Project Phase Classification and Site Selection Methods
Classification of Project Stages
The project lifecycle is divided into specific types of phases:
- Creative Phase: This involves the transformation of a project idea into a defined project. This stage depends primarily on the designer.
- Construction Phase: This is the process of transforming the project into a physical reality. It depends on the project plans, supplies, and the sponsor company.
- Operational (Farm) Phase: This represents the life of the project and depends on the promoter-business.
The Drafting Process and Technical Specifications
Drafting involves creating the documents necessary to broadly define the job site. These documents form a legal assembly and allow for an estimated budget. A draft typically consists of specifications, large-scale drawings, and an approximate value (estimated technical specifications).
Components of Preliminary Drafting
The drafting of the preliminary study includes several critical elements:
- Purpose of the draft and justification
- Market research and manufacturing processes
- Location and plant layout
- Organization and economic survey
- Programming and fees
- Sources of information and annexes
Industrial Location and Plant Layout
The issue of industrial location is addressed during the preliminary study (to identify appropriate geographic areas) and the draft (to define variables more accurately, including layout and specific site choice).
Normally, when a plant is small or medium-sized, the site choice is made by the owner, which may sometimes adversely affect the outcome. Location significantly impacts the transport of raw materials and finished products, labor costs, and the availability of supplies and services. Because location and layout are interdependent, they are usually discussed together.
Common Pitfalls in Site Surveys
Several errors can occur during a site survey:
- Failure in the investigation and consideration of actual needs.
- Excessive attention to land prices while underestimating travel costs.
- Making a choice too quickly due to local community advantages.
- Choices guided by the prejudices or preferences of leaders rather than objective data.
- Resistance from leaders to move from their current residence to a new location.
- Focusing on super-industrialized geographical areas or those undergoing super-industrialization.
- Estimating labor costs solely in terms of wages.
- Low cultural or local school standards that discourage the business elite from working there.
Reasons for Conducting a Site Study
A site study should be performed when a company undergoes:
- Expansion: Due to obsolete facilities, demand exceeding capacity, or changes in manufactured products.
- Decentralization: To find a new supply of labor, better working relationships in smaller environments, lower rates of absenteeism, or lower transportation costs.
- Economic Factors: Resulting from market changes or a lack of adequate manpower.
Levels of Location Testing
A location study is typically carried out at three distinct levels:
- The general territory (which determines the following two levels).
- The community.
- The specific site or place.
Key Site and Location Factors
The following factors are essential when evaluating a location:
- 1. Labor
- 2. Energy and Water
- 3. Market
- 4. Raw Materials
- 5. Social Environment
- 6. Laws and Taxes
- 7. Transportation
- 8. Geography and Climate