Business Organization And

Management
Organizing The Physical
Facilities
 Organizing The Physical Facilities
The physical facilities of an industrial enterprise
consists of First, the manufacturing plant. Second, the
bulilding. And Third, the machine and equipment
necessary to make a product or range of products in the
quatities desired. In the organization of these facilities ,
the following main steps are required:

• Selection of the plant location

• Selection and erection of buildings
• Selection of the equipment
• Plant and machine layoute.
• Installation of the equipment.
 Selection Of The Plant
The decision as to location of an industrial
plant has a vital effect on the success or failure
of the operation of such plant.
Five (5) Prime Factors Determining the region
1. Proximity to the market:
• There has been established a relationship
between the centers of population. A
relationship indicating that industry, in
general, tends to seek its market.
2. Proximity to Raw materials:
• A factor in production, is very vital to consider when
processing removes considerable weights.
3. Transportation facilities:
• If the business requires continued transportation, either of
raw materials in or of finished products out, or of both, the
convenience facilities as a real bearing on the economical
conduct of the business.
4. Adequate Public and Private Service:
• Manufacturing thrives in an area where the supply of power
and water is plentiful.
5. Climate:
• In certain industries the nature of the climate - temperature and
humidity-s a factor that assumes considerable importance.
 Determining The Community
Once the general area or region has been
determined,the selection of a particular community
is next.The best choice of a community for the
plant depends upon the consideration of the
following factors:
• Labor Supply
• Wages Scales
• Other Industries In The Community
• Taxes And Restricting Laws
 The Following Factors Are:
1. Labor Supply
• The number of skilled and unskilled person available for the kind of
work to be done.It is very essential that the required kind of labor
should be available as needed and at reasonable rates of wages
2. Wages Scales or Differentials
• Wages Scales or differentials also affect community
location.However,these are not permanent and should not be
considered as definite or specific factors in locating a plant site in
any community.
3. Other Industries In The Community
• Oftentimes, competing or comlemetary enterprises in a community
influence the decision or the selection of a plant site.
 Two Types Of Industries
A. Competing Industries
• Competing industries may drain the supply of
certain types of labor skill with the result that these
industries become competitive with each other.
B. Complimentary Industries
• Particularly where the finished product,of one is the
raw material for another,are respectively near their
market and source of material such an arrangement
can work their mutual advantage.
4. Industrial Attitude Of The Community
• The attitude and cooperatives of the
community as a whole area of some
importance.
5. Taxes And Restricting Laws
• Wage and work-hour legislation,tax laws, as
well as local restriction in ordinances are
typical or legislative factors that point to the
state and community attitude toward industry
 Chossing The Plant Site
After determining the region and the community in it,
the final step is, of course, the selection of the exact
plant side in the community, with the following
factors to consider :
• A. Land
• B. Transportation
• C. Miscellaneous conditions pertaining to
surroundings
 Factors To Consider:
1. The Land
In the search for a site, the principal consideration is the land, whether
it is ample in size, including rooms for expansion, as well as parking
space for employee cars; whether the topography is right for the type
of building desired, and whether the soil texture and drainage will
provide proper foundations.
2. Transportation
The other factor second in importance is the transportation, whether
the site is readily accessible to rail, motor, water, or air transportation
as may be required. Could the employees, for instance, reach the place
even with or without transportation of their own? Will the roads enable
easy entrance of raw materials and supplies and easy exit of product?
3. Surroundings
The third factor has something to do with the surroundings
of the site relative to the following questions.
1. Will it be a good place for the employees to work?
2. Are there building and zoning restriction that would not
permit the type of building planned?
3. Is the community file protection adequate and available to
the site?
General Consideration:
• Plant location today is generally a matter of cost tempered
with circumstances. Theoretically, the most favorable
location of a plant is that place where, in consideration of
business as a whole, the total cost of producing and
delivering goods to all the customers is the Lowest.
Present Trend in Plant Location:
• The tendency is to locate plants in the proximity of cities
rather than in rural areas or directly in cities. The suburban
areas offer practically all advantages, facilities, and
services supplied by city areas and possess the added
advantages of lower assessment values and of sufficient
land space to spread out the plants, to allow for expansion,
and to provide parking areas for the employees' cars.
 Selection And Erection Of Buildings
• The choice of the building depends upon it’s suitable to the
nature, purpose and requirements of the business.
Types Of Building:
• Single Storey Building
Advantages of single storey over multi-storey
1. Greater ease of the extension to existing buildings is made
possible.
2. There is less vibration where sensitive equipment and
materials are employed together with the machinery.
3. The soil requirements for foundations are less severe.
4. There is better natural light and ventilation, which is
cheaper and hygienically preferable to air conditioning and
artificial lighting.

5. There is more usuable floor space in a sense because no

space is required for elavator and stairway.

6. There is more efficient routing possible and lower material

handling costs.

7. Better supervision is made possible when the supervisor

or executive does not go up and down several floors.
 Advantages of Multi-Storey
Over Single Storey Building
1. More efficient use of landscape particularly with the spaced
2. Lower cost of construction per square foot of floor space is
another advantages. The upper floors are often more
reputations of lower floors.
3. It is cheaper to heat because less roof and other space through
which heat can escape, It is also cheaper to cool where air-
conditioning is necessary.
4. Upper storeys are more free from street noises, odors and dirt
for sometimes must be kept at certain distances from noise
and dirt.
5. Use of gravity flow of materias is permitted. The flow of
production from one stage to another may be facilitated by
gravity flows of product, and materials.
Present Trends In Building Construction:
• Allied with present trend toward the location of plants in
suburbans areas is the trend towards the erection of single
storey buildngs.
Spacing Columns:
• The present thought on the spacing of columns is in the
direction of wider and higher interiors. Undoubly this trend
has been influenced by the increased need in recent yeas
for flexibility to meet rapidly conditions in manufacturing.
Use of Basement:
• The basement amd sub-basement are being used more and
more for the storage of raw materials, for “Dead Storage”,
for service tunnels, and for and for employees servicing
facilities. Like wise located in the corridors are the locker
rooms, washrooms, and maybe an Airconditioned Cafeteria.
Wallings:
• One of the great difficulties with the solid concrete walls is it’s
inflexibility. Bricks is frequently favored for walls in many countries
but in the Philippines hollow blocks of concrete are usually used.
Roofings:
• The saw tooth roofings have deserved more Preference or popularity
than the flat roofs, Due to improvements in natural lighting offer by
the former, and sometime of the lower initial and subsequent
maintenance cost.
Floorings:
• The present-day industrial buildings especially those which have
heavy machinery installation, required solid floorins, concrete or tiles
are more often used.
Present Trends in Building Installation:
• The building installation and facilities mentioned here are those to
which industry is today devoting major attention
Plant Illumination:
• Good illumination in the plant pays for itself greater, productivity,
efficiency, improved morale of employees, fewer accidents, And
better house keeping. Light and Paint when used together comprise a
team which can vanish darkness and one without the other will only
half do the work.
Florescent Lighting:
• It is type of artificial lighting most widely used by industry today and
which has replaced the incandescent light to the great extent.
Florescent Lighting Offers the Folling Advantages:
1. It is practically glareless, can be made to stimulate day light and
greatly improves night working conditions.
2. It’s operation is cooler than incandescent or mercury lamps,
Particularly where air conditioning is installed.
3. It’s more economical operation; for example 100 watts of florescent
lighting being approximately equivalent in foot candle illumination to
300 watts of incandescent lighting.
Color Conditioning:
• The principal objective of industrial color conditioning isrro
achieved uniform brightness but sufficient contrast so that
the job will appear more interesting to the employee‘s eyes
than in the surrounding area. It is a well known fact that
white paint reflects from 74 to 90 percent light.
Air Conditioning:
• Air conditioning has found increasing application in industry
in recent years the expensive sources of electric power
have also contributed to this trend.
 Plant Layout
There are factors influencing a 3. Types of product
plan layout such as;
a. Wet Operation
1. Types of Industry – Which may b. Heavy Machinery
be:
c. Operation which involves
a. A continuous industry fire risk
b. Assembly industry
4. Types of Workers
2. Types of product – Which may As in the case of employment of
either be: women which requires
a. Heavy or Light engineering; Changes and the
b. Large or Small construction necessary facilities.
c. Liquid or Solid
There are recognized ideals for plant
layout in particular plant as;
1.Proper balancing of department and
operations with special references to
arrangement, Process, Handling of materials
and better control.
2.Adequate internal transportation
3.Adequate provisions for the receipt of raw
material
4.Storage and shipment of finished producsts
5.Provisions for future expansion
 Plant Layout and Objectives of plant
Design layout
• Plant layout and • Making a layout plan
design deals with the
physical arrangement is not the end result,
of facilities, Plants, even of those
Warehouse, Office responsible for the
and laboratories planning. Rather
areas, And improved operations
commercial Increased output,
establishments. And reduced costs, better
the building Itself. service to custumers.
 Plant Layout Fundamentals
A manager should aim at certain
• It is probably impossible fundamentals in his facility:
to achieve all the
benefits of a good 1. Integration 2. Utilization
facility in any one plant.
By its very nature, a 3. Expansion 4. Flexibility
plant facility involves 5. Versatility 6. Regularity
multitude of factors and 7. Closeness 8. Orderliness
consideration products,
materials, sales volume, 9. Convinience 10. Satisfaction
people, buildings and Safety for
services, and utilities. all Employees
 Layout Planning:Basically Any Layout
Planning Involves
1. Relationships
2. Spaces
3. Adjustment
Types Of Layouts: Three(3) Classical
Types of Layout
1. Fixed Position
2. Process (or Function)
3. Product (or function)/ Production(or
Function)
 Three(3) Classical Types of Layout
• Fixed Position, Holds the chief material in one place and
bring men and machine to it, This layout is generally must
economical when product or materials is physically large
and heavy.
• Process Layout, or layout by position, is generally most
economical when the process or nature of the operations is
relatively complex or costly.
• Product Layout, or line production, is generally most
economical when the quantity is large, the process is fairly
simple and product or materials are relatively standardized
constant and not too large.
 From The above we note that the Installation of the
decision as to type of layout rests
chiefly on three elements: Equipment
• Once the layout has been
approved and reproduced,
P – Product (or copies are usually
material) distributed not only to the
key factory men but also the
D – Quantity (or plant engineers, Plumbers,
sales volume) amd electronics men.
• While equipment is being
R – Routing (or installed effort should be
process/Operation created along lines of
prevention and maintenance
to facilitate its subsequent
operation and repair.
 Project Studies

• In the preparation of project studies; the one who prepares

it should be first find out different factors which can affect
the business if it is ti be a proposal for a new establishment
or it is for expansion purpose. The project study should
include the feasibility study of the business in relarion to
supply and demand.
• Financial Feasibility – The overall financial position of the
company, profit incidence, sales level, debt servicing (If
financing is to come from borrowed funds) etc.
Thanks For Listening