To Study the Scheduling Production and Supply of

Manufacturing Research Control & Planning in

Operation Management
Chapter 1
1.1 Introduction of Manufacture Industry
Manufacturing Industry and trade based on the fabrication processing, or
preparation of products from raw materials and commodities. This include all foods,
chemical, textile, machine, and equipment this include all refined metals and minerals
from extracted ores. The includes all lumber, wood, and pulp product.

1.2 Manufacturing Industry Categories

 Apparel Industry
 Chemical and Allied Industry
 Electronic and Electrical Equipment Industry
 Fabricated Metal Industry
 Food and Kindred Industry
 Furniture and Fixtures
 Industrial and Commercial Machinery Industry
 Leather Industry
 Lumber and Wood Industry
 Measuring, Analyzing and Controlling Instrument Industry
 Miscellaneous Manufacturing Industries
 Paper and Allied Industry
 Petroleum Refining and Related Industry
 Primary Metal Industry
 Printing, Publishing, and Allied Industry
 Rubber and Miscellaneous Plastic Industry
 Stone, Clay, Glass, and Concrete Industry
 Textile Mill Industry
 Transportation Equipment Industry

Manufacturing is the making of goods by hand or by machine that upon

completion the business sells to a customer. Item use in manufacture may be row
materials or component parts of a larger product. The manufacturing usually happens
on a large-scale production line of machinery and skilled labor.
1.3 Types of Manufacturing Processes
Manufacturing is a very simple business; the owner busies the raw
Material or component parts to manufacture a finished product. To function as a
business the manufacturer needs to cover costs, meet demand and make a product
to supply the market. A factory operates one of three types of manufacturing
production:

Make to Stock (MTS):

A good factory produces good to stock stores and showrooms. By predicting
the market for their goods, the manufacturer will plan production activity in advance.
If they produce too much they me need to cell surplus at a loss and in producing too
little they may miss the market and not sell enough to cover costs.

Make to Order (MTO):

The producer waits for order before manufacturing stock. Inventory is easier to
control, and the owner does not need to rely as much on market demand.
Customer waiting time is longer though and the manufacturer needs a constant
stream of orders to keep the factory in production.

Make to Assemble (MTA):

The factory produces component parts in anticipation of orders for assembly.
By doing this, the manufacturer is ready to fulfil customer orders but if orders do not
materialize, the producer will have a stock of unwanted parts.

The service sector, also called tertiary sector, is the third of the three
traditional economic sectors. The other two are the primary sector, which covers
areas such as farming, mining, and fishing; and the secondary sector which covers
manufacturing and making things. The service sector provides services, rather than
producing material commodities. Activities in the service sector include retail, social
work, computer services.
 Manufacturing and Industry sector known as the secondary sector, includes all
branches as the production sector all branches of human activities that
transformation raw materials into producer or goods. The secondary sector includes
secondary, processing of roe material into products are goods.
Other Sectors of economy:

 Raw Materials Producing raw materials, and natural resources

and products of agriculture (primary sector).
 Service sector providing services (tertiary sector).

Basic list of Manufacturing and Industry sector secondary sector is below,

1. Electrical industry
2. Chemical industry
3. Energy industry
4. Metallurgical industry
5. Construction industry
6. Food industry
7. Glass industry
8. Textile industry
9. Consumer goods industry
10.Automotive.
Related terms to human activities:

 Economies of Scale
 Factors of Production
 GDP(Gross Domestic Product)
 Market Sectors
 Mechanical Engineering
 Production Process
 Product Portfolio
 Products

Related industry /sector

 Aerospace Industry
 Automotive Industry
 Biotechnology
 Food and Drink Industry
 Chemical Industry
 Iron and Steel Industry
 Robotics Industry
Company Profile:

Company profile is manufacturing, fabrication and production. Company Name

is Venkatesh Engineering Works. This was established in 1998 but that time this was
very small workshop. The workshop owner was start new business in Nashik.
Company produce Machinery, Job, Dispatch and Gate. Manufacturing Engineering is
related to Production or Operation Management.

The company started their production business in 1999 by providing windows

of house, beam, front gate of house and colleges. The company nature is
manufacturing and service provider, Supplier Company CEO name is M R. Patil.
Total number of employees are 20 and other 20 employees are work in second
branch.

 Nature of Business: Manufacturer

 Additional Business: Service Provider, Supplier
 Company CEO: Mr. M. R. Patil
 Total number of Employees: 40 People
 Year of Establishment: 1998
 Legal Status of Firm: Sole Proprietorship (Individual)
 Annual Turnover: 50 Lakh to 1 Crore
 Quality Measures / Testing Facilities: Yes
 Payment Mode: Cash, Cheque, DD
 Shipment Mode: By Road.

Striving to attain maximum customer satisfaction, we are engaged in providing

Precision Turned Component, SPM Machines, SPM Maintenance Work Mild Steel
Fabrication Work Stainless Steel Fabrication Work. Ours is technology driven
organization, which always cater to the demand of indelible status in this industry, we
never ever compromise with the quality of products. To lay strong emphasis on
customers, we are following ethical business dealing and customer centric
approaches.

Ours is a qualities centric organization, which is committed to provide

impeccable quality Precision Turned Components, SPM Machines for turned
component SPM Maintenance work, Mild Steel Fabrication Work, Stainless Steel
Fabrication Work. We always strive to maintain highest benchmark of quality and for
the same; we make use of best in class materials that are sourced from authentic
vendors of the industry. In addition, we have appointed a team of quality controllers,
which checks the entire range at our quality checking unit. Our range is checked on
following Parameters:

 Service life
 Maintenance
 Performance

Supported by a well-fortified infrastructure facility and a highly dexterous crew of

personnel, we are capable to make and provide our products with finest precision
within the assured time. Apart from this, we have divided our company into several
units to safeguard that all the tasks take place in an efficient way. All our units work in
class harmonized with one another and therefore leads to a successful working
process and results in increasing the output of our organization.

This depends on Manufacturing Resource Planning and control of operation

Management. Manufacturing Resource planning and control is a most important part
in manufacturing industry, and they are use various process of manufacturing and
production. And this process is use full in manufacturing, just like location selection of
factory and data of required inventory and use supply chain our logistics this are the
most important in manufacturing.

This company was do work for bigger colleges, college like Sandeep
foundation, Sandeep university, K. K. Wagh college, MET, they are very good and
ranking college in Nashik. This industry is developed this colleges with the help of
fabrication and various farm house they also provide a very good facility.
Manufacturing Resource Planning:
Manufacturing Resource Planning is an integrated information system used by
businesses. Manufacturing Resources Planning evolved from early Material
Requirement Planning system by such as employee and financial needs. The system
is designed to centralize, integrate and process information for effective decision
making in scheduling, design engineering, inventory management and cost control in
manufacturing. Both MRP and MRP are predecessors to Enterprise Resource
Planning (ERP), which is a process where by a company, often a manufacturer,
manager and integrates areas such as planning, purchasing, inventory, sales,
marketing, finance and human resources. ERP is most frequently used in the context
of software, with manufacturing development.

MRP is a computer-based system that can create details production schedules

using real time data to coordinate the arrival of component materials with machines
and labor availability. MRP is used widely by itself, but it’s also used as a module of
more extensive Enterprise Resource Planning (ERP) system. MRP is an extension of
the original materials requirement Planning system Material requirement planning is
one of the first software based integrated information systems designed to improve
productivity for businesses A material requirements planning information system is a
sales forecast-based system used to schedule raw material deliveries and quantities,
given assumption of machine and labor units required to fulfill a sales forecast. By the
1980, manufacturers realized they needed software that could also tie into their
accounting system and forecast inventory requirements. MRP was provided as a
solution, which included this functionality in addition to all the capabilities offered by
MRP. For all intents and purpose, MRP has effectively replaced MRP software Most
MRP system deliver all the functionally of an MRP system. But in addition to offering
master production scheduling, bill of materials and inventory tracking, MRP provides
functionality within logistics, marketing and general finance.
MRP included the following three major functionalities:
 Master production scheduling
 Bill of materials
  Inventory tracking

MRP include those three, plus the following:

 Machine capacity scheduling
 Demand forecasting
 Quality assurance
 General accounting

Benefits of MRP
 Better control of inventories
 Improved scheduling
 Productive relationships with suppliers for design / Engineering
 Improved design control
 Better quality and quality control for financial and costing
 Reduced working capital for inventory
 Improved cash flow through quicker deliveries
 Accurate inventory records
 Bill of Resources
 CONWIP
 C-VARWIP
 Documentation automation for Supply Chain and Logistics
 Enterprise resource planning (ERP)
 Just in time (Business)
 Kanban
 Manufacturing
 Material requirements planning (MRP)
 Scheduling (Production processes)
 Supply chain management
 Distribution resource planning
 Warehouse management system
 Warehouse control system
Purpose of MRP In Manufacturing:
 Control inventory levels: (Order- Right Part, Right quantity, Right quality)
 Assign operating priorities: (Order- With due date, keep due date valid)
 Plant capacity to load the production system: (Plan for- Complete load,
Adequate Load, Future Load)

MRP:
Material requirement planning is a system used for planning the future
requirement of the dependent demand items.
Black and decker was the first company who used MRP in1964.
Material requirement planning typically determine “when to order” based on an
average usage for a planned replenishment lead time + safety stock to protect the
severer demand.

Inputs of Material:
Bill of Material
Master Production schedule
Inventory
Chapter 2- Literature Review
Manufacturing

Was research on competitive pressures in the global manufacturing

environment are forcing manufacturing organization to engineer to become more
competitive in the market place. Toward that end, management of these organization
is paying closer attention to the different branches of manufacturing and various think
try in manufacturing and research. Reviews and classified articles published in
relevant journals between 1988 to 2000. Identified and discusses several issues
about practical and theory of manufacturing performance measurement and how to
develop new technology for manufacturing and but don’t create issues in practical
and theory and outline the evolution of manufacturing performance measure and
measurement in an organization context.

Mohamed, N. M. Z. Nik (University of Bradford):

Manufacturing is global business was started the industrial revolution in the

19th century to cater for the large-scale production of product. Since manufacturing
business has changes tremendously through the innovation of technology,
production processes, processes, materials, Communication and Transportation.
According to chrysidoids et al (2008), discover major challenge of manufacturing is to
produce more product with less material, less energy and less labor involvement. It is
important to understand the manufacturing aspects that have covered in this chapter,
especially which are related to LVAM environment. Based on the understanding of
the types of manufacturing practices, requirements and advance LVAM they have
concentrated on your work and take very important decision about manufacturing
work and consideration should incorporate the element of man, machine, method
and material to suit the LVAM manufacturer’s vision and mission. As the nature of
production is low volume, small batches with mixed model lines is important to be
utilized to maximize space, labor, cost therefore is not suitable to use the product.
Samuel Huang:
(International journal of industry and system Engineering Jan 2006)

Globalization’s posing several challenges to the manufacturing sector. Design

and operation sector have a good economic importance. Factory performance is also
unpredictable despite the considering manufacturing productivity improvement and
the long history of manufacturing as there is no widespread agreement on how best
be performance. Manufacturing system productivity measurement; productivity
importance; operation research; system analysis; continuous improvement;
performance metrics; factory diagnostics.

Productivity measurement and improvement, it is based on four categories OR

based methods to understand mathematical behavior of system. Complexity and
heavy dependence on the issues being studied are drawbacks. Commercial tool is
available to measure manufacturing performance indicate performance and
equipment level also measure because there is no modelling capability leading to
automation diagnostics. A framework is proposed to develop quantitative metrics of
factory and improve techniques in manufacturing industry and develop production
process.

Pillai, Anil Kumar Raghavan Symbiosis International University:

The current research accomplished integration of lean and Six Sigma

methodology this IT service is uses manufacturing. That’s why manufacturing
industry is very develop, know a day’s manufacturing sector is use technology. The
integration

Is achieved through combining the various phase of lean philosophy with

DMAIC methodology majorly practiced as Six Sigma Method. The overlap between
lean and six sigma is significant as they both have the goal of improve our
performance as a reducing variation.
After successful integrated of lean and Six-Sigma, the study attempted different
scenarios one for a full software development life cycle and the other for a technical
scenario.

 Cycle time reduction the order 10-12%

 Reduction of the defect density by 32%
 Financial savings of over US$ 20,000

Cycle time reduction helps to improve the response to customer calland

thereby customer satisfaction levels have improved. The reduction of the
deliverable improves the quality of the production. The second time reduction
helps to improve the response to customer and customer satisfaction. The
material is developed in manufacturing by using CNC machine.

The study was organized as depends on the operational definition, the

statement of the problem, objective of the study, testing of hypotheses, scope of
the study, sampling design, tool foe dada collection, frame work analysis,
limitations of the study.

AGV= Automated Guided Vehicle

AMT= Advanced Manufacturing Technology
ANOM= Analysis of variance
AS/RS= Automated storage and Retrieval Durgesh Sharma (September 2014):

From the survey of worldwideresearch, it is found that most of the researcher

have taken flexible Manufacturing System (FMS) as highly flexible and highly
automated system essentially operating in a real time control mode. However, this
capacity is capital intensive and many SMEs of the India and other developing
economics cannot control this. The objective of this research efforts is to identify the
right levels of flexibility. Integration and automation on the theme of semi-automation
flexible Manufacturing System. A SAFMS employee on online control strategy that
may not be real time. In order worlds, it may be associated with alternative models of
decision and information delays. From the finding of the shop floor simulation at a
macro level, a framework for assessing the capacities of a manufacturing
organization is proposed. In addition, the guideline foe the adoption of flexible
automation to attain competitive advantages while keeping the cost within limits by
the small and medium Enterprises are also proposed. The work will help
manufacturing professional to plain, monitor and manage the flexibility.

List of Abbreviations:

System

BOR= Business Process Reengineering

CAD/CAM= Computer Aided Design/ Computer Aided Manufacturing
CIM= computer Integrated Manufacturing
CNC= computerized Numerically control
CRS= customer Relationship Management
CMS=cellular Manufacturing system
Dr= Dispatching rules
ERP= Enterprise Resource Planning
FIFO= first in first out
FMS= flexible Manufacturing System
GT= Group Technology
GRAI= Graph with Result and Activities Interrelated
IT= information technology
LPT= Longest Processing Time
MSME= micro small and medium Enterprises
MST= make span Time
Man= Minimum Queue
Min Wt.= Minimum waiting time in queue
Max BPT= Maximum Balance Processing Time
MF =Machine flexibility
MRP= Manufacturing Resource Planning
NP= Number of Pallets
SCM= Supply Chain Management
SAFMS=semi-Automated Flexible Manufacturing System.
Jitendra Matta (April2015):

Managerial activity become complex as the organization setting in which they

must be performance become complex as the complexity increases management
become more of a science than manufacturing and resource is most develop project
and process is less work with means Quality Concept tools
Inventory control technique, Standard models, incentive schemes, helping hand,
Industrial policy with growth, Infrastructure with Performance, Basic Resource and
Human attitude, Infrastructure with Productivity this are the most important think in
manufacturing.

Dhaigude Amole Subhash(Indian Institute of Management Indore):

The role of supply chain integrated and agility onsupply chain orientation
performance relationship SCM is based on the concept that SCP is enhanced via
well managed upstream and downstream flows of products, service, finance and
information from source to the consumer. When supply chains are properly
operational indicators such as productivity, quality, service level and customer
satisfaction are improving. The aim of this study was to develop and empirically test a
conceptual framework for establishing linkage between SCO and SCP, SCO is an
important but less researched area in the realm of SCM. Relation between SCO and
SCM was an unexplored area. Our study examined he evolution and importance of
SCO, alone with exploring the linkage of SCO with SCP, and it considered the
mediation effect of SCA and SCI is therefore the first attempt to concatenate a
standalone frame work.

Singh Varinder (Study of resulting decision and complexity of lean manufacturing

systemsquote)

In order to meet the challenge of increasingly competitive global business

newlineenvironment character. By the tough customer requirement, shorter product
life new line cycle, rapid introduction and adjustments in the product lines, it is
imperative that the new line competitiveness of manufacturing organization be
enhanced by appropriated using new line different practice of lean philosophy such
as just in time total quality management newline (TQM), quality at source etc. The
overall objective of the lean philosophy is to attain the new line customer focus for
everything that is carried out within the organization generally need a new line
consideration reconstructing to implementation lean principle.

Janak Kumar Tanna (K.J. institute of engineering and technology)

The gap between Manufacturing Resource Planning (MRP) system and the
flexible Manufacturing system (FMS) and discuss several approaches for closing the
gap. Considerable efforts have gone into development and integrating the various
modules in the MRP system. At the same time, a similar effort has been underway to
develop and integrate the several subsystems of a flexible manufacturing system. A
few computer control systemshave been developed to automatically plan and control
the operations of NC machines with automated tool changes, automated material
handling, and automated test and inspection equipment unfortunate, these two
efforts have proceeded relatively independently with little interaction equipment.
Information technology plays a major role in designing and implementing material
requirement planning systems and processes as it provided information about
manufacturing needs as well as information about inventory. MRP techniques for
focus on optimizing inventory. MRP techniques are used to explode bills of material,
to calculate net material, to calculate net material requirement and plan future
production. Keywords MRP, MRP2, ATP, PAB, MPS, BOM.

Production planning is most important in operation management because is

one part of production planning and control dealing with basic concept of that what to
produce, when to produce, how much to produce, etc. it involves taking a long-term
view at overall production planning. Therefore, the objectives of production planning
are as follows:

To collected right quantity and quality of row material, equipment, etc. are
availability during times of production. To ensure capacity utilization is in tune with
forecast demand at all the time. Is in production control looks to utilize different type
of control techniques to achieve optimum performance. Production planning takes
care of two basic strategies product planning and process planning. Production
planning is done at three different time dependent level such as long level or long-
range planning dealing with facility planning with their control, and capital investment,
location planning, etc.; medium range planning deals with demand forecast and
capacity planning and lastly short-term planning dealing with day to day operations.

Production control looks to utilize different type of control techniques to

achieve optimum performance out of the product system as to achieve overall
production planning targets. Therefore, objective of production control is as follow:
 Regular inventory management
 Organization the production schedules
 Optimum utilization of resource and production process.

The advantages of robust production control are as follows:

 Ensure a smooth flow of all production processes

 Ensure production cost saving thereby improving the bottom-line
 Control wastage of resource
 It maintains standard of quality through the production life cycle

Production control cannot be same across all the organization. Production control is
dependent upon the following factors:

 Natural of production (job oriented, service orientated, etc.)

 Natural of operation
 Size of operation

Production planning and control are essential for customer delight overall
success of an organization.

Production is A scientific process which involve transformation of raw material

(input) into desired product or service (output) by adding economic value. Production
can broadly categorize on the following base technique:
 Production through separation: it involves desired output is achieved
through separation or extraction from raw material. A class example of separation or
extraction is oil into various fuel products.

Production by modification or Improvement: It involve change in chemical

and mechanical parameters of the raw material without alternating physical attributes
of the raw material. Annealing process is example of production by modification or
improvement.

Production bye Assembly: Car production and computer are example of

production by assembly.

Input Scientific process Output service /Goods

(Laboure, Capital, Raw
material)

Importance of Production Function and Production Management:

Successful organization have well defined and efficient line function and support
function. Production comes under the category of line function which directly affects
customer experience and there by future of organization itself.

Aim of production function is to add value to product or service which will create
a strong and long-lasting customer relationship or association. And this can be
achieved by healthy and production people. Marketing function people are frontline
representative of the company and provide insights to real product needs of customers.

An effective planning and control on production parameters to achieve or create

value for customers is called production management.

Operations Management: As to deliver value for customer in production and

service, it is essential for the company to do the following:
  Identify the customer needs and convert that into a specific product or service
(number of into a specific product required for specific period)
 Based on product requirement do backward working to identify raw material
requirements
 Engage internal and external vendors to create supply chain for raw material
and finished goods between vendor -production facility – customers.
Operations management captures above identified 3 points.

Operations strategy

Operational strategy is essential to achieve operational goals set by

organization in alignment with overall objective of the company. Operational
strategy is design to achieve business effectiveness or competitive advantage.

Operation strategies is planning process which aligns the following:

Organization Goal Business Goal Production/Service Goal

Operations Strategy SWOT Analysis

In this global competitive age organization goal tend to change from time to
time therefore operations strategy as a consequence has also be dynamic in nature
Strategic Management Process for Production is able to Maintain Competitive
advantage and business leadership.
Strategic Management Process for Production and Operation

For success of organization strategies objective, strategic planning has to

trickle down to various function areas of the business. In order to build strategy
management, process a sequential process as below is followed

Competition Analysis:
In this step company evaluates and studies current completion in the market
and studies current competition in the market and practices that are followed in the
industry for operations and production vis-à-vis company policies.

Goal Setting:
Next step involves narrowing down the objective towards which the
organization wants to move towards.

Strategic Formulation:
The next step is breaking down of organization goals into operations and
production strategies.

Implementation:
The final step is to convert operations and production strategies into day to
day activities like production schedule, product design, quality management etc.
As organizations are always customer-centric, production and operation strategy for
organization are built around them.

Productivity:
Measurement of formulation operations and production strategy is important to
maintain alignment with the organization objectives. In simple term productivity is
defined as sum of total output per employee per day. Productivity of company is
dependent on industry and environment conditions in which it is operating.
Two essential part of productivity are labor and capital. In scenario of limitation
resources, optimum and efficient utilization of labor and capital will generation
favorable productivity. Productivity measurement also enables company to identify
areas which require improvement or special focus. Also, productivity provides ready
report card to measure status against company’s production objective.
Productivity measurement can be classified in three categories based on the inputs
used for calculation, partial productivity ration of output is compared to one of
resource used for example, labor productivity where output is compared to the labor
wages.

Total productivity measure takes into consideration sum of all input factors
which are used for the output.

Wastivity

Another important factor is the case of production is wastivity. Not 100% of

input would be converted to output, there is going to waste during production.
Wastivity is reciprocal of productivity. Classic example of wastivity are defective
production and service which either have to be re-cycle or disposed of completely.
Other example is idle capacity of material, man-power equipment etc.

Value analysis:

All organization strive to create value for their customer. This value creates
mind space for product and services. Value analysis, therefore, is a scientific method
to increases this value.
Value is a perception hence every customer will have their own proception on how
they define value. However, overall at the highest level, value is quality, performance,
style, design relative to product cost. Increasing value necessarily does not mean
decrease in all inclusive cost of productivity but providing something extra which a
premium can be charged.

The objective and benefits to simply product and process. There by increasing
efficiency in managing project, resolve problems, encourage innovation and improve
communication across organization.
 Value analysis enables people to contribute in the value addition process by
continuous focus on product design and services.

Value analysis provides a structure through cost saving initiatives, risk

reduction and continuous improvement.

Activity for Value Analysis

Activities for value analysis are separated into following activities:

Product/service: The 1st step is to identify the product or service which is based on
usage/demand, complexity in development and future potential.

Cost Analysis:
The next step understands in detail cost structure in developing and
manufacturing the product.

Define product and function:

The next step is to define all the primary function of the product and service
through satisfying the basic need and then talking next in dealing the customer. For
this better understanding of product components and characteristics is required.

Evaluation of alternatives:
Through brainstorming possible alternatives can short listed which can provide
value to the primary function of the product. Cost evaluation at high level need to be
done for all the alternatives, and the cheapest alternative is short listed.

Secondary Function evaluation:

Secondary functions of the Product and service are studied and evaluated.
Recommendation:
Value Analysis done has to communicate to the various level of the
management team as to get acceptance.

Value Analysis Team

The process of value analysis is carried out bye value analysis team. So it
becomes paramount that team selection for value analysis also follows a structured
process. Value analysis team consists of trained and qualified team members who
have background and knowledge about the project. Team for value analysis is 5 to 8.

Value Analysis Process

Value analysis process can be divided into there phase of mainly pre-analysis,
analysis and post analysis. Pre-analysis contains activities of project selection and
team selection. Analysis phase as the name suggests consists of activities like
investigation, speculation, evaluation developing and presentation of the report. Post
analysis consists of activities implementation of the report and regular audit.

Functional Analysis part of value Analysis

 Function analysis is required to transform the project elements from design of
product towards function of product. The main categories are Basic, Secondary,
Required Secondary Aesthetic, Unwanted, Higher order and assumed.

Facility Location
Facility location is the right location for the manufacturing facility, it will have
access to the customer, workers, transportation, etc. For commercial success, and
competitive advantage following are the critical factors:
Overall objective of an organization is to satisfy and delight customer with its product
and service. Therefore, for an organization it becomes important to have strategy
formulation around its manufacturing unit. A manufacturing unit is the place where all
inputs such as raw material, equipment, skilled labors, etc. come together and
manufacture products for customer. One of the most critical factors determining the
success of the manufacturing unit is the location.

Facility location determination is a business-critical strategies decision. There

areseveral factors, which determine the location of facility among them
competition, cost and corresponding associated effects. Facility location is a
scientific process utilizing various techniques.

Location Selection Factors

For a company which operates in a global environment; cost, available
infrastructure, labor skill, government policies and environmental are very important
factors. A right location provides adequate access to customer, skilled labors,
transportation, organization in current global competitive environment.

Industrialization
A geographic area becomes a focal point for various facility location based on
many factors, parameters and issues. These factors are can be divided into primary
factors and secondary factors. A primary factor which leads to industrialization of a
particular area for particular manufacturing of product is material, labor and presence
of similar manufacturing facilities. Secondary factors are available of credit finance,
Communication infrastructure and insurance.