Facility Location Concepts
What is Facility Location?
Any place in which the factors of production, land, labor, capital, and enterprises are brought together for creation of goods/services is called Facility Location.
Result – efficient
and effective utilization of resources
Facility includes:
•Physical
resources
•Building
structure
•Supporting
equipment
•Service
area facilities
•Manpower
planning
3 Different Aspects of Facility Location
•Selection
of a Region
•Selection
of a Locality
•Selection
of a Site
Why these aspects are critical?
Selection of a Region
•Availability
of raw materials
•Nearness
to the source
•Proximity
to the market
•Availability
of transportation facilities
•Suitability
of climate
Selection of Locality
•Supply
of labor
•Prevailing
wage rates
•Existence
of supplementary/complementary industries
•Banking,
credit, and communication facilities
•Attitude
of the local people
•Local
taxes and laws
•Living
conditions for
workers
•Water
supply and fire-fighting serives
Selection of a Site
•Price
of the land
•Disposal
of waste
Plant Layout
“Plant Layout means placing the right
equipment coupled with the right methods in the right place to permit the
processing of product(s) in the most effective manner through the shortest move
in shortest time.”
Thorough knowledge of the following
factors is essential:
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