PRODUCTION & OPERATIONS MANAGEMENT Module II Location & Facility Prof. A.Das, MIMTS Prof. A.Das, MIMTS

Location

Reasons for Globalization Improved transportation and communication technologies Improved transportation and communication technologies Loosened regulations on financial institutions Loosened regulations on financial institutions Increased demand for imported services and goods Increased demand for imported services and goods Reduced import quotas and other international trade barriers Reduced import quotas and other international trade barriers

Managing Global Operations  Other Languages  Different Norms and Customs  Workforce Management  Unfamiliar Laws and Regulations  Unexpected Cost Mix

Location Decisions - Manufacturing  Favourable Labour Climate  Proximity to Markets  Quality of Life  Proximity to Suppliers  Proximity to Parent Company  Utilities, Taxes, and Real Estate Costs

Location Decisions - Services  Proximity to Customers  Transportation Costs and Proximity to Markets  Location of Competitors  Site-Specific Factors

Location Health-WatchNorthErie Pittsburgh Harrisburg Philadelphia Scranton Uniontown State College

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 Weighted Score

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=(25 x 4) Weighted Score

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=(25 x 4) + (20 x 3) Weighted Score

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=(25 x 4) + (20 x 3) + (20 x 3) Weighted Score

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=(25 x 4) + (20 x 3) + (20 x 3) + (15 x 4) + (10 x 1) + (10 x 5) Weighted Score

Location Health-Watch North Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=340 Weighted Score

Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5) C(5.5, 4.5) D(5, 2)73514 E(8, 5) F(7, 2) G(9, 2.5) Totals Totals x * = y * =

Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5) C(5.5, 4.5) D(5, 2)73514 E(8, 5) F(7, 2) G(9, 2.5) Totals Totals x * = y * =

Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5) C(5.5, 4.5) D(5, 2)73514 E(8, 5) F(7, 2) G(9, 2.5) Totals Totals x * = y * =

Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5) C(5.5, 4.5) D(5, 2)73514 E(8, 5) F(7, 2) G(9, 2.5) Totals Totals x * = 6.67 y * = 3.02

Facility

Objectives of Facility Layout Minimize material handling costs Utilize space efficiently Utilize labour efficiently Eliminate bottlenecks Facilitate communication and interaction between workers and their supervisors, or between workers and customers’ need Reduce manufacturing cycle time or customer service time

Objectives of Facility Layout Eliminate waste or redundant movement Facilitate the entry, exit, and placement of material, products, or people Incorporate safety and security measures Promote product and service quality Encourage proper maintenance activities Provide a visual control of operations or activities Provide flexibility to adapt to changing conditions Increase capacity

Types of Layouts Process Layout Machines grouped by process they perform Product Layout Linear arrangement of workstations to produce a specific product Fixed Position Layout Used in projects where the product cannot be moved

A Product Layout

Fixed-Position Layouts Typical of projects Equipment, workers, materials, other resources brought to the site Highly skilled labour Often low fixed (Can be changed with project needs) Typically high variable costs

Lathe

Milling