Monday, March 1, 2010

Plant Site Selection.

Plant site selection can be generally classified based on two reasons for the selection, close to where the raw materials are or are approaching the market place. The reason that selection should consider the cost of shipping and transportation, facilities and infrastructure in the surrounding area and local government policy.

Plant usually established in the vicinity of raw material are due to raw material has a concentration that is too low. Freeport willing to build factories in the jungle of Papua, although the company had to spend huge cost to complete transportation, land acquisition, housing workers and others because the production cost will be much more expensive if the land contains gold and copper are brought to Java and didulang in Java.

Another reason is the raw material gas or liquid form that need special handling in the removal and transportation. This is why the location of natural gas refineries and oil are in isolated places. Factories that use agricultural products as raw materials are also often built near the farm area to avoid damage due to bad raw materials. Canning factories are also typically near the pier. In fact there is a factory built on the ship to avoid the rotten fish and save transportation costs for the export market.

The term 'market approach' on here is not simply meant to is closer to the market, but the point is to have easy access, cheap and quick to consumers because of the availability of adequate transportation facilities. The selection of plant location is close to the market the more common reasons used. For manufacturers who produce products that are vulnerable and need special handling, such as ice cream factory, a factory building near the target market becomes very important. Factory with a lot of competition also needs to be in an area that has easy access and quick to market. Manufacturers of soft drinks (soft drinks) to build a factory in bottle packaging (bottling company) in various places to expand its market and to keep consumers do not switch to other similar products. The term market itself is not merely the domestic market but also means that if the foreign market-oriented companies export products. For this plant, the location near the dock or airport to be an example of factory location near the market. In fact, sometimes there are factories that build their own dock for export if the public pier is not feasible or too crowded.

Site selection is usually a market approach is preferable if the local governments own and manage urban planning with a vision for the city industrial park. Any communications facilities such as roads and highways, docks and airports and utility facilities such as electricity and clean water are common property exploited by the government. Housing facilities for employees will also be easily reached from the factory area if the city has a good urban design as an industrial city. Entertainment facilities for the employees do not need to be provided by the company for private parties will compete to build the city.

Another would be the case if the plant location close to raw materials and must be established at a remote location. Any means of transportation, utility facilities, employee housing facilities and entertainment following the religious needs to the attention factory owner company. This would mean additional investment costs. But the company founded on the location near the raw materials typically have operating costs benefits of lighter and local government support. Sometimes even the company can push local governments to issue policies that benefit companies such as concessions on environmental regulations and labor. Government policy into the factors that influence the acquisition profits and benefits for the company. Industrial local governments will set regional minimum wages high and strict environmental regulations. This policy is due to brave the local government aware of the value of freshwater from the region. Therefore, companies will build factories in industrial areas have to deal with operational costs for greater social expenditure (social cost).

In the end location close to the selection of raw materials or close to market is also based on economic profit (profit) and social benefits (benefits) from the result of site selection. In this series of articles discussed only the analysis of economic benefits (profit). For these purposes need careful calculation of mass balance and energy production plants and the selection of systems and system processes the most efficient processing.

Plant site selection can be generally classified based on two reasons for the selection, close to where the raw materials are or are approaching the market place. The reason that selection should consider the cost of shipping and transportation, facilities and infrastructure in the surrounding area and local government policy.

Plant usually established in the vicinity of raw material are due to raw material has a concentration that is too low. Freeport willing to build factories in the jungle of Papua, although the company had to spend huge cost to complete transportation, land acquisition, housing workers and others because the production cost will be much more expensive if the land contains gold and copper are brought to Java and didulang in Java.

Another reason is the raw material gas or liquid form that need special handling in the removal and transportation. This is why the location of natural gas refineries and oil are in isolated places. Factories that use agricultural products as raw materials are also often built near the farm area to avoid damage due to bad raw materials. Canning factories are also typically near the pier. In fact there is a factory built on the ship to avoid the rotten fish and save transportation costs for the export market.

The term 'market approach' on here is not simply meant to is closer to the market, but the point is to have easy access, cheap and quick to consumers because of the availability of adequate transportation facilities. The selection of plant location is close to the market the more common reasons used. For manufacturers who produce products that are vulnerable and need special handling, such as ice cream factory, a factory building near the target market becomes very important. Factory with a lot of competition also needs to be in an area that has easy access and quick to market. Manufacturers of soft drinks (soft drinks) to build a factory in bottle packaging (bottling company) in various places to expand its market and to keep consumers do not switch to other similar products. The term market itself is not merely the domestic market but also means that if the foreign market-oriented companies export products. For this plant, the location near the dock or airport to be an example of factory location near the market. In fact, sometimes there are factories that build their own dock for export if the public pier is not feasible or too crowded.

Site selection is usually a market approach is preferable if the local governments own and manage urban planning with a vision for the city industrial park. Any communications facilities such as roads and highways, docks and airports and utility facilities such as electricity and clean water are common property exploited by the government. Housing facilities for employees will also be easily reached from the factory area if the city has a good urban design as an industrial city. Entertainment facilities for the employees do not need to be provided by the company for private parties will compete to build the city.

Another would be the case if the plant location close to raw materials and must be established at a remote location. Any means of transportation, utility facilities, employee housing facilities and entertainment following the religious needs to the attention factory owner company. This would mean additional investment costs. But the company founded on the location near the raw materials typically have operating costs benefits of lighter and local government support. Sometimes even the company can push local governments to issue policies that benefit companies such as concessions on environmental regulations and labor. Government policy into the factors that influence the acquisition profits and benefits for the company. Industrial local governments will set regional minimum wages high and strict environmental regulations. This policy is due to brave the local government aware of the value of freshwater from the region. Therefore, companies will build factories in industrial areas have to deal with operational costs for greater social expenditure (social cost).

In the end location close to the selection of raw materials or close to market is also based on economic profit (profit) and social benefits (benefits) from the result of site selection. In this series of articles discussed only the analysis of economic benefits (profit). For these purposes need careful calculation of mass balance and energy production plants and the selection of systems and system processes the most efficient processing.

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