Production & Operations Management: Plant Layout

This document covers the factors and methods involved in selecting a site for a manufacturing plant. 1. Plant Location: Defined as finding a place where all needed resources (men, material, money, machinery) are easily available. 2. Importance: It is a critical, long-term decision that helps reduce the cost of production, affects the plant layout, ensures timely and quality production, and indirectly increases customer satisfaction. 3. Factors Affecting Decision: Primary Factors: Directly related to the decision, such as availability of raw materials, nearness to the market, availability of labor, and transport facilities. Secondary Factors: Indirectly related, including government policies, suitability of climate, availability of finance, and competition between states. 4. Evaluation Techniques: Weighted Factor Rating Method (assigning weights to factors and selecting the site with the highest weighted score) Analytic Delphi Method.