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 48. Ph. No. :- +918460378336 Address:- 44, Assiyana Society Dugarvada Road Taluko & State : Modasa State : Gujarat Country: India Email: sahil.pharm4@gmail.comBEST OF LUCK TO ALL . . . . .. BMCPER,MODASA48 49. THANK YOUBMCPER,MODASA49