Mkt B370
MKT B370
Unit 5
Strategic capacity planning and facility design
120
OUHK Course Team Developer: Prof. Lee Tien Sheng, CUHK Dr Zhao Xiande, City University of Hong Kong Designer: Coordinator: Member: Production ETPU Publishing Team Cliff Hall, OUHK Dr Matthew Yeung, OUHK Ken Chan, OUHK
Copyright © The Open University of Hong Kong, 1999, 2004, 2006, 2008, 2009, 2011. Revised 2012. All rights reserved. No part of this material may be reproduced in any form by any means without permission in writing from the President, The Open University of Hong Kong. Sale of this material is prohibited. The Open University of Hong Kong 30 Good Shepherd Street Ho Man Tin, Kowloon Hong Kong
Contents
Overview Section one — strategic capacity planning
Strategic importance of capacity planning Measuring capacity Economies and diseconomies of scale Determining capacity requirements Use of decision trees in capacity decisions Service capacity management
1 2
2 2 3 4 4 5
Section two — facility location
Competitive imperatives impacting on location decision Location decision and location factors Service versus industrial locations Location methods for industrial and service companies Factor rating methods Linear programming Transportation method Further explorations on transportation method Centroid method (Centre of gravity method)
7
7 7 10 10 11 13 16 22 23
Section three — operations facility strategies
Basic types of layout for manufacturing Some layout techniques Service layout and ‘servicescape’
28
29 31 35
Summary References Suggested answers to activities
37 38 39
Unit 5
1
Overview
In this unit, we discuss the topic of strategic capacity planning and facility design. The unit has three sections. In the first section, we discuss strategic capacity planning, which is concerned with how to determine the overall capacity level of capital intensive resources — facilities, equipment, and overall labour force size — that best supports
Unit 5
Strategic capacity planning and facility design
120
OUHK Course Team Developer: Prof. Lee Tien Sheng, CUHK Dr Zhao Xiande, City University of Hong Kong Designer: Coordinator: Member: Production ETPU Publishing Team Cliff Hall, OUHK Dr Matthew Yeung, OUHK Ken Chan, OUHK
Copyright © The Open University of Hong Kong, 1999, 2004, 2006, 2008, 2009, 2011. Revised 2012. All rights reserved. No part of this material may be reproduced in any form by any means without permission in writing from the President, The Open University of Hong Kong. Sale of this material is prohibited. The Open University of Hong Kong 30 Good Shepherd Street Ho Man Tin, Kowloon Hong Kong
Contents
Overview Section one — strategic capacity planning
Strategic importance of capacity planning Measuring capacity Economies and diseconomies of scale Determining capacity requirements Use of decision trees in capacity decisions Service capacity management
1 2
2 2 3 4 4 5
Section two — facility location
Competitive imperatives impacting on location decision Location decision and location factors Service versus industrial locations Location methods for industrial and service companies Factor rating methods Linear programming Transportation method Further explorations on transportation method Centroid method (Centre of gravity method)
7
7 7 10 10 11 13 16 22 23
Section three — operations facility strategies
Basic types of layout for manufacturing Some layout techniques Service layout and ‘servicescape’
28
29 31 35
Summary References Suggested answers to activities
37 38 39
Unit 5
1
Overview
In this unit, we discuss the topic of strategic capacity planning and facility design. The unit has three sections. In the first section, we discuss strategic capacity planning, which is concerned with how to determine the overall capacity level of capital intensive resources — facilities, equipment, and overall labour force size — that best supports