PLANT LOCATION

A Lokeshwari
22N31E0014
 Introduction to plant location

Plant location must be

selected properly by entrepreneurs
while planning to set up their
business units. But choice is made
only after considering cost and
benefits of different alternative
sites.
Factors influencing plant location
Law and order situation
1. Plant location must be at that place where law and order situation is in control.
Entrepreneurs give a lot of importance to this factor while locating a business unit in any
state or region.
2. If a state has bad law and order situation, then the business must not be located within
that state, unless it has other important factors such as availability of heavy or bulky raw
materials.
Good industrial relations
3. Plant location must be at those places where good industrial-relations are maintained.
Industrial relations become bad, because of militant and selfish trade unions.
4. Entrepreneurs do not want to locate their business at places where anti-social elements
are rampant, although there are other favorable factors such as good infrastructure
facilities, cheap labor, etc.
Social infrastructure
Plant location must have well social infrastructure. There is a need for social-
infrastructure not only for employees but also for the development of their
families.
The availability of social-infrastructure will increase the employees' welfare.

Investor friendly attitude

•Plant location must be in those states whose governments have an investor-friendly
attitude.
•Government must give attractive incentives and concessions to those who start business
units in their states.
•There must not be any bureaucratic control for starting a business.
BREAK EVEN
ANALYSIS (BEP)
Break even analysis

Break-even analysis tells you how many

units of a product must be sold to cover the
fixed and variable costs of production. The
break-even point is considered a measure
of the margin of safety. Break-even
analysis is used broadly, from stock and
options trading to corporate budgeting for
various projects.
Importance of break even analysis

• Pricing: Businesses get a comprehensible perspective on their cost

structure with break-even analysis. With that understanding,
businesses can set prices for their products that not only cover their
fixed and variable costs but provide a reasonable profit margin as
well.
• Decision-Making: When it comes to new products and services,
operational expansion or increase production, businesses use
break-even analysis to help them make informed decisions
surrounding those activities.
• Cost Reduction: Break-even analysis helps businesses find areas
where they can reduce costs to increase profitability.
Uses of break even analysis

(i) It helps in the determination of selling price which will

give the desired profits. 
(ii) It helps in the fixation of sales volume to cover a given
return on capital employed.
(iii) It helps in forecasting costs and profit as a result of
change in volume.
 JOB SHOP
SCHEDULING
 Job shop scheduling
The job-shop scheduling
problem (JSSP) is a widely
studied optimization problem
with several industrial
applications. The goal is to
define how to minimize the
makespan required to allocate
shared resources (machines) over
time to complete competing
activities (jobs).
Steps to identify jobs

Job Identification: The first step is to identify all the jobs that need to be processed.
Each job should have a well-defined set of tasks or operations that need to be
performed.
Task/Operation Sequencing: Determine the sequence of tasks or operations required
for each job. This is crucial as the order in which tasks are performed can impact the
overall efficiency and completion time.
Resource Identification: Identify the resources (e.g., machines, workstations,
equipment) available for processing the tasks. Each resource may have different
capabilities and capacities.
Task/Operation Duration Estimation: Estimate the time required to
complete each task or operation on each resource. This estimation can be
based on historical data, expert knowledge, or time studies.

Constraints Identification: Identify any constraints that may impact

scheduling, such as the availability of resources, precedence relationships
between tasks, due dates for jobs, etc.