SCHOOL OF MANAGEMENT STUDIES

PRODUCTION & OPERATIONS

MANAGEMENT
Submitted by:
NAME: M.MANIDEEPIKA
ROLL NO:13021E0009
Plant location is the process of determining a
geographic site for a firms operations.
The factors effecting plant layout are general location
factors which are further divided into controllable and
uncontrollable factors
FACTORS INFLUENCING PLANT LOCATION
CONTROLLABLE
FACTORS
UN CONTROLLABLE
FACTORS
LABOUR AND
WAGES
PROXIMITY TO
MARKETS
SUPPLY TO
MATERIALS
TRANSPORTATION
FACILITIES
INFRASTRUCTURE
AVAILABILITY
GOVT.POLICIES
CLIMATIC
CONDITIONS
SUPPORTING
INDUSTRIES
LABOR ATTITUDE
COMMUNITY
INFRASTRUCTURE
CONTROLLABLE FACTORS
Proximity to markets:
Locating facilities close to the market
for marketing at reasonable price
To reduce Cost of transportation
If products are delicate and easily spoilable

Supply of Raw material:
It is essential for the organization to get the raw material in right
quantities and time in order to have an un interrupted production.
This factor becomes very important if the materials are perishable
and cost of transportation is high.



Transportation facilities:
Speedy transportation facilities ensures timely supply
of raw materials to the company and finished goods to
customers.
Hence it becomes a pre requisite for location of plant.

I nfrastructure availability:
Power, water and waste disposal are important factors
for determining plant location.
Labor and wages:
Factors considered are
Securing adequate no of labor with skills
Wage pattern, cost of living and industrial relations are important
considerations

UNCONTROLLABLE FACTORS

Government policies:
Labor laws, building codes, safety etc are considerable factors.
Climatic conditions:
Some industries need specific climatic conditions.
Eg: textile mill require humidity.
Supporting industries and services:
Organization sub contracts works to vendors
So source of supply of component parts is a factor considered in
plant location

Labor attitude:
Plant location in a specific location is not desirable even though
all the factors are favoring because of labor attitude towards
management, which bring very often the strikes and lock outs.

Community I nfrastructure:
Roads, Railways, Port facilities, Power lines and service facilities
are important factors to be considered in setting up plant location