Factors affecting location decision ppt

Supply Chain

Learning objectives

Recognise the levels at which DECISIONS about location must be made
Understand the background ISSUES that affect the choice of location for an operation
Describe the TECHNIQUES for choosing a location and explain how they work
Outline the FACTORS that influence the choice of layout
Outline the FEATURES of each basic type of layout
Explain the process of layout DESIGN
Lecture outline

Choosing a LOCATION
Choosing a LAYOUT
Critical REFLECTIONS
SUMMARY
DECIDING WHERE TO LOCATE

Choosing a location

> KEY IDEA
Once chosen, many organisations NEVER CHANGE location
Choosing a location

Levels of decision

CHOOSING THE

> KEY IDEA
The number of LEVELS and FACTORS involved differ DECISION by DECISION
Choosing a location

Background factors influencing location decisions

Choosing a location

Factors affecting the choice of location

Choosing a location

Factors affecting the choice of site

Choosing a location

Factors affecting the choice of site

Choosing a location

Site location techniques

Choosing a location

Site location techniques

Choosing a location

Site location techniques

Chosen a LOCATION

Choosing a layout

Choosing a layout

Factors influencing layout

Choosing a layout

Basic types of layout

> KEY IDEA
The BASIC TYPES of layout are: FIXED POSITION, PROCESS or FUNCTIONAL and SERVICE or PRODUCT
Choosing a layout

Basic types of layout

Choosing a layout

Basic types of layout

Choosing a layout

Basic types of layout

Choosing a layout

Basic types of layout

Low

VOLUME

High

High

VARIETY

Low

Choosing a layout

Service or product type, process and layout

Ask students to position each service or product from the film clips on the graph above – see the lecturer zone for printouts.

Choosing a layout

Service or product type, process and layout

Question Government Aeroplane Car Pit Stop
Service or product
Process
Layout
Ask students to watch the film and fill out the table above.

Low

VOLUME

High

High

VARIETY

Low

Choosing a layout

Service or product type, process and layout

Car

Areoplane

Government

Pit stop

Repeat

high-volume delivery system

Project manufacturing process

Process or functional

Fixed position

Mass product

Product

Service shop

Special product

Made on-site

Line manufacturing process

Repeat

low-volume delivery system

Cell

Service shop

Choosing a layout

Service or product type, process and layout

Question Government Aeroplane Car Pit stop
Service or product
Process
Layout
Choosing a layout

Detailed layout design

Choosing a layout

Detailed layout design

The choice of location and layout significantly impacts COSTS and SALES
Therefore, they must clearly reflect the NEEDS of
CUSTOMER and MARKET (external)
BUSINESS (internal)
In particular, the CHOICE of location is:
DIFFICULT to change
LARGE and FIXED investment
Summary

TASKS of deciding location and layout
Distinct, but related
Decisions need to be made at a number of LEVELS
Continent/region, country, area/city and site
Various FACTORS impact the choice of location
Exiting sites, proximity, political, economic, etc
Three basic TYPES of layout
Fixed position, process or functional, service or product
Ask students to position each service or product from the film clips on the graph above – see the lecturer zone for printouts.

Ask students to watch the film and fill out the table above.