeteria at suitable
& convenient places.
 To provide efficient material handling system.
 To suggest the improvements in production process
& work methods.

12. TYPES OF PLANT LAYOUT
 Product layout
 Process layout
 Fixed Position/ Stationary layout
PRODUCT LAYOUT
 Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 Here machines are arranged acc. To the needs of
product & in the same sequence as the
operations are necessary for manufacture.

13. PRODUCT LAYOUT

14. PROCESS LAYOUT
layout that can handle varied processing
requirements
here all machines performing similar type of
operations are grouped together at one location
in the process layout. thus here facilities are
grouped together acc. to their functions. e.g.
all drilling machines are located at one place
known as drilling section.

16. PROCESS LAYOUT

17. FIXED POSITION LAYOUT
Layout in which the product or project remains stationary, and
workers, materials, and equipment are moved as needed. E.g.
 Employed in large project type organisation
 construction of DAMS.
 ISRO
 Helicopter
 Nuclear engg. Division of BHEL
The product, because of its size and/or weight, remains in one
location and processes are brought to it.

18. FIXED POSITION LAYOUT