1. PHARAMACEUTICAL FACTORY
LOCATION
SELECTION, LAYOUT
PLANNING
GUIDED BY:
Dr. KANU R. PATEL
HEAD OF DEEPARTMENT
PRESENTEDE BY:
SAHILHUSEN I. JETHARA
M. PHARM – I (2013-14)
ROLL NO. - 02
DEPARTMENT OF PHARMACEUTICS
SHRI B. M. SHAH COLLEGE OF PHARMACEUTICAL EDUCATION AND
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REASERCH, MODASA-2013
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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.
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3. •In this lesson study of plant location ,layout and planning.
•Industry are two type depends on its size and nature.
Small scale industry
Select the site according to
capacity. It can easily be
shifted to other place, when
there is any change in the
market.
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•Large scale industry
Huge amount of investment
has already been done the
selection of proper site is very
important.
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4. OBJECTIVES
Describe the concepts of plant location and plant layout
Identify the various factors to be considered for selection of
plant location
Distinguish among the alternative patterns of plant layout
Discuss the various factors influencing the choice of an initial
layout and its subsequent modification
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5. PHARAMACEUTICAL FACTORY
LOCATION
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6. LOCATION
Plant location
• Choice of region and
Selection of a particular
site for setting up a
business or factory
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Ideal 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 distribution
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7. LOCATION ANALYSIS
1.
2.
3.
4.
5.
Demographic Analysis
Trade Area Analysis
Competitive Analysis
Traffic analysis
Site economics
1. Demographic Analysis: It involves study of population in
the area like:
• Total population (in no.),
• Age composition,
• Per capita income,
• Educational level.
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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.
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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.
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10. IMPORTANCE OF PLANT LOCATION
1.Cost
Investment costs
Partially determines
2.Physical factor 
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Operating cost
Heating
Ventilation requirements
Storage capacity of raw material
Power needs ,
Cost of labours,
Taxes,
Land construction, fuel, etc.
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11. 3.Gove.rule
Choice of location keeping view of
national benefit.
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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:
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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
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14. SPECIAL ECONOMIC ZONE
(SEZ)
 Special Economic Zone (SEZ) is a geographical region that has
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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.
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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.
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16. SEZs in India
 The govt. of India had in april 2000 announced the introduction
of special economic zone.
 India passed SEZ act in 2005
 Currently there are 114 SEZ operating in India.
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17. ADVANTAGES
 15 year corporate tax holiday on export profit – 100% for initial 5
years, 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, raw
materials, consumables, spares, etc.
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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 and
import cargo.
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19. DISADVANTAGES
 Revenue losses because of the various tax exemptions
 Most players are interested in setting up SEZ’s with an eye on
the real estate bounty so that they can acquire at cheap rates
and create a land bank for themselves.
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20. PLANT LAYOUT
 DEFINATION: Arrangement of physical facilities such
as 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.
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21. SAMPLE LAYOUT OF A PHARMACEUTICAL
FACTORY
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SAMPLE LAYOUT OF A PRODUCTION DEPARTMENT
SAMPLE LAYOUT OF F&D DEPARTMENT
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22. TYPES OF LAYOUT
Manufacturing
units
Traders
Service Establishments
1.Self service or modified self
service layout
1.Product or line layout
2.Process or functional layout
2.Full service layout
3.Special layouts
3.Fixed position or location layout
4.Combined or group layout
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23. 1.Product or line layout
 Machines and equipments are arranged in one line.
 The materials move form one workstation to another
sequentially without any backtracking or deviation. sequence
arrangement of operations required for the product.
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,
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24. Advantages
 Low cost of material handling, due to straight and short
route 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 unit
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25. Disadvantage
 High initial capital investment in special purpose
machine
 Breakdown of one machine the whole production
process are stop.
 Lesser flexibility as specially laid out for particular
product.
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26. 2.Process or functional layout
 In this type of layout machines of a similar type are
arranged together at one place.
 E.g. Machines performing Compression operations are
arranged in the Compression department.
 Therefore the machines are installed in the plants, which
follow the process layout.
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27. ADVANTAGES
 Breakdown of one machine does not result in complete
work stoppage
 Supervision can be more effective and specialized
 There is a greater flexibility of scope for expansion.
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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 costly
supervision
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29. 3.Fixed Position or Location Layout
 In this type of layout, the major product being produced is
fixed 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.
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30. Advantage
 It saves time and cost involved on the movement of work from
one workstation to another.
 The layout is flexible as change in job design and operation
sequence can be easily incorporated
 Adjustments can be made to meet shortage of materials or
absence of workers by changing the sequence of operations.
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31. Disadvantage
 Production period being very long, capital investment is very
heavy
 Very large space is required for storage of material and
equipment near the product.
 As several operations are often carried out simultaneously,
there is possibility of confusion and conflicts among
different workgroups.
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32. Combined layout
 In most of industries, only a product layout or process
layout or fixed location layout does not exist.
 Generally, a combination of the product and process
layout or other combinations are found, in practice.
 E.g. In tablet manufacturing suppose coating is necessary
then up to compression line layout, then product layout.
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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.
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34.  In manufacturing costs:

Maintenance and replacement costs are reduced.

Loss due to waste and spoilage is minimized

Improved quality of product with reduction in handling
time and cost.

Better cost control.
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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 at
appropriate points
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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, and
programmed from among alternatives.
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37. STEPS INVOLVED IN PLANNING
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38. 1.
Definition and description of
objectives:
 Plans are prepared to achieve certain objectives or goals.
 For example, main objective of the company is to
increase profits by 25% during the next year. So the
production and sales targets should be decided on this
basis.
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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 premises
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40. 1. Tangible and intangible premises
Tangible premises
Intangible premises
expressed 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.
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external premises:
On the other hand factors outside the
enterprise
e.g. changes in technology,
population growth, changes in
competition, government policies etc.
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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.
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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 market
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secondary sources
Information obtained
from pharmaceutical
company
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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.
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44. 6. Communicating the plan:
 Plan should be explained to the subordinates in order to get
their 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.
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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 planning
involves selection of the best possible course of action.
 It provides basis of control. Planning provides the standard
against which the actual performance can be measured and
evaluated.
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46.  It promotes creativity, because only sound planning
encourages creative thinking. This leads to growth and
expansion of business.
 It facilitates decision making. involves forecasting of
future conditions and helps the management to take
correct decision.
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47. LIMITATIONS
 Planning is an expensive process. Money is involved in
forecasting, 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.
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48. Ph. No. :- +918460378336
Address:- 44, Assiyana Society
Dugarvada Road
Taluko & State : Modasa
State : Gujarat
Country: India
Email: sahil.pharm4@gmail.com
BEST OF LUCK TO ALL …. . . . ..
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49. THANK YOU
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