Locating Manufacturing Facilities Qualitative Factors

1
Locating Manufacturing Facilities(Qualitative
Factors)

• Local Infrastructure
• Worker Education and Skills
• Product Content Requirements
• Political/Economic Stability

7-4
2
Locating Manufacturing Facilities(Quantitative
Factors)

• Labor Costs
• Distribution Costs
• Facility Costs
• Exchange Rates

7-5
3
Plant Location Methods

• Quantitative
• Center of gravity method
• Qualitative
• factor-rating systems

7-6
4
EXHIBIT 7.6 Comparing Capacity and Demand in a
Service Operation
7-7
5
EXHIBIT 7.7 Economies of Scale
7-8
6
EXHIBIT 7.8A Proactive Capacity Strategy
7-9
7
EXHIBIT 7.8B Neutral Capacity Strategy
7-10
8
EXHIBIT 7.8C Reactive Capacity Strategy
7-11
9
Types of Facility Layouts

• Process layout
• Product layout
• Group technology layout
• Fixed-position layout

7-12
10
Process Layout
Assembly
Painting
Plating
Machining
Welding
7-13
11
Product Layout
Product A
Step 1
Step 2
Step 3
Step 4
Product B
Step 1
Step 2
Step 3
Step 4
Product C
Step 1
Step 2
Step 3
Step 4
7-14
12
EXHIBIT 7. 17 Precedence Graph for Model J Wagon
12
F
9
11
C
B
12
45
G
A
9
50
8
12
J
D
K
H
15
E
12
I
7-15