The Brown & Gibson model considers three classes of site location factors: critical, objective, and subjective. Critical factors are essential to the business, like proximity to resources. Objective factors have quantifiable costs, like labor. Subjective factors are qualitative, like quality of life. The model assigns each site a location measure based on the measures of the three factor classes, with objective factors weighted. Subjective factors are scored by comparing each site for a factor then weighted and combined. The site with the highest overall location measure is selected.
The document discusses various factors and methods used for facility location analysis. It describes key location factors such as proximity to suppliers, customers, labor, and community considerations. Methods covered include factor rating, load-distance modeling, center of gravity, break-even analysis, and transportation modeling. An example uses the load-distance model to evaluate potential warehouse locations based on distance to stores. The document provides information on different analytical approaches for evaluating and selecting among location alternatives.
The document provides an overview of facility location planning, including quantitative methods and models used to determine optimal locations. It discusses factors that influence facility location such as market proximity, transportation, labor, and government policies. Location models addressed include single facility problems that aim to minimize maximum distance, and multiple facility problems formulated as set covering problems to minimize the number of facilities needed. Quantitative techniques include break-even analysis, center of gravity models, and solving location problems on lines and planes using median and gravity center approaches.
This document discusses different types of facility layouts including process, product, cell, and fixed position layouts. It provides definitions and examples of each type. Key factors that influence layout decisions are discussed such as production volume, product variety, and flow characteristics. Advantages and disadvantages of each layout type are also summarized. The document concludes that the choice of facility layout is important and should be carefully analyzed based on operational requirements with consideration given to flexibility needs.
The document discusses facility location for Jubilant Life Sciences, which has five existing plants. It evaluates the optimal location for a new facility using the median and center of gravity methods. The median method identifies coordinates of (24.2, 76.14) with a minimum transportation cost of Rs. 51157.4. The center of gravity method finds coordinates of (22.25, 76.58) but with a higher transportation cost of Rs. 51952. Therefore, the median method provides the best location for the new facility.
The document discusses facility location planning. It defines facility location as selecting the specific site for establishing a production process. The selection of location is important as it is a long-term decision that impacts costs and profits. Several factors must be considered in choosing a location, including availability of materials, labor, transportation and climate. The document outlines the general procedures for facility location, which includes preliminary screening of options followed by qualitative and quantitative analysis of remaining alternatives to determine the best site. Behavioral factors like cultural differences and job satisfaction that also influence location selection are also discussed.
Case Study for Plant Layout :: A modern analysisSarang Bhutada
The document summarizes an approach to developing an optimal layout for a manufacturing plant. It considers factors like the load and distance between operation centers, uses a stratified random sample to evaluate the requirements, and applies Schneider's method and a load distance matrix to transform the existing layout. The new layout improved efficiency and reduced material handling costs. It also discusses alternative layout approaches, including using a hybrid process-assembly line layout to reduce production time.
The document discusses factors to consider when making location decisions for business operations. It identifies location as one of the most important strategic decisions a firm can make, with long-term impacts on costs. Key factors discussed include proximity to markets and suppliers/materials, costs of labor, land, and transportation, and government incentives. Quantitative location analysis methods covered are factor rating, break-even analysis, center of gravity, and transportation modeling to evaluate alternatives and minimize costs based on production volumes and shipping distances.
The Brown & Gibson model considers three classes of site location factors: critical, objective, and subjective. Critical factors are essential to the business, like proximity to resources. Objective factors have quantifiable costs, like labor. Subjective factors are qualitative, like quality of life. The model assigns each site a location measure based on the measures of the three factor classes, with objective factors weighted. Subjective factors are scored by comparing each site for a factor then weighted and combined. The site with the highest overall location measure is selected.
The document discusses various factors and methods used for facility location analysis. It describes key location factors such as proximity to suppliers, customers, labor, and community considerations. Methods covered include factor rating, load-distance modeling, center of gravity, break-even analysis, and transportation modeling. An example uses the load-distance model to evaluate potential warehouse locations based on distance to stores. The document provides information on different analytical approaches for evaluating and selecting among location alternatives.
The document provides an overview of facility location planning, including quantitative methods and models used to determine optimal locations. It discusses factors that influence facility location such as market proximity, transportation, labor, and government policies. Location models addressed include single facility problems that aim to minimize maximum distance, and multiple facility problems formulated as set covering problems to minimize the number of facilities needed. Quantitative techniques include break-even analysis, center of gravity models, and solving location problems on lines and planes using median and gravity center approaches.
This document discusses different types of facility layouts including process, product, cell, and fixed position layouts. It provides definitions and examples of each type. Key factors that influence layout decisions are discussed such as production volume, product variety, and flow characteristics. Advantages and disadvantages of each layout type are also summarized. The document concludes that the choice of facility layout is important and should be carefully analyzed based on operational requirements with consideration given to flexibility needs.
The document discusses facility location for Jubilant Life Sciences, which has five existing plants. It evaluates the optimal location for a new facility using the median and center of gravity methods. The median method identifies coordinates of (24.2, 76.14) with a minimum transportation cost of Rs. 51157.4. The center of gravity method finds coordinates of (22.25, 76.58) but with a higher transportation cost of Rs. 51952. Therefore, the median method provides the best location for the new facility.
The document discusses facility location planning. It defines facility location as selecting the specific site for establishing a production process. The selection of location is important as it is a long-term decision that impacts costs and profits. Several factors must be considered in choosing a location, including availability of materials, labor, transportation and climate. The document outlines the general procedures for facility location, which includes preliminary screening of options followed by qualitative and quantitative analysis of remaining alternatives to determine the best site. Behavioral factors like cultural differences and job satisfaction that also influence location selection are also discussed.
Case Study for Plant Layout :: A modern analysisSarang Bhutada
The document summarizes an approach to developing an optimal layout for a manufacturing plant. It considers factors like the load and distance between operation centers, uses a stratified random sample to evaluate the requirements, and applies Schneider's method and a load distance matrix to transform the existing layout. The new layout improved efficiency and reduced material handling costs. It also discusses alternative layout approaches, including using a hybrid process-assembly line layout to reduce production time.
The document discusses factors to consider when making location decisions for business operations. It identifies location as one of the most important strategic decisions a firm can make, with long-term impacts on costs. Key factors discussed include proximity to markets and suppliers/materials, costs of labor, land, and transportation, and government incentives. Quantitative location analysis methods covered are factor rating, break-even analysis, center of gravity, and transportation modeling to evaluate alternatives and minimize costs based on production volumes and shipping distances.
Principles of Plant layout
Types of Plant layout
Process layout
Product layout
Cellular Manufacturing layout
fixed Position layout
Hybrid Layout
and their Advantages & disadvantages
Facility Location Planning
What is facility location ?
Operations Strategies for Multiple Facilities
Factors affecting Facility Location Planning
Dimensional Analysis
Brown and Gibson Model for Site location
Locating Foreign Operations Facilities
The document discusses various factors to consider when making facility location decisions. It outlines the strategic importance of location decisions and how they can impact costs, revenues and competitive position. It also describes different location options and factors that influence the location decision process, including regional factors, site-related factors, and community considerations. Quantitative methods for evaluating location alternatives are also presented, including cost-volume analysis and the centroid method.
The document discusses various methods for selecting an optimal plant location, including factor rating, point rating, break-even analysis, center of gravity, and dimensional analysis. It provides examples of how to use each method, with the factor rating example comparing two locations based on weighted factors. Dimensional analysis is described as a way to integrate tangible and intangible costs by taking dimensionless ratios of costs and multiplying them with weightings. Brown and Gibson's method measures both objective factors based on costs and subjective factors to determine an overall location measure.
The document discusses factors affecting plant layout and different types of layouts. It describes 7 categories of factors: materials, machinery, labor, material handling, auxiliary services, the building, and future changes. It then explains different layout types like process, product, and fixed position layouts. It provides examples of companies that have implemented innovative layouts, such as McDonald's kitchen redesign that saves $100 million per year through steps like assembling sandwiches in order.
This document discusses process selection and facility layout. It begins by introducing key considerations in process selection such as product variety, volume, and flexibility. The main types of processes are then described including job shops, batch processing, repetitive/assembly, and continuous processing. A product-process matrix is presented to help match the appropriate process type to different product characteristics. The document then covers automation approaches and different layout types including product, process, group technology, and cellular layouts. It analyzes the advantages and disadvantages of different layouts and process types. Line balancing techniques for designing efficient production layouts are also introduced.
Plant Layout
Facility Layout Planning
Product Layout
Process Layout
Fixed position layout
Cellular layout
Factors affecting location plant
Merit and Demerits
Plant Layout Principles
An Assembly line
U shaped assembly line
Assembly line balancing
Cellular layout and Group Technology
The document discusses process planning, which involves translating design requirements into manufacturing process details. It describes process planning as a bridge between design and manufacturing. The document then discusses several key aspects of process planning including analyzing part requirements, selecting materials and operations, interpreting designs, choosing equipment, and creating work instructions. Finally, it compares manual and computer-aided process planning (CAPP) methods, with CAPP helping to reduce time/costs and increase consistency and accuracy compared to experience-based manual methods. CAPP approaches include variant, generative, and automatic planning.
The document discusses process design and facility layout. It covers types of processes like projects, job shops, batch processing, repetitive/assembly and continuous processing. The key factors in selecting a process are variety, flexibility, volume and the tradeoff between them. Layout types include product layouts that group equipment by product steps, process layouts that group by function, and combination layouts. The document provides examples of line balancing to optimize workstation times and productivity.
The document discusses three main methods of production: job production, batch production, and mass production. Job production involves producing one unique item at a time. Batch production produces similar items in batches before switching to another product. Mass production continuously produces the same goods on a production line to benefit from large-scale economies. The methods vary in their advantages like meeting custom needs versus economies of scale, and disadvantages like time efficiency versus flexibility.
Capacity planning involves determining a facility's maximum output rate. Location analysis identifies the best geographic location for a facility. The two processes are interrelated and involve assessing needs, developing alternatives, and evaluating options using tools like decision trees, factor ratings, and break-even analysis. Key location factors include proximity to customers, suppliers, labor, and transportation costs. Capacity planning tools help managers choose between alternatives like expanding capacity in large or small increments over time.
Plant layout refers to the physical arrangement of equipment, machines, tools, and furniture in a manufacturing facility. The goal is to optimize material flow from raw materials to finished goods with the lowest costs and least amount of handling. There are four main types of layouts: product layout arranges machines in a straight line based on production steps; process layout groups similar machines together; combined layout uses aspects of both; and fixed position layout keeps products stationary while workers and machines move between positions. The optimal layout depends on factors like production volume and product standardization.
This document discusses factors to consider when selecting a manufacturing facility location. It identifies key location factors like customer proximity, available skilled labor, suppliers, and environmental regulations. It also outlines common errors in location selection such as personal biases or inadequate analysis. Finally, it provides steps for the location selection process, including defining objectives, criteria, evaluating alternatives through models and data collection, and selecting a site that best meets the objectives and criteria. Cost is another important consideration, and the document presents a cost-volume analysis comparing total costs at four potential locations.
This document discusses various factors to consider when making location decisions for facilities. It identifies the strategic importance of location decisions and objectives like profit potential. Key factors include availability of infrastructure, resources, labor, transportation and costs. Methods for evaluating locations are described, such as cost-volume analysis to determine the location with the lowest total costs based on fixed and variable costs. The factor-rating method scores locations based on weights assigned to relevant factors. Location decisions require analyzing regional, community, site and multiple plant strategies. Manufacturing and service facilities have different location considerations.
5 need for selecting a suitable locationSalamat Ali
The document discusses factors to consider when selecting a suitable business location. It addresses location selection for new organizations, existing organizations looking to expand, and global locations. Key factors include identifying regions and sites based on organizational objectives, resources, costs, and long-term business strategy. For existing organizations, additional locations may be needed to serve distinct product lines, markets, or manufacturing processes. Global locations require considering virtual proximity to customers and outsourcing options.
This document discusses facility location and provides an example problem of determining the optimal location for a passenger luggage pick-up point at an airport terminal. The problem involves analyzing the flow of luggage from 10 arrival gates to minimize the total distance traveled. The document examines solving the problem using different distance metrics and shows that the optimal location is near coordinate (10,6). It also discusses how the problem could be extended to determine the optimal location of two luggage pick-up points by first making an allocation of gates to each point.
This document discusses dimensional analysis and its applications. It can be used to:
1) Derive equations by ensuring the dimensions on both sides are equal
2) Check if equations are dimensionally correct
3) Find the dimensions/units of derived quantities
Examples are provided to illustrate deriving equations based on quantities' dimensions and checking the homogeneity of equations.
This document discusses dimensional analysis and its applications. It begins with an introduction to dimensions, units, fundamental and derived dimensions. It then discusses dimensional homogeneity, methods of dimensional analysis including Rayleigh's method and Buckingham's π-theorem. The document also covers model analysis, similitude, model laws, model and prototype relations. It provides examples of applying Rayleigh's method and Buckingham's π-theorem to define relationships between variables. Finally, it discusses different types of forces acting on fluids and dimensionless numbers, and provides model laws for Reynolds, Froude, Euler and Weber numbers.
Principles of Plant layout
Types of Plant layout
Process layout
Product layout
Cellular Manufacturing layout
fixed Position layout
Hybrid Layout
and their Advantages & disadvantages
Facility Location Planning
What is facility location ?
Operations Strategies for Multiple Facilities
Factors affecting Facility Location Planning
Dimensional Analysis
Brown and Gibson Model for Site location
Locating Foreign Operations Facilities
The document discusses various factors to consider when making facility location decisions. It outlines the strategic importance of location decisions and how they can impact costs, revenues and competitive position. It also describes different location options and factors that influence the location decision process, including regional factors, site-related factors, and community considerations. Quantitative methods for evaluating location alternatives are also presented, including cost-volume analysis and the centroid method.
The document discusses various methods for selecting an optimal plant location, including factor rating, point rating, break-even analysis, center of gravity, and dimensional analysis. It provides examples of how to use each method, with the factor rating example comparing two locations based on weighted factors. Dimensional analysis is described as a way to integrate tangible and intangible costs by taking dimensionless ratios of costs and multiplying them with weightings. Brown and Gibson's method measures both objective factors based on costs and subjective factors to determine an overall location measure.
The document discusses factors affecting plant layout and different types of layouts. It describes 7 categories of factors: materials, machinery, labor, material handling, auxiliary services, the building, and future changes. It then explains different layout types like process, product, and fixed position layouts. It provides examples of companies that have implemented innovative layouts, such as McDonald's kitchen redesign that saves $100 million per year through steps like assembling sandwiches in order.
This document discusses process selection and facility layout. It begins by introducing key considerations in process selection such as product variety, volume, and flexibility. The main types of processes are then described including job shops, batch processing, repetitive/assembly, and continuous processing. A product-process matrix is presented to help match the appropriate process type to different product characteristics. The document then covers automation approaches and different layout types including product, process, group technology, and cellular layouts. It analyzes the advantages and disadvantages of different layouts and process types. Line balancing techniques for designing efficient production layouts are also introduced.
Plant Layout
Facility Layout Planning
Product Layout
Process Layout
Fixed position layout
Cellular layout
Factors affecting location plant
Merit and Demerits
Plant Layout Principles
An Assembly line
U shaped assembly line
Assembly line balancing
Cellular layout and Group Technology
The document discusses process planning, which involves translating design requirements into manufacturing process details. It describes process planning as a bridge between design and manufacturing. The document then discusses several key aspects of process planning including analyzing part requirements, selecting materials and operations, interpreting designs, choosing equipment, and creating work instructions. Finally, it compares manual and computer-aided process planning (CAPP) methods, with CAPP helping to reduce time/costs and increase consistency and accuracy compared to experience-based manual methods. CAPP approaches include variant, generative, and automatic planning.
The document discusses process design and facility layout. It covers types of processes like projects, job shops, batch processing, repetitive/assembly and continuous processing. The key factors in selecting a process are variety, flexibility, volume and the tradeoff between them. Layout types include product layouts that group equipment by product steps, process layouts that group by function, and combination layouts. The document provides examples of line balancing to optimize workstation times and productivity.
The document discusses three main methods of production: job production, batch production, and mass production. Job production involves producing one unique item at a time. Batch production produces similar items in batches before switching to another product. Mass production continuously produces the same goods on a production line to benefit from large-scale economies. The methods vary in their advantages like meeting custom needs versus economies of scale, and disadvantages like time efficiency versus flexibility.
Capacity planning involves determining a facility's maximum output rate. Location analysis identifies the best geographic location for a facility. The two processes are interrelated and involve assessing needs, developing alternatives, and evaluating options using tools like decision trees, factor ratings, and break-even analysis. Key location factors include proximity to customers, suppliers, labor, and transportation costs. Capacity planning tools help managers choose between alternatives like expanding capacity in large or small increments over time.
Plant layout refers to the physical arrangement of equipment, machines, tools, and furniture in a manufacturing facility. The goal is to optimize material flow from raw materials to finished goods with the lowest costs and least amount of handling. There are four main types of layouts: product layout arranges machines in a straight line based on production steps; process layout groups similar machines together; combined layout uses aspects of both; and fixed position layout keeps products stationary while workers and machines move between positions. The optimal layout depends on factors like production volume and product standardization.
This document discusses factors to consider when selecting a manufacturing facility location. It identifies key location factors like customer proximity, available skilled labor, suppliers, and environmental regulations. It also outlines common errors in location selection such as personal biases or inadequate analysis. Finally, it provides steps for the location selection process, including defining objectives, criteria, evaluating alternatives through models and data collection, and selecting a site that best meets the objectives and criteria. Cost is another important consideration, and the document presents a cost-volume analysis comparing total costs at four potential locations.
This document discusses various factors to consider when making location decisions for facilities. It identifies the strategic importance of location decisions and objectives like profit potential. Key factors include availability of infrastructure, resources, labor, transportation and costs. Methods for evaluating locations are described, such as cost-volume analysis to determine the location with the lowest total costs based on fixed and variable costs. The factor-rating method scores locations based on weights assigned to relevant factors. Location decisions require analyzing regional, community, site and multiple plant strategies. Manufacturing and service facilities have different location considerations.
5 need for selecting a suitable locationSalamat Ali
The document discusses factors to consider when selecting a suitable business location. It addresses location selection for new organizations, existing organizations looking to expand, and global locations. Key factors include identifying regions and sites based on organizational objectives, resources, costs, and long-term business strategy. For existing organizations, additional locations may be needed to serve distinct product lines, markets, or manufacturing processes. Global locations require considering virtual proximity to customers and outsourcing options.
This document discusses facility location and provides an example problem of determining the optimal location for a passenger luggage pick-up point at an airport terminal. The problem involves analyzing the flow of luggage from 10 arrival gates to minimize the total distance traveled. The document examines solving the problem using different distance metrics and shows that the optimal location is near coordinate (10,6). It also discusses how the problem could be extended to determine the optimal location of two luggage pick-up points by first making an allocation of gates to each point.
This document discusses dimensional analysis and its applications. It can be used to:
1) Derive equations by ensuring the dimensions on both sides are equal
2) Check if equations are dimensionally correct
3) Find the dimensions/units of derived quantities
Examples are provided to illustrate deriving equations based on quantities' dimensions and checking the homogeneity of equations.
This document discusses dimensional analysis and its applications. It begins with an introduction to dimensions, units, fundamental and derived dimensions. It then discusses dimensional homogeneity, methods of dimensional analysis including Rayleigh's method and Buckingham's π-theorem. The document also covers model analysis, similitude, model laws, model and prototype relations. It provides examples of applying Rayleigh's method and Buckingham's π-theorem to define relationships between variables. Finally, it discusses different types of forces acting on fluids and dimensionless numbers, and provides model laws for Reynolds, Froude, Euler and Weber numbers.
The document discusses dimensional analysis and modeling. It covers:
1) The seven primary dimensions used in physics - mass, length, time, temperature, current, amount of light, and amount of matter. All other dimensions can be formed from combinations of these.
2) Dimensional homogeneity, which requires that every term in an equation must have the same dimensions.
3) Nondimensionalization, which involves dividing terms by variables and constants to render the equation dimensionless. This produces dimensionless parameters like the Reynolds and Froude numbers.
4) Similarity between models and prototypes in experiments, which requires geometric, kinematic, and dynamic similarity achieved by matching dimensionless groups.
Plant location refers to establishing an industry at a particular place. There are two types: localization/centralization concentrates similar industries in one area, while delocalization/decentralization spreads them out. Key factors in choosing a location include availability of resources like materials, labor, transportation; market access; and operating costs. Methods for evaluating potential sites include comparative cost charts, which assess total costs, and dimensional analysis, which assigns weights to qualitative factors.
The document provides instructions for dimensional analysis, which is a method of converting between different units of measurement. It lists the three base SI units as meter, liter, and gram. Prefixes like milli and kilo are used to modify the base units. Examples are given of setting up unit conversions by writing the given measurement on the left, placing the initial units on the bottom, and cancelling units on the top and bottom until one unit remains, which the value is then in. Practice problems are included for the reader to try.
The document discusses dimensional analysis, similitude, and model analysis. It provides background on how dimensional analysis and model testing are used to study fluid mechanics problems. Dimensional analysis uses the dimensions of physical quantities to determine which parameters influence a phenomenon. Model testing in a laboratory allows measurements to be applied to larger scale systems using similitude. Buckingham's π-theorem is introduced as a way to non-dimensionalize variables when there are more variables than fundamental dimensions. Rayleigh's and Buckingham's methods are demonstrated on an example of determining the resisting force on an aircraft.
Dimensional analysis uses conversion factors expressed as fractions equal to one to solve chemistry problems by converting between units. The document provides an example of using dimensional analysis to convert between moles and grams of neon, explaining that the molar mass of neon is 20.18 g/mol and can be used as a conversion factor. Specifically, it works through converting 2 moles of neon to grams by setting up the ratio 2 moles Ne/1 mole Ne x 1 mole Ne/20.18 grams Ne to find that 2 moles of neon is equal to 40.36 grams.
Business Information Systems covers dimensional analysis and dimensional models. Dimensional models organize data into fact and dimension tables for understandability and ease of reporting rather than update efficiency. Facts are measures associated with business processes, while dimensions provide context. Dimensional modeling involves selecting fact tables, determining granularity, adding surrogate keys, date dimensions, and other necessary dimensions. This provides a standardized framework that responds well to changing reporting needs.
Second application of dimensional analysis
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Dimensional analysis, also known as the factor-label or unit factor method, is a technique for solving problems involving conversion between units. It works by setting up a mathematical equation where the units cancel out, leaving the converted value with the correct units. If the units work out properly, the converted number will be right, unless a mistake is made in calculations. Conversion factors allow changing between units, and can be written as fractions with the initial and final units in the numerator and denominator.
This document discusses methods for identifying customer satisfaction attributes in products and services. It analyzes limitations of the importance performance analysis (IPA) method and Kano method, and proposes a new method called competitive analysis of the improvement gap. The proposed method was tested on attributes of pizza restaurant services in Brazil. It identified improvement opportunities, including introducing a new innovative attribute, and overcame limitations of IPA and Kano methods.
The document describes a refinement of Kano's model of quality attributes. Kano's original model categorized attributes as attractive, one-dimensional, must-be, indifferent, or reverse. The refinement adds consideration of the degree of importance customers place on attributes. This divides the categories into subcategories based on high vs. low importance. For example, one-dimensional attributes are divided into high value-added and low value-added. The refinement provides more precise information for quality decisions. The document also presents an application of the refined model to categorize the attributes of air conditioners based on a customer survey.
Microsoft Finlandin toimitusjohtaja Ari Rahkonen kertoo CXPA Finlandin kevättapaamisessa Microsoftin joustavasta työskentelystä. Matkakertomus työn uuteen maailmaan.
It's about modeling methodology and types ,the application of modeling through engineering and scientists disciplines ,and the prototyping concept, need for it, and tools .
This document provides an overview of a physics lecture on units, dimensions, and vectors. The lecture introduces students to the International System of Units (SI) and the metric system of measurement. It discusses the basic SI units of length, mass, and time. The lecture also covers dimensional analysis, which uses the dimensions of physical quantities to check the validity of equations. Vector concepts such as coordinate systems and vector components are also introduced. The document aims to equip medical sciences students with the fundamental physics concepts needed to understand measurements and quantitative relationships in physics.
MRP-based supply chain planning creates material plans and production schedules independently of constraints on production capacity based on supply chain lead times. However, this can result in schedules that exceed operation capacity. Constraint-based supply chain planning creates schedules based on the actual constraints of production capacity. The key differences are that MRP-based planning does not reflect capacity constraints, which can lead to excess inventory and delayed production, while constraint-based planning accounts for real-world production limits.
Este documento describe varios métodos para determinar la localización óptima de una planta industrial. Explica que la localización depende de factores técnicos, económicos, legales y sociales. Luego describe métodos subjetivos, cualitativos y cuantitativos, incluyendo el método de los puntos, el centro de gravedad y el método de Brown y Gibson, el cual combina factores cuantificables y subjetivos para calcular una medida de preferencia que determina la mejor localización.
facility location ( operations and quality management)saumyah Singh
The document discusses facility location for a company called Jubilant Life Sciences. It analyzes two methods - median method and center of gravity method - to determine the optimal location for a new facility using existing facility data. The median method identifies coordinates of (76.14, 24.2) with a transportation cost of Rs. 51157.4. The center of gravity method finds coordinates of (76.58, 22.25) with a cost of Rs. 51952. As the median method cost is lower, its coordinates are selected as the best location.
This document discusses dimensional analysis and conversion factors for converting between different units of measurement. It provides examples of converting between units like inches and centimeters, hours and minutes, meters and kilometers. It emphasizes setting up conversion factors so that the initial and final units cancel out properly. Finally, it lists some common conversion factors between English and metric units like grams to pounds, centimeters to inches, and liters to quarts.
As a helicopter develops lift during takeoff and flight, the blade tips rise above straight-out position and assume a coned shape. This coning occurs due to the combined effects of centrifugal force from blade rotation, which adds rigidity, and developing lift from the collective. Some coning is normal, but excessive coning can cause problems like decreased lifting area and blade stress due to factors like low RPM, high gross weight, turbulence, or high-G maneuvers reducing centrifugal force or requiring more lift.
Plant location decisions are strategic, long term and non-repetitive in nature.
Without sound and careful location planning in the beginning itself, the new plant may pose continuous operating disadvantages.
Location decisions are affected by many factors, both internal and external to the organization’s operations
Internal factors include the technology used, the capacity, the financial position, and the work force required.
External factors include the economic, political and social conditions in the various localities.
This presentation discusses general procedures for facility planning, including facility layout and location. It begins with an introduction and quote of the day. The presentation then outlines the contents, which include concepts of facility layout and planning, and a two-step procedure for facility location: preliminary screening and detailed analysis. Detailed analysis involves both qualitative and quantitative techniques. Qualitative techniques assess non-monetary factors through methods like simple comparative charts and factor ratings. Quantitative techniques measure monetary impacts using models like the center of gravity method, break-even analysis, and transportation methods. The presentation concludes with an invitation for any questions.
This document discusses plant location and the factors that should be considered when selecting a site for a new plant. It defines plant location as choosing a region and specific site for setting up a factory or business. An ideal location minimizes production and distribution costs. Key factors that influence plant location decisions include the supply of raw materials, proximity to markets, available labor, transportation access, and the supply of power, fuel and water. Additional secondary factors include natural/climate conditions, political environment, government incentives, and historical or personal preferences. The document emphasizes that plant location is a strategic decision that requires a thorough analysis of demographic, trade area, competitive, traffic and site economic factors to select the best site.
01.Understand the concept of ‘Overheads’.
02.Understand classification, allocation, apportionment and absorption of overheads.
03. Understand the Primary and Secondary Distribution of Overheads.
04. Understand the Traditional & Activity Based Costing methods
05. Identify the value added & non value added activity
It is the economic consideration like cost estimation,capital investment,profitability and total product cost. It also includes various types of each, calculation and ratios
This document provides an overview of the cost approach for estimating property values. It discusses the applications and limitations of the cost approach. The key steps are estimating the land value, determining the replacement cost of improvements using various methods, deducting depreciation, adding entrepreneurial incentive if applicable, and estimating site improvement values. The total value is calculated by adding the land value, depreciated improvement value, incentive, and site improvements. The document provides detailed explanations of each step in the cost approach valuation process.
This document discusses various methods for selecting an optimal location for a new plant. It describes point rating, factor rating, break-even analysis, qualitative, and center of gravity methods. The point rating method assigns points to different location factors like fuel, transportation, water, labor, etc and chooses the location with the highest total points. The factor rating method rates each location based on factors weighted by importance. The break-even analysis examines costs and revenues at different output levels. The qualitative method weighs economic and non-economic criteria. The center of gravity method places existing locations on a grid and calculates the centroid location based on distances and shipment volumes.
The document discusses various methods for estimating the value of properties, including lands, buildings, and lands with buildings. It describes comparative, abstractive, and belting methods for valuing open lands, and rental, direct comparisons, valuation by reference to profits, cost-based, and residual methods for valuing lands with buildings. For each method, it outlines the general approach and key factors considered in the valuation.
This document discusses factors that companies consider when determining a plant location. It outlines key factors like availability of resources, infrastructure, labor force, and proximity to markets and suppliers. It also describes methods used to evaluate locations, such as cost-volume-profit analysis, factor rating, and center of gravity. Examples are provided of plant locations in Vadodara, India and Panipat, India based on consideration of these various location factors.
Here are the steps to solve the center of gravity problem:
1) Multiply the X coordinate by the quantity shipped for each destination:
D1: 2 * 800 = 1600
D2: 3 * 900 = 2700
D3: 5 * 200 = 1000
D4: 8 * 100 = 800
2) Sum the results: 1600 + 2700 + 1000 + 800 = 6100
3) Multiply the Y coordinate by the quantity shipped for each destination:
D1: 2 * 800 = 1600
D2: 5 * 900 = 4500
D3: 4 * 200 = 800
D4: 5 * 100 = 500
4) Sum the results: 1600 + 4500 + 800
The document discusses various cost concepts and classifications that are important for business decision making, including classifying costs as fixed, variable, or mixed based on their behavior in relation to changes in business activity levels. It also covers calculating cost-volume relationships, break-even analysis, and differential costs to evaluate alternatives and their trade-offs. Opportunity costs and marginal analysis are introduced as tools to assess the potential benefits forgone by choosing one option over another.
Cost behavior and cvs analysis M.A CHAPTER II.pptxGueshTewele2
This document discusses cost behavior and how to classify costs as variable, fixed, or mixed. It explains that understanding cost behavior is important for management planning and control. Costs can be variable, increasing proportionally with activity, fixed, remaining constant regardless of activity, or mixed, with both fixed and variable components. Methods for separating mixed costs include the high-low method, scatter graph method, and least squares regression. Least squares regression finds the best fitting line that minimizes prediction errors using all data points. Understanding cost behavior allows for better budgeting, forecasting, and decision making.
What is job costing? What are its main characteristics?
Characteristics
Features
procedure involve in job order costing.
Applicability
What is BEP? List out the assumption of breakeven analysis
Assumption of BEP analysis
What is Profit Volume (P/V) Ratio
What is CVP analysis? How does it help the management?
What is process costing? What are its main characteristics? Name the industries where process costing can be applied.
Normal Loss
Abnormal Loss
Abnormal Gain
Job Costing & Process Costing
Accounting for losses in process costing
What do you mean by operating costing? Draw a specimen cost sheet for transport costing.
INDUSTRY AND CORRESPONDING COST UNIT
RECONCILIATION STATEMENT
The document discusses different types of estimates used in construction projects, including approximate estimates, detailed estimates, quantity estimates, revised estimates, and supplementary estimates. It provides details on the purpose and process for each type. Specifically, it explains that an approximate estimate is a preliminary cost estimate created quickly without detailed design to evaluate the feasibility of a project and help determine if further planning is warranted.
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Similar to Dimensional analysis, brown gibson model (20)
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2. WHAT IS IT?
Dimensional Analysis (also called Factor-Label
Method or the Unit Factor Method) is a problem-
solving method that uses the fact that any
number or expression can be multiplied by one
without changing its value. It is a useful technique.
The only danger is that you may end up thinking
that it is simply a math problem - which it definitely
is not.
Unit factors may be made from any two terms that
describe the same or equivalent "amounts" of
what we are interested in.
3. Dimensional Analysis in inventory control
• The problem of location of a site within the region
can be approached with the following cost-
oriented non-interactive model, i.e., dimensional
analysis.
• If all the costs were tangible and quantifiable, the
comparison and selection of a site is easy. The
location with the least cost is selected.
• In most of the cases intangible costs which are
expressed in relative terms than in absolute terms.
Their relative merits and demerits of sites can also
be compared easily.
4. • Since both tangible and intangible costs need to
be considered for a selection of a site, dimensional
analysis is used.
• Dimensional analysis consists in computing the
relative merits (cost ratio) for each of the cost items
for two alternative sites.
• For each of the ratios an appropriate weightage
by means of power is given and multiplying these
weighted ratios to come up with a comprehensive
figure on the relative merit of two alternative sites,
i.e.,
C1M, C2M, …, CzM are the different costs
associated with a site M on the ‘z’ different cost
items.
5. • C1N, C2N, …, CzN are the different costs
associated with a site N and W1, W2, W3, …, Wz
are the weightage given to these cost items, then
relative merit of the M and site N is given by:
If this is > 1, site N is superior and vice-versa.
6. • When starting a new factory, plant location
decisions are very important because they have
direct bearing on factors like, financial,
employment and distribution patterns. In the long
run, relocation of plant may even benefit the
organization.
• But, the relocation of the plant involves stoppage
of production, and also cost for shifting the
facilities to a new location.
7. • In addition to these things, it will introduce some
inconvenience in the normal functioning of the
business.
• Hence, at the time of starting any industry, one
should generate several alternate sites for
locating the plant.
• After a critical analysis, the best site is to be
selected for commissioning the plant.
• Location of warehouses and other facilities are
also having direct bearing on the operational
performance of organizations.
8. • The existing firms will seek new locations in order to
expand the capacity or to place the existing
facilities.
• When the demand for product increases, it will give
rise to following decisions:
Whether to expand the existing capacity and
facilities.
Whether to look for new locations for additional
facilities.
Whether to close down existing facilities to take
advantage of some new locations
9. Brown & Gibson Model:
• This model is more elaborate & considers three
classes of site location factors:
• Critical… e.g. water for refinery
• Objective … e.g. labour costs, raw material costs.
• Subjective…e.g. recreational facilities, union
activities
• For each site ‘I’ a location measure 1m is defined
10. • In order to ensure compatibility between objective
& subjective factor measures, objective factor
costs are converted to dimensionless indices.
• The rationale is:
• site with minimum cost must have the maximum
measure
• Relationship of total objective fa tor cost &
corresponding objective factor measure must be
maintained, a site with half the objective factor
cost is assigned twice the objective factor measure
of the other site.
11. • For each plant site I a location measure is
calculated :-
• CFMI specifies the measure of critical factors for
the plant site I
• OFMI specifies the measure of objective factors for
the plant site I
• SFMI specifies the measure of subjective factors for
the plant site I
• D specifies the objective factor decision weight
12. • The sum of objective factor measure for all
sites must equal to 1
• The subjective factor measure is given by:
• SFMI = (SFWJ * SWIJ )
• Where SFWJ signifies the weight of factor J
relative to all subjective factors and
• SWIJ signifies the weight of plant site I relative
to all potential plant sites for subjective
factor J