1.

INTRODUCTION
In today's dynamic business environment, strategic decisions related to plant location, layout,
production efficiency, and competitiveness play a crucial role in the success of manufacturing
operations. This multifaceted approach involves careful consideration of various factors to
ensure optimal performance, continuity, and competitiveness. The amalgamation of factors
requires a systematic approach to evaluation, selection, and implementation. In this
comprehensive discussion, this discussion aims to shed light on three key aspects essential for
achieving operational excellence. These include Site Evaluation and Plant Location Strategies,
Plant Layout and Tooling System, and Production Efficiency and Competitiveness. Each section
aims to provide insights into the critical components that contribute to a robust manufacturing
framework, ensuring not only the optimal utilization of resources but also enhancing the overall
competitiveness of a business.
2. OBJECTIVES:
The objectives under this discussion include;
1. Site Evaluation and Plant Location Strategies:
 Understand the concept of site evaluation and plant location selection.
 Identify the key strategies employed in determining an ideal plant location.
 Explore the criteria used in the site evaluation process.
 Comprehend the step-by-step process involved in plant location decisions.
2. Plant Layout and Tooling System:
 Define the term "plant layout" and its significance in manufacturing.
 Identify intermittent processes related to plant layout.
 Explore the criteria for designing the best layout projects.
 Understand the role of production devices, jigs, fixtures, locators, and clamps in
plant layout.
 Explain different locating methods and their applications in plant setting.
3. Production Efficiency and Competitiveness:
 Define production efficiency and its relevance to business operations.
 Examine the concept of business competitiveness and its relationship to
production efficiency.
 Define operation design and its impact on production efficiency.
 Apply production theories to assess and enhance production efficiency.
4. Production Improving Methods for Product Continuity:
 List down various production improving methods.
  Explain the principles underlying these methods.
 Describe the step-by-step process of method improvement for sustained product
continuity.
This comprehensive exploration aims to provide a holistic understanding of the interconnected
facets of site evaluation, plant location, layout planning, and production efficiency. By
addressing these key components, businesses can establish a solid foundation for
competitiveness and sustained growth in today's challenging market environment.

3. . SITE EVALUATION AND PLANT LOCATION STRATEGIES:

Site evaluation and plant location selection are critical processes in the field of industrial and
business planning. Both these activities involve assessing and choosing the optimal and suitable
location for establishing a facility, such as a manufacturing plant, distribution center, or office.
Here are definitions for each terminology as follows:
Site Evaluation:
This is the systematic process of assessing the suitability and feasibility of a specific location for
a particular purpose, such as building a facility or conducting a project. It involves a thorough
analysis of various factors to ensure that the chosen site meets the requirements and objectives of
the project.
The purpose of Site evaluation aims to minimize risks, enhance project success, and optimize
resource utilization by selecting a location that aligns with the project's goals and constraints.
Key Considerations for a successful site evaluation include
 Environmental Factors1: by assessing the impact on the natural environment, including
ecosystems, climate, and geology.
 Infrastructure2: by examining the availability and quality of transportation, utilities, and
other essential services.
 Regulatory Compliance: by ensuring adherence to local, regional, and national
regulations and zoning laws.
 Market Accessibility: by evaluating proximity to target markets and assessing logistical
advantages for distribution.
The specific criteria used in site evaluation may vary depending on the nature of the project,
industry, and organizational requirements. Hence here are some common criteria to be
considered in site evaluation:
1. Regulatory compliance3: It involves compliance with local zoning regulations and land-
use planning, government incentives provided by local and national governments, such as
tax breaks, grants, or subsidies, and policies of the region. This is crucial to ensure that the
proposed activity aligns with the legal and regulatory requirements. Also assessing the

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 ease of obtaining necessary permits and regulatory approvals for the proposed project is
crucial to avoid delays and complications
2. Land Availability and Size: Sufficient and appropriately sized land must be available to
accommodate the proposed facility or project, taking into account present and future
expansion needs. Also the knowledge of physical characteristics of the land, including its
topography and geology, are essential considerations to ensure stability, prevent
environmental hazards, and facilitate construction.
3. Environmental Impact4: Evaluation of the potential environmental impact of the project
wildlife habitats, and the preservation of natural resources, is critical for sustainable
development of a project or facility. Also the assessment of natural hazards, such as
earthquakes, floods, hurricanes, and climate conditions, is important for risk mitigation
and the safety of the facility and its occupants.
4. Utilities and Infrastructure5: Availability and capacity of essential utilities such as water,
electricity, gas, and telecommunications and adequate infrastructure, including roads and
transportation are important to ensure smooth operations.
5. Accessibility: Proximity to transportation networks, including highways, railways,
airports, and ports, is vital for efficient distribution and accessibility for employees,
clients, and suppliers.
6. Labor Availability6: The availability of a skilled and qualified workforce is a key factor.
Factors such as labor costs, demographic trends, and workforce stability are considered.
7. Cost of Land: The cost of acquiring land, as well as the expenses associated for its
development, is a significant factor in the decision-making process.
8. Community and Stakeholder Relations: Engaging with the local community and
understanding stakeholder concerns is important for building positive relationships and
ensuring social acceptance of the project.
9. Market Proximity: Consideration of the proximity to target markets and suppliers is
important. A good example industries with significant logistical requirements.
These criteria are often evaluated through a combination of site visits, environmental impact
assessments, feasibility studies, and consultations with relevant experts and stakeholders. The
goal here is to identify a location that meets the project's requirements while minimizing risks
and ensuring sustainability.

Plant Location Selection:

It involves choosing the most suitable site for the establishment of a manufacturing or production
facility. It is a subset of site evaluation, focusing specifically on factors relevant to industrial
operations. The purpose of plant location selection is to optimize operational efficiency, reduce

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costs, and enhance competitiveness by strategically placing the manufacturing facility in a
location that offers the best combination of resources and market access 7.
Key Considerations for a successful plant location selection include:
 Proximity to Raw Materials: Assessing the availability and transportation costs
associated with essential raw materials.
 Labor Force: Evaluating the availability, skill level, and cost of the workforce in the
chosen location.
 Market Demand: Considering the proximity to target markets to reduce distribution costs
and enhance responsiveness to customer needs.
 Costs and Environment impacts

Both site evaluation and plant location selection are crucial in the strategic planning process for
businesses, helping to ensure long-term success and sustainability. The decisions made during
these processes can have a significant impact on a company's operational efficiency, cost
structure, and overall competitiveness in the marketplace. Therefore, selecting the right location
for a plant is a critical decision for businesses, as it can significantly impact operational
efficiency, costs, and overall success the project.
Therefore, the following are strategies and considerations involved in plant location selection 8
which include the following factors:
1. Cost Minimization: Companies often aim to minimize costs by selecting a location that offers
lower land, labor, and utility expenses. Also access to affordable and reliable energy sources is
critical for manufacturing operations. Hence the industries with high energy consumption, may
choose locations with access to cheap and stable energy. .
2. Market Proximity: Proximity to target markets is crucial for industries where transportation
costs are a significant factor. Choosing a location close to target markets can reduce
transportation costs and improve customer service contributing to customer satisfaction.
3. Supply Chain Optimization: Plants are often located close to sources of raw materials to
minimize transportation costs and reduce delay times. This strategy helps in managing inventory
levels and ensures a steady supply of inputs. Therefore, Companies may select a location that
allows efficient supply chain management, such as proximity to suppliers or transportation.
4. Labor Availability: The availability of skilled and unskilled labor is a key factor in plant
location decisions. Most companies may choose locations where there is a skilled workforce or
areas with sufficient labor pool to improve competitiveness.
5. Infrastructure and Logistics: Access to well-developed infrastructure as transportation
networks, including highways, ports, and railroads, is vital for efficient distribution and logistics.
Companies may choose locations with easy access to major transportation routes to reduce costs
and transit times. Therefore evaluating the availability and quality of infrastructure, including

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transportation networks, utilities, and communication systems, is important in selecting a suitable
location.
6. Government Incentives and Regulations: •Governments may offer incentives such as tax
breaks, subsidies, or grants to attract businesses to certain locations. Companies may consider
locations that offer tax incentives, grants, or other benefits provided by local or regional
governments. Also they must consider the regulatory environment, including zoning laws and
environmental regulations, when choosing a plant location.
7. Risk Assessment: Assessing potential risks, such as natural disasters or political instability, is
essential to mitigate potential disruptions to operations. The political stability of a region can
impact the long-term viability of a plant location. Companies may consider geopolitical factors
and assess the risk of political instability before making a decision.
8. Environmental considerations and Sustainability: Industries are sensitive to climate
conditions and may choose locations with a favorable climate for production. Also
environmental factors, such as renewable energy availability and waste management are also
important in the decision-making process when selecting a plant location.
9. Competitor Presence: The presence of competitors in a particular region may influence a
company's decision, as it can impact market dynamics, labor competition, and supply chain
relationships. These strategies help companies make informed decisions when choosing the
optimal location for their plant.
10. Technology Infrastructure: For companies that heavily rely on technology, access to a well-
developed technology infrastructure, including research and development facilities, can be a
decisive factor.

11. 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.

Therefore, the combination of these factors along with a thorough cost-benefit analysis, helps
businesses make informed decisions when selecting an optimal plant location. Therefore it is
important to note that the relative importance of these factors may vary depending on the
industry and specific requirements of the business.

After considering the above strategies the following step, is Plant Location Process. The
Process of Plant Location involves a systematic series of steps to identify and select the most
suitable site for a manufacturing facility or industrial plant.
Hence the steps involved in the plant location process are as follows:
1. Define Objectives: Clearly identify the objectives and goals of the plant location project.
Determine what factors are most important, such as cost, market proximity, or labor availability
and strategic goals.
2. Conduct Initial Research: Conduct preliminary research to gather information about potential
locations that align with the defined objectives. Consider factors like transportation networks,
raw material availability, labor market conditions, and regulatory environments.
3. Stakeholder Engagement: Engaging with stakeholders, including local communities,
government authorities, and potential suppliers and address concerns, gather feedback, and build
positive relationships. The plant location process is often dynamic, with adjustments made based
on new information or changing circumstances. Effective communication and collaboration
among various stakeholders throughout the process are critical for success
4. Evaluate Site Criteria: Establish a set of criteria to evaluate potential sites. This may include
factors like land availability, access to utilities, proximity to suppliers and customers,
environmental impact, and zoning regulations.
5. Screen Potential Locations: Apply the established criteria to screen and narrow down the list
of potential locations based on the preliminary research. Eliminate sites that do not meet the
minimum requirements or are not feasible for the project
6. Conduct Site Visits and evaluation: Visit the remaining potential locations to assess the
physical characteristics, infrastructure, utilities, and overall suitability of the land at firsthand.
This step often involves a detailed on-site evaluation. Then, evaluate factors like accessibility,
infrastructure quality, labor availability, and other site-specific considerations.
7. Analyze Costs: Conduct a thorough cost analysis for each potential location. Consider
expenses such as land acquisition, construction, utilities, labor, taxes, and ongoing operational
costs.
8. Risk Assessment: Identify and assess risks associated with each location, including
environmental, regulatory, market volatility and geopolitical factors and the potential impact of
these risks on the success of the project.
9. Decision Making: Review the gathered information based on the findings from site visits,
analysis, and feasibility study. Consider long-term implications and alignment with
organizational goals and analyze the pros and cons of each location and make an informed
decision on the optimal plant location decision based on the defined objectives and evaluation
criteria.
10. Implementation: Once a location is selected, proceed with the necessary steps to acquire the
site, secure permits, and initiate the plant construction or relocation process.
11. Monitoring and Optimization: Regularly monitor plant performance, implement continuous
improvement initiatives, and optimize operations for efficiency. Address any challenges that may
arise during the operational phase.
12. Documentation and Reporting: Maintain thorough documentation of the entire plant
location process, including permits, approvals, and contracts. Prepare comprehensive reports for
internal and external stakeholders.
Remember, the specific steps may vary depending on the industry, company, and project
requirements, therefore, it is important to tailor the process to your specific needs and seek
expert advice if necessary.
The goal Site evaluation is to assess various factors to ensure the chosen site aligns with the
project's objectives and minimizes risks.
Therefore, the following are the key procedures involved in site evaluation for better plant
location:
1. Define Project Requirements: Clearly outline the specific requirements of the project,
considering factors such as facility size, production capacity, utility needs, and other
operational necessities.
2. Conduct Preliminary Research: Conduct initial research to identify potential locations.
Consider factors like geographical proximity to suppliers and customers, transportation
infrastructure, and availability of raw materials.
3. Site Screening: Screen potential locations based on initial research and eliminate those
that do not meet basic criteria. This may include factors like zoning restrictions,
environmental concerns, or inadequate infrastructure.
4. Conduct Site Visit and Physical Assessment: Conduct on-site visits to the remaining
candidate locations. Physically assess the land, considering topography, soil conditions,
environmental factors, and any potential challenges that may affect construction or
operation.
5. Utility and Infrastructure Assessment: Evaluate the availability and capacity of essential
utilities, including water, electricity, gas, and telecommunications. Assess the existing
infrastructure and determine if any upgrades or additions are necessary.
6. Transportation Analysis: Assess transportation networks, including road, rail, and port
facilities. Consider the ease of access for raw materials and finished goods, as well as the
transportation costs involved.
7. Environmental Impact Assessment: Conduct an environmental impact assessment to
evaluate the potential effects of the project on the surrounding ecosystem. Consider air
and water quality, waste disposal, and adherence to environmental regulations.
8. Regulatory Compliance Check: Verify compliance with local, regional, and national
regulations. Ensure that the site meets zoning laws, building codes, and other regulatory
requirements.
9. Market Accessibility: Analyze the proximity of the site to target markets. Consider
transportation costs, distribution efficiency, and the potential impact on the
competitiveness of the products or services.
10. Labor Market Analysis: Evaluate the availability and skills of the local labor market.
Consider factors such as labor costs, workforce stability, and the alignment of labor skills
with the project's requirements.
11. Risk Assessment: Identify and assess potential risks associated with each location,
including natural disasters, political instability, and any other factors that may pose a
threat to the project's success.
 12. Community and Stakeholder Engagement: Engage with local communities and
stakeholders to understand their perspectives, address concerns, and build positive
relationships. This is crucial for social acceptance and long-term community support.
13. Financial Analysis: Conduct a comprehensive financial analysis, including an estimation
of project costs, return on investment (ROI), and potential financial incentives or tax
benefits offered by the location.
14. Feasibility Study: Undertake a detailed feasibility study that integrates all the gathered
information. Assess the technical, economic, and operational feasibility of each location
to make an informed decision.
15. Decision Making: Based on the evaluations and analyses, make a final decision on the
optimal plant location. Consider the trade-offs and select the site that best aligns with the
project's objectives and long-term strategy.
16. Documentation and Reporting: Document all findings, decisions, and agreements
throughout the site evaluation process. Prepare comprehensive reports for internal use
and regulatory purposes.
17. Continuous Monitoring and Adaptation: After the facility is operational, continue to
monitor and adapt to changes in the business environment. Regularly assess the
performance of the chosen location and make adjustments as needed.
Therefore, by systematically following the above site evaluation procedures, organizations can
make informed decisions that lead to better plant locations, ensuring operational efficiency, cost-
effectiveness, and long-term success.
4. PLANT LAYOUT AND TOOLING SYSTEM
 Plant Layout:
It refers to the arrangement of physical facilities such as machinery, equipment, furniture, and
other industrial elements within a factory or manufacturing facility. According to J. L. Zundi,
“Plant layout ideally involves allocation of space and arrangement of equipment in such a
manner that overall operating costs are minimized. The goal of plant layout is to optimize the use
of available space, resources, and manpower, while ensuring efficient production processes and a
safe working environment. A well-designed plant layout can enhance productivity, reduce
manufacturing costs, minimize material handling, and improve overall workflow.
 Layout Intermittent Processes refer to production systems where the flow of work is
not continuous or uniform. In these processes, the layout of equipment, workstations, and
resources is designed to accommodate the variability and diversity of products or tasks. It
allows for flexibility in handling different types of products or projects, often in small
volumes or customized orders. Unlike continuous processes, intermittent processes
involve non-linear movement of products and may require workers with versatile skills.
This type of layout is commonly used in job shops, batch production, project-based
industries, and other scenarios where variety and adaptability are key.
The types of plant layouts, include9:
 Process Layout:
Machines and equipment are grouped based on the type of process they perform. This layout is
suitable for job shops and small-batch production. E.g. Machines performing drilling operations
are arranged in the drilling department. Therefore the machines are installed in the plants, which
follow the process layout. Hence, such layouts typically have drilling department, milling
department, welding department, heating department.
The process or functional layout is followed from historical period. It evolved from the
handicraft method of production. The work has to be allocated to each department in such a way
that no machines are chosen to do as many different job as possible. Its emphasis is on general
purpose machine. The work, which has to be done, is allocated to the machines according to
loading schedules with the object of ensuring that each machine is fully loaded.
The grouping of machines according to the process has to be done keeping in mind the following
principles
a) The distance between departments should be as short as possible for avoiding long distance
movement of materials
b) The departments should be in sequence of operations
c) The arrangement should be convenient for inspection and supervision
Process layout provides the following benefits:
a) Lower initial capital investment in machines and equipments.
b) The overhead costs are relatively low
c) Change in output design and volume can be more easily adapted to the output of variety of
products
d) Breakdown of one machine does not result in complete work stoppage.
e) Supervision can be more effective and specialized.
f) There is a greater flexibility of scope for expansion.
Product layout suffers from following drawbacks
a. Material handling costs are high due to backtracking
b. More skilled labor is required resulting in higher cost.
c. Time gap or lag in production is higher
d. Work in progress inventory is high needing greater storage space
e. More frequent inspection is needed which results in costly supervision

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Process layout is adopted when;
1. Products are not standardized.
2. Quantity produced is small
3. There are frequent changes in design and style of product
4. Job shop type of work is done
5. Machines are very expensive
Thus, process layout or functional layout is suitable for job order production involving non-
repetitive processes and customer specifications and non-standardized products, e.g. tailoring,
made to order furniture industries, jewelry.

 Product or line Layout:

Machines and equipment are arranged in a line according to the sequence of operations required
to produce a specific product. This layout is common in assembly line production. The materials
move from one workstation to another sequentially without any backtracking or deviation and
machines are grouped in one sequence. Therefore materials 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. The raw material moves very fast from one workstation to other
stations with a minimum work in progress storage and material handling.
The grouping of machines should be done keeping in mind the following general principles.
a) All the machine tools or other items of equipment’s must be placed at the point demanded by
the sequence of operations
b) There should no points where one line crossed another line.
c) Materials may be fed where they are required for assembly but not necessarily at one point.
d) All the operations including assembly, testing packing must be included in the line
Product layout provided the following benefits/ advantages:
a) Low cost of material handling, due to straight and short route and absence of backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Simple and effective inspection of work and simplified production control
h) Lower cost of manufacturing per unit
Product layout suffers from following drawbacks:
a. High initial capital investment in special purpose machine
b. Heavy overhead charges
c. Breakdown of one machine will hamper the whole production process
d. Lesser flexibility as specially laid out for particular product.
Product layout is useful under following conditions:
1) Mass production of standardized products
2) Simple and repetitive manufacturing process
3) Operation time for different process is more or less equal
4) Reasonably stable demand for the product
5) Continuous supply of materials
Therefore, the manufacturing units involving continuous manufacturing process, producing few
standardized products as chemicals, sugar, paper, rubber, refineries, cement, automobiles, food
processing and electronics continuously would prefer product layout.
 Fixed Position or location Layout.
This layout is used largely in construction projects. In this type of layout, the major product
being produced is fixed at one location. Equipment workers and components are moved to that
location. All facilities are brought and arranged around one work center.
Advantages of Fixed position layout provided the follows:
a) It saves time and cost involved on the movement of work from one workstation to another.
b) The layout is flexible as change in job design and operation sequence can be easily
incorporated.
c) It is more economical when several orders in different stages of progress are being executed
simultaneously.
d) Adjustments can be made to meet shortage of materials or absence of workers by changing the
sequence of operations.
Fixed position layout has the following drawbacks/ disadvantages:
a. Production period being very long, capital investment becomes heavy
b. Very large space is required for storage of material and equipment near the product.
c. As several operations are often carried out simultaneously, there is possibility of confusion and
conflicts among different workgroups.
The fixed position layout is followed in following conditions
1. Manufacture of bulky and heavy products such as locomotives, ships, boilers, generators,
wagon building, aircraft manufacturing, etc.
2. Construction of building, flyovers, dams.
 Combined layout:
Certain manufacturing units may require all three processes namely intermittent process (job
shops), the continuous process (mass production shops) and the representative process combined
process .example. Miscellaneous shops. Thus, in manufacturing concerns where several products
are produced in repeated numbers with no likelihood of continuous production, combined layout
is followed.
Generally, a combination of the product and process layout or other combination are found, in
practice, e.g. for industries involving the fabrication of parts and assembly, fabrication tends to
employ the process layout, while the assembly areas often employ the product layout.
 Cellular Layout:
Similar machines and equipment are grouped together in cells, allowing for more flexibility and
quicker response to changes in production requirements.
With regard to the above types, the criteria used to determine the best projects layout are
provided as follows10:
1. Efficiency: The layout should promote smooth and efficient flow of materials, resources, and
people, minimizing unnecessary movement and reducing production time.
2. Space Utilization: The layout should optimize the use of available space, ensuring that all
areas are utilized effectively and efficiently.
3. Flexibility: The layout should be adaptable to accommodate changes in production volume,
product mix, and technological advancements.
4. Safety: The layout should prioritize the safety of workers by considering ergonomic
principles, minimizing hazards, and providing clear pathways and safety measures.
5. Communication and Visibility: The layout should facilitate clear communication and
visibility between workstations, allowing for effective coordination.
6. Resource Utilization: The layout should maximize the utilization of resources such as
machinery, equipment, and personnel, minimizing idle time and reducing costs.
7. Future Expansion: The layout should consider the potential for future expansion or
modifications, allowing for scalability and accommodating growth.
8. Environmental Considerations: The layout should incorporate sustainable practices and
minimize negative environmental impacts, such as energy efficiency and waste reduction.
These criteria explained above, help create layouts that enhance productivity, efficiency, safety,
and adaptability in manufacturing or operational settings.

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  What are Production Devices:
Production devices refer to the equipment and machinery used in the manufacturing process.
They can include various types of machines, tools, robots, conveyors, and other devices that
contribute to the production of goods.

 Jigs and fixtures are specialized tools used in manufacturing to secure work pieces and
guide cutting or shaping tools, ensuring precision and repeatability in production
processes. These specialized devices play a role in securing work pieces, guiding cutting
tools, and ensuring the repeatability of complex operations. They are tailored to the
specific needs of production, facilitating tasks ranging from drilling and welding to
milling and assembly. They not only enhance the accuracy and quality of finished
products but also significantly reduce production time, making them invaluable assets in
modern manufacturing processes11
Jigs are essential tools in manufacturing and machining, designed to guide and hold work pieces
during various operations. They come in several types, each used for specific tasks. Fixture jigs
secure work pieces in a fixed position for tasks like drilling or welding. Template jigs use
templates or patterns for shaping work pieces, often seen in woodworking. There are different
types of jigs which are: Template jig, Plate jig, Channel jig, Diameter jig, Leaf jig, Ring jig and
Box jig12.
Fixtures are indispensable tools in manufacturing serving to securely hold and position work
pieces during machining, welding, or assembly processes. They come in various types, each used
for specific needs. These include; Vise fixtures clamp work pieces firmly in place, collet fixtures
are excellent for holding cylindrical items, Magnetic fixtures are versatile, using magnets to
secure ferrous materials quickly. Others are; Turning fixtures, Milling fixtures, Broaching
fixtures, Grinding fixtures, Boring fixtures, Indexing fixtures, Tapping fixtures, Duplex fixtures,
Welding fixtures, Assembly fixtures.
 Advantages of Jigs and Fixtures:
i. Increase accuracy and precision in manufacturing processes.
ii. Reduce production time and improved productivity.
iii. Enhance repeatability and consistency in product quality.
iv. Minimize operator error and improved safety.
v. Facilitate interchangeability of parts.
vi. Cost savings through efficient use of materials and reduced scrap.

 Roles of Locators in Plant Layout:

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 Locators are components or devices used to precisely position and hold work pieces or tools in
place during the manufacturing process. They play a crucial role in ensuring accuracy,
alignment, and repeatability in operations such as machining, assembly, and inspection.
Locating Methods: Locating methods involve various techniques used to position and align work
pieces or tools in a specific location.
Common locating methods include:
i. Locating pins or dowels
ii. V-blocks or V-plates
iii. Keyways or key slots
iv. Spherical or conical locators
v. Modular fixture systems

 Clamps in Relation to Plant Setting:

Clamps are devices used to hold work pieces securely in place during manufacturing operations.
They provide stability, prevent movement, and ensure accurate positioning. Clamps come in
various types such as C-clamps, toggle clamps, pneumatic clamps, hydraulic clamps, and
magnetic clamps. They are essential for maintaining work piece stability and facilitating efficient
and precise machining, assembly, or other processes in the plant setting.
5. PRODUCTION EFFICIENCY AND COMPETITIVENESS
 Production Efficiency
It is also referred to as productive efficiency. It’s the level a manufacturer utilizes full production
capacity. This means that the manufacturer would need to lower the production of another
product or drastically change the manufacturing process to produce more of a product beyond
productive efficiency.
You can achieve productive efficiency only when you operate at maximum capacity and without
wasting the resources. The higher production leads to higher revenue and lower wasted
resources, both of which lead to lower costs. Combined, they translate into more profits 13.
It should be noted that, production efficiency assumes no change in the quality of the product.
It’s relatively easier to increase production and minimize costs when you lower the quality of the
product. However, when calculating it, you must always ensure that the product quality is
constant.
Production efficiency is the ratio between your actual output and standard output, where standard
output is the total units you can produce utilizing the full capacity. To achieve production
efficiency, your actual output should equal the standard output 14.
You can use the following formula to analyze your current output for efficiency:

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Production Efficiency = (Actual Output ÷ Standard Output) x 100
When the answer to this formula is 100%, you’ll have achieved productive efficiency.
For instance, say you can produce 10,000 units per month of product A when you utilize full
capacity. You produced 7,500 units during the previous month. Here is how you’d calculate it in
this case:
(7,500 ÷ 10,000) x 100 = 75%

To determine production efficiency, we need to apply theories of production. There are several
theories of production that help us understand how inputs are transformed into outputs. The two
commonly discussed theories are the Law of Diminishing Returns and Economies of Scale.

1. The Law of Diminishing Returns: states that as more units of a variable input (such as
labor or capital) are added to a fixed input (such as land or machinery), the marginal
product of the variable input will eventually decrease. In simpler terms, adding more and
more of a resource will eventually lead to smaller and smaller increases in output.

The Law of Diminishing Returns affects production efficiency by highlighting the point at which
adding more inputs to the production process leads to diminishing marginal returns. In simpler
terms, it means that there comes a point where adding more resources, like labor or capital,
doesn't result in proportionate increases in output. This can impact efficiency because it signals
that the production process is becoming less productive and may not be utilizing resources
optimally.
Therefore to achieve production efficiency, businesses need to find the right balance between
inputs and outputs. They should identify the point where the marginal benefit of adding more
resources starts to decline. By operating at this optimal level, businesses can maximize their
output while minimizing costs and ensuring efficient resource allocation.
Understanding this theory, helps businesses make informed decisions about resource allocation,
staffing levels, and production capacity. It also allows them to identify potential bottlenecks and
adjust their operations to maintain efficiency.
2. Economies of Scale: it refer to the cost advantages that a business can achieve as it
increases its level of production. This theory suggests that as a company produces more
units of a product, it can spread its fixed costs (such as rent or machinery) over a larger
output, resulting in lower average costs per unit.
These theories help us understand the relationship between inputs and outputs in the production
process. They provide insights into how businesses can optimize their production to achieve
efficiency and cost-effectiveness.
  Business Competitiveness
Is the ability of a company to outperform its competitors in the market It involves various factors
such as offering superior products or services, having a strong brand image, providing excellent
customer service, and maintaining competitive pricing strategies.
According to Gutiérrez, (2010)15 Business competitiveness on a global scale symbolizes one of
the most relevant features in the business sector and marks a differentiation between
organizations since this variable is considered a contributing factor in the management.
Businesses strive to differentiate themselves and gain a competitive edge to attract and retain
customers.
The differences are observed in a perception of higher growth rates, market share, and return on
investment, development of new products and markets and also people development 16. This
forces companies to generate greater commitment and interrelation between all the areas
involved and the imperative need to identify the critical factors of customer satisfaction in
relation to business competitiveness, such as:
i. Product quality: The measurement of product quality involves attributes, technology,
functionality, durability, prestige and reliability.
ii. Service quality: Service quality satisfaction considers delivery time, flexibility in
capacity, availability, attitudes and behaviors, responses to failure and technical
assistance.
iii. Price: Consideration is given to direct price, sales discounts, payment terms, average
value, after-sales service cost, operating margin and total costs 17.
Hence Competitiveness ability is essential in a world of globalized markets, where the customer
can usually choose what he or she needs from a variety of options. Thus, more and more
organizations, whether a manufacturer, a hotel, a school, a bank, competitiveness and quality
improvement, a local government or a political party, are competing for customers, for students,
for support resources. Therefore, business competitiveness is all about how well a company can
outperform its rivals. It is like a race where businesses are trying to offer better products, prices,
or services to win over customers. Hence it is what keeps businesses on their toes.

Production efficiency and competitiveness are super important for gaining a competitive
advantage. Their significance is elaborated to each as follows:
1. Production Efficiency: This is all about getting the maximum output from your inputs. If
you're more efficient, you can produce the same amount as your competitors but at a lower cost.
This could allow you to offer lower prices or invest more in other areas like marketing or product
development.

15
Gutiérrez, H. (2010). Total Quality and Productivity. Mexico: Mcgraw-Hill/Interamericana Editores.
16
Calderón, G., Alvarez, C., & Naranjo, J. (2010). Competitive strategy and organizational performance in
Colombian industrial firms. INNOVAR. Journal of Administrative and Social Sciences, 13-26.
17
Gutiérrez, 2010, p. 17
2. Competitiveness: This is about how well you can compete with other businesses. It is
influenced by factors like price, quality, and brand reputation. If you're more competitive, you're
more likely to attract and retain customers.

3. Competitive Advantage: This is the edge that sets you apart from your competitors. It could be
anything from a unique product feature, superior customer service, or even production
efficiency. The more competitive advantages you have, the stronger your position in the market.
Therefore, by improving production efficiency and competitiveness, you can gain a competitive
advantage. This can help you stand out from the crowd, attract more customers, and ultimately
succeed in your market.

 Operation Design
It refers to the process of planning and organizing the activities and resources required to
produce goods or deliver services. It involves designing the layout, workflow, and systems to
ensure smooth operations and efficient utilization of resources 18. Operation design aims to
optimize productivity, improve quality, and provide customer satisfaction.
6. PRODUCTION IMPROVING METHODS FOR PRODUCT CONTINUITY.
 Principles of Production Improving Methods.
The principles of production improving methods revolve around key concepts that guide the
approach to enhancing productivity and efficiency. These principles provide a foundation for
production improving methods, guiding companies in their quest for continuous improvement,
efficiency, and quality excellence. By embracing these principles, organizations can foster a
culture of innovation, collaboration, and excellence in their operations. Therefore, the following
are common principles of production improving methods:
1. Continuous Improvement: This principle emphasizes the need for ongoing efforts to improve
processes, products, and services. It involves constantly seeking ways to make incremental
changes and enhancements to achieve better results.
2. Respect for People: Recognizing the value and importance of individuals within the
organization. This principle emphasizes creating a supportive and inclusive work environment
where employees are empowered, engaged, and encouraged to contribute their ideas and
expertise.
3. Long-term Philosophy: Taking a strategic and forward-thinking approach to decision-making.
This principle encourages organizations to consider the long-term impact of their actions, even if
it means sacrificing short-term gains. It involves making decisions that align with the
organization's vision and goals.

18
https://www.qpr.com/blog/what-is-operations-design/
4. Eliminating Waste: This principle focuses on identifying and eliminating any activities,
resources, or processes that do not add value to the final product or service. By minimizing
waste, organizations can optimize efficiency and reduce costs.
 Method Improvement Process:
It typically involves the following steps 19:
1. Identify Areas for Improvement: The first step is to analyze the current production process
and identify areas that can be improved. This can be done through data analysis, observation, and
feedback from employees and customers.
2. Set Goals: Once the areas for improvement are identified, it's important to set specific and
measurable goals. These goals should be aligned with the organization's overall objectives and
should be achievable within a given timeframe.
3. Plan and Implement Changes: After setting goals, a plan is developed to implement the
necessary changes. This plan may include specific actions, timelines, and responsibilities. It's
important to communicate the plan to all relevant stakeholders, including employees and
managers.
4. Train and Equip Employees: To ensure successful implementation, employees should be
trained on the new processes, tools, or techniques. This helps them understand the changes and
equips them with the skills needed to perform their tasks effectively.
5. Monitor and Measure Progress: Regular monitoring and measurement of key performance
indicators (KPIs) are essential to track progress towards the improvement goals. This helps
identify any deviations or areas that require further attention.
6. Continuous Improvement: The process of production improvement is ongoing. It involves
continuously reviewing and evaluating the implemented changes, gathering feedback, and
seeking opportunities for further enhancements. This creates a culture of continuous
improvement within the organization.
By following these steps, organizations can systematically identify, plan, implement, and
monitor improvements in their production processes. This iterative approach helps drive
efficiency, quality, and overall performance by:
Identify: Spot the processes that need improvement.
Analyze: Understand the process, identify the root cause of the problem.
Develop: Create solutions and alternatives to the current process.
Implement: Put the improved process into action.
Review: Regularly check the improved process to ensure it's working as expected and make
necessary adjustments.
 Production Improving Methods:

19
https://kissflow.com/workflow/bpm/faq/what-are-the-five-steps-in-business-process-improvement
There are several production improving methods that companies can use to enhance their
operations and increase efficiency20. Some common methods include:
1. Lean Manufacturing21: This process focuses on minimizing and eliminating waste such as
excess inventory, unnecessary movement, and overproduction within manufacturing systems
while simultaneously maximizing productivity.
2. Six Sigma: is a set of techniques and tools for process improvement. This methodology aims
to minimize defects and variations in processes by using statistical analysis and data-driven
decision-making. It focuses on achieving high levels of quality and reducing errors.
3. Total Quality Management (TQM): TQM is a method that focuses on long-term success
through customer satisfaction. It all involves the participation of all members of an organization
in improving processes, products, services, and the culture they work in. It also includes a
company-wide commitment to continuous improvement, customer satisfaction, and quality
excellence. It emphasizes employee involvement, process optimization, and meeting or
exceeding customer expectations.
4. Just-in-Time (JIT): JIT is an inventory management method that aims to deliver materials or
products precisely when they are needed in the production process. This inventory strategy is
employed by companies to increase efficiency by receiving goods only as they are needed in the
production process, reducing inventory costs. It helps reduce and eliminates waste associated
with excess inventory.
5. Kaizen22: Kaizen is a Japanese term that means "continuous improvement." It involves making
small, incremental changes to processes on an ongoing basis to achieve better results over time.
These are just a few examples of production improving methods that companies can adopt to
enhance their operations and gain a competitive advantage. Each method has its own principles
and techniques, but they all share the common goal of improving productivity, quality, and
efficiency.
6. 5S Approach23:
It’s a structured approach to arranging everything in its optimal place to maximize productivity
and output. The beauty of this approach is that it’s relatively simple to implement and doesn’t
require any specific training.
The 5S process consists of the following elements;
 Sort – separate the materials, tools, and items that are useful from those that can be
eliminated.
 Set in order – so that the remaining things are organized and easy to find.
 Shine – give the workspace a thorough clean so that it sparkles and there’s no dirt or
debris to cause machinery faults.

20
https://www.unleashedsoftware.com/blog/process-improvement-techniques-manufacturing
21
https://dspace.mit.edu/bitstream/handle/1721.1/10286/37160096-MIT.pdf?sequence=2
22
https://reverscore.com/5-methods-to-drive-manufacturing-process-improvement/
23
Ibid
  Standardize – record standard operating procedures (SOPs) for each of the processes
that occur in the workflow.
 Sustain – maintain this approach by diligently following the SOPs and ensuring all
new staff are trained to follow them too.
The reason this approach is so effective is that, it eliminates waste that is caused by
disorganization. Every time a team member has to walk somewhere to find a tool or locate
source material, it causes small delays to the production process. Over the course of a day, week,
and year, these soon add up to significant amounts of time. What may seem like a small
inconvenience is actually substantially multiplied over the production year. By removing these
tiny blips in the system, you allow processes to flow more smoothly which leads to efficiency
gains.
Standardization is also a crucial component of both quality control and productivity. It is
common for people to prefer ‘their own way of doing things’ but even slight differences can lead
to delays. Top-notch manufacturing prioritizes the final product above all else so there is no
room for individual quirks. A non-standard approach can cause defects, returns, and reputational
loss.
The simplest approach to setting standards is creating a checklist that people can follow.
Displaying it prominently in the workspace acts as a visual cue and reminder to follow all of the
steps. It’s a quick and easy way to drive manufacturing process improvement at a grassroots
level.
Hence, these methods and principles can help ensure product continuity by making the
production process more efficient, reducing waste, and continuously improving over time.

7. CONCLUSION
In conclusion, effective plant location and layout are crucial components for the success and
competitiveness of any manufacturing project. The process begins with a thorough site
evaluation, which involves assessing various criteria to ensure optimal conditions for plant
operations. Strategies employed in location decisions are diverse and should align with the
overall goals and objectives of the organization. These strategies often consider factors such as
proximity to raw materials, transportation infrastructure, labor availability, and market access.
Once a suitable location is determined, attention shifts to plant layout. A well-defined plant
layout ensures efficient workflow, minimizes production bottlenecks, and enhances overall
productivity. The selection of intermittent processes within the layout is crucial for handling
diverse manufacturing requirements. Production devices, jigs, fixtures, and locators play pivotal
roles in achieving an optimal plant layout as these tools contribute to precision, repeatability, and
efficiency in manufacturing processes. The importance of clamps in relation to plant setting lies
in their ability to secure work pieces in place, ensuring stability during machining and assembly.
Moving beyond physical considerations, the concept of production efficiency is central to
achieving a competitive advantage in the business landscape. Operation design, which entails
structuring processes and workflows, is fundamental to enhancing production efficiency.
Competitiveness in business is multifaceted, and the ability to deliver high-quality products
efficiently is a key determinant. Theories of production guide organizations in making informed
decisions to enhance efficiency and competitiveness. The continuous improvement of production
methods is essential for maintaining product continuity and meeting evolving market demands.
In the pursuit of competitive advantage, organizations should adopt and evaluate various
production improvement methods. These methods, based on sound principles, drive innovation,
reduce costs, and enhance overall operational efficiency. The method improvement process
involves a systematic approach to identifying, analyzing, and implementing changes for
sustained growth and success.
In essence, the integration of site evaluation, plant location selection, effective layout design, and
a commitment to continuous improvement in production methods are essential elements for
achieving and sustaining competitiveness in the dynamic business environment. By focusing on
these aspects, organizations can position themselves for long-term success, meeting customer
expectations and staying ahead in the market.
REFERENCES.
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https://www.themiamiarchitect.com/architecture-services/site-evaluation/importance/
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4. What Is Plant Location and the Factors Affecting the Plant Location on September 16,
2021 https://www.studiesaddict.com/2021/09/what-is-plant-location-and-factors.html
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good-layout-factors-influencing-layout-and-types-of-layout/
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Hill/Interamericana Editores.
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performance in Colombian industrial firms. INNOVAR. Journal of Administrative and
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10. Operations Design Translates Your Strategy into Actions, Jaakko Riihinen, Principal
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11. What Are The Five Steps In Business Process Improvement?
https://kissflow.com/workflow/bpm/faq/what-are-the-five-steps-in-business-process-
improvement
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improvement-techniques-manufacturing
13. 5 Methods to Drive Manufacturing Process Improvement, Posted on December 23, 2019
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improvement/