2014 location capacity facility aggrega

Facility Layout
•
•
•
•

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 &