A plant refers to a place, which consists of men, materials for manufacturing a product. Plant location refers to selecting a suitable location for manufacturing. Plant location is an important strategic level decision making for an organization. Plant location is a key decision as large investment in building, plant and machinery is made and improper location may lead to waste of all the investment made.
Plant Layout:
Plant layout refers to the physical arrangement of production facilities. It is the configuration of departments, work enters and equipments in the conversion process.
Objectives of Plant Layout
The primary objective of plant layout is the best relationship between output, space and manufacturing cost.
i. The objectives of plant layout are
ii. Stream line flow of materials through the plant
iii. Facilitate the manufacturing progress.
iv. Maintain high turnover of in process inventory
v. Minimize material handling Effective utilization of men, equipments and spacePlan location Problems:-
Location of facilities is carried out in three stages.
i. Selection of a general territory –selection of a particular geographical zone.
ii. Selection of community – selection of a specific locality.
iii. Selection of particular site - selection of a specific site within the locality
