Thursday, May 3, 2012

Important Factors for Site Selection of an Industrial Plant


1. Location is mainly affected by internal factors of organisation like technology and external factors like political and social environment.

2. If the product is fragile or if the transportation cost is high like in assembly type industry than location of a plant should be nearer to the market.

3. Sometimes accessibility of raw material is important than site should be nearer to raw material supply places.

4. Transportation facilities and availability of manpower play a significant role in site selection.

5. Infrastructure that includes power, water and communication facilities.

6. Community facility and community attitude should be considered.

7. Waste disposal, ecology and pollution need to be considered.

8. When selecting size future expansion needs to be considered.

9. The topography, soil structure and drainage must be suitable.

10 Land cost also play an important role in site selection.

The fertiliser plants are located near the source of raw material. For example, in India Manglore fertiliser at Manglore, Madras fertiliser at Madras, FACT at Chocin. These are the relevant location for above industries.

In the machine tool industry market factors and infrastructure will come into the picture. That's why these industries are scattered over different parts of the country.

What are other important factors ?

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