1. ENTREPRENEURSHIP DEVELOPMENT
Choosing the Right Location
and Layout
Chapter# 13

2. Location: A Source of Competitive Advantage
Much like choosing a form of ownership and selecting particular sources of financing, the location decision has far-reaching and often long-lasting effects on a small company’s future.
Entrepreneurs who choose their locations wisely – with their customer’s preferences and their companies’ needs in mind – can establish an important competitive advantage over its rivals who choose their locations haphazardly.

3. Choosing a Location The Right Region of the Country
The Right State in the Region
The Right City in the State
The Right Site in the City

4. Choosing the Region Census Data World Wide Web -
Survey of Buying Power
Editor and Publisher Market Guide

5. Choosing the State Proximity (nearness) to Markets
Proximity to Needed Raw Materials
Wage Rates
Labor Supply Needs
Business Climate
Tax Rates
Internet Access

6. Choosing the City Population Trends Competition Clustering
Compatibility with Community
Local Laws and Regulations
Transportation Networks
Police and Fire Protection
Cost of Utilities and Public Services
Quality of Life

7. Retail and Service Location Considerations
Trade Area Size
Retail Compatibility
Degree of Competition
Transportation Network
Physical, Racial, or Emotional Barriers
Political Barriers
Customer Traffic
Adequate Parking
Reputation
Room for Expansion
Visibility

8. Layout
Layout – the logical arrangement of the physical facilities of a business that contributes to efficient operations, increased productivity, and higher sales.
Study: Look and feel of employees’ work spaces is third most important consideration (after salary and benefits) when deciding whether or not to accept or to quit a job.

9. Layout Size must be adequate to accommodate business needs.
Appearance must create the proper image or “personality” for the business in the customer’s eyes.
Entrances must invite customers to come in.
Create effective window displays and change them often; they can be powerful sales tools.
Pay attention to the business sign, the most direct method of reaching potential customers.

10. A Business Sign
Tells potential customers who you are and what you’re selling.
Must comply with local sign ordinances.
Should be visible, simple, and clear.
Should be changed periodically to avoid becoming part of the background.
Should be legible both day and night.
Must be maintained properly.

11. Building Interiors Ergonomics is an integral part of any design.
Proper layout and design pays off in higher productivity, efficiency, or sales.
Proper lighting is measured by what is ideal for the job being done.
Careful selection of colors can create the desired impressions among customers and employees.
Appealing to all of the customer’s senses can boost sales.

12. Factors to Consider in Manufacturing Layouts
The ideal layout for a manufacturing operation depends on a number of factors, including the following
Type of Product
Type of Production Process
Ergonomic Consideration
Economic Considerations
Space Availability Within the Facility Itself

13. Manufacturing Layouts
Manufacturing Layouts are categorized by either the work flow in a plant or by the production system’s function. There are three basic types of layouts that manufacturers can use separately or in a combination – product, process and fixed position – and they are differentiated by their applicability to different conditions of manufacturing volume.
Product Layout
Process Layout
Fixed Position Layout
Functional Layout

14. Manufacturing Layouts
Product Layout
In a product (or line) layout, a manufacturer arranges workers and equipment according to the sequence of operations performed on the product.
The flow is an unbroken line from raw material input or customer arrival to finished goods to customer’s departure. Example: Automobile Assembly Plants, Cement Factories, Paper Mills, etc.
Assembly Testing Touch-Up Packaging

15. Manufacturing Layouts
Process Layout
In a process layout, a manufacturer groups workers and equipment according to the general function they perform, without regard to any particular product or customer.
Process layouts are appropriate when production runs short, when demand are considerable variation and when the product are customized.
Receiving Lathes Arc Welding Cutting Tools
Drill Presses Heating Treating Packaging and Shipping

16. Manufacturing Layouts
Fixed Position Layout
In fixed position layouts, materials do not move down a line as in a production layout but rather, due to weight, size or bulk of the final product are assembled in one spot.
In other words, workers and equipment go to the material rather than having the material flow down a line to them.
Example: Aircraft assembly plants, ship building plants.

17. Manufacturing Layouts
Functional Layouts
Many layouts are designed with more than one objective or function in mind and therefore combinations of the various layouts are common.
Example: A supermarket though primarily arranged on the basis of marketing, is partly a storage layout.
A restaurant not only a layout of marketing function but also a food assembly line.

18. END OF CHAPTER # 13