supply chain- BA Level 2400 words
Applewatts
Ch6_Location_and_Layout_L6.pptAlex Hill and Terry Hill
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
Size of the INVESTMENT
The FIXED NATURE of the choice
The UNCERTAINTY of the future
| > | KEY IDEA |
| Once chosen, many organisations NEVER CHANGE location |
Choosing a location
Levels of decision
CHOOSING THE
CONTINENT or REGION
COUNTRY
AREA or CITY
SITE
| > | KEY IDEA |
| The number of LEVELS and FACTORS involved differ DECISION by DECISION |
Choosing a location
Background factors influencing location decisions
The ORIGIN of existing location decisions
POLITICALLY based constraints
TECHNOLOGY developments
NEW COUNTRIES are opening up
Market ACCESS or local PRESENCE in large consumer markets
CURRENCY value fluctuations
Choosing a location
Factors affecting the choice of location
A well developed INFRASTRUCTURE
Proximity to MARKETS
Proximity to SUPPLIERS
Hospitable BUSINESS CLIMATE
Availability of STAFF
Quality of LIFE for employees
VARIABLE COSTS
FIXED COSTS and INVESTMENTS
Favourable GOVERNMENT policies
Proximity to CUSTOMERS
Choosing a location
Factors affecting the choice of site
FACILITIES for staff and customers
Building’s DESIGN
RENTAL costs and local taxes
SPACE
Proximity to SUPPORT SERVICES
Room for EXPANSION
Level of cutsomer TRAFFIC
VISIBILITY to customers
Proximity to CUSTOMERS
Proximity to COMPETITORS
Choosing a location
Factors affecting the choice of site
Choosing a location
Site location techniques
WEIGHTED factor
Centre of GRAVITY
Choosing a location
Site location techniques
Choosing a location
Site location techniques
Chosen a LOCATION
Choosing a layout
Choose a LAYOUT
Choosing a layout
Factors influencing layout
Core TASK
Available SPACE
Making space for future EXPANSION and layout changes
HEALTH and SAFETY
Choosing a layout
Basic types of layout
FIXED position
PROCESS or FUNCTIONAL
SERVICE or PRODUCT
| > | 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
Critical reflections
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
