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Our Factory
Location
These are several factors that we consider in choosing our plant location.
These are our criteria for selecting the locations:
1. Labour
A large cheap labour force is required for labour-intensive manufacturing
industries. High-tech industries have to locate where suitable skilled workers are
available. Small-scale industries are fairly labour-intensive and our industry is still
smale-scale.
2. Raw Materials
The factory needs to be close to these if they are heavy and bulky to transport.
Raw materials of our product are green tea and aloe vera. The best green tea and
aloe vera producing region in Indonesia are in Ciwidey, Bandung, West Jaa and
Cipageran, Cimahi, West Java. Both of location of the raw materials for our
products are in West Java. So, we chose our product factory location in the city of
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Bandung, West Java. To get to our factory from the raw material supplier of our
products takes about 30 minutes - 1 hour (Attachment 1). This indicates that the
distance is not too far away. Besides, our plant location is near from Soerang-Pasir
Koja (Soroja) Toll Road, so it makes supplier easier to find and go to our plant.
3. Market (Distribution of Product)
Our plant location is in Java Island, precisely in West Java. West Java is an
area of Java Island closest to the Jabodetabek are, which is also our biggest targeted
consumer. Track to distribute our factory to Jabodetabek area can be reached
through Cipularang and Jakarta-Cikampek toll road, so it is not difficult to
distribute. Therefore, this location is an opportunity for us to distribute our product
easier.
4. Cost
Our plant location is in the industrial area. So, we assume that this location is
good to build our plant, include cost. Costs for plant are including lease rate, the
electricity bill, water bill, and others bill. Each location has their own specification
of lease rate, electricity bill, water bill and other costs related to the plant, so we
have to pick the location that can give the lowest cost but provide the best facilities
that is suitable with our product production.
5. The Size of Location
Since our plant location is in industrial area, we have to consider our plant
size and compromise it with the available lot sizes in the area. Our plant sizes is
depend on the equipments sizes and layout, so we need to consider the equipment
specification and its layout before choosing the suitable lot for our plant.
6. Ecological and Environmental
In case of certain industries, the ecological and environmental factors like
water and air pollution may turn out to be negative factor in deciding enterprise
location. But our plant location is in the middle of an industrial area and far from
the housing unit. So the plant will not interfere the people who live around there.
7. Infrastructural Facilities
The degree of dependency upon infrastructural facilities may vary from
industry to industry, yet there is no denying of the fact that availability of
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follows a pre-arranged route through a series of processes. The products flow along
a line of processes, which is clear, predictable and relatively easy to control. Product
layouts have high fixed costs to set up the manufacturing lines, then low variable
costs for producing large volumes of the same product. Hence if volume is high and
variability low, product layout is likely to be the best option. In addition, it also
have some advantages such as equipment can be specialized, improving efficiency
and materials movement optimized.
1. Direction from Cipageran, Cimahi, West Java to Kutawaringin Industrial Park, Bandung, West Java. (Source : Google Maps)
2. Direction from Ciwidey, Bandung, West Java to Kutawaringin Industrial Park, Bandung, West Java. (Source: Google Maps)