mb0044 assignment
1 Fall 2013
MBA SEMESTER 2
MB0044: PRODUCTION AND OPERATION MANAGEMENT
Q1. State the important considerations for locating an automobile plant.
Answer:
Factors influencing an automobile plant
1) General factors
Availability of land – Availability of land plays an important role in determining the plant location. On several occasions, our plans, calculations and forecasts suggest a particular area as the best to start an organisation..
Availability of inputs – While choosing a plant location, it is very important for the organisation to get the labour at the right time and good quality raw materials. The plant should be located:
• Near to the raw material source
• At the market place
• Close to the market when universally available,
Closeness to market places – Organisations can choose to locate the plant near to the customers’ market or far from them, depending upon the product they produce.
The advantages of locating the plant near to the market place are:
• Consistent supply of goods to the customers
• Reduction of the cost of transportation
Communication facilities – Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities namely postal and tele communication links should be given priority for the selection of sites.
Infrastructure – Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation are:
• Power – For example, industries which run day and night require continuous power supply.
• Water – For example, process industries such as, paper, chemical, and cement, require continuous water supply in large amount.
• Waste disposal – For example, for process industries such as, paper and sugarcane industries, facility for disposal of waste is the key factor.
Transport – Transport facility is a must for facility location and layout of location of the plant. The basic modes of
MBA SEMESTER 2
MB0044: PRODUCTION AND OPERATION MANAGEMENT
Q1. State the important considerations for locating an automobile plant.
Answer:
Factors influencing an automobile plant
1) General factors
Availability of land – Availability of land plays an important role in determining the plant location. On several occasions, our plans, calculations and forecasts suggest a particular area as the best to start an organisation..
Availability of inputs – While choosing a plant location, it is very important for the organisation to get the labour at the right time and good quality raw materials. The plant should be located:
• Near to the raw material source
• At the market place
• Close to the market when universally available,
Closeness to market places – Organisations can choose to locate the plant near to the customers’ market or far from them, depending upon the product they produce.
The advantages of locating the plant near to the market place are:
• Consistent supply of goods to the customers
• Reduction of the cost of transportation
Communication facilities – Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities namely postal and tele communication links should be given priority for the selection of sites.
Infrastructure – Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation are:
• Power – For example, industries which run day and night require continuous power supply.
• Water – For example, process industries such as, paper, chemical, and cement, require continuous water supply in large amount.
• Waste disposal – For example, for process industries such as, paper and sugarcane industries, facility for disposal of waste is the key factor.
Transport – Transport facility is a must for facility location and layout of location of the plant. The basic modes of