1. Obtaining and Laying Out Operating Facilities
Chapter 11
Obtaining and Laying Out Operating Facilities
Functions Of Operating System
Choosing The Right Location
Planning Physical Facilities
Role Of Telecommuting
Using Standards To Improve Operations

2. Elements Of Operating System
System For Changing
Form
Place
Time
Sequence For Inputs > Outputs
Skills, Tools, Machines For Change
Instructions/Goods Identification
Time Frame For Completion
McGraw-Hill/Irwin
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.

3. Operating System
Inputs
Processes
Outputs

4. Operating Systems

5. Operations/Production
“…converting inputs into outputs for customers.”

6. Producing A Whopper

7. Burger King Systems Marketing Production Delivery
John A. Rizzo/Getty Images

8. Beginning Operations Choose Right Location Plan Facilities
Decide On Layout
Implement Plans

9. Types Of Locations Retailer- Sells Goods To Consumer
Producer- Converts Large Volume Of Materials Into Products For Others To Sell
Service Company- Provides Service To Customer
Retailer or producer?
Royalty-Free/CORBIS

10. Location Factors- General
Access To Work Force
Availability Of Supplies & Services
Availability Of Transportation
Taxes/Regulations
Availability Of Utilities
Scenics of America/PhotoLink/Getty Images

11. Retailer Location Factors- Specific
Trade Area
Population Trends
Purchasing Power
Trade Potential
Competition
Shopping Centers
Janis Christie/Getty Images

12. Some Eclips

13. Producer Location Factors- Specific
Market Location
Vendor Location
Labor Availability
Transportation
Utilities
Government/Taxes
Schools/Recreation

14. Site Selection Rating Sheet

15. Types Of Stores
Convenience
Shopping
Specialty
Royalty-Free/CORBIS

16. Types Of Locations Downtown Business District Freestanding Stores
Shopping Centers
Designed To Draw Traffic
Anchor Stores
Royalty-Free/CORBIS

17. Calculating Total Rent
Some add 5-7% of gross over $x
Source For Determining Average Cost Per Square Foot In Your City-

18. Planning Physical Facilities
Determine Product
Identify Operations/Activities
Determine Space Needs
Decide On Best Layout
Keith Brofsky/Getty Images

19. Layout Example

20. Layout
Type
Product or
Process
General
Final
Implement

21. Issues About Production Layout
Space For Movement
Utilities
Safety
Working Conditions
Cleanliness
Product Quality
Aesthetics
Ryan McVay/Getty Images

22. Reasons To Telecommute
Flexible Hours
Save On Clothes
Save On Dry-Cleaning
Save On Parking
Save Commute Time
Avoid Office Politics
Not Micro-Managed
Time With Family
More Productive
Helping Environment
Source: PageWise,

23. Telecommuting Considerations
Access To Technology
Get Best Technology
Shipping Methods
Supplies Source
Year-Round Weather
Transportation
Contingency Plans
Telecommuting Aptitude Test-
Javier Pierini/Getty Images

24. Steps To Telecommuting
Determine Whether Telecommuting is Right For You
Develop A Plan
Talk To Manager
Get Needed Training/Equipment
Start Telecommuting
Ryan McVay/Getty Images
Source: CNNMONEY, “Telecommuting: the pitch, Sept. 21, 1999,

25. Improving Operations State Problem Collect/Record Information
Develop/Analyze Alternatives
Select/Install/Follow Up
Set/Use Performance Standards
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