2014 location capacity facility aggrega
Facility Layout
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Types of Facilities
Site Selection: Where to Locate
Global Supply Chain Factors
Location Analysis Techniques
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
1
Types of Facilities
• Heavy-manufacturing facilities
– large, require a lot of space, and are expensive
• Light-industry facilities
– smaller, cleaner plants and usually less costly
• Retail and service facilities
– smallest and least costly
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
2
Factors in Heavy Manufacturing Location
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•
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•
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Construction costs
Land costs
Raw material & finished goods shipment modes
Proximity to raw materials
Utilities
Means of waste disposal
Labor availability
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
3
Factors in Light Industry Location
•
•
•
–
Land costs
Transportation costs
Proximity to markets depending on delivery requirements including frequency of delivery required by customer
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
4
Factors in Retail Location
• Proximity to customers
• Location is everything
• Transportation Infrastructure
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
5
Site Selection: Where to Locate
• Infrequent but important
• Location criteria for manufacturing facility
• being “in the right place at the right time”
• Must consider other factors, especially financial considerations • Location decisions made more often for service operations than manufacturing facilities
• Location criteria for service
• access to customers
Prof N. Balasubramanian
• nature of labor force
• labor costs
• proximity to suppliers and markets • distribution and transportation costs • energy availability and cost
• community infrastructure
• quality of life in community
• government regulations and taxes
Facility, Capacity, Planning - MMS I
6
Global Supply Chain Factors
•
•
•
•
•
•
•
Government stability
Government regulations
Political &
•
•
•
•
Types of Facilities
Site Selection: Where to Locate
Global Supply Chain Factors
Location Analysis Techniques
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
1
Types of Facilities
• Heavy-manufacturing facilities
– large, require a lot of space, and are expensive
• Light-industry facilities
– smaller, cleaner plants and usually less costly
• Retail and service facilities
– smallest and least costly
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
2
Factors in Heavy Manufacturing Location
•
•
•
•
•
•
•
Construction costs
Land costs
Raw material & finished goods shipment modes
Proximity to raw materials
Utilities
Means of waste disposal
Labor availability
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
3
Factors in Light Industry Location
•
•
•
–
Land costs
Transportation costs
Proximity to markets depending on delivery requirements including frequency of delivery required by customer
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
4
Factors in Retail Location
• Proximity to customers
• Location is everything
• Transportation Infrastructure
Prof N. Balasubramanian
Facility, Capacity, Planning - MMS I
5
Site Selection: Where to Locate
• Infrequent but important
• Location criteria for manufacturing facility
• being “in the right place at the right time”
• Must consider other factors, especially financial considerations • Location decisions made more often for service operations than manufacturing facilities
• Location criteria for service
• access to customers
Prof N. Balasubramanian
• nature of labor force
• labor costs
• proximity to suppliers and markets • distribution and transportation costs • energy availability and cost
• community infrastructure
• quality of life in community
• government regulations and taxes
Facility, Capacity, Planning - MMS I
6
Global Supply Chain Factors
•
•
•
•
•
•
•
Government stability
Government regulations
Political &