Site:

The area selected for your industry or anything is known as site.

Site Selection:
The selection of site must be determined on the basis of optimum results i.e. better performance &
Higher Profits. The site selected must be easily accessible, problem free. There are e two types of
factors are considered while selecting a site:
a) Primary Factors
b) Secondary Factors

a) Primary Factors:

1. Land:
The Area/Piece of land must be cheap in cost, easily approachable and must have capacity of
extension in future.

2. Labour:

The site selected must be that Area where some type of industry is already established. It will
help to share the technical knowledge, expertise, materials etc. It will also help the availability
of technical labour required for new industry.

3. Raw Material:

Generally a unit is established in that Area where its raw material is available. It is to reduce
the production cost. The industries which require huge amount of raw material must be located
near their source of raw material. For example Sugar Mills, Cement Factories etc.

4. Power and fuel:

The site selected must be that Area where cheap power and fuel supply sources are easily
available. In the past, coal was the main sources of power supply so the site was selected near
to the coal supplying centers.

5. Transportation:

The site selected must have easy approach by Road. Almost all industries use transport
facilities to transport raw material, manpower, finished product to the market.
 6. Government Polices:

Industrial Development and Regulation Act of 1951 laid down clearly certain rules, regulations
and formalities to be complied before setting up an industrial unit. A careful thought to all
these rules, regulations and provisions of Act must be given before A careful thought to all
these rules, regulations and provisions of Act must be given before selecting a site.

7. Rebate of taxes:

Sometimes Govt. offers special incentives/rebates to invite the industrialists to establish new
industry. This policy is adopted for balance economic growth in the country. It is also offered
to promote the economic status of the people of that Area. In Pakistan, particularly Government
has announced “GAWADAR” in Baluchistan, to establish a new port & industrial city as well.

b) Secondary Factors:

1. Communication:

The site must have modern communication facilities such as Telephone, Micro wave, Internet
etc. However this factor has least weightage.

2. Market:

Nearness of market is a dominant factor for site selection because the production of goods is
undertaken with the aim of selling them quickly which is possible only on account of nearness
to market.

3. Climate Conditions:

Climatic conditions are very important for the selection of site. It affects the efficiency of
workers. Efficient workers are found in cool climatic regions.

4. Safety:

Safety of workers is necessary factor for site selection. Unsafe workplace can affect the
efficiency of workers and production.

Plant Layout:
The arrangement of industrial facilities such as plant, machines, equipments and different
departments is called plant layout.
Plant layout is a plan to get an optimum arrangement of industrial facilities. It is designed to enable
the plant to function most effectively.

Importance of plant layout:

Even employer of an industrial concern is connected with plant layout. The worker is interested to
know the arrangement of his work place. The supervisor is interested in the layout of his
section/department. The executive is interested to know, how the layout affects the output and
production cost.

Objectives of plant layout

An optimum layout is one which provides maximum satisfaction to all parties i.e. Employees
management production. The objectives of plant layout

1. Effective utilization of place

2. Worker convenience
3. Less material handling
4. Maximum labour utilization
5. High turnover production rate

1. Effective utilization of space:

The available space must be utilized most effectively. Unorganized axes means poor space
utilization.

2. Worker convenience:

Every worker wants to work in a convenient environment. It enhances the efficiency of the
worker.

3. Less material handling:

Material handling adds cost to the product. It must be minimized as far as possible. The
use of transfer machines, automatic transfer reduce material handling.

4. Maximum labour utilization:

The labour hired must be utilized maximum with the help of good lay-out.

5. High turnover:

A good lay-out enhances production of the unit.

Types of plant layout:
The types of the plant layout are listed below:

1. Product layout
2. Process layout
3. Lay-out by fixed position

The product layout:

In this type one type of product is produced in an operating area. The product must be standardized
and manufactured in large quantities, as the machines equipments are arranged according to the
sequence of operations. The raw material arrives at one end of the line and moves from one
operation to the next. Assembly lines in an automobile industry is a good example of product lay-
out, It is most suitable to continues type of manufacturing such as chemical industries,
recommended for mass production units.

The process layout:

This layout is particularly useful where low volume of production is required. It has greater process
flexibility. This layout is commonly suitable for job, lot or non-repetitive jobs.

The layout by fixed position:

It is the least important for today’s manufacturing. The material and major components remain in
a fixed location and the operating equipments are brought to this location. This type of layout is
used in huge Aircrafts, Ships, Vessels, Pressure Vessels etc.

Features of Plant layout:

1. Maximum Flexibility
2. Maximum Coordination
3. Maximum Visibility
4. Maximum accessibility
5. Minimum handling
6. Maximum security
7. Maximum safety

1. Maximum Flexibility

A good Lay-out can be modified rapidly to meet changing circumstances particularly

attention must be paid to supply points.
 2. Maximum Coordination:

Departments/ sections should be so arranged that it is possible to transport materials and

information in the least duration. It will save a lot of time and energy.

3. Maximum visibility:

All parts/areas in a Lay-out should be observable at all times. There should be no hiding
places. It will help to attain maximum level of efficiency in both men and machines.

4. Maximum accessibility

All points of machines and equipments (operating / serving) must be readily accessible. It
will help the operator to operate the machine or equipment In an easy way and also for the
maintenance of the department

5. Minimum Handling:

The handling work adds cost to the product which does not increases its value. It should be
reduced to a minimum level by the use of conveyers, lifts, knuckles, industrial vehicles etc.

6. Maximum security

Fire, theft moisture deteriorates the Plant. Safeguards against these must be provided in the
original lay-out. Barriers and the cages are the good examples.

7. Maximum safety

All lay-outs must be safe. No person should be exposed to danger. Moving parts of
machines must be covered properly. Dangerous areas must be restricted.

Preparing A Layout
The following information should be available before a layout can be planned

1. Number of man power

2. Volume of product
3. Available space
4. Type of process
5. Equipment machines that are used to carry operations
Procedure of preparing a Layout:
1. Prepare a model
2. Choose key process
3. Locate key operations on model
4. Locate main gauges
5. Locate warehouse/stores
6. Locate Individual departments
7. Locate stand by equipments
8. Check it against standards
9. Check it against company policy
10. Apply it on floor.

Advantages of a good layout:

1. Ease in departmental facility
2. Complete information to costumer regarding plant.
3. Maximum utilization of labour.
4. Optimum arrangement and maximum safety.
5. Worker convenience
6. High profit
7. Minimum time
8. Minimum cost
9. Easy maintenance
10. High quality product

Production:
The conversion of raw materials after processing into useful product is known as production.

Types of production
There are four main types of production which are

1. Job
2. Batch
3. Flow
4. Mass
Job order production:
Production is carried on customers demand/order is called Job Production. It is the manufacture of
single complete unit by an operator. The manufacturing of jigs, fixtures and dies are the typical
examples.

Batch Production:
As quantity of the product increase work is carried out under batch production. The work content
on any product is divided into parts or operations. Each operation is completed throughout the
whole batch before the next operation is undertaken. The production of Automobiles parts,
electrical instruments, transformers is the typical examples of this type of production.

Flow production:
Batch production turns into “Flow production” the rest period as in case of batch production
vanishes. It is a type of production during which the work content on the product increases
continuously. The processing of material is continues and progressive. It means that as the work
of each operation is completed the unit is passed to the next stage. In order to work can flow
smoothly; the time for each operation must be of equal length.

Mass production:
Mass production is the manufacture of products on large scale. The manufacture can be under
either job order production or Flow production methods. The greater volume of mass production
will usually result in a reduced colour cost. Since at total greater expenditure on production
equipment it results increase in productivity. It is sometimes assumed that during man production,
quality will suffer. This is not so but generally uniform quality is produced.