Page 249 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes in domestic tank for drinking purpose. Limited rooftop rainwater harvesting is used to recharge
the ground water.
Solid waste disposal is another issue. A garbage room is maintained in the upper basement of
the Mall where all occupants place their garbage in closed PVC bags. Garbage is cleared from
common areas dust and ashbins and stored in the garbage room. Garbage room is cleared at
night on a daily basis.

Did u know? Low temperature has to be maintained in the garbage room for reducing
decomposition and thereby foul smell.

12.5.3 Site Evaluation

Site evaluation should be the step after the facility impact assessment bears out the suitability of
the site. The next steps are to look at the size of the land, the provision of infrastructure and
utilities, the transportation facilities, land cost and site location, etc. Some of these considerations
are discussed here under:
1. Size of site: The plot of land must be large enough to hold the proposed plant along with
its utilities, waste and water treatment facilities, parking and access facilities and support
services. The size of the plot must also be large enough to provide sufficient space for
further expansion.

2. Utilities: The continuity of operations and the ability for uninterrupted production depends
on the adequacy of utilities. The ability to overcome recurring problems associated with
the supply of utilities needs to be evaluated and accountability assigned:
(a) Possible restrictions on power availability.
(b) Cost differentials at peak periods.
(c) Availability of water supply during a ‘hot’ summer.

(d) Quality of water-hard or soft, etc.
(e) Connection cost of services from main supply lines to the intended plant.

!
Caution Costs associated with the volume and reliability of power, water and fuel supplies
must be evaluated carefully. These costs are considerable and have to be borne over the
life of the assets.
3. Transportation facilities: Rail and road networks should be close to the proposed plant to
minimize the cost of creating private sidings to the rail lines and access roads. Some
indication can be gained by looking at the present road and rail network serving the local
community. The plant should also be easily accessible by car and public transport.
Intangible factors to consider include the reliability and network of the available carriers,
the frequency of service, and freight and terminal facilities, and distance from the nearest
airport. These can reflect on the cost and time required to transport the finished product to
market and raw materials to the plant. They may also impact on the time required to
contact or service a customer. These are important issues that must also be considered.
4. Land costs: These are non-recurring costs and of little importance in the determination of
the facility location. In general, the plant site will be one of the following locations: city
location; industrial areas or estates; or interior areas.

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