Strategic Importance of Facilities Planning and Facilities Planning Process
Facilities Planning
Study Theme 1a: Introduction
Chris van Schoor d p ed o Adapted by G.J Botha Copyright reserved Facilities Planning - Introduction 1
Strategic Importance of Facilities Planning (1)
Facilities planning is an integral part of strategic planning - the art and science of employing the resources of the firm f l i th f th fi to achieve its business objectives Cost of Facilities planning is a long term p g g making commitment with a minimum 5 year design changes horizon Facilities planning need to play a propro active role in strategic planning Manufacturing and distribution Planning Designing Building Installing Commissioning operations need to make a significant contribution to such planning “The plan is nothing, but planning is everything” - Dwight D. Eisenhower
2
Strategic Importance of Facilities Planning (2)
Large % of capital expenditure on new facilities L f it l dit f iliti Continuous upgrading of existing facilities required Planning often not adequate - significant g q g opportunity to improve the facilities planning process in practice The facilities design will have a major impact on operating costs material handling costs (20 - 50 % of operating costs) maintenance employee morale adaptability and flexibility management and control Significant opportunities for cost reduction and productivity improvement d ti it i t Continuous re-layout and rearrangement of activities is required due to changes in technology, compliance to employee health and safety regulations, energy conservation drives, f environmental impact, pilferage, disability compliance, etc.
3
Facilities Planning is a Continuous Process
Common reasons for redesign of layouts n Inefficient operations (high cost, excessive handling, bottlenecks, etc.) n Accidents or safety hazards n Changes in the design of products or services n Introduction of new products or services n Changes in the volume or mix
Study Theme 1a: Introduction
Chris van Schoor d p ed o Adapted by G.J Botha Copyright reserved Facilities Planning - Introduction 1
Strategic Importance of Facilities Planning (1)
Facilities planning is an integral part of strategic planning - the art and science of employing the resources of the firm f l i th f th fi to achieve its business objectives Cost of Facilities planning is a long term p g g making commitment with a minimum 5 year design changes horizon Facilities planning need to play a propro active role in strategic planning Manufacturing and distribution Planning Designing Building Installing Commissioning operations need to make a significant contribution to such planning “The plan is nothing, but planning is everything” - Dwight D. Eisenhower
2
Strategic Importance of Facilities Planning (2)
Large % of capital expenditure on new facilities L f it l dit f iliti Continuous upgrading of existing facilities required Planning often not adequate - significant g q g opportunity to improve the facilities planning process in practice The facilities design will have a major impact on operating costs material handling costs (20 - 50 % of operating costs) maintenance employee morale adaptability and flexibility management and control Significant opportunities for cost reduction and productivity improvement d ti it i t Continuous re-layout and rearrangement of activities is required due to changes in technology, compliance to employee health and safety regulations, energy conservation drives, f environmental impact, pilferage, disability compliance, etc.
3
Facilities Planning is a Continuous Process
Common reasons for redesign of layouts n Inefficient operations (high cost, excessive handling, bottlenecks, etc.) n Accidents or safety hazards n Changes in the design of products or services n Introduction of new products or services n Changes in the volume or mix