Facility location
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Facility location

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Facility location Facility location Presentation Transcript

  • Facility location Er.Sartaj Singh Bajwa
  • Region Location Decision
    • Corporate desires
    • Attractiveness of region (culture, taxes, climate, etc.)
    • Labor availability, costs, attitudes toward union
    • Cost and availability of utilities
    • Environmental regulations of state and town
    • Government incentives
    • Proximity to raw materials & customers
    • Land/construction costs
    Er.Sartaj Singh Bajwa
  • Site Location Decisions
    • Site size and cost
    • Air, rail, highway, waterway systems
    • Zoning restrictions
    • Nearness of services/supplies needed
    • Environmental impact issues
    Er.Sartaj Singh Bajwa
  • Factors Affecting the Location Decision
    • Economic
      • Site acquisition, preparation and construction costs
      • Labor costs, skills and availability
      • Raw Material costs and availability
      • Transportation costs
      • Taxes
    Er.Sartaj Singh Bajwa
  • CONTD.
    • Economic
      • Technology
      • Human Resources
      • Utilities ( Electricity ,water , drainage etc )
      • Banking Facilities
      • Storage facilities
    Er.Sartaj Singh Bajwa
  • CONTD
    • Non-economic
      • Labor attitudes and traditions
      • Training and employment services
      • Community’s attitude
      • Schools and churches
      • Recreation and cultural attractions
      • Amount and type of housing available
      • Environment Standards
    Er.Sartaj Singh Bajwa
  • CONTD
    • Other
      • Climate
      • Political Stability
      • Government Regulation
      • Unionization
    Er.Sartaj Singh Bajwa
  • Some Reasons the Facility Location Decision Arises
    • Changes in the market
      • Expansion
      • Contraction
      • Geographic shift
    • Changes in Costs
      • Labor skills and/or costs
      • Materials costs and/or availability
      • Utility costs
    Er.Sartaj Singh Bajwa
  • CONTD.
    • Risk
      • Political Risk
      • Economic Risk
      • Social Risk
    • Changes in infrastructure
      • Legal System
      • Transportation
      • Technology
    Er.Sartaj Singh Bajwa
  • Significance Of Location Decision
    • Physical Characteristics
      • Whether or not power is purchased
      • Heating & Ventilation
      • Storage space
      • Types of carriers
    • Operating Costs
      • Cost of labor & taxes
      • Cost of land & fuel
    Er.Sartaj Singh Bajwa
  • Analyzing Location Decisions Quantitative Approaches
    • Center of Gravity Method
      • Finds best distribution center location
    • Location Breakeven Methods
      • Special case of breakeven analysis
    • Factor Rating
    • Load Distance
    Er.Sartaj Singh Bajwa