Content

Ú Introduction to group
Ú Meaning
Ú Need for location decisions
Ú Objectives of location decision
Ú Importance of location decisions
Ú Factors affecting location decisions
Ú Facility layout
Ú Need for layout decisions
Ú Objectives of good plant layout
Ú Significance of layout
Ú Factors influencing layout choices
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Student name Roll no.

Sweta Banrajee 30902
Nikita Hadawale 30913
Rutuja Harshe 30914
Payal Nayak 30930
Ranjita Ojha 30931
Sneha Sonawane 30950
Richa Yadav 30960
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 Need for location decisions

Ú Newly started business.

Ú Business firm wants to expand itǯs market.
Ú An organization experiences growth in demand.
Ú Rising costs of inputs or distribution of output.
Ú Social and economic reasons :
1. shortage of labour supply.
2. shortage of electric power.
3. changes in life style of customer.
 Objectives of location decision.

Ú Maximizing the potential profits.

Ú Achieve a balance between cost and level of customer service.
Ú Find a number of acceptable locations from which to choose one.
Ú Maximize the benefit of location to the firm.
Ú Have a competitive advantage.
 Importance of location decisions.

Ú Involve a long term commitment.

Ú A wrong choice of location may result in:
1.excessive transportation cost
2. Shortage of qualified labor
3. Loss of competitive advantage.
4. Inadequate supply of raw materials.
Ú for services, a poor location could result in lack of customers.
 Factors affecting location decisions

Ú Deciding on domestic or international locations.

Ú Regional location decision
1. Nearness to the market
2. Proximity to suppliers
3. Availability of raw materials.
4. Availability of power
5. Transport facilities.
Ú Selection of community.
1. Availability of labor
2. Civic amenities for employees.
3. Finance and research facilities.
4. Availability of water.
5. Local taxes and restrictions.

Ú Selection of exact site.

1. Area of land available and cost of land.
2. Disposal of waste.
3. Community attitude.
 Regional :
Climate and
competition Community attitude and
Labor supply, skills, image
costs, housing, unions

Non-economic impacts,
Ecological environment,
social
Raw material
SITE
supply costs,
utilities energy, Marketing &
water, services distribution,
storage
Zoning, land costs, transportation
construction costs,
waste disposal,
Capital, equity and debt, storage, expansion Economic
sources, banking terrain impacts,wages,taxes,
facilities profits
 Facility layout

It refers to configuration of departments, work-centers and

equipment and machinery with focus on the flow of materials or
work through the work production system.
 Need for layout decisions

Ú Inefficient operations
Ú Accidents , health hazards and low safety
Ú Changes in product design / service design
Ú Introduction of new products/services
Ú Changes in volume of output
Ú Changes in processes, methods or equipments
Ú Changes in environment or legal requirements
Ú Low employee morale
 Objectives of good plant layout

Ú Higher utilization of space , equipment and people

Ú Improved production capacity
Ú Reduced health hazards and accidents
Ú To provide ease of supervision
Ú To allow ease of maintenance
Ú To utilize available space efficiently and effectively
Ú To improve productivity
 Significance of layout

Ú Facilitating the flow of material and information

Ú Increasing the efficient utilization of labour and equipment
Ú Increasing customers convenience and sales
Ú Reducing hazards to employees
Ú Improving employee morale
Ú Improving communication
 Factors influencing layout choices

Ú Material
Ú Product
Ú Workers
Ú Machinery and equipments
Ú Location
Ú Managerial policies
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