ERU - 2006

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Browsing ERU - 2006 by Author "Dasanayaka, SWSB"

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    item: Conference-Abstract
    Identification of the critical success factors for relocation of industrial plants: the case of a lubricant plant in Sri Lanka
    (2006) Nanayakkara, SK; Dasanayaka, SWSB
    The best optimum location for industry or manufacturing plant is a highly debated issue in industrial location theory. In literature of industrial location, there are many theories, frameworks and techniques available for the selection of optimum location. But when it comes to practice there are many issues and factors have to take into account which are not in the domain of the traditional industrial location theory. Generally in literature, the most important primary and secondary factors for industry or plant location/relocation listed as economic, financial, social, environmental, legal, regulatory, incentives, taxes, transport, energy, communication, human resources, raw materials, market, regions factor endowments and speciality, law and order, etc. In this context, this study analyze the case of Sri Lankan Lubricant Plant relocation by using Factor Rating Model with Weighted Score Method to find out how far these factors are critical in plant relocation and their relative significance. The main objectives of the study are to identify the most critical success factors for relocation of industrial plants, ascertain the optimum plant location to maximize benefit to the company and to find strategies and guide lines for effective plant relocation. Primary data was collected by interviews (sample 75 people) key stakeholders of the Lubricant industry, including pressure groups (civil society and NGOs), and recently relocated other similar types of plants as this is a relocation rather location of a new plant. Special emphasis is given to collect data from top to middle management in various functional areas, trade unions and different levels of employees at the Lubricant Plant itself. After completion of literature survey and consultation with industry experts, twelve critical success factors and possible eight optimum locations have identified. The main outcome of this study is ranking of these eight locations according to the selected twelve critical locational factors and finally presenting options for the management to decide which location to select according to their preferences. Furthermore, this study could be used as guidelines for any similar type of plants relocation. The main policy message of the study is that before relocation of any industrial plant stakeholder consultation and awareness about the repercussions of. relocation among the present employees and trade unions are very necessary for any sustainable plant relocation. Therefore, management has to frame proper strategies and means to convince stakeholders including employees and trade unions well in advance about the realities of relocation. ABSTRACT 44
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    The scale of operation, profitability based productivity and capacity utilization in seaports: the case study based on the Colombo Seaport in Sri Lanka - 1980-2005
    (2006) Dasanayaka, SWSB
    The Sri Lanka (formerly Ceylon), an island nation, is strategically located in the South Asian main sea routes as a gateway to the Far-East, the Middle-East, Europe, Africa and Australia. This supreme strategic hub location created commendable achievements in seaports in different magnitudes over time. More specifically, after 1977 economic policy reforms, the Colombo seaport has earned the reputation as the best managed and the most efficient hub port in the South Asia and the major transshipment center in the Indian Ocean. This success further strengthened by the liberalization of shipping in 1990 which was the land mark of changing the fundamentals of the Sri Lankan shipping and ports related activities. In terms of future prospects of transshipment activities in South Asia, it can be estimated that, with the size of vessels growing in the main routes and economic booms in India and China, there will be a concentration of transshipment activities on a very limited number of strategically located hub ports equipped to cope with future generation of vessels requirements and ensuring excellent operation conditions. Therefore it is obvious that the Colombo's qualifications are deemed fit to become one of these major hub in the South Asia. In this context, the recent growth of the Colombo seaport is analyzed by using production function, profitability and capacity utilization approach to get more insights into the seaport operation and to find the possibilities for further expansion. This new approach may overcome the potential problems of port impact and cost benefits studies. First this study conclude that the analysis based on the Cobb-Douglas production function has shown that the operation of the Colombo seaport is an increasing return to scale during the recent past. The returns to scale depend to a larger extent upon changing demand for seaport services and corresponding development to cope with this demand. In view of the rapidly rising tonnage handled and the other services provided for ships and the related other business activities by the Colombo seaport after the 1977 policy reforms has reasonable evidences to find increasing returns to scale in our estimated models even with some what ambiguous data set. Second the profitability based productivity analysis shows the average profitability measures such as the marginal revenue product of labour (MRPI) is very high compared to the average wage rate paid for labour (W) and the marginal revenue product of capital (MRPk) is very high compared to the interest rate (r%) paid for the port development loans. Furthermore, the small fluctuation of the Lagrange multipliers in the estimated max-min model indicates the sustainable nature of profitability of operations in the Colombo seaport. Finally the capacity utilization analysis shows that annual rate of increase of tonnage at the Colombo seaport has been positive and, the rate has increased at an increasing rate over time and it shows the high rate of actual to preferred capacity utilization which can be used as a basis to expand seaport facilities without creating the problem of overcapacity. This new approach can be use to any seaports in any parts of the world to see their scale of operation, profitability based on the productivity and capacity utilization aspects before major expansion in capacity.