This document discusses plant location and layout. It summarizes the location decisions of three organizations - Amader boutique, SSP Associates, and Supreme Industries Ltd. It also describes the principles and types of plant layout. The key factors considered in plant location are transportation, raw materials, labor, and infrastructure. A well-planned location and layout can significantly reduce costs and improve efficiency.

2.  Introduction
 Factors affecting plant location decisions
 Study of plant locations of three business
organizations
 Amader boutique
 SSP Associates
 Supreme Industries Ltd.
 Plant layout
 Study of plant layout of
Durgapur Steel Plant
 Conclusion

3.  Plant location refers to the choice of region and the
selection of a particular site for setting up a business or
factory. These decisions are strategic, long term, non
repetitive decisions.
Types of plant locations:-
 Localization/ centralization:- This refers to the
establishment of similar types of industries at a particular
place.
 Delocalization/ decentralization:- Refers to the setting up
of similar industries at different places.

4.  Natural or climatic conditions.
 Nearness to source of raw materials and other
resources.
 Transportation and communication facilities and
nearness to market.
 Availability of banking and financial institutions.
 Availability of skilled and non-skilled labour and
technically qualified and trained managers.

5. STUDY OF PLANT LOCATION OF THREE
BUSINESS ORGANIZATIONS

6. Address :- 12A, Chaitanya Avenue, Durgapur-
713205
The location of the boutique was decided in May
2012 and the boutique opened on 22nd October
2012.
Factors considered while deciding
the location:-
 Cost of construction and land aquisition is nil.
 Nearness to the transportation facility.

7. Merits of the location decision:-
 The boutique attracts a lot of customers as it is
located in a busy location (opposite to
Pranavananda Vidya Mandir and also near
D.A.V. Model School)
Competetive advantages of this location:-
 No other boutiques in this locality .
 The prices are reasonable as compared to
others.
Disadvantages of this location:-
 The location is far away from the market place.

8. Address:- RC -39 Urvashi, Bengal Ambuja,City
Centre, Durgapur-713216.
The organization was set up in the year 2009.
Factors considered while deciding
the location:-
 Availability of all types of transportation facilities
nearby.
 Recurring cost for rent is relatively low compared
to the local market.

9. Merits of the plant location decision:-
 Cost-efficient.
 Transportation facility is smooth.
 The firm is located in the heart of the city.
Competitive advantages of the location:-
 The firm is set up in a posh area, and there are
no such competitive firm close to it.
 The firm has an eye-catching decoration,
impressive outlook.

10. Address :- EPIP, Durgapur-713212
The organization was set up in the year 2001
Factors considered while deciding
the location:-
 Large hinterland of business area such as
Bengal, Bihar, Orisha & Jharkhand.
 Availability of skilled labour at low cost.
 Availability of good infrastructural facilities.

11. Merits of the plant location decision:-
 Government promotion package is provided.
 Availability of stable electricity and water supply.
 Presence of high skilled human resource.
Competitive disadvantages of this
plant location:-
 The production line is new in the region for
which familiarity for day to day production
process and skilled labour partially mismatch .

12.  Refers to the arrangement of machinery,
equipments and other industrial facilities for
acheiving the smoothest and quickest production
at the least cost.
Principles of plant layout :-
 Principle of minimum travel
 Principle of sequence
 Principle of usage
 Principle of compactness
 Principle of safety

13.  Principle of flexibility
 Principle of minimum investment
Types of layout:-
 Product / Line layout
 Process / Functional layout
 Fixed position / Location layout
 Combined layout
 Cellular / Group technology layout

15.  The plant location is an important entrepreneurial
decision as it influences cost of production and
distribution to a great extent.
 In some cases, the location may contribute to
even 10% of cost of manufacturing and marketing.
 Poor plant location often leads to higher
costs,difficult marketing and transportation and
competitive disadvantage.

16.  Plant layout is fundamental of every organisation and
business. Layout problems greatly impact the system
performance. Plant layout is an important decision as
it represents long term commitment.
 A well planned layout contributes to the efficiency of
the operations and can also reduce the operating
costs by 50%.
 Therefore, the plant location and layout decisions
has to be taken carefully for growth and efficiency of
the business organization.

17. THANK YOU !!!