Short notes on layout and operational facilities for Tablet.
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In some cases, it is beneficial to locate the factory (plant) near to raw material. If the cost of transportation of
raw material is very high comparison to the transportation of finished goods, it is suitable to establish the
factory near to input resources. For example cement factory is established near the sources of lime because
major input is lime which is very bulky. Similarly, sugar factory is established nearer to sugar cane farm.
Other examples are oil refineries, steel industries, and paper industries which are established nearer to
source of raw material.
Nature of output (product or service):
In some cases it is beneficial to locate the facility nearer to market or potential customer. Service produced by
hotels, golf course, church, temples, schools, hospitals, are usually located near the market or the recipients
because these services cannot be transported or keep in stock. These facilities should be located within the
reach of consumers.
In manufacturing organization, when the product are potential of being damaged or spoiled in course of
transportation it is beneficial to establish plant nearer to market. Furthermore, a plant being nearer to the
market can catch a big share of the market and can render quick service to the customer. In some cases the
transportation of final product to market may be costly compared to transportation of raw material to
industry and transportation cost has significant effect, in such case it is beneficial to establish plant nearer to
market. For examples soft drink companies like Coca Cola and Pepsi are established nearer to market.
Nature of technology employed:
Conversion process and the technology employed also determine the facility location decisions. The
conversion process, which produces unfriendly conditions to the people and environment, are usually
located in remote areas i.e. far from consumer and the final product and service are transported to the
market. The nuclear plant and airport are the good examples.
Other minor factors affecting the location decisions are:
Availability of labors and their skill
Stable labor forces of right kind, adequate size (number), and reasonable rates with proper attitude towards
works are a few factors which govern the plant location to a major extent. The purpose of management is to
face less boycotts, strikes or lockouts and to achieve lower labor cost per unit of production.
Transport facilities:
Good transportation facility is an important factor of determination of location. Basic mode of
transportation like air, road, rail, water, pipelines are preferred based on the nature of raw material and
finished goods. A lot of money is spend on transporting the raw material and finished goods. The location
should minimize the cost of transportation.
Availability of services:
Services like gas, electricity, water, drainage, waste disposal, communication and other external amenities
like shop, community services, communication system etc. are also important
Suitability of land and climate:
The topography (geography) of the land also affects plant location. Similarly the climatic conditions e.g. rain
fall, humidity, average temperature are also critical factor while determining the location decisions.
Opportunity for expansion:
The long range prospective of expansion opportunity must be considered while making location decision.
The location should be flexible enough to cover the expansion program.
Political, cultural and economic situation and regional regulations:
The political instability may jeopardize the business. Socio-cultural situation like women, foreign worker
restriction of working should be considered. The economic condition of locality is important factor to be
considered for business like gambling, casino, insurance companies or private educational institutions.
Similarly, the study must be made of local regulations before determining the location decisions.
Special grants, regional tax and import (export) barriers:
Some local authorities and central government offer special grants, low interest loan, low rental or taxes and
other inducement in the hope of attracting certain industries to a particular location. Location of companies
to foreign countries to avoid export difficulties are now commonly accepted practices.
After identify the several key location requirement management should find the alternative l
raw material is very high comparison to the transportation of finished goods, it is suitable to establish the
factory near to input resources. For example cement factory is established near the sources of lime because
major input is lime which is very bulky. Similarly, sugar factory is established nearer to sugar cane farm.
Other examples are oil refineries, steel industries, and paper industries which are established nearer to
source of raw material.
Nature of output (product or service):
In some cases it is beneficial to locate the facility nearer to market or potential customer. Service produced by
hotels, golf course, church, temples, schools, hospitals, are usually located near the market or the recipients
because these services cannot be transported or keep in stock. These facilities should be located within the
reach of consumers.
In manufacturing organization, when the product are potential of being damaged or spoiled in course of
transportation it is beneficial to establish plant nearer to market. Furthermore, a plant being nearer to the
market can catch a big share of the market and can render quick service to the customer. In some cases the
transportation of final product to market may be costly compared to transportation of raw material to
industry and transportation cost has significant effect, in such case it is beneficial to establish plant nearer to
market. For examples soft drink companies like Coca Cola and Pepsi are established nearer to market.
Nature of technology employed:
Conversion process and the technology employed also determine the facility location decisions. The
conversion process, which produces unfriendly conditions to the people and environment, are usually
located in remote areas i.e. far from consumer and the final product and service are transported to the
market. The nuclear plant and airport are the good examples.
Other minor factors affecting the location decisions are:
Availability of labors and their skill
Stable labor forces of right kind, adequate size (number), and reasonable rates with proper attitude towards
works are a few factors which govern the plant location to a major extent. The purpose of management is to
face less boycotts, strikes or lockouts and to achieve lower labor cost per unit of production.
Transport facilities:
Good transportation facility is an important factor of determination of location. Basic mode of
transportation like air, road, rail, water, pipelines are preferred based on the nature of raw material and
finished goods. A lot of money is spend on transporting the raw material and finished goods. The location
should minimize the cost of transportation.
Availability of services:
Services like gas, electricity, water, drainage, waste disposal, communication and other external amenities
like shop, community services, communication system etc. are also important
Suitability of land and climate:
The topography (geography) of the land also affects plant location. Similarly the climatic conditions e.g. rain
fall, humidity, average temperature are also critical factor while determining the location decisions.
Opportunity for expansion:
The long range prospective of expansion opportunity must be considered while making location decision.
The location should be flexible enough to cover the expansion program.
Political, cultural and economic situation and regional regulations:
The political instability may jeopardize the business. Socio-cultural situation like women, foreign worker
restriction of working should be considered. The economic condition of locality is important factor to be
considered for business like gambling, casino, insurance companies or private educational institutions.
Similarly, the study must be made of local regulations before determining the location decisions.
Special grants, regional tax and import (export) barriers:
Some local authorities and central government offer special grants, low interest loan, low rental or taxes and
other inducement in the hope of attracting certain industries to a particular location. Location of companies
to foreign countries to avoid export difficulties are now commonly accepted practices.
After identify the several key location requirement management should find the alternative l
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