FACILITY LOCATION

Facility location is the process of determining a geographic site for a firm’s operations.
Managers of both service and manufacturing organizations must weigh many factors when
assessing the desirability of a particular site, including proximity to customers and suppliers,
labor costs, and transportation costs.

Location conditions are complex and each comprises a different Characteristic of a tangible (i.e.
Freight rates, production costs) and non-tangible (i.e. reliability, frequency security, quality)
nature.

Location conditions are hard to measure. Tangible cost based factors such as wages and products
costs can be quantified precisely into what makes locations better to compare. On the other hand
non-tangible features, which refer to such characteristics as reliability, availability and security,
can only be measured along an ordinal or even nominal scale. Other non-tangible features like
the percentage of employees that are unionized can be measured as well. To sum this up non-
tangible features are very important for business location decisions.

It is appropriate to divide the factors, which influence the plant location or facility location on
the basis of the nature of the organization as

1. General locational factors, which include controllable and uncontrollable factors for all type
of organizations.
2. Specific locational factors specifically required for manufacturing and service organizations.
Location factors can be further divided into two categories: Dominant factors are those derived
from competitive priorities (cost, quality, time, and flexibility) and have a particularly strong
impact on sales or costs. Secondary factors also are important, but management may downplay
or even ignore some of them if other factors are more important.

General Locational Factors

Following are the general factors required for location of plant in case of all types of
organisations.
CONTROLLABLE FACTORS
1. Proximity to markets.
2. Supply of materials
3. Transportation facilities
4. Infrastructure availability
5. Labour and wages
UNCONTROLLABLE FACTORS
8. Government policy
9. Climate conditions

CONTROLLABLE FACTORS

Proximity to markets:

Every company is expected to serve its customers by providing goods and services at the time
needed and at reasonable price organizations may choose to locate facilities close to the market
or away from the market depending upon the product. Gabion Pvt Ltd. sell their wire mesh
maily to government departments and few private departments .

Supply of raw material:

It is essential for the organization to get raw material in right qualities and time in order to
have an uninterrupted production. The raw material comes from different states like Gujarat,
Pune, Gaziabad, Himachal Pradesh etc. The finest zinc coated mild steel wires are avilable at
these respectivr places in abundance and are not very expensive.

Transportation facilities:

Speedy transport facilities ensure timely supply of raw materials to the company and finished
goods to the customers. The transport facility is a prerequisite for the location of the plant.
There are five basic modes of physical transportation, air, road, rail, water and pipeline. The
Gabion Industry uses roadways as a means of transportation. It is cheap and the most
convinient way for transporting of raw material.
 Infrastructure availability:

The basic infrastructure facilities like power, water and waste disposal, etc., become the
prominent factors in deciding the location. These type of industries are power hungry e.g.,
aluminum and steel and are located close to the power station or location where uninterrupted
power supply is assured throughout the year. The non-availability of power may become a
survival problem for such industries. During power cuts GenSets are taken use of.

Labor and wages:

The problem of securing adequate number of labor and with skills specific is a factor to be
considered both at territorial as well as at community level during plant location. Importing
labor is usually costly and involve administrative problem. The labour is easily available, and
they are local people. Prevailing wage pattern are satisfactory.

UNCONTROLLABLE FACTORS
Government policy:

Few prevailing government pilicies are:-

 100% Exise exemption for 10 years.

 5 years of 100% Income tax holiday
 Capital investment subsidy upto Rs. 30.00 lakhs and Rs. 45.00 lakhs for thrust area
project.

Climatic conditions:

As such there are no specific climatic condition requirements for the manufacturing of Gabion
wire mesh. The manufacturing of Gabion mesh is independent of weather conditions.
FACILITY LAYOUT

Facilities layout design refers to the arrangement of all equipment, machinery, and furnishings
within a building envelope after considering the various objectives of the facility. The layout
consists of production areas, support areas, and the personnel areas in the building .

The Facility Layout that the factory has used is Process Layout. In a process layout, similar
machines and services are located together. Therefore, in a process type of layout all drills are
located in one area of the layout and all milling machines are located in another area. A
manufacturing example of a process layout is a machine shop. Process layouts are also quite
common in non-manufacturing environments.

ADVANTAGES DISADVANTAGES
 Better machine utilization  Increased material handling
 Highly flexible in allocating personnel  Increased work in process
and equipment because general  Longer production lines
purpose machines are used.  Critical delays can occur if the part
 Diversity of tasks for personnel obtained from previous operation is
 Greater incentives to individual faulty
worker  Routing and scheduling pose
 Change in Product design and process continual challenges
design can be incorporated easily
 More continuity of production in
unforeseen conditions like breakdown,
shortages, absenteeism
 GENERAL IMFORMATION OF GABION

1. Product name – Gabion

2. Technology – Gabion’s manufacturing is based on Italian technology which is around 130 years
old.
3. Design – The mild steel wire is woven into an hexagonal pattern, with double twist joints
which prevent the whole mesh from unravelling.

4. Raw material- Zinc Coated mild steel wire rolls. These mild steel galvanised wires have good
toughness, flexibility and corrosion resistance properties. A single coil package can be as small
as 50 kg and up to maximum 200 kg per coil.

5. Suppliers- TATA steel from Gujarat, Pune, Gaziabad, Himachal Pradesh .

6. Transportation- Public transports. ( any available)
7. Workforce – 12 people from local area (Samba).
8. Workplace Safety Measures - Since there is no use of any kind of chemical , the factory is safe
for working, still all the workers are proided with gloves as a measure of precaution. Also,
insurance has been done for each and every employee.
9. Area of factory- 4 Canals
10. Nature of Business- Manufacturer
11. Additional Business- Service Provider, supplier
12. Year Of Establishment- 2010
13. Legal Status Of the Firm- private limited company
14. Initial Investment
Land- 13 Lakhs
Infrastructure- 30 Lakhs
Plant- 46 lakhs
15. Annual Turnover- 3 Crore
16. Waste Managemet- The only waste produced is scrap which is collected every month by Scrap
dealers. Then these scraps are recycled and can be used again.
17. Total quality Managemet- All the finished products are tested in SICOP for the quality
measurement. SICOP (J&K Small Scale Industries Development Corporation Limited) is
located in Gangyal, Jammu. These Centres have been equipped with the requisite equipments
essentially required for quality testing of the products as per ISI standards.
18. Price:-
Raw Material(purchase)- Rs. 83/kg
Finished product(sale)- Rs. 129/kg
Cost Of production- Rs 6-12
19. Daily Manufacturing- 1.5-1.8 metric ton (1500-1800kg)
20. Inventory-
ADVANTAGES OF GABIONS

Flexibility
An outstanding advantage of the gabion is its flexibility. Its double-twist hexagonal mesh
construction permits it to tolerate differential settlement without fracture. this property is
especially important when a structure is on unstable groung or in an area where scour from
waves or currents can undermine it.

Strength
The strength and flexibility of the steel wire hexagonal mesh from which gabions and mattress
are made is utilized to withstand and absorb the forces generated by retained earth or flowing
water.

Permeability
Hydrostatic heads do not develop behind gabion structures because of their permeable nature.
Their ability to combine drainage and retention functions make them ideal structure for slope
stabilization.

Durability
A Geo gabion or Reno mattress is a heavy monolithic gravity unit able to withstand earth thrust.
Its efficiency increases instead of decreasing with age since further consolidation takes place as
silt and soil collect in the voids and vegetation establishes itself.

Ecology
Because gabions permit the growth of vegetation and maintain the existing environment, they
provide attractive and natural building blocks for decorative landscaping.

Economy
Gabion installations are more economical than rigid or semi-rigid structures for a number of
reasons. the following are the most important ones :

* Little maintenance is required.

* Gabion construction is simple, does not require skilled labour.
* Suitable stone fill is available normally on site or from nearby quarries.
* Minimum foundation preparation is required, the surface needs to be only reasonably plane.
* No costly drainage provision is required, as gabions are permeable.

APPLICATIONS
ABSTRACT

The very essence of any business is to cater the needs of customer by providing services and
goods, and in process to create value for customers and solve their problems. Production and
operations management talks about applying business organization and management concepts in
creation of goods and services. Production is a scientific process which involves transformation
of raw material (input) into desired product or service (output) by adding economic value.
Similarly, the manufacturing of Gabion has been identified as one of a kind. Geo Gabion India
Pvt. Ltd. Was foemed in the year 2010 to become a market leader in Gabion Technology, to
provide solution to problems related to environment, soil erosion, soil stabalization and
construction infrastructure projects insector of road,railways, hydro, rivers, etc.

Geo Gabion is into manufacturing and supply of mechanically woven double twist gabions and
gabions mattresses having their manufacturing facility at SIDCO, Samba, J&K.

Geo Gabions have dedicated team of engineers to provide innovative at Economical and
Sustainable solutions which are Eco-friendly.

Although it is known that gabions have been used from ancient times, it is ony in the last few
decades that their widespread use has led them to become an accepted construction material in
civil engineering. Modern technology has made possible the manufacture of these reliable and
sound products, using mild steel wire mesh. The wire is woven into an hexagonal pattern, with
double twist joints which prevent the whole mesh from unravelling should a wire break or be cut.