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

3. Location

4. 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

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

6. 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

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

8. Location Health-WatchNorthErie Pittsburgh Harrisburg Philadelphia Scranton Uniontown State College

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5)512.512.5 C(5.5, 4.5)105545 D(5, 2)73514 E(8, 5)108050 F(7, 2)2014040 G(9, 2.5)1412635 Totals68453.5205.5 Totals68453.5205.5 x * = y * =

17. Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5)512.512.5 C(5.5, 4.5)105545 D(5, 2)73514 E(8, 5)108050 F(7, 2)2014040 G(9, 2.5)1412635 Totals68453.5205.5 Totals68453.5205.5 x * = y * = 453.5 68 205.5 68

18. Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5)512.512.5 C(5.5, 4.5)105545 D(5, 2)73514 E(8, 5)108050 F(7, 2)2014040 G(9, 2.5)1412635 Totals68453.5205.5 Totals68453.5205.5 x * = y * = 453.5 68 205.5 68

19. Location Center of Gravity Approach Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5)512.512.5 C(5.5, 4.5)105545 D(5, 2)73514 E(8, 5)108050 F(7, 2)2014040 G(9, 2.5)1412635 Totals68453.5205.5 Totals68453.5205.5 x * = 6.67 y * = 3.02

20. Facility

21. 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

22. 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

23. 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

27. A Product Layout

29. 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

30. Lathe

31. Milling