Location and Layout

M K Islam/ Location and layout
Location
Plant location or the facilities location problem is an important strategic level decision making
for an organization. One of the key features of a conversion process (manufacturing system) is the
efficiency with which the products (services) are transferred to the customers. This fact will
include the determination of where to place the plant or facility.
The selection of location is a key-decision as large investment is made in building plant and
machinery. It is not advisable or not possible to change the location very often. So an improper
location of plant may lead to waste of all the investments made in building and machinery,
equipment. Before a location for a plant is selected, long range forecasts should be made
anticipating future needs of the company. The plant location should be based on the company’s
expansion plan and policy, diversification plan for the products, changing market conditions, the
changing sources of raw materials and many other factors that influence the choice of the location
decision. The purpose of the location study is to find an optimum location one that will result in
the greatest advantage to the organization.
Factors affect location of Industries

Location Factors:
>>Relating to raw material. Production and delivery of product
a) Proximity to raw material site.
b) Availability of favorable labor force and labor [social, political, etc.]
c) Climate condition: temperature, humidity, rainfall, etc.
d) Availability of energy sources.
e) Availability of water supply and waste disposal.
f) Proximity to market.
g) Transportation facility.
>>Relating to requirement of men (workforce)

a) Educational facilities for the children of the staffs.
b) Recreational facilities.
c) Market and health facilities.
d) Communication facilities (mail, telephone, internet, etc.)
e) Social life of the area.
f) Transportation facilities for the personnel, etc.
>> Other related factors:

a) Taxes and Govt. /regional laws applicable to area.
b) Cost of land
c) Future expansion facilities
d) Community attitude, etc.
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** Read More from Books
Justification of Locations
1. Refineries at Potenga: Raw materials source is outside the country and comes in bulk by
ship, processes inflammable materials, so should be far away from the locality and near
huge source required to put off fire if caught.
2. Garment factories in town areas: For availability of labor, to avoid providing

accommodation, health, transportation, recreational and other related services to labor
force, uses non weight loosing raw etc.
3. Sugar mills in North Bengal Areas: The industry using weight loosing raw materials, by
establishing at the site area saves money for material transportation, it is economic to
transport sugar than to transport sugarcane, sugarcanes are available at that area.
4. Electrical goods industries in town areas: Town area is favorable for getting skilled and
semi-skilled workforce, does not take big area to build industry, can be expanded vertically
if needed as these are not categorized as heavy industries.
5. Jute mills in Chittagong, Dhaka, Khulna areas: Raw material jute is available mostly
around the Dhaka within a radius of around 50 to 100km but the market for jute was outside
the country when the industries were established. Since jute is not a weight loosing material
it is same if the jute is carried to mill and jute products are carried to near to sea port area
for export.
## Do you consider the location of CUET is appropriate? Justify your answer.

Location of CUET is not appropriate considering availability of educational facilities for children
of teachers/staffs, recreational, marketing, medical, and transportation facilities for teacher / staffs
and students. Recently housing problems for both teachers/ staffs and students, problem of extra
earnings for needy students, non- availability of facilities for self-developments of students have
made the situation more problematic. Moreover, problem relating to emergency situation handling
be it health related, political or of other types always proved that the location is not at all good.
Since the organization requires the services of qualified teachers and staffs, the location could
never satisfy most of the demands of tem. So from the very inception, the organization suffered
from shortage of teachers and even today many teachers prefer to stay in town to overcome the
problems.
Considering all these and many other similar factors, it can be said that the location of CUET can
be judged as not appropriate. Had it been located near Chittagong town, it could have grown better.
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Layout
Layout is the arrangements of facilities in an area, e.g. arrangement of machineries inside a plant,
arrangements of buildings inside a factory premises. Generally factory layout means the layout or
arrangement of machineries in a room.
>> Types of layout:

1. Process/Functional layout: Machine doing similar types of works are grouped in one place.
 Hospital – some processes (e.g. X-ray machines and laboratories) are required by
several types of patient; some processes (e.g. general wards) can achieve high staff and
bed utilization.
 Supermarket – some products, such as tinned goods, are convenient to restock if
grouped together; some areas, such as those holding frozen vegetables, need the
common technology of freezer cabinets; others, such as the areas holding fresh
vegetables, might be together because that way they can be made to look attractive to
customers
2. Product layout: Machines are arranged according to the requirements of progress in
product making. Examples of product layout include the following:
 Automobile assembly – almost all variants of the same model require the same
sequence of processes.
 Self-service cafeteria – generally the sequence of customer requirements (starter,
main course, dessert, and drink) is common to all customers, but layout also helps
control customer flow.
3. Fixed position layout: Required machineries are bought to the place of making the product
as the final product big, heavy and requires large space.
For example:
 motorway construction – the product is too large to move
 shipbuilding – the product is too large to move
4. Group Technology layout: Industries making verities of products sometimes make group
of products requiring similar operations. So machineries required for a particular group of
products are grouped in one place.
5. Hybrid layout: Sometimes layout combines element of both product and process layout.
This intermediate strategy calls hybrid layout, which arranges some portion of facility as
process layout and other portion as a product layout.
>> Effect of bad layout:
If the layout is not proper then the following problem may rise:
a. More time is required for material handling causing increase in manufacturing time and
thus production rate decreases cost increases.
b. Hampers production as each workstations required standard space for the best
performance which might not be available.
c. Space for in process inventory might not be available near the required workstation
causing temporary obstruction in production.
d. Congested layout or unscientific layout is not helpful for healthy work environment
which cause s decline in workers motivation
e. In case of any accidents/ emergency, bad layout delay in rescue or stopping the causes,
etc.
3
>> Comparison between process layout and Product layout:
Product layout Process layout

If one worker remains absent, production is Such problem does not arise
delayed until a substitute is arranged
Workers become expert in only the operation As workers doing similar jobs work in one
he does and so if he quits or remains absent the
place, they become expert by getting help from
authority must teach another employee the seniors and in case anybody quits or remains
operation to be done absent, others do the job and due to that no
temporary vacuum arise.
Is not helpful for training purpose Helpful for employee training
Less floor space is needed, so material Ore floor space is needed and material
handling cost is less handling cost is comparatively more
Not enough space is needed for keeping in Space for keeping in process inventory needed
process inventory
Design of material handling system is easier Fixed material handling system can always be
used.
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M K Islam/ Location and layout

Factors affect location of Industries

>>Relating to requirement of men (workforce)

>> Other related factors:

2. Garment factories in town areas: For availability of labor, to avoid providing

## Do you consider the location of CUET is appropriate? Justify your answer.

>> Types of layout:

>> Comparison between process layout and Product layout:

Product layout Process layout

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