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Enrollment No.: MBISMCT11118178

MBA Information Systems 1st Year - Assignment Annamalai University

6: Production and Materials Management

SELF DECLARATION

I declare that the assignment submitted by me is not a verbatim/photo static copy from the website/book/journals/manuscripts.

______________________Signature of the student

_____________Countersigned

_________________________________Signature of the Faculty concerned

Question #1: What are the types of plant layout, how plant layout has been done in the sugar factory?

Answer:-

Meaning of Plant Layout

Plant layout implies the physical arrangement of machines, equipment and other industrial facilities on the factory floor in such a manner that they may be handled efficiently. It may be defined as a technique of locating machines, process and plant services within the factory so as to achieve the right quantity and quality of output at the lowest possible cost of manufacturing. As a floor plan of production facilities, plant layout indicates the space allotted for material movement, storage and all supporting facilities for overall economy in production. It involves supporting facilities for overall economy in production. It involves a judicious arrangement of production facilities so that work flows in as direct a path as possible.

The overall objective of plant layout is to design a physical arrangement that most economically meets the required output quantity and quality. Riggs

Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized. J. L. Zundi

Importance of Plant Layout

An optimum layout would permit an uninterrupted flow of work through the factory. It ensures best possible utilisation of machines, workers and space. A plant layout study is required to create an arrangement that will minimise unit production costs. Such a study involves a careful analysis of all factors affecting layout. Plant layout is important decision as it represents a long-term commitment. An ideal plant layout should provide the optimum relationship among output, floor area and manufacturing process. It facilitates the production process, minimizes material handling, time and cost, and allows flexibility of operations, easy production flow, makes economic use of the building, promotes effective utilization of manpower, and provides for employees convenience, safety, comfort at work, maximum exposure to natural light and ventilation. It is also important because it affects the flow of material and processes, labour efficiency, supervision and control, use of space and expansion possibilities etc.

Objectives of Plant Layout

The various objectives of good plant layout are as follows: To minimise handling and transportation of materials To ensure economic utilization of available floor space To minimise work-in-progress inventory by eliminating bottle-necks To ensure efficient control over the various processes of production To maximise convenience and safety of workers To obtain more efficient utilisation of machinery, equipment and other facilities To minimise cost of production

Types of Plant Layout

There are four broad categories of plant layout.1. Product Layout 2. Process Layout3. Fixed Position Layout4. Group Layout

1. Product layout Also known as or flow, sequential, or line layout, all plant facilities machines, men and materials are arranged according to the sequence of operations required to produce a specific product. A continuous production system usually utilizes a product layout.

Characteristics of Product LayoutLayout by product is associated with mass and large batch production and has the following characteristics: Little material-handling necessary. Good machine utilization. Low work-in-progress. Production control facilitated and Minimum floor space required. Machine breakdown disrupts production. Effective use of labour, i.e. minimum training, job specialization, etc.Evaluation of Product Layout The evaluation of product layout is simple to make because the advantages of product layout are essentially the same as the disadvantages of the process layout and vice versa.Advantages of Product Layout Lower total materials handling cost. Less total production time. Less work-in-process. Greater simplicity of production control, fewer controls and records needed. Lower accounting cost, and less supervision.Disadvantages of Product Layout Decreased flexibility. Increased investment in equipment and machines. Frequently greater difficulty in expanding production beyond the capacities of the lines in layout by product, and Greater difficulty in securing specialization in supervision.

Stability of Product LayoutThe manufacturing units involving continuous manufacturing process, producing few standardized products continuously on the firms own specifications and in anticipation of sales would prefer product layout e.g. chemicals, sugar, paper, rubber, refineries, cement, automobiles, food processing and electronics etc.

2. Process LayoutIn the process/functional layout, all facilities for performing the same or similar functions are grouped together, i.e. lathes, milling machines, drill presses etc. are found in separate areas. a part being worked on them travels from one area to another according to the established sequence of operations through which it must be put, and where the proper machines are located for each operation.Characteristics of Process LayoutLayout by process is associated with jobbing in small batch production with these features: Allows specialized supervision; Facilitates provision of services; Failure of machines or absence of workers does not disrupt production excessively; Good machine utilization; Operations may be missed and bad jobs delayed because of the necessary flexibility of control; High work-in-progress.Advantages of Process Layout Lower initial capital investment in machines and equipments. There is high degree of machine utilization, as they are not blocked for a single product. The overhead costs are relatively low. Change in output design and volume easily adapted to the output of variety of products. 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.Disadvantages of Process Layout 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. Work in progress inventory is high needing greater storage space More frequent inspection is needed which results in costly supervision.Suitability of Process LayoutProcess layout or functional layout is suitable for job order production involving non-repetitive processes and customer specifications and non standardized products, e.g. tailoring, light and heavy engineering products, made to order furniture industries, jewellery.

3. Fixed Position LayoutIn this type of layout, the major product being produced is fixed at one location. Equipment labour and components are moved to that location. All facilities are brought and arranged around one work centre. This type of layout is not relevant for small scale entrepreneur.Advantages of Fixed Position Layout It saves time and cost of movement of work from one workstation to another. The layout is flexible to change in job design and operation sequence. It is more economical when several orders in different stages of progress are being executed simultaneously. Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations.Disadvantages of Fixed Position Layout 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.Suitability Fixed Position Layout Manufacture of bulky and heavy products such as locomotives, ships, boilers, generators, wagon building, aircraft manufacturing, etc. Construction of building, flyovers, dams. Hospital, the medicines, doctors and nurses are taken to the patient (product).

4. Group/Combined LayoutCertain manufacturing units may require all three processes namely intermittent process (job shops), the continuous process (mass production shops) and the representative process combined process (i.e. miscellaneous shops). In most of industries, only a product layout or process layout or fixed location layout does not exist. 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. In soap, manufacturing plant, the machinery manufacturing soap is arranged on the product line principle, but ancillary services such as heating, the manufacturing of glycerine, the power house, the water treatment plant etc. are arranged on a functional basis.

Factors that influence Plant Layout

The following factors should be considered while planning the layout of a plant Factory Building: The nature and size of the building determines the floor space available for layout. While designing the special requirements, e.g. air conditioning, dust control, humidity control etc. must be kept in mind. Nature of Product: product layout is suitable for uniform products whereas process layout is more appropriate for custom-made products. Production Process: In assembly line industries, product layout is better. In job order or intermittent manufacturing on the other hand, process layout is desirable. Type of Machinery: General purpose machines are often arranged as per process layout while special purpose machines are arranged according to product layout Repairs and Maintenance: machines should be so arranged that adequate space is available between them for movement of equipment and people required for repairing the machines. Human Needs: Adequate arrangement should be made for cloakroom, washroom, lockers, drinking water, toilets and other employee facilities, proper provision should be made for disposal of effluents, if any. Plant Environment: Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint shops and plating section should be located in another hall so that dangerous fumes can be removed through proper ventilation etc. Adequate safety arrangement should also be made.Thus, the layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and diversification may also be considered while planning factory layout.

Plant Layout of Sugar IndustryPlant layout of sugar production unit is based on the Product Layout. The process of sugar plant layout is a creative one in so far as it helps minimize movement of machines and personnel, facilitate the manufacturing process, and reduce the cost of production. While the techniques employed in making a layout are normal work-study techniques. There are certain criteria which should be satisfied by a good plant layout for the Sugar factory, which are:1. Maximum Flexibility: A good layout will be one which can be rapidly modified to meet changing circumstances.2. Maximum Coordination: Layout requires to be considered as a whole and not in parts. It should clearly state the interrelationships between different machines, departments, and personnel and should provide for coordinated efforts. 3. Maximum use of Volume: Maximum use should be made of the volume available. This principle is particularly true in stores, where raw material (sugar cane) can be stacked at considerable heights without inconvenience, especially if lift-trucks are used.4. Maximum Visibility: All men and materials should be readily observable at all times there should be not hiding places into which goods can be mislaid. This criterion is sometimes difficult to fulfil particularly when an existing plant is taken over. 5. Maximum Accessibility: All servicing and maintenance points should be readily accessible. Sugar plant should be near to main road as well as closed to the farm land from where raw sugar cane and final product can be transported.6. Minimum Distance: All movements should be both necessary and direct. Handling materials adds to the cost of the product but does not increase its value.7. Minimum Discomfort: Poor lighting, excessive sunlight, heat, noise, vibrations, and smells should be minimized and if possible counteracted.8. Minimum Handling: The best handling is no handling, but where handling is unavoidable it should be reduced to a minimum by the use of conveyors, lifts, chutes, hoists and trucks.9. Inherent Safety, Maximum Security, Visible Routes: All layouts should be inherently safe, and no person should be exposed to danger. Definite lines of travel should be provided and, if possible, clearly marked, no gangways should ever be used for storage purposes, even temporarily.

Procedure for Designing a Sugar Plant LayoutThe steps which are logically necessary in order to prepare a satisfactory plant layout are:1. Obtain basic production data, starting with a list of operations to make a product, the machines to be used or processes to be employed, and the sequence or route to be followed.2. Prepare an assembly chart, obtaining and analyzing and coordinating the basic production data, so that a flow process chart can be derived showing the path taken by materials and labour/machine requirements.3. Calculate equipment requirements needed to produce the particular production rate, making allowance for machine capacity, machine utilization etc.4. Materials-handling plan containing decisions on whether the movement of materials between machines, work stations, or process plant is to be by means of conveyors, cranes, hoists etc. materials-handling is a very significant cost factor in production and this aspect of production should receive very serious considerations at this stage.5. Space allocation study: Since site considerations chiefly relate to the case of transfer of materials between the various operations, factors related to materials-handling dominate at this stage.6. Prepare fist draft layout plan. This will involve using the site plan and incorporating on it the various machines and materials-handling equipments needed as a result of the initial assembly chart and flow process chart.7. Prepare first draft flow diagram. This will show whether the flow diagram is good and free from complex movements.8. Revise layout and prepare revised flow diagram as necessary until the best arrangement is obtained.9. Plan individual machines, work stations, or plant in relation to access for work in process, for repair and maintenance of plant and for services such as electricity, gas, high-pressure air, etc. it is also necessary to ensure that there is adequate illumination.10. Plan materials-handling equipment in detail, as related to the individual machines, work stations, or process plant.11. Plan and locate all service supplies to each part of the layout.12. Prepare master plan

The main advantages of designing a plant for one's own operation and long-term use is that it affords the opportunity of reviewing what is the most economic solution to the opposing requirements of: Minimum capital cost Lowest operating and maintenance costs Highest sucrose recovery Highest labour productivity Least operational downtimeThe opportunity of evaluating these factors under operating conditions makes the difference between a good design and an over-expensive, or cheap and nasty alternative plant layout.Design philosophies which would guide decisions on present versus future needs had to be established at the outset. It was decided that layouts should enable maximum productivity output per man - to be realised in the future, but that investment in automation should follow current evaluations. The general principles of the plant requirements were fairly easy to establish: Cane handling should be minimised; Extraction should be as high as economically justified; Boilers must burn whole bagasse, bagasse pith and coal; The process plant must be steam efficient to minimise requirements as export bagasse potential existed; It must be possible to make high grade export sugar from the relatively poor quality cane available in the area; and Overall sugar recoveries should be good, but again only as high as was economically justifiable.

Flow Diagram for Cane Sugar Production

Question #4: What are the factors influencing plant location? Explain with an example.

Answer:-

Introduction

The performance of an enterprise is considerably affected by its location. The location of an industry is as important as the choice is for the location of a business or a shop in a city or locality. Unscientific and unplanned industrialization is harmful not only to the industrial unit but also to the social and economic structure of the country as a whole.

Nearly sixty years before, much importance was not given to the selection of appropriate location and the decisions in this regard were mainly governed by the individual preferences of the entrepreneurs and social customs. This resulted in failure of any organization which otherwise could have been successful. Government also with the objective of establishing socialistic pattern of society became instrument all in the selection of site for various industries in undeveloped areas by providing various investment benefits and other incentives. All this encouraged a large number of industrialists to follow a more scientific a logical approach towards the selection of site for establishing their industries.

The degree of significance for the selection of location for any enterprise mainly depends on its size and nature. Sometimes, the nature of the product itself suggests some suitable location. A small scale industry mainly selects the site where in accordance with its capacity the local market for the product is available. It can easily shift to other place when there is any change in the market. But for large scales industries requiring huge amount of investment there are many considerations other than the local demand into the selection of proper plant location. These plants cannot be easily shifted to other place and an error of judgment in the selection of site can be very expensive to the organization.

Importance of Location

The location of a plant is an important entrepreneurial decision because it influences the cost of production and distribution to a great extent. In some cases, you will find that location may contribute to even 10% of cost of manufacturing and marketing. Therefore, an appropriate location is essential to the efficient and economical working of a plant. A firm may fail due to bad location or its growth and efficiency may be restricted. The selection of location is of paramount importance both for new and already established enterprises.

The location choice is vital for any new firm for its success. Because fundamental objective of an enterprise is to maximize its profits which can be done either by increasing sales or by decreasing cost of production. If an enterprise is located near its potential market then the organization can have better and up to date understanding of the market and thus can formulate more effective production and marketing strategies to increase sales. The reduction in cost of production is possible when a firm is located at a place where all kinds of production economies w.r.t. input factors are available. The relocation of already existing enterprises may be necessary due to dynamic nature of plant location.

For example: materials that are produced in bulk quantities, such as cement, mineral acids and fertilizers, where the cost of the product per ton is relatively low and the cost of transport is a significant fraction of the sales price, the plant should be located close to the primary market. This consideration will be less important for low volume production, high-priced products; such as pharmaceuticals. In an international market, there may be an advantage to be gained by locating the plant within an area with preferential tariff.

Factors Influencing Plant Location

Facility location is the process of determining a geographic site for a firms operations. Managers of both service and manufacturing organizations must weigh many factors when assessing the desirability of a particular site, including proximity to customers and suppliers, labor costs, and transportation costs. Location conditions are complex and each comprises a different Characteristic of a tangible (i.e. Freight rates, production costs) and non-tangible (i.e. reliability, Frequency security, quality) nature. Location conditions are hard to measure. Tangible cost based factors such as wages and products costs can be quantified precisely into what makes locations better to compare. On the other hand non-tangible features, which refer to such characteristics as reliability, availability and security, can only be measured along an ordinal or even nominal scale. Other non-tangible features like the percentage of employees that are unionized can be measured as well. To sum this up non-tangible features are very important for business location decisions. It is appropriate to divide the factors, which influence the plant location or facility location on the basis of the nature of the organization as:1. General location factors, which include controllable and uncontrollable factors for all type of organizations.2. Specific location factors, specifically required for manufacturing and service organizations.

Location factors can be further divided into two categories: Dominant factors are those derived from competitive priorities (cost, quality, time, and flexibility) and have a particularly strong impact on sales or costs. Secondary factors also are important, but management may downplay or even ignore some of them if other factors are more important.

Following are the general factors required for location of plant in case of all types of organizations.

Controllable Factors1. Proximity to markets2. Supply of materials3. Transportation facilities4. Infrastructure availability5. Labour and wages6. External economies7.Capital.Uncontrollable Factors7. Government policy8. Climate conditions9. Supporting industries and services10. Community and labor attitudes11. Community Infrastructure.

Controllable Factors

1. Proximity to markets:Every company is expected to serve its customers by providing goods and services at the time needed and at reasonable price organizations may choose to locate facilities close to the market or away from the market depending upon the product. When the buyers for the product are concentrated, it is advisable to locate the facilities close to the market. Locating nearer to the market is preferred if The products are delicate and susceptible to spoilage. After sales services are promptly required very often. Transportation cost is high and increase the cost significantly. Shelf life of the product is low. Nearness to the market ensures a consistent supply of goods to customers and reduces the cost of transportation.2. Supply of raw material:It is essential for the organization to get raw material in right qualities and time in order to have an uninterrupted production. This factor becomes very important if the materials are perishable and cost of transportation is very high. General guidelines suggested by Yaseen regarding effects of raw materials on plant location are: When a single raw material is used without loss of weight, locate the plant at the raw material source, at the market or at any point in between. When weight loosing raw material is demanded, locate the plant at the raw material source. When raw material is universally available, locate close to the market area. If the raw materials are processed from variety of locations, the plant may be situated so as to minimize total transportation costs. Nearness to raw material is important in case of industries such as sugar, cement, jute and cotton textiles.3. Transportation facilities:Speedy transport facilities ensure timely supply of raw materials to the company and finished goods to the customers. The transport facility is a prerequisite for the location of the plant. There are five basic modes of physical transportation, air, road, rail, water and pipeline. Goods that are mainly intended for exports demand a location near to the port or large airport. The choice of transport method and hence the location will depend on relative costs, convenience, and suitability. Thus transportation cost to value added is one of the criteria for plant location.4. Infrastructure availability:The basic infrastructure facilities like power, water and waste disposal, etc., become the prominent factors in deciding the location. Certain types of industries are power hungry e.g., aluminum and steel and they should be located close to the power station or location where uninterrupted power supply is assured throughout the year. The non-availability of power may become a survival problem for such industries. Process industries like paper, chemical, cement, etc., require continuous. Supply of water in large amount and good quality, and mineral content of water becomes an important factor. A waste disposal facility for process industries is an important factor, which influences the plant location.5. Labour and wages:The problem of securing adequate number of labor and with skills specific is a factor to be considered both at territorial as well as at community level during plant location. Importing labor is usually costly and involve administrative problem. The history of labor relations in a prospective community is to be studied. Prospective community is to be studied. Productivity of labor is also an important factor to be considered. Prevailing wage pattern, cost of living, industrial relation and bargaining power of the unions forms is important considerations.6. External economies of scale:External economies of scale can be described as urbanization and location economies of scale. It refers to advantages of a company by setting up operations in a large city while the second one refers to the settling down among other companies of related Industries. In the case of urbanization economies, firms derive from locating in larger cities rather than in smaller ones in a search of having access to a large pool of labor, transport facilities, and as well to increase their markets for selling their products and have access to a much wider range of business services. Location economies of scale in the manufacturing sector have evolved over time and have mainly increased competition due to production facilities and lower production costs as a result of lower transportation and logistical costs. This led to manufacturing districts where many companies of related industries are located more or less in the same area. As large corporations have realized that inventories and warehouses have become a major cost factor, they have tried reducing inventory costs by launching Just in Time production system (the so called Kanban System). This high efficient production system was one main factor in the Japanese car industry for being so successful. Just in time ensures to get spare parts from suppliers within just a few hours after ordering. To fulfill these criteria corporations have to be located in the same area increasing their market and service for large corporations.7. Capital:By looking at capital as a location condition, it is important to distinguish the physiology of fixed capital in buildings and equipment from financial capital. Fixed capital costs as building and construction costs vary from region to region. But on the other hand buildings can also be rented and existing plants can be expanded. Financial capital is highly mobile and does not very much influence decisions. For example, large Multinational Corporations such as Coca-Cola operate in many different countries and can raise capital where interest rates are lowest and conditions are most suitable. Capital becomes a main factor when it comes to venture capital. In that case young, fast growing (or not) high tech firms are concerned which usually have not many fixed assets. These firms particularly need access to financial capital and also skilled educated employees.

Uncontrollable Factors

8. Government policy:The policies of the state governments and local bodies concerning labor laws, building codes, safety, etc., are the factors that demand attention. In order to have a balanced regional growth of industries, both central and state governments in our country offer the package of incentives to entrepreneurs in particular locations. The incentive package may be in the form of exemption from a sales tax and excise duties for a specific period, soft loan from financial institutions, subsidy in electricity charges and investment subsidy. Some of these incentives may tempt to locate the plant to avail these facilities offered.9. Climatic conditions:The geology of the area needs to be considered together with climatic conditions (humidity, temperature). Climates greatly influence human efficiency and behavior. Some industries require specific climatic conditions e.g., textile mill will require humidity.10. Supporting industries and services:Now a day the manufacturing organization will not make all the components and parts by itself and it subcontracts the work to vendors. So, the source of supply of component parts will be the one of the factors that influences the location. The various services like communications, banking services professional consultancy services and other civil amenities services will play a vital role in selection of a location.11. Community and labor attitudes: Community attitude towards their work and towards the prospective industries can make or mar the industry. Community attitudes towards supporting trade union activities are important criteria. Facility location in specific location is not desirable even though all factors are favoring because of labor attitude towards management, which brings very often the strikes and lockouts.12. Community infrastructure and amenity:All manufacturing activities require access to a community infrastructure, most notably economic overhead capital, such as roads, railways, port facilities, power lines and service facilities and social overhead capital like schools, universities and hospitals. These factors are also needed to be considered by location decisions as infrastructure is enormously expensive to build and for most manufacturing activities the existing stock of infrastructure provides physical restrictions on location possibilities.

Location Factors for Manufacturing Organization

Factors dominating location decisions for new manufacturing plants can be broadly classified in six groups as follows.1. Favorable labor climate: A favorable labor climate may be the most important factor in location decisions for labor-intensive firms in industries such as textiles furniture and consumer electronics. Labour climate includes wage rates, training requirements attitudes toward work, worker productivity and union strength. Many executives consider weak unions or as low probability of union organizing efforts as a distinct advantage.2. Proximity to markets: After determining where the demand for goods and services is greatest, management must select a location for the facility that will supply that demand. Locating near markets is particularly important when the final goods are bulky or heavy and outbound transportation rates are high. For example, manufacturers of products such as plastic pipe and heavy metals all emphasize proximity to their markets.3. Quality of life:Good schools, recreational facilities, cultural events, and an attractive lifestyle contribute to quality of life. This factor is relatively unimportant on its own, but it can make the difference in location decisions.4. Proximity to suppliers and resources:In many companies, plants supply parts to other facilities or rely on other facilities for management and staff support. These require frequent coordination and communication, which can become more difficult as distance increases.5. Utilities, taxes, and real estate costs:Other important factors that may emerge include utility costs (telephone, energy, and water), local and state taxes, financing incentives offered by local or state governments, relocation costs, and land costs.

Location Factors for Service Organization

Dominant Factor: The factors considered for manufacturers are also applied to service providers, with one important addition - the impact of location on sales and customer satisfaction. Customers usually look about how close a service facility is, particularly if the process requires considerable customer contact.1. Proximity to Customers: Location is a key factor in determining how conveniently customers can carry on business with a firm. For example, few people would like to go to remotely located dry cleaner or supermarket if another is more convenient. Thus the influence of location on revenues tends to be the dominant factor.2. Transportation Costs and Proximity to MarketsFor warehousing and distribution operations, transportation costs and proximity to markets are extremely important. With a warehouse nearby, many firms can hold inventory closer to the customer, thus reducing delivery time and promoting sales.3. Location of Competitors One complication in estimating the sales potential at different location is the impact of competitors. Management must not only consider the current location of competitors but also try to anticipate their reaction to the firms new location. Avoiding areas where competitors are already well established often pays. However, in some industries, such as new-car sales showrooms and fast-food chains, locating near competitors is actually advantageous. The strategy is to create a critical mass, whereby several competing firms clustered in one location attract more customers than the total number who would shop at the same stores at scattered locations. Recognizing this effect, some firms use a follow the leader strategy when selecting new sites.

Secondary Factors: Retailers also must consider the level of retail activity, residential density, traffic flow, and site visibility. Retail activity in the area is important, as shoppers often decide on impulse to go shopping or to eat in a restaurant. Traffic flows and visibility are important because businesses customers arrive in cars. Visibility involves distance from the street and size of nearby building sand signs. High residential density ensures night time and weekend business when the population in the area fits the firms competitive priorities and target market segment.

For Example:Let us assume that a new medical facility, Health-care, is to be located in Delhi. The location factors, factor rating and scores for two potential sites are shown in the following table. Which is the best location based on factor rating method?Sl. NoLocation FactorFactor RatingRating

Location 1Location2

1Facility utilization 835

2Total patient per month543

3Average time per emergency trip645

4Land and construction costs312

5Employee preferences553

Solution:Sl. NoLocation FactorFactor Rating (1)Location 1Location 2

Rating (2)Total= (1),(2)Rating (3)Total= (1),(3)

1Facility utilization 8324540

2Total patient per month5420315

3Average time per emergency trip6424530

4Land and construction costs31326

5Employee preferences5525315

Total96Total106

The total score for location 2 is higher than of location 1. Hence location 2 is the best.

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