Factors Affecting Plant Layout

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Ten Main Factors Affecting Plant Location 

        

The plant layout is affected by number of factors. Following are major factors which affects the plant layout: 
         1. Floor area availability: The most affecting element for the arrangement of equipment s is the available land for the utilization purpose. Based on available land the equipments are arranged.

        2. Type of production system: The arrangement of equipments depends on the type of production system adopted. If the plant has mass production system, then the arrangement will be according to product layout and if plant has job type production system, then the arrangement will be according to process layout.
 
        3. Number of machines: Based on number of machines and type of machines, the layout of plant is affected.
 
        4. Number and volume of products to be manufactured: If the product varieties are more, than the process layout is preferred. On the other hand if the same product is to be manufactured in volume, then product layout is preferred.
 
        5. Manufacturing processes used: Manufacturing process decides the type of machines required, flow of material and the material handling facilities required. Also, depending on the capacity of the machine, floor space area required is decided. So, the manufacturing process plays an important role in deciding the layout of the plant.
 
        6. Material handling facilities: Since all processes involves material handling from one machine to another machine, material handling facilities plays critical role. Depending on the product, suitable material handling facilities are required to be adopted.
 
        7. management policy: the strategic decisions related to product mix is taken by management. considering variation in product mix, management decides the plant layout.

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