Food-Processing-Plant-Design-layout

Food Processing Plant Design & layout
First of all, look at the economic factors Fl and F2 for which monetary values were possible.
If one totals the costs for each site, one gets the costs for sites S1, S2 and S3 as Rs. 1980, Rs.
1660 and Rs. 1740, respectively. Thus, site S1 would be the worst cost wise. Site S2 would
have an economic advantage over site S1 to the extent of RS. (1980-1660) = Rs.320. Similarly,
site S3 would have an economic advantage over site SI to the extent of Rs. (1980-1740) =
Rs.240. Now the monetary value in Rupees can be converted to a point scale using the fact
that a standard of 1.0 is to be assigned for each Rs.10 per week of economic advantage.
Thus one can get the following Table.
Table Decision matrix
Potential sites
Factors
Weightage
S1 S2 S3
Economic advantage
(Fl + F2) F3
F4
FS
1.0
2.0
0.5
2.5
0
30
60
50
32
80
20
80
24
70
30
70
Composite site rating 215 402 354
Sample calculation: 215 = (1.0 x 0) + (2.0 x 30) + (0.5 x 60) + (2.5 x 50)
4.8 Locational Break-Even Analysis
Sometimes, it is useful to draw location break-even charts, which could aid in deciding
which location would be optimal. The location of a food factory in a South Delhi site will
result in certain annual fixed costs, variable costs and revenue. The 0 figures would be
different for a South Mumbai site. The fixed costs, variable costs and price per unit for both
sites are given below in the Table.
Table Cost data
Location site Fixed costs Variable Costs Price per tonne
South Delhi (Sl) 40,00,000 30,000 75,000
South Mumbai (S2) 60,00,000 24,000 82,000
Let us assume that the expected sales volume as estimated by a market
research team is 95 tonnes.
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