2. PLANT LOCATION
✔Plant location refers to the choice of a
specific geographic area where a company
decides to establish its manufacturing or
production facility.
✔The selection of a suitable plant location is a
critical decision for businesses, as it can
significantly impact their operations, costs, and
competitiveness.
3. FACTORS DETERMINING PLANT LOCATION
Raw Material
Availability
01 02
Transportation
Infrastructure
Labor Availability
and Skills
02
03
Labor Availability and Skills
04
06
05
Cost of Land
and Real Estate
Infrastructure
and Utilities
Political Stability
Climate and
Weather Conditions
07 08
Future Growth
Opportunities
13. PLANT LAYOUT
✔Plant layout refers to the arrangement of
machinery, equipment, workspaces, and
other elements within a manufacturing or
production facility.
✔An efficient and well-designed plant layout
is crucial for optimizing workflow, minimizing
production costs, improving safety, and
enhancing overall productivity
14. KEY PRINCIPLES
Flow of Materials: Ensure a logical and efficient flow of materials through the
production process. Minimize the distance and handling required to move raw
materials, work-in-progress, and finished products.
Space Utilization: Make efficient use of available space while allowing for future
expansion if needed. Consider vertical space utilization as well.
Flexibility: Design the layout to accommodate changes in production volume or
product lines. Modular layouts can be more adaptable.
Safety: Prioritize the safety of workers by minimizing the risk of accidents and
ensuring compliance with safety regulations.
15. KEY PRINCIPLES
Maintenance Access: Ensure easy access for maintenance and repair of machinery
and equipment.
Utilities and Services: Plan for the efficient supply of utilities such as electricity,
water, and compressed air. Consider waste disposal and environmental
regulations.
Storage: Designate adequate storage areas for raw materials, work-in-progress,
and finished goods. Implement effective inventory control systems.
Employee Amenities: Include facilities like break rooms, restrooms, and locker
rooms to enhance employee comfort and well-being.
