OPERATIONS MANAGEMENT

ASSIGNMENT-1
ON
“LOCATION SELECTION &
LAYOUT PLANNING FOR A
NEW COLLEGE BUILDING”

Submitted by: Group –5

Name Registration No. Signature

Swostik Rout MBA/19-21/44

Jayalalita Mohanty MBA/19-21/13

Shibangi Agarwal MBA/19-21/48

Bhabani Shankar Das MBA/19-21/05

Kamakhya prasad Dwivedi MBA/19-21/15

Priyadarshini Samantaray MBA/19-21/53

Debasmita Biswal MBA/19-21/08

Guided by: Prof. Manmath Nath Samantaray

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 CONTENTS

Sl. No. Topic Page No.

1 Introduction 3

2 Objective 3

3 Location Selection 3-6

4 Layout Planning 6-7

5 Conclusion 7

6 Bibliography 7

CONTENTS FOR TABLES

Sl. No. Topic Page No.

1 Location ratings data for Khandagiri and Patia Locations 5

2 Calculation of total rating for Khandagiri and Patia Locations 5

1. INTRODUCTION

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Location planning technique is a pre-requisite before finalizing any construction
activity. There are many options for location planning. Companies choose from
expanding an already existing location, shutting down one location and moving to
another, adding new locations while retaining the existing facilities or do nothing.
There are varieties of methods used to decide the best location or alternative for the
company to identify the country, general region, small number of community
alternatives or site alternatives.

2. OBJECTIVE
The main objective of this report is to determine the optimal location & layout planning for
building a college for the new course/intake (Bcom/60, B.Sc(agr)/120, MBA/120) at
Bhubaneswar, which have been approved by state Govt. of Odisha.

3. LOCATION SELECTION
Various models are available which help to identify the ideal location. Some of the popular
models are:
1) Factor rating method
2) Weighted factor rating method
3) Load-distance method
4) Centre of gravity method
5) Break even analysis

Out of all the above mentioned methods, we have chosen factor rating method because of the
following reasons:
 This method is most convenient for us to find the optimal location as it involves minimal
calculations.
 In this method we have an option of merging both quantitative and qualitative factors.
 As factors are assigned ratings based on relative importance, it makes it the decision
making faster.

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3.1. Factor Rating Method
The process of selecting a new facility location involves a series of following steps:
1) Identify the important location factors.
2) Rate each factor according to its relative importance, i.e., higher the ratings is
indicative of prominent factor.
3) Assign each location according to the merits of the location for each factor.
4) Calculate the rating for each location by multiplying factor assigned to each location
with basic factors considered.
5) Find the sum of product calculated for each factor and select best location having
highest total score.

3.2. Methodology
Choosing a potential site for a new facility can be difficult. In this report, we have used “the
location factor rating method” for comparing multiple sites that had been identified by
preliminary observations namely khandagiri and Patia.
As the first step in the Factor rating method is to identify the important location factors, our
group finalized the following location factors and the reasons for the same are stated below:
 Facility Utilization: The availability of water and electricity supply at the site of building
is one of the foremost requirements for site-selection process as it is crucial for cost-
cutting.
 Total Student Availability: As profitability of the college/ institute solely depends on the
number of student admissions. It is the most crucial factor, according to us.
 Connectivity / Transport: This is another important factor for site selection as it not only
makes the transportation of students and faculties easier but for the transportation of other
building materials like bricks and sand.
 Land and construction: Availability of large plot of land is one of the pre-requisite for the
construction of huge infrastructures like colleges as per our requirements.
 Availability of teachers: For imparting educational services, we would need to check
availability of teachers/ faculties in the nearby locality or willing to relocate to the
vicinity of the facility.

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We have taken the location ratings for various factors after proper analysis and discussion
with the team members as follows:

Table-1: Location ratings data for Khandagiri and Patia Locations

Location Factor Khandagiri Patia
Location Rating Location Rating
Facility Utilization 2 4
Total Student Availability 3 5
Connectivity/ Transport 3 5
Land & Construction 4 2
Availability of teachers 3 4

3.3. Calculation
We have taken the factor ratings mentioned in table-2 for the two locations after proper
analysis of the relative importance of the chosen factors. The total location ratings for
Khandagiri and patia have be calculated in the table below:

Table-2: Calculation of total rating for Khandagiri and Patia Locations

Location Factor Factor Khandagiri Patia Khandagiri Patia
Ratings Location Location Total Total
Rating Rating Location Location
Rating Rating
Facility Utilization 15 2 4 30 60
Total Student Availability 25 3 5 75 125
Connectivity/ Transport 20 3 5 60 100
Land & Construction 30 4 2 120 60
Availability of teachers 10 3 4 30 40
Total 100 15 20 285 385

From table-1, we got the total rating points for both the potential locations.
Total location rating of Khandagiri = 285
Total location rating of Patia = 385

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As the total location rating of Patia is more than that of Khandagiri, so we have adjudged
Patia as a suitable location for building a college as per the requirements.

4. LAYOUT PLANNING

After choosing the facility’s location, the next stage in operations planning is to design the
best physical layout for the facility. The available space needs to be assessed with
workstations, equipment, storage, and other amenities need to be arranged. The aim is to
allow for the most efficient workflow without disruption. A workplace that has carefully
arranged its layout will allow for a more effective and efficient workflow and produce its
good or services to a high standard.

While facility layout for services may be similar to that for manufacturing, it also may be
somewhat different—as is the case with offices, retailers, and warehouses. Because of its
relative permanence, facility layout probably is one of the most crucial elements affecting
efficiency. An efficient layout can reduce unnecessary material handling, help to keep costs
low, and maintain product flow through the facility.

There are three types of workflow layouts that managers can choose from:

1) Process layout: arranged in departments (e.g., hospitals).

2) Product layout: production line (e.g., a car assembly plant).

3) Fixed-position layout: building a large item (e.g., jumbo jet).

4.1. Fixed Position Layout

A fixed-position layout is appropriate for a product that is too large or too heavy to move.
For example, battleships are not produced on an assembly line. For services, other reasons
may dictate the fixed position (e.g., a hospital operating room where doctors, nurses, and
medical equipment are brought to the patient). Other fixed-position layout examples include
construction (e.g., buildings, dams, and electric or nuclear power plants), shipbuilding,
aircraft, aerospace, farming, drilling for oil, home repair, and automated car washes. In order
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to make this work, required resources must be portable so that they can be taken to the job
for "on the spot" performance.

We have chosen “Fixed position Layout” among the above mentioned layout options,
because of the following reasons:
 College is a non-movable or fixed asset.
 Faculties, staff, students need to move to site/ college building but not the vice-versa.
 It helps in job enlargement and upgrades the skills of the operators.
 It brings in greater flexibility as the same building can be used for multiple purposes.
 The capital investment in such layout is lower.

5. CONCLUSION
After completion of the report, we understood the importance of various methods for facility
location (especially “Factor Rating Method”) for finding out optimal location and
minimizing construction costs.
Apart from this we also understood that “fixed position layout” is the optimum choice for
designing a college building.

6. BIBLIOGRAPHY

 https://courses.lumenlearning.com/suny-opmanagement/chapter/7-2-facility-location-
and-layout/

 https://www.wisdomjobs.com/e-university/production-and-operations-management-
tutorial-295/location-models-9476.html

 https://courses.lumenlearning.com/boundless-business/chapter/planning-for-operations/

 https://www.referenceforbusiness.com/management/Int-Loc/Layout.html