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By Ram Naresh Roy
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Extra resources for A Modern Approach to Operations Management
A preliminary screening to identify feasible sites begins the planning process. For some kinds of facilities, particular environmental or labor considerations are crucial. Breweries, for example, need an adequate supply of clear water. Aircraft manufacturers must be located near a variety of subcontractors; and basic aluminum producers need electrical power and aluminum ores. 2), management starts looking for alternative locations that are consistent with these requirements. The possible sources of information could be: local chambers of commerce and industries, local communities, relevant ministries, Government agencies, and trade journals.
Availability of Suitable Land and Land Cost Cost of land is usually a minor factor in the location of a plant. In the communities that are interested in attracting new plants, land may be offered at a reduced price or at no cost, which may influence some plants to locate there. Adequate Water Supply Water is necessary for almost all kinds of plants. However, some plants heavily depend on water supply. For example, thermal power plant, Hydroelectric power plant, steel plant need lots of water for its day to day operation.
Some of the site related problems in India that have surfaced in media are: Mathura oil refinery vs The Taj Mahal, Barauni oil refinery vs The Ganges river, Paradip port vs Cyclone effect, Narmada dam vs environmental issues. Similarly, the environment issues in Mugher Cement Plant in Addis Ababa (Ethiopia) calls for relocation of this plant or convert the plant into an environment friendly one. ) levied by a state should also be considered in locating a plant. The kinds of taxes and the basis for fixing them should be investigated before hand.
A Modern Approach to Operations Management by Ram Naresh Roy