- 1. PHARAMACEUTICAL FACTORY LOCATIONSELECTION, LAYOUT PLANNING
GUIDED BY: Dr. KANU R. PATEL HEAD OF DEEPARTMENTPRESENTEDE BY:
SAHILHUSEN I. JETHARA M. PHARM I (2013-14) ROLL NO. - 02DEPARTMENT
OF PHARMACEUTICS SHRI B. M. SHAH COLLEGE OF PHARMACEUTICAL
EDUCATION AND 1 REASERCH, MODASA-2013 BMCPER,MODASA
2. INTRODUCTION Industrial growth in India is very fast.
Factories Act was passed in1948 then amended in1950, 1951, 1954
and1976. One has to take Various crucial decisions of business,
namely Location , Layout (the arrangement of physical facilities),
Designing the product, Production planning and control and
maintaining good quality of product.BMCPER,MODASA2 3. In this
lesson study of plant location ,layout and planning. Industry are
two type depends on its size and nature.Small scale industrySelect
the site according to capacity. It can easily be shifted to other
place, when there is any change in the market.BMCPER,MODASALarge
scale industryHuge amount of investment has already been done the
selection of proper site is very important.3 4. OBJECTIVES Describe
the concepts of plant location and plant layout Identify the
various factors to be considered for selection of plant
locationDistinguish among the alternative patterns of plant layout
Discuss the various factors influencing the choice of an initial
layout and its subsequent modificationBMCPER,MODASA4 5.
PHARAMACEUTICAL FACTORY LOCATIONBMCPER,MODASA5 6. LOCATIONPlant
location Choice of region and Selection of a particular site for
setting up a business or factoryBMCPER,MODASAIdeal location Cost of
the product is kept to minimum. It is the place of maximum net
advantage or which gives lowest unit cost of production and
distribution6 7. LOCATION ANALYSIS 1. 2. 3. 4. 5.Demographic
Analysis Trade Area Analysis Competitive Analysis Traffic analysis
Site economics1. Demographic Analysis: It involves study of
population in the area like: Total population (in no.), Age
composition, Per capita income, Educational level.BMCPER,MODASA7 8.
2.Trade Area Analysis: Geographic area analysis. To provides
Continued clientele to the firm. Feasibility of accessing the trade
area from alternative sites. 3. Competitive Analysis: It help to
judge quality of competition in a given trade area. 4. Traffic
analysis: To have a rough idea about the number of potential
customers passing by the proposed site during the working hours of
the shop.BMCPER,MODASA8 9. 5. Site economics: Alternative sites are
evaluated in terms of establishment costs and operational costs
under this. Operational costs are incurred for running business on
day to day basis, they are also called as running costs.
Establishment cost is cost for permanent physical
facility.BMCPER,MODASA9 10. IMPORTANCE OF PLANT LOCATION
1.CostInvestment costsPartially determines 2.Physical factor
Operating costHeating Ventilation requirements Storage capacity of
raw material Power needs , Cost of labours, Taxes, Land
construction, fuel, etc.BMCPER,MODASA10 11. 3.Gove.rule Choice of
location keeping view of national benefit.BMCPER,MODASA11 12.
Availability of Raw material: Location should be near to source of
operating power: Nearness to the potential market: Supply of
labour: Transport and communication facilities: Natural or climatic
condition: BMCPER,MODASA12 13. Availability of housing and services
Safety requirements: Govt. influence : Positive and negative
Miscellaneous considerations: consideration like low interest loan,
low rental, special grant toward industry. Integration with other
group of company BMCPER,MODASA13 14. SPECIAL ECONOMIC ZONE (SEZ)
Special Economic Zone (SEZ) is a geographical region that has
economic and other laws that are more free-market-oriented than a
country's typical or national laws. The category 'SEZ' covers a
broad range of more specific zone types, including Free Trade Zone
(FTZ), Export Processing Zone (EPZ), Free Zones (FZ), Industrial
parks or Industrial Estates (IE), Free Ports, Urban Enterprise
Zones and others.BMCPER,MODASA14 15. Objectives of the SEZs:(a)
Generation of additional economic activity;(b) Promotion of exports
of goods and services; (c) Promotion of investment from domestic
and foreign sources;(e) Development of infrastructure
facilities.BMCPER,MODASA15 16. SEZs in India The govt. of India had
in april 2000 announced the introductionof special economic zone.
India passed SEZ act in 2005 Currently there are 114 SEZ operating
in India.BMCPER,MODASA16 17. ADVANTAGES 15 year corporate tax
holiday on export profit 100% for initial 5years, 50% for the next
5 years and up to 50% for the balance 5 years equivalent to profits
ploughed back for investment. No licence required for import. Duty
free import Exemption from customs duty on import of capital goods,
rawmaterials, consumables, spares, etc.BMCPER,MODASA17 18.
ADVANTAGES CONT Exemption from Central Excise duty Exemption from
payment of Central Sales Tax Exemption from payment of Service Tax.
No routine examination by Customs officials of export andimport
cargo.BMCPER,MODASA18 19. DISADVANTAGES Revenue losses because of
the various tax exemptions Most players are interested in setting
up SEZs with an eye onthe real estate bounty so that they can
acquire at cheap rates and create a land bank for
themselves.BMCPER,MODASA19 20. PLANT LAYOUT DEFINATION: Arrangement
of physical facilities suchas machinery, equipment, furniture etc.
within the factory building in such a manner so as to have a
quickest flow of material at lowest cost and with least amt. of
material handling in processing from receipt of material to
shipment of final product.BMCPER,MODASA20 21. SAMPLE LAYOUT OF A
PHARMACEUTICAL FACTORYBMCPER,MODASA SAMPLE LAYOUT OF A PRODUCTION
DEPARTMENTSAMPLE LAYOUT OF F&D DEPARTMENT21 22. TYPES OF
LAYOUTManufacturing unitsTradersService Establishments1.Self
service or modified self service layout1.Product or line layout
2.Process or functional layout2.Full service layout 3.Special
layouts3.Fixed position or location layout 4.Combined or group
layoutBMCPER,MODASA22 23. 1.Product or line layout Machines and
equipments are arranged in one line. The materials move form one
workstation to anothersequentially without any backtracking or
deviation. sequence arrangement of operations required for the
product. ThereforeMaterials are fed into the first machine and
finished goods travel automatically from machine to machine, the
output of one machine becoming input of the next,BMCPER,MODASA23
24. Advantages Low cost of material handling, due to straight and
shortroute and absence of back tracking Continuous flow of work
Optimum use of floor space Shorter processing time or quicker
output Lower cost of manufacturing per unitBMCPER,MODASA24 25.
Disadvantage High initial capital investment in special
purposemachine Breakdown of one machine the whole productionprocess
are stop. Lesser flexibility as specially laid out for
particularproduct.BMCPER,MODASA25 26. 2.Process or functional
layout In this type of layout machines of a similar type
arearranged together at one place. E.g. Machines performing
Compression operations arearranged in the Compression department.
Therefore the machines are installed in the plants, whichfollow the
process layout.BMCPER,MODASA26 27. ADVANTAGES Breakdown of one
machine does not result in completework stoppage Supervision can be
more effective and specialized There is a greater flexibility of
scope for expansion.BMCPER,MODASA27 28. Disadvantage Material
handling costs are high due to backtracking More skilled labour is
required resulting in higher cost. Time gap or lag in production is
higher More frequent inspection is needed which results in
costlysupervisionBMCPER,MODASA28 29. 3.Fixed Position or Location
Layout In this type of layout, the major product being produced
isfixed at one location. Equipment labour and components are not
moved to that location. All facilities are brought and arranged
around one work center. This type of layout is not relevant for
small scale entrepreneur.BMCPER,MODASA29 30. Advantage It saves
time and cost involved on the movement of work fromone workstation
to another. The layout is flexible as change in job design and
operationsequence can be easily incorporated Adjustments can be
made to meet shortage of materials orabsence of workers by changing
the sequence of operations.BMCPER,MODASA30 31. Disadvantage
Production period being very long, capital investment is veryheavy
Very large space is required for storage of material andequipment
near the product. As several operations are often carried out
simultaneously,there is possibility of confusion and conflicts
among different workgroups.BMCPER,MODASA31 32. Combined layout In
most of industries, only a product layout or processlayout or fixed
location layout does not exist. Generally, a combination of the
product and processlayout or other combinations are found, in
practice. E.g. In tablet manufacturing suppose coating is
necessarythen up to compression line layout, then product
layout.BMCPER,MODASA32 33. ADVANTAGES OF A GOOD LAYOUT To the
worker: Decreasing number of operation and material handling.
reduction in length of hauls and motions between operations, which
minimize production time as well as the activities of workers. more
labour productivity i.e. more output per man hour. more safety and
security to workers from accidents. Better working conditions
resulting in improved efficiency.BMCPER,MODASA33 34. In
manufacturing costs: Maintenance and replacement costs are
reduced.Loss due to waste and spoilage is minimizedImproved quality
of product with reduction in handling time and cost.Better cost
control.BMCPER,MODASA34 35. In production control and supervision:
provides more space for production operation. Better storage
facility The cost of production are minimized. Control and
supervision operations are provided atappropriate
pointsBMCPER,MODASA35 36. PLANNING Planning is the process of
deciding in advance what to do, how to do it, when to do it and who
is to do it. It involves the selection of objectives, policies,
procedures, andprogrammed from among alternatives.BMCPER,MODASA36
37. STEPS INVOLVED IN PLANNINGBMCPER,MODASA37 38. 1.Definition and
description of objectives: Plans are prepared to achieve certain
objectives or goals. For example, main objective of the company is
toincrease profits by 25% during the next year. So the production
and sales targets should be decided on this basis.BMCPER,MODASA38
39. 2.Determination of planning premises There are the assumptions
about the future. Planning premises are established with the help
of forecasting. There are following types:1. Tangible and
intangible premises 2. Internal and external premises
3.Controllable and uncontrollable premisesBMCPER,MODASA39 40. 1.
Tangible and intangible premises Tangible premisesIntangible
premisesexpressed in quantitative employees morale, good e.g. units
of production, will of the enterprise, capital investments, time
motivation etc. available etc 2. Internal and external premises:
Internal premises: assumption about the internal working of the
enterprise. E.g. capital, machines, personnel etc.
BMCPER,MODASAexternal premises: On the other hand factors outside
the enterprise e.g. changes in technology, population growth,
changes in competition, government policies etc. 40 41. 3.
Controllable and uncontrollable premises: Controllable
premises:uncontrollable premises:Policies and programmed of the
organization which can be fully regulated by the management are
controllable premises.Uncontrollable premises are the external
factors like trade cycles, political changes etc. which are beyond
the control of management.BMCPER,MODASA41 42. 3. Discovering
alternatives courses of action the various courses of action are
discovered in order to achieve the established objectives.
Information may be collected from primary sources Information
obtained from marketBMCPER,MODASAsecondary sources Information
obtained from pharmaceutical company42 43. 4.Evaluation of
alternative courses the various alternatives are evaluate the best
alternatives is selected.5.Formulation of derivative plans once the
basic plan is decided, the next step is to develop detailed plans
for its implementation. These detailed plans refers to the
policies, procedures, rules,programmers, schedules, budgets etc.
for example, when pharmaceutical company decides to develop a new
product, procurement of funds, purchase of raw materials, training
of personnel, advertising for the product have to be prepared.
BMCPER,MODASA43 44. 6. Communicating the plan: Plan should be
explained to the subordinates in order to gettheir support in the
execution of plans.7.Receiving the planning process All plans
should be reviewed from time to time in the light of current
circumstances and necessary action should be taken to keep them
up-to-date.BMCPER,MODASA44 45. ADVANTAGES Planning makes goals
clear and specific. Planning helps the organization to keep on the
right path. It improves the efficiency of operation because
planninginvolves selection of the best possible course of action.
It provides basis of control. Planning provides the standardagainst
which the actual performance can be measured and evaluated.
BMCPER,MODASA45 46. It promotes creativity, because only sound
planningencourages creative thinking. This leads to growth and
expansion of business. It facilitates decision making. involves
forecasting offuture conditions and helps the management to take
correct decision.BMCPER,MODASA46 47. LIMITATIONS Planning is an
expensive process. Money is involved inforecasting, collection of
information and evaluation of alternatives. Planning is a time
consuming process. So it is not practicable during emergencies and
crises, when quick decisions are necessary. Planning creates a
rigid frame work in the organization. Planning creates a false
sense of security because detailed planning gives a feeling among
employees that everything has been taken care of. BMCPER,MODASA47
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