1. Classify and discuss the different factors affecting plant location.

Ans: Decisions regarding selecting a location need a balance of several factors. These are divided
into primary factors and secondary factors; here both the factors can influence the business in
the long run.

Primary factors

Availability of raw materials

Availability of raw materials is the most important factor in plant location decisions. Usually,
manufacturing units where there is the conversion of raw materials into finished goods is the
main task then such organizations should be located in a place where the raw materials
availability is maximum and cheap.

Nearness to the market

Nearness of market for the finished goods not only reduces the transportation costs, but it can
render quick services to the customers. If the plant is located far away from the markets then
the chances of spoiling and breakage become high during transport. If the industry is nearer to
the market then it can grasp the market share by offering quick services.

Availability of labour

Another most important factor which influences the plant location decisions is the availability of
labour. The combination of the adequate number of labours with suitable skills and reasonable
labour wages can highly benefit the firm. However, labour-intensive firms should select the plant
location which is nearer to the source of manpower.

Transport facilities

In order to bring the raw materials to the firm or to carrying the finished goods to the market,
transport facilities are very important. Depending on the size of the finished goods or raw
materials a suitable transportation is necessary such as roads, water, rail, and air. Here the
transportation costs highly increase the cost of production, such organizations can not complete
with the rival firms. Here the point considered is transportation costs must be kept low.

Availability of fuel and power

Unavailability of fuel and power is the major drawback in selecting a location for firms. Fuel and
power are necessary for all most all the manufacturing units, so locating firms nearer to the coal
beds and power industries can highly reduce the wastage of efforts, money and time due to the
unavailability of fuel and power.
Availability of water

Depending on the nature of the plant firms should give importance to the locations where water
is available.

Secondary factors

Suitability of climate

Climate is really an influencing factor for industries such as agriculture, leather, and textile, etc.
For such industries extreme humid or dry conditions are not suitable for plant location. Climate
can affect the labour efficiency and productivity.

Government policies

While selecting a location for the plant, it is very important to know the local existed
Government policies such as licensing policies, institutional finance, Government subsidies,
Government benefits associated with establishing a unit in the urban areas or rural areas, etc.

Availability of finance

Finance is the most important factor for the smooth running of any business; it should not be far
away from the plant location. However, in the case of decisions regarding plant location, it is the
secondary important factor because financial needs can be fulfilled easily if the firm is running
smoothly. But it should be located nearer to the areas to get the working capital and other
financial needs easily.

Competition between states

In order to attract the investment and large-scale industries various states offer subsidies,
benefits, and sales tax exemptions to the new units. However, the incentives may not be big but
it can help the firms during its start-up stages.

Availability of facilities

Availability of basic facilities such as schools, hospitals, housing and recreation clubs, etc can
motivate the workers to stick to the jobs. On the other hand, these facilities must be provided by
the organization, but here most of the employees give preference to work in the locations where
all these benefits/facilities are available outside also. So while selecting plant location,
organizations must give preference to the location where it is suitable for providing other
facilities also.

Disposal of waste
Disposal of waste is a major problem particularly for industries such as chemical, sugar, and
leather, etc. So that the selected plant location should have provision for the disposal of waste.

2. Discuss the principles of material handling.

Ans: Planning Principle

The planning principle states that all material handling operations should be the results of a
deliberate plan. The performance objectives, the need of the operation and the functional
specification should be defined from the very beginning.

Standardisation Principle

The standardisation principle of material handling believes that all methods, equipment,
controls, and software should be standardised within the limits of achieving the performance
objectives. This should not sacrifice the needed flexibility, modularity or throughput.

Work Principle

The work principle of material handling believes that material handling work should be
minimised without hindering productivity or the service level requires for the operation.

Ergonomic Principle

The capability of humans and limitations should be recognised and respected. This should be
considered when designing the material handling tasks and equipment in order to ensure a safe
and effective operation.

Unit Load Principle

This principle of material handling requires all unit loads to be appropriately sized. They should
also be configured to achieve the material for and the objectives at each stage in the supply
chain.

Space Utilisation Principle

Space Utilisation requires all available space is used effectively and efficiently.

System Principle

The system principle states that all material movement and storage activities should be
integrated to form a coordinated operational system. This should include the following things.

Receiving

Inspection
Storage

Production

Assembly

Packaging

Unitising

Order Selection

Shipping

Transportation

Handling of returns

Automation Principle

Wherever possible, all material handling operations should be mechanised or automated. This
improves operational efficiency, increased responsiveness, improved consistency, predictability
and decreases operational costs and/or potentially unsafe manual labour.

Environmental Principle

The environmental principle of material handling believes that all environmental impact and
energy consumption should be considered when designing or selecting alternative equipment
and material handling systems.

Life Cycle Cost Principle

Finally, a thorough economic analysis should account for the entire lifecycle of all material
handling equipment and resulting systems.

3. Discuss the different types of material handling equipment used in industries.

Ans: Material handling equipment is any tool used to aid in the movement, protection, storage,
and control of materials and products. The equipment used to do so can be broken down into
four main categories.

Storage and Handling Equipment

Storage equipment is used to hold materials while they wait to be transported from the
manufacturer or wholesaler to their final destination. Having the right storage equipment can
increase efficiency on the production floor and maximize space utilization- two very important
factors in any production environment.

Examples of storage and handling equipment include:

• Racks: such as pallet racks, drive-through or drive-in racks, push-back racks, and sliding racks
• Stacking frames: these are interlocking units that enable stacking of a load so crushing doesn’t
occur

• Shelves

• Bins and drawers

• Mezzanines: elevated floor systems that are installed between the production floor and ceiling
in order to provide additional storage space. Most of these structures can be dismantled and
moved with ease.

Engineered Systems

This type of material handling equipment are typically automated units that work together to
enable efficient storage and transportation of large materials or large volumes of materials
around the production floor. Examples of engineered systems include:

• AS/RS: Automated Storage and Retrieval Systems (abbreviated as AS/RS) are large automated
structures that involves racks, aisles and shelves that are accessible by a type of mechanized
shuttle system (like a cherry picker) for the quick retrieval of items.

• Conveyor systems: Automated conveyor systems carry heavy materials to specified

• Robotic delivery systems– These automated systems are ideal for moving products on an
assembly line or transporting goods throughout a plant or warehouse.

• Automatic guided vehicles– These vehicles are mobile robots that follow specific markers or
wires in the floor to move large materials around a manufacturing facility or warehouse. Vision,
magnets, or lasers can also be used as methods for AGV navigation.

Industrial Trucks

Powered industrial trucks, such as forklifts, are used to move large materials or large quantities
of materials around the manufacturing floor. They are also utilized to efficiently load (or unload)
heavy objects onto delivery trucks. Industrial trucks are very useful when there is insufficient
flow volume to justify the implementation of a conveyor system. Examples of industrial trucks
include:

• Hand trucks– Also known as a dolly, or box cart. Hand trucks are l-shaped box-moving
handcarts with handles at one end, wheels at the base, and a ledge to set objects on.

• Pallet jacks– These are tools are the most basic form of a forklift and used to lift and move
pallets within a warehouse.

• Pallet trucks– Manual operated or powered industrial forklifts.

• Walkie stackers– A pedestrian walk-behind stacker with a mast for lifting pallets to heights.

• Platform trucks– These are similar to a two wheeled dolly, but with an extended deck.
• Order picker– An electric lift truck specifically designed for filling individual customer orders.
This requires piece-part picking rather than selecting full pallets or unit loads.

• Side loader– Automated tool similar to a fork lift that loads and unloads from the side of the
machine rather than the front.

• Automatic guided vehicles

Bulk Material Handling Equipment

Equipment that deals with bulk handling aids in the control and transportation of large volumes
of material either in bulk or loose form. In general, the equipment is used to move loose parts
from one area of the production floor to another. Drums and hoppers can also be used to funnel
loose items so they can be easily manipulated or packaged. Bulk Material Handling Systems can
also utilize conveyor belts for horizontal transportation and elevators for vertical transportation.
Examples of bulk material handling equipment are:

• Conveyor belts

• Stackers– Similar to forklifts, stackers help to lift and stack heavy loads on the dock or in the
warehouse.

• Reclaimers– These are large machines used to recover bulk materials from a stockpile.

• Bucket elevators– Also known as a grain leg. These elevators haul flowable bulk materials
vertically.

• Grain elevators– This type of equipment is used to store and move grain and other similar
materials throughout a production pathway.

• Hoppers– Hoppers are a container for bulk material such as grain, that tapers and discharges
its materials at the bottom.

• Silos– A tower used to store grain and other materials such as coal, sawdust, woodchips, and
food products.