© 2006 Prentice Hall, Inc.8 – Location StrategyOne of.docx

© 2006 Prentice Hall, Inc.
8 – *
Location StrategyOne of the most important decisions a firm
makesIncreasingly global in natureLong term impact and
decisions are difficult to changeThe objective is to maximize
the benefit of location to the firm
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8 – *
Location and InnovationCost is not always the most important
aspect of a strategic decisionFour key attributes when strategy
is based on innovationHigh-quality and specialized inputsAn
environment that encourages investment and local rivalryA
sophisticated local marketLocal presence of related and
supporting industries
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8 – *

Location DecisionsLong-term decisions Decisions made
infrequentlyDecision greatly affects both fixed and variable
costs Once committed to a location, many resource and cost
issues are difficult to change
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8 – *
Location Decisions
Country Decision
Critical Success FactorsPolitical risks, government rules,
attitudes, incentivesCultural and economic issuesLocation of
marketsLabor availability, attitudes, productivity,
costsAvailability of supplies, communications, energyExchange
rates and currency risks
Figure 8.1

*
8 – *
Location Decisions
Region/ Community Decision
Critical Success FactorsCorporate desiresAttractiveness of
region Labor availability, costs, attitudes towards unionsCosts
and availability of utilitiesEnvironmental
regulationsGovernment incentives and fiscal policiesProximity
to raw materials and customersLand/construction costs
Figure 8.1
MN
WI

MI
IL
IN
OH
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Location Decisions
Site Decision
Critical Success FactorsSite size and costAir, rail, highway, and
waterway systemsZoning restrictionsNearness of services/
supplies neededEnvironmental impact issues
Figure 8.1
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8 – *
Factors That Affect

Location DecisionsLabor productivityWage rates are not the
only costLower productivity may increase total cost
Labor cost per day
Productivity (units per day)
= cost per unit
= $1.17 per unit
$70
60 units
Connecticut
= $1.25 per unit
$25
20 units
Juarez
8 – *
Factors That Affect
Location DecisionsExchange rates and currency risksCan have a
significant impact on cost structureRates change over
timeCostsTangible - easily measured costs such as utilities,
labor, materials, taxesIntangible - less easy to quantify and
include education, public transportation, community, quality-of-
life
8 – *
Factors That Affect

Location DecisionsAttitudesNational, state, local governments
toward private and intellectual property, zoning, pollution,
employment stabilityWorker attitudes towards turnover, unions,
absenteeismGlobally cultures have different attitudes towards
punctuality, legal, and ethical issues
8 – *
Factors That Affect
Location DecisionsProximity to marketsVery important to
servicesJIT systems or high transportation costs may make it
important to manufacturersProximity to suppliersPerishable
goods, high transportation costs, bulky products
8 – *
Factors That Affect
Location DecisionsProximity to competitorsCalled
clusteringOften driven by resources such as natural,
information, capital, talentFound in both manufacturing and
service industries
8 – *
Growth Competitiveness Index of Countries
Country2004 Rank2003 Rank
Finland11
USA22

Sweden33
Taiwan45
Japan911
UK1115
Germany1313
Canada1516
New Zealand1814
France2726
Russia7070
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Clustering of Companies
Table 8.3IndustryLocationsReason for clusteringWine
makersNapa Valley (US) Bordeaux region (France)Natural
resources of land and climateSoftware firmsSilicon Valley,
Boston, Bangalore (India)Talent resources of bright graduates
in scientific/technical areas, venture capitalists nearbyRace car
buildersHuntington/North Hampton region (England)Critical
mass of talent and information
*

8 – *
Table 8.3IndustryLocationsReason for clusteringTheme
parksOrlandoA hot spot for entertainment, warm weather,
tourists, and inexpensive laborElectronic firmsNorthern
MexicoNAFTA, duty free export to USComputer hardware
manufacturersSingapore, TaiwanHigh technological penetration
rate and per capita GDP, skilled/educated workforce with large
pool of engineers
*
8 – *
Table 8.3IndustryLocationsReason for clusteringFast food
chainsSites within one mile of each otherStimulate food sales,
high traffic flowsGeneral aviation aircraftWichita, KansasMass
of aviation skills
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8 – *
Factor-Rating MethodPopular because a wide variety of factors
can be included in the analysisSix steps in the methodDevelop a
list of relevant factors called critical success factorsAssign a
weight to each factorDevelop a scale for each factorScore each
location for each factorMultiply score by weights for each
factor for each locationRecommend the location with the
highest point score
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8 – *
Factor-Rating Example
Table 8.3
CriticalScores
Success(out of 100)Weighted Scores
FactorWeightFranceDenmarkFranceDenmark
Labor
availability
and attitude.257060(.25)(70) = 17.5(.25)(60) = 15.0
People-to
car ratio.055060(.05)(50) = 2.5(.05)(60) = 3.0
Per capita

income.108580(.10)(85) = 8.5(.10)(80) = 8.0
Tax structure.397570(.39)(75) = 29.3(.39)(70) = 27.3
Education
and health.216070(.21)(60) = 12.6(.21)(70) = 14.7
Totals1.0070.468.0
*
8 – *
Locational
Break-Even AnalysisMethod of cost-volume analysis used for
industrial locationsThree steps in the methodDetermine fixed
and variable costs for each locationPlot the cost for each
location Select location with lowest total cost for expected
production volume
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Locational Break-Even Analysis Example

Three locations:
Total Cost = Fixed Cost + Variable Cost x Volume
Akron$30,000$75$180,000
Bowling Green$60,000$45$150,000
Chicago$110,000$25$160,000
Selling price = $120
Expected volume = 2,000 units
FixedVariableTotal
CityCostCostCost
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8 – *
Locational Break-Even Analysis Example
Figure 8.2
–
$180,000 –
–
$160,000 –
$150,000 –
–
$130,000 –
–
$110,000 –
–
–
$80,000 –
–
$60,000 –

–
–
$30,000 –
–
$10,000 –
–
Annual cost
|||||||
05001,0001,5002,0002,5003,000
Volume
Akron lowest cost
Bowling Green lowest cost
Chicago lowest cost
Chicago cost curve
Akron cost curve
Bowling Green cost curve
*
8 – *

Center-of-Gravity MethodFinds location of distribution center
that minimizes distribution costsConsidersLocation of
marketsVolume of goods shipped to those marketsShipping cost
(or distance)
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8 – *
Center-of-Gravity MethodPlace existing locations on a
coordinate gridGrid origin and scale is arbitrary Maintain
relative distances Calculate X and Y coordinates for ‘center of
gravity’Assumes cost is directly proportional to distance and
volume shipped
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Center-of-Gravity Method
wheredix=x-coordinate of location i
diy=y-coordinate of location i
Qi=Quantity of goods moved to or from location i
∑dixQi
∑Qi
i
i

x - coordinate =
∑diyQi
∑Qi
i
i
y - coordinate =
*
8 – *
North-South
East-West
120 –
90 –
60 –
30 –
–
||||||
306090120150
Arbitrary origin
New York (130, 130)
Pittsburgh (90, 110)

Chicago (30, 120)
Atlanta (60, 40)
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Number of Containers
Store LocationShipped per Month
Chicago (30, 120)2,000
Pittsburgh (90, 110)1,000
New York (130, 130)1,000
Atlanta (60, 40)2,000
(30)(2000) + (90)(1000) + (130)(1000) + (60)(2000)
2000 + 1000 + 1000 + 2000
x-coordinate =
= 66.7
y-coordinate =
(120)(2000) + (110)(1000) + (130)(1000) + (40)(2000)
2000 + 1000 + 1000 + 2000
= 93.3
*

8 – *
North-South
East-West
120 –
90 –
60 –
30 –
–
||||||
306090120150
Arbitrary origin
New York (130, 130)
Pittsburgh (90, 110)
Chicago (30, 120)
Atlanta (60, 40)
Center of gravity (66.7, 93.3)
+
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Transportation ModelFinds amount to be shipped from several
points of supply to several points of demand
Solution
will minimize total production and shipping costsA special
class of linear programming problems
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Worldwide Distribution of Volkswagens and Parts
Figure 8.4
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8 – *
Service Location Strategy
1. Purchasing power of customer-drawing area
2. Service and image compatibility with demographics of the
customer-drawing area
3. Competition in the area
4. Quality of the competition
5. Uniqueness of the firm’s and competitors’ locations
6. Physical qualities of facilities and neighboring businesses
7. Operating policies of the firm
8. Quality of management
*
8 – *
Location Strategies
Table 8.4
Service/Retail/Professional Location Goods-Producing Location
Revenue Focus Cost Focus

Volume/revenue
Drawing area; purchasing power
Competition; advertising/pricing
Physical quality
Parking/access; security/lighting; appearance/image
Cost determinants
Rent
Management caliber
Operations policies (hours, wage rates)
Tangible costs
Transportation cost of raw material
Shipment cost of finished goods
Energy and utility cost; labor; raw material; taxes, and so on
Intangible and future costs
Attitude toward union
Quality of life
Education expenditures by state
Quality of state and local government

*
8 – *
Location Strategies
Table 8.4
Techniques Techniques
Regression models to determine importance of various factors
Factor-rating method
Traffic counts
Demographic analysis of drawing area
Purchasing power analysis of area
Center-of-gravity method
Geographic information systems
Transportation methods
Factor-rating method
Locational break-even analysis
Crossover charts

*
8 – *
Location Strategies
Table 8.4
Assumptions Assumptions
Location is a major determinant of revenue
High customer-contact issues are critical
Costs are relatively constant for a given area; therefore, the
revenue function is critical
Location is a major determinant of cost
Most major costs can be identified explicitly for each site
Low customer contact allows focus on the identifiable costs
Intangible costs can be evaluated

*
8 – *
How Hotel Chains Select SitesLocation is a strategically
important decision in the hospitality industryLa Quinta started
with 35 independent variables and worked to refine a regression
model to predict profitabilityThe final model had only four
variablesPrice of the innMedian income levelsState population
per innLocation of nearby colleges
r2 = .51
51% of the profitability is predicted by just these four
variables!
*

8 – *
Telemarketing/Internet IndustriesRequire neither face-to-face
contact nor movement of materialsHave very broad location
optionsTraditional variables are no longer relevantCost and
availability of labor may drive location decisions
*
8 – *
Geographic Information Systems (GIS)New tool to help in
location analysisEnables more complex demographic
analysisAvailable data bases includeDetailed census
dataDetailed mapsUtilitiesGeographic featuresLocations of
major services

*
8 – *
Geographic Information Systems (GIS)
*
7 – *
Process, Volume, and Variety
Process Focus
projects, job shops (machine, print, carpentry)
Standard Register
Repetitive
(autos, motorcycles)

Harley Davidson
Product Focus
(commercial baked goods, steel, glass)
Nucor Steel
High Variety
one or few units per run, high variety
(allows customization)
Changes in Modules
modest runs, standardized modules
Changes in Attributes (such as grade, quality, size, thickness,
etc.)
long runs only
Mass Customization
(difficult to achieve, but huge rewards)
Dell Computer Co.
Poor Strategy (Both fixed and variable costs are high)
Figure 7.1
Volume
Low Volume
Repetitive Process
High Volume
*

7 – *
Process Flow Diagram
Figure 7.2
Accounting
PRINTING DEPT
COLLATING DEPT

GLUING, BINDING, STAPLING, LABELING
POLYWRAP DEPT
SHIPPING
Vendors
Receiving
Warehouse
Purchasing
PREPRESS DEPT
Customer
Customer sales representative
Information flow
Material flow
*

7 – *
Process StrategiesHow to produce a product or provide a service
thatMeets or exceeds customer requirementsMeets cost and
managerial goalsHas long term effects onEfficiency and
production flexibilityCosts and quality
*
7 – *
Process Strategies
Four basic strategiesProcess focusRepetitive focusProduct
focusMass customization
Within these basic strategies there are many ways they may be
implemented
*

7 – *
Process Focus
Facilities are organized around specific activities or
processesGeneral purpose equipment and skilled personnelHigh
degree of product flexibilityTypically high costs and low
equipment utilizationProduct flows may vary considerably
making planning and scheduling a challenge
*
7 – *
Process Focus
Print Shop

Many inputs
High variety of outputs
*

7 – *
Repetitive FocusFacilities often organized as assembly
linesCharacterized by modules with parts and assemblies made
previouslyModules may be combined for many output
optionsLess flexibility than process-focused facilities but more
efficient
*
7 – *
Repetitive Focus
Automobile Assembly Line

Raw materials and module inputs
Modules combined for many output options
Few modules
*

7 – *
Process Flow Diagram
Figure 7.3
Oil tank work cell
Shocks and forks
Handlebars
Fender work cell
Air cleaners
Fluids and mufflers
Fuel tank work cell
Wheel work cell
TESTING
28 tests

Roller testing
THE ASSEMBLY LINE
Engines and transmissions
Incoming parts
From Milwaukee on a JIT arrival schedule
Frame tube bending
Frame-building work cells
Frame machining
Hot-paint
frame painting

Crating
*
7 – *
Product FocusFacilities are organized by productHigh volume
but low variety of productsLong, continuous production runs
enable efficient processesTypically high fixed cost but low
variable costGenerally less skilled labor
*

7 – *
Product Focus
Bottling Plant
Many inputs
Output variation in size, shape, and packaging

*
7 – *
Product Focus
Nucor Steel Plant
Continuous caster
Continuous cast steel sheared into 24-ton slabs
Hot tunnel furnace - 300 ft
Hot mill for finishing, cooling, and coiling
D
E
F
G
H
I
Scrap steel
Ladle of molten steel
Electric furnace
A

B
C
*
7 – *
Comparison of Processes
Table 7.2Process Focus
(Low volume, high variety)Repetitive Focus
(Modular)Product Focus
(High-volume, low-variety)Mass Customization
(High-volume, high-variety)Small quantity, large variety of
productsLong runs, standardized product made from
modulesLarge quantity, small variety of productsLarge quantity,
large variety of productsGeneral purpose equipmentSpecial
equipment aids in use of assembly lineSpecial purpose
equipmentRapid changeover on flexible equipment

7 – *
(High-volume, high-variety)Operators are broadly
skilledEmployees are modestly trainedOperators are less
broadly skilledFlexible operators are trained for the necessary
customizationMany job instructions as each job
changesRepetition reduces training and changes in job
instructionsFew work orders and job instructions because jobs
standardizedCustom orders require many job instructions
7 – *

(High-volume, high-variety)Raw material inventories highJIT
procurement techniques usedRaw material inventories are
lowRaw material inventories are lowWork-in-process is highJIT
inventory techniques usedWork-in-process inventory is
lowWork-in-process inventory driven down by JIT, lean
production
7 – *
(High-volume, high-variety)Units move slowly through the

plantMovement is measured in hours and daysSwift movement
of unit through the facility is typicalGoods move swiftly
through the facilityFinished goods made to orderFinished goods
made to frequent forecastFinished goods made to forecast and
storedFinished goods often made to order
7 – *
(High-volume, high-variety)Scheduling is complex, trade-offs
between inventory, availability, customer serviceScheduling
based on building various models from modules to
forecastsRelatively simple scheduling, establishing output rate
to meet forecastsSophisticated scheduling required to
accommodate custom orders

7 – *
(High-volume, high-variety)Fixed costs low, variable costs
highFixed costs dependent on flexibility of the facilityFixed
costs high, variable costs lowFixed costs high, variable costs
must be lowCosting estimated before job, not known until after
job is completeCosts usually known due to extensive
experienceHigh fixed costs mean costs dependent on utilization
of capacityHigh fixed costs and dynamic variable costs make
costing a challenge

7 – *
Mass CustomizationThe rapid, low-cost production of goods and
service to satisfy increasingly unique customer desiresCombines
the flexibility of a process focus with the efficiency of a
product focus
*
7 – *
Mass Customization
Table 7.1
Vehicle models140260
Vehicle types181,212
Bicycle types819
Software titles0300,000
Web sites046,412,165
Movie releases267458
New book titles40,53077,446
Houston TV channels5185

Breakfast cereals160340
Items (SKUs) in 14,000150,000
supermarkets
Number of Choices
Early 21st
ItemEarly 1970sCentury
*
7 – *
Mass Customization
Modular techniques
Effective scheduling techniques
Rapid throughput techniques
Figure 7.5
Mass Customization

Repetitive Focus
Modular design
Flexible equipment
Process-Focused
High variety, low volume
Low utilization (5% to 25%)
General-purpose equipment
Product-Focused
Low variety, high volume
High utilization (70% to 90%)
Specialized equipment
*
7 – *
Crossover Charts
Figure 7.6

Fixed costs
Variable costs
$
High volume, low variety
Process C
Fixed costs
Variable costs
$
Repetitive
Process B

Fixed costs
Variable costs
$
Low volume, high variety
Process A
Fixed cost Process A
Fixed cost Process B
Fixed cost Process C
Total cost

Total cost
Total cost
V1
(2,857)
V2
(6,666)
400,000
300,000
200,000
Volume
$
7 – *
Changing ProcessesDifficult and expensiveMay mean starting

overProcess strategy determines transformation strategy for an
extended periodImportant to get it right
7 – *
Process Analysis and DesignFlow Diagrams - Shows the
movement of materialsTime-Function Mapping - Shows flows
and time frameValue Stream Mapping - Shows flows and time
and value added beyond the immediate organizationProcess
Charts - Uses symbols to show key activitiesService
Blueprinting - focuses on customer/provider interaction
*
7 – *
Time-Function Mapping
Figure 7.7

Customer
Sales
Production control
Plant A
Warehouse
Plant B
Transport
Move

Receive product
Extrude
Wait
Move
Wait
Print
Wait
Order product

Process order
Wait
12 days
13 days
1 day
4 days
1 day
10 days
1 day
0 day
1 day
52 days
*
7 – *

Time-Function Mapping
Figure 7.7
Customer
Sales
Production control
Plant
Warehouse
Transport
Move

Receive product
Extrude
Wait
Print
Order product
Process order
Wait
1 day
2 days
1 day
1 day
1 day
6 days

*
7 – *
Process Chart
Figure 7.8
7 – *
Service BlueprintFocuses on the customer and provider
interactionDefines three levels of interactionEach level has
different management issuesIdentifies potential failure points
*

7 – *
Service Blueprint
Level
#3
Figure 7.9
Personal Greeting
Service Diagnosis
Perform Service
Friendly Close
Customer arrives for service
Warm greeting and obtain service request
Direct customer to waiting room
Notify customer the car is ready

Customer departs
Customer pays bill
Perform required work
Prepare invoice
Yes
Yes
Level
#1
Level

#2
Potential failure point
Notify
customer
and recommend
an alternative
provider
No
Standard request
Determine specifics
Can
service be

done and does customer approve?
No
*
7 – *
Process Analysis ToolsFlowcharts provide a view of the big
pictureTime-function mapping adds rigor and a time
elementValue stream analysis extends to customers and
suppliersProcess charts show detailService blueprint focuses on
customer interaction

7 – *
Service Process Matrix
Figure 7.10
Degree of Customization
Low
High
Degree of Labor
Low
High
Mass Service
Professional Service
Service Factory
Service Shop
Private banking
Commercial banking
Law clinics

General-
purpose law firms
Specialized hospitals
Hospitals
Limited-service stockbroker
Full-service stockbroker
Boutiques
Warehouse and catalog stores
Retailing
Fast food restaurants
Fine-dining restaurants
No frills airlines
Airlines

*
7 – *
Service Process MatrixLabor involvement is highSelection and
training highly importantFocus on human resourcesPersonalized
services
Mass Service and Professional Service
Service Factory and Service ShopAutomation of standardized
servicesLow labor intensity responds well to process technology
and schedulingTight control required to maintain standards
*
7 – *

Improving Service Productivity
Table 7.3StrategyTechniqueExampleSeparationStructure service
so customers must go where service is offeredBank customers
go to a manager to open a new account, to loan officers for
loans, and to tellers for depositsSelf-serviceSelf-service so
customers examine, compare, and evaluate at their own
paceSupermarkets and department stores, internet ordering
*
7 – *
Table 7.3StrategyTechniqueExamplePostponementCustomizing
at deliveryCustomizing vans at delivery rather than at
productionFocusRestricting the offeringsLimited-menu

restaurantModulesModular selection of service, modular
productionInvestment and insurance selection, prepackaged
food modules in restaurants
*
7 – *
Table 7.3StrategyTechniqueExampleAutomationPrecise
personnel schedulingAutomatic teller
machinesSchedulingPrecise personnel schedulingScheduling
ticket counter personnel at 15-minute intervals at
airlinesTrainingClarifying the service options, explaining how
to avoid problemsInvestment counselor, funeral directors, after-
sale maintenance personnel

*
7 – *
Equipment and TechnologyOften complex decisionsPossible
competitive advantageFlexibilityStable processesMay allow
enlarging the scope of the processes
*
7 – *
Improving Service ProcessesLayoutProduct exposure, customer

education, product enhancementHuman ResourcesRecruiting
and trainingImpact of flexibility
*
How to draw a process flowchart
Roger Rensvold
Feb 2014
Basics
Nishadha (2011). Ultimate flowchart guide. Retrieved on 7 Feb
2014 fromhttp://creately.com/blog/diagrams/flowchart-guide-
flowchart-tutorial/#FlowchartSymbols (See embedded links)
Four main types
Document
Data
Program
System (we’ll look at this type).

Symbols
Many are only used for special flowcharts: e.g., data.
We’ll only use the three marked with
Chart arrows
indicate sequential direction of
process flow.
Our process: Making vegetable soup.
Narrative description:
Check the recipe. If you have all the stuff you need, proceed.
If you don’t, go to the store and buy it. Put a pot of water on
the stove. While the water is heating, chop the vegetables.
When water is boiling, add vegetables and spices to the water.
From time to time, taste the soup. Add seasoning (salt and
spices) to taste. When the soup tastes OK and the vegetables
are tender, serve it.

The flowchart (next page):
Once you’ve decided to make soup (beginning the process),
check the ingredients in your kitchen and pantry. Have
everything? If yes, proceed. If no, go to the store. Have
everything now? If yes, proceed. If no, curse and go back to
the store. Repeat until you finally have everything. (This
iterative process is called a LOOP.)
The steps:
The steps in the process:
Once you have your stuff together (previous step), put the water
on to boil and chop the vegetables. Is the water boiling? If no,
wait. If yes, add the vegetables and spices to the boiling water.
The steps:
The steps in the process :

After putting everything on (previous step), wait. Taste the
soup. Seasoning OK? If yes, continue. If no, add seasoning
and taste again. Are the vegetables tender? If yes, serve the
soup. If no, wait and taste again. When seasoning is OK and
veggies are tender, serve the soup.
The steps:
The steps in the process:
Here’s the whole process.
This is OK, but some may think
it’s a bit crowded. Let’s break
it up over three separate pages
using references. These are
arrowhead –shaped boxes with
numbers in them (next page).
Connecting page 1 to page 2, using the
reference.
Page 1 Page 2

(The colors aren’t necessary. They’re
only there for emphasis.)
Connecting page 2 to page3, using the
reference.
Page 2 Page 3
So how do I actually DRAW one of these things?
Use an app:
MS Visio (best, but $$. Buying it solely for this assignment
would be like buying a Ferrari to drive the kid to school.)
http://office.microsoft.com/en-us/visio/
SmartDraw (free trial) http://www.smartdraw.com/
MS Word – you’ve already got it! Dozens of tutorials on the
Web; Google “MS Word drawing tutorial.” There’s a good one
at

www.northcanton.sparcc.org /…
Or, just DRAW it! Use a black
Sharpie on white paper. Scan.
--- end ---
Neat hand-drawn & scanned:
1
2
Case Analysis
The Arnold Palmer Hospital (APH) in Orlando, Florida, is one
of the busiest and most respected hospitals for the medical
treatment of children and women in the U.S. Since its opening
on golfing legend Arnold Palmer's birthday September 10, 1989,
more than 1.5 million children and women have passed through
its doors. It is the fourth busiest labor and delivery hospital in

the U.S. and the largest neonatal intensive care unit in the
Southeast. And APH ranks fifth out of 5,000 hospitals
nationwide in patient satisfaction.
Part of the reason for APH's success, says Executive Director
Kathy Swanson, is our continuous improvement process. Our
goal is 100% patient satisfaction. But getting there means
constantly examining and reexamining everything we do, from
patient flow, to cleanliness, to layout space, to colors on the
walls, to speed of medication delivery from the pharmacy to a
patient. Continuous improvement is a huge and never-ending
task.
One of the tools the hospital uses consistently is the process
flowchart. Staffer Diane Bowles, who carries the Clinical
Practice Improvement Consultant, charts scores of processes.
Bowles's flowcharts help study ways to improve the turnaround
of a vacated room (especially important in a hospital that has
operated at 130% of capacity for years), speed up the admission
process, and deliver warm meals warm.
Lately, APH has been examining the flow of maternity patients
(and their paperwork) from the moment they enter the hospital
until they are discharged, hopefully with their healthy baby a
day or two later. The flow of maternity patients follows these

steps:
1.Enter APH's Labor & Delivery check-in desk entrance.
2.If the baby is born en route or if birth is imminent, the mother
and baby are taken by elevator and registered and admitted
directly at bedside. They are then taken to a Labor & Delivery
Triage room on the 8th floor for an exam. If there are no
complications, the mother and baby go to step 6.
3.If the baby is not yet born, the front desk asks if the mother is
preregistered. (Most do preregister at the 28?30-week pregnancy
mark). If she is not, she goes to the registration office on the
first floor.
4. The pregnant woman is taken to Labor & Delivery Triage on
the 8th floor for assessment. If she is ready to deliver, she is
taken to a Labor & Delivery (L&D) room on the 2nd floor until
the baby is born. If she is not ready, she goes to step 5.
5. Pregnant women not ready to deliver (i.e., no contractions or
false alarm) are either sent home to return on a later date and
reenter the system at that time, or if contractions are not yet
close enough, they are sent to walk around the hospital grounds
(to encourage progress) and then return to Labor & Delivery
Triage at a prescribed time.
6. When the baby is born, if there are no complications, after 2
hours the mother and baby are transferred to a ?mother-baby
care unit? room on floors 3, 4, or 5 for an average of 40-44
hours.

7. If there are complications with the mother, she goes to an
operating room and/or intensive care unit. From there, she goes
back to a mother?baby care room upon stabilization ? or is
discharged at another time if not stabilized. Complications for
the baby may result in a stay in the Neonatal Intensive Care
Unit (NICU) before transfer to the baby nursery near the
mother's room. If the baby cannot be stabilized for discharge
with the mother, the baby is discharged later.
8. Mother and/or baby, when ready, are discharged and taken by
wheelchair to the discharge exit for pickup to travel home.
Please turn in a paper of one to two pages (page counting does
not include cover and reference list) discussing the following
questions,
1.As Diane's new assistant, you need to flowchart this process.
Explain how the process might be improved once you have
completed the chart. Please show the flowchart in your paper.
2. If a mother is scheduled for a Caesarean-section birth (i.e.,
the baby is removed from the womb surgically), how would this
flowchart change?
3.If all mothers were electronically (or manually) preregistered,
how would the flowchart change? Redraw the chart to show
your changes.
4. Describe in detail a process that the hospital could analyze,
besides the ones mentioned in this case.

Assignment Expectations
1.Answer questions with clarity.
2. Show depth and breadth in your paper to enhance the quality
of your paper.
3.Try your best to search in our library to find some
papers/articles to support your argument and show them in the
reference list.

© 2006 Prentice Hall, Inc.8 – Location StrategyOne of.docx

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