A Guide to Plant Location

One of the youngest and the most example of the problems related to “Plant Location spoken.”
Tata Nano Singur plant to come under fire from farmers and villagers for the compulsory acquisition of agricultural land. The plant was set up in Singur, but given the opposition of a political party, they have suspended work in Singur plant – in which he has invested $ 350 million and moved its entire plant to Sanand, Gujarat.
Tata Motors, like a giant, face a problem regarding the permanent establishment. It has a huge equity base and a reputation that they are buying land anywhere you have ever thought about why they chose for the first time for its factory in Singur, Sanand and now? And why are they working properly before?
Thus, the following statement for the same.
Location of plants is the place where industry wants to assume its responsibilities. It is the choice of an appropriate site or location. Different industries have different factors to consider in this context. If the industry is committed to “heavy” are the industries that are relatively large and require considerable space. And therefore, they are expensive to build. Important factors in the decision to implement these systems are cost of construction, type of transport, means of waste management and the availability of labor. And if an industry is “light”, ie the industry, which is engaged in the manufacture of electronic devices and components, parts, etc.. This type of industry does not need large storage capacity, so for them to be close to our customers is important. . Although industry is a warehouse or distribution center, then they only need a very large room, in addition to all the factors defined.
So we can consolidate its selection criteria as follows
No government regulation (excise tax)
o labor (availability, cost and labor)
O Proximity to customers
O cost
O Availability of land
o environmental regulations
O Climate
o the availability of raw materials
o transport
o The country’s topography (ie fundamental property of the earth)
In addition to these factors, if the company tries to find an area beyond national borders, they must take into account the following factors, which is also
No stable government
o political and economic systems
No exchange rate
o Culture
o Export and Import
o The technology
But the selection of one of the best location for the plant, a research team at the location of the various institutions and the evaluation process of leasing large amounts of data and information requirements in relation to other site factors . Various techniques have been location analysis for the selection of the established location. Here are the techniques based on localization costs analysis can be used for identifying the precincts of the amount of available websites
o dimensional analysis: In this technique, the relative value of various costs for determining the choice of location are taken into account.
o Brown and Gibson model: This model considers essential, objective and subjective factors in evaluating sites.
o Evaluation of factors Method: This method is the method most commonly used. This is a factor category and location of the hotel.
o Check Point Rating Method: This method of giving the evaluation of each factor on the basis of cheap, average and poor.
o Profitability analysis: it is a graphical representation of the relationship between costs and revenues shows.
Thus, after taking all these factors in relation to different locations and by applying different methods done by the experts, the selection of a location.
Selecting a site is not as easy as it seems.