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What factors need to be considered when selecting a site for a production facility?
Wiki User
β 14y ago
PLANT LOCATION AND SITE SELECTION
The geographical location of the final plant can have strong influence on the success of
the industrial venture. Considerable care must be exercised in selecting the plant site, and
many different factors must be considered. Primarily the plant must be located where the
minimum cost of production and distribution can be obtained but, other factors such as
room for expansion and safe living conditions for plant operation as well as the
surrounding community are also important. The location of the plant can also have a
crucial effect on the profitability of a project.
The choice of the final site should first be based on a complete survey of the advantages
and disadvantages of various geographical areas and ultimately, on the advantages and
disadvantages of the available real estate. The various principal factors that must be
considered while selecting a suitable plant site, are briefly discussed in this section. The
factors to be considered are:
1. Raw material availability.
2. Location (with respect to the marketing area.)
3. Availability of suitable land.
4. Transport facilities.
5. Availability of labors.
6. Availability of utilities (Water, Electricity).
7. Environmental impact and effluent disposal.
8. Local community considerations.
9. Climate.
10. Political strategic considerations.
11. Taxations and legal restrictions
Wiki User
β 14y ago
Fadime YaΕar
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