1. Operations Management
Lesson 2
Facility Management

2. What you will learn in this unit:
Facilities Management
Location Decisions
Layout Decisions
Logistic Decisions
Labour Decisions
Technology Choice and Selection

3. Facilities Management
Facilities management is the process of managing and improving capital investment of the organisation, these involves where to locate the operations, what are the layout to use, what logistic means that best for operations optimisation, who to engage to deliver the goods/services and what technologies to be utilised.

5. Location Decision Importance of location
Location is the geographical positioning of an operation relative to the input resources, other operations or customers with which it interacts (Slack, 2001).
Importance of location
It have significant impact on cost
Impact on speed of service
Attracting labour
Availability of raw materials

6. The location of operations
Supply-side
Demand-side
Operation
factors
factors
Labour costs
Labour skills
Land costs
Suitability of
site
Energy costs
Image
Transportation
costs
Convenience
for customers
Community
factors

7. Site Selection Factors
Historical – corporate towns
Inherent Local Conditions
Climate
Culture
Ethics
Language

8. Site Selection Factors
Staffing
Labour Costs
Social Laws
Labour Competency
Productivity
Trade Unions
Education Level
Technological Sophistication
Labour Mix

9. Site Selection Factors
Infrastructure
Family Services
Communications
Environmental Regulations
Legal Framework
Transportation
Rental costs
Living Costs
Country Stability

10. Site Selection Factors
Construction
Land Cost
Construction Labour
Land Preparation
Expansion Possibilities
Zoning Regulations
Environmental Regulations
Materials Availability

11. Site Selection Factors
Cash Flow Considerations
Exchange Rates
Repatriation of Funds
Taxes
Financial Aid

12. Site Selection Factors
Proximity of Resources
Raw Materials
Process & Utility Water
Power Supply
Suppliers & Subcontractors
Convenience for Customers

13. Layout Decision
Layout – deciding where to put all the facilities, machines, equipment & staff in an operation (Slack, 2001)

14. Why is layout design important?
Require substantial investments of resources
Involve long term commitments – not easily changed
Impact on the cost & efficiency of short term operations

15. The facilities layout decision procedure
Project process
Volume and
Decision 1
Jobbing process
variety
Batch process
Process type
Mass process
Continuous process
Decision 2
Strategic
performance
Fixed position layout
objectives
Basic layout type
Process layout
Cell layout
Product layout
Decision 3
Detailed design
The physical position of all
of layout
transforming resources
Flow of transformed resources

16. Basic layout types Volume Variety B asic layout types Manufacturing
process types
Service
Fixed
position layout
Project processes
Process layout
Cell layout
Product layout
Jobbing processes
Batch pro
cesses
Mass
processes
Continuous
Professional
services
Service shops
Mass services
Volume
Variety

17. Fixed Position Layout Transformed resources remain stationary
Transforming resources move as necessary
Effectiveness is governed by:-
Scheduling of transforming resources
Reliability of transforming resources
Eg’s – shipbuilding, construction projects, some surgery, restaurant

18. Process Layout
Similar processes (or with similar needs) are located together
Utilisation of transforming resources is improved
Transformed resources move through the operation according to their needs
Different products  different needs  different routes
May be very complex
Eg’s – supermarkets, some machine manufacture

19. Cell Layout Machines or services grouped into cells
Cells determined by the process requirements of the family of product/services they transform
Could be considered mini product layouts
Can simplify a functional/process layout
Flexible
Duplicates some resources

20. Product Layout
Locates the transforming resources entirely for the convenience of the transformed resources
Transformed resources follow a specified route
Flow is clear, predictable, easy to control
Eg’s – car assembly, paper manufacture, self-service cafe

21. olume-variety characteristics
Fixed
position layout
Process layout
Cell layout
Product layout
Low
VOLUME
High
VARIETY

22. What makes a good layout
Safety
Length of flow
Clarity of flow
Staff comfort
Management coordination
Accessibility
Space utilisation
Long term flexibility

23. Logistic Decisions
Logistic decision takes into consideration the flow of goods, information and financial resources therefore firms would have identify the necessary resources to support their operation.

24. Public Logistics
Internal or Channel (Outbound) Logistics
Information Logistics
Supplier Logistics

25. Labour Decisions
Labour decisions that focus on the human resources that help to ensure the operation process are optimise.

26. The process of determining the requirements of the job
Job analysis
The process of determining the requirements of the job

27. Job Analysis
The process of developing a detailed description of the tasks and responsibilities involved in a job,
determining the relationship of a given job to other jobs, and
ascertaining the knowledge, skill and abilities necessary for an employee to perform the job successfully.

28. Tangible outcomes of job analysis
Job description:
A written description of a job, the types of duties performed and the conditions under which these duties are performed
Person specification:
Details the qualifications, experience and personal qualities required of suitable job-holders
Job design:
Concerns the satisfaction
of the job holder’s
needs

29. Human engineering
Aims to identify and respond to worker needs in the performance of their jobs
Adapts work environment and equipment to the person
Can improve efficiency and create a more harmonious work environment

30. Job design strategies Job enlargement Job rotation Job enrichment
Self-managing work teams
Adjustments in work schedules

31. Technology Decision IT Technology Manufacturing technology
Technology patents and processes
R&D technology
Material technology