PTQM

ASSIGNMENT NO.01
Plant Location and Plant Layout

SYBMS (Marketing
22301C0017
Steel Industry:
Factors influencing plant location:
1. Raw Material Availability: Proximity to iron ore
mines, coal, and other essential raw materials for steel
production is crucial.
2. Transportation Infrastructure: Access to efficient
transportation, including railways, highways, and
ports, for the movement of raw materials and finished
products.
3. Energy Supply: Availability of reliable and affordable
energy sources, such as electricity and coal, is a
significant consideration.
4. Market Proximity: Strategic location close to major
markets and construction centres to reduce
transportation costs.
5. Water Availability: Adequate water supply for the
manufacturing processes and cooling.
Geographical Indication (GI) for Steel Industry in India:
While steel production is distributed across various states
in India, notable regions include:
 Jamshedpur (Jharkhand): Home to Tata Steel, one of
the largest steel plants in India.
 Rourkela (Odisha): Houses the Rourkela Steel Plant,
a major steel manufacturing unit.
Textile Industry:
Factors influencing plant location:
1. Raw Material Access: Proximity to cotton or other
textile raw material sources is a critical factor.
2. Skilled Labor: Availability of a skilled workforce with
expertise in textile manufacturing.
3. Market Proximity: Nearness to major consumer
markets to reduce transportation costs and time.
4. Infrastructure: Access to reliable power supply,
water, and transportation infrastructure for efficient
production and distribution.
5. Government Policies: Supportive government
policies, incentives, and subsidies for the textile
industry.
Geographical Indication (GI) for Textile Industry in India:
 Surat (Gujarat): Known as the "Silk City" and a
major hub for textile and diamond polishing
industries.
 Tirupur (Tamil Nadu): Renowned for its knitwear
and hosiery industries, it is often referred to as the
"Knitwear Capital of India."
Tata Steel (Steel Industry):
 Common Plant Layout Type: Typically, steel
manufacturing companies like Tata Steel often use a
Process Layout due to the diverse and complex nature of
steel production.
 Potential Benefits:
 Specialization: Allows for specialized equipment
and skilled workers in different stages of the steel
production process.
 Flexibility: Can accommodate changes in product
specifications and production volumes.
 Optimized Processes: Enables the optimization of
specific processes for efficiency.
 Potential Shortcomings:
 Material Handling: Increased material handling and
transportation times between different processes.
 Communication: Coordination challenges between
different production stages.
 Utilization: Equipment may not be used optimally,
as they are dedicated to specific processes.
Bombay Dyeing (Textile Industry):
 Common Plant Layout Type: The textile industry often
utilizes a Product Layout, especially in the case of
continuous and standardized production lines.
 Potential Benefits:
 Efficiency: Sequential arrangement of equipment for
a smooth and continuous flow of production.
 Reduced Material Handling: Minimal material
handling as products move through the production
line.
 High Utilization: Machinery is optimized for
specific tasks, enhancing overall efficiency.
 Potential Shortcomings:
 Inflexibility: Less adaptable to changes in product
specifications or production volumes.
 Maintenance Downtime: Maintenance or
breakdown in one part of the line may affect the
entire production process.
 Limited Variety: May not be suitable for diverse
product ranges.