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The document discusses facility planning and capacity management. It covers estimating future capacity needs, analyzing sources to meet demand, and selecting expansion options. Key factors in facility location include transportation, resources, costs, and economic conditions at the national, regional, and local levels. Decision tools like break-even analysis and decision trees can help evaluate capacity and location alternatives.

TechnologyBusiness
1 of 55
 
[object Object],Chapter 5, Part A
Overview ,[object Object],[object Object],[object Object],[object Object]
Facility Planning ,[object Object],[object Object],[object Object],[object Object]
Facility Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Long-Range Capacity Planning
Steps in the Capacity Planning Process ,[object Object],[object Object],[object Object],[object Object]
Definitions of Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Definitions of Capacity ,[object Object],[object Object],[object Object],[object Object]
Measurements of Capacity ,[object Object],[object Object],[object Object]
Measurements of Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Measurements of Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Measurements of Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Forecasting Capacity Demand ,[object Object],[object Object],[object Object],[object Object],[object Object]
Other Considerations ,[object Object],[object Object],[object Object],[object Object]
Expansion of Long-Term Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Reduction of Long-Term Capacity ,[object Object],[object Object],[object Object]
Economies of Scale ,[object Object],[object Object],[object Object]
Economies and Diseconomies of Scale Average Unit Cost of Output ($) Annual Volume (units) Best Operating Level Economies of Scale Diseconomies of Scale
Economies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object]
Diseconomies of Scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Two General Approaches to Expanding Long-Range Capacity ,[object Object],[object Object]
Two General Approaches to Expanding Long-Range Capacity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Two General Approaches to Expanding Long-Range Capacity ,[object Object],[object Object],[object Object],[object Object]
Subcontractor Networks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Outsourcing Service Functions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Economies of Scope ,[object Object],[object Object],[object Object]
Analyzing Capacity-Planning Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example: King Publishing ,[object Object],[object Object],[object Object]
Example: King Publishing ,[object Object],[object Object],[object Object]
Example: King Publishing ,[object Object],[object Object],[object Object]
Example: King Publishing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example: King Publishing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decision Tree Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example: Good Eats Café ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example: Good Eats Café
[object Object],[object Object],Example: Good Eats Café
[object Object],Example: Good Eats Café 1 (. 2 ) (. 4 ) (. 4 ) (. 4 ) (. 2 ) (. 4 ) (. 4 ) (. 2 ) (. 4 ) d 1 d 2 d 3 c 1 c 1 c 1 c 2 c 3 c 2 c 2 c 3 c 3 Payoffs 10,000 15,000 14,000 8,000 18,000 12,000 6,000 16,000 21,000 2 3 4
[object Object],[object Object],3 4 d 1 d 2 d 3 EV = .4(10,000) + .2(15,000) + .4(14,000) = $12,600 EV = .4(8,000) + .2(18,000) + .4(12,000) = $11,600 EV = .4(6,000) + .2(16,000) + .4(21,000) = $14,000 Design A Design B Design C 2 1 Example: Good Eats Café
Facility Location
A Sequence of Decisions National Decision Regional Decision Community Decision Site Decision Political, social, economic stability; Currency exchange rates; . . . . . Climate; Customer concentrations; Degree of unionization; . . . . . Transportation system availability; Preference of management; . . . . . Site size/cost; Environmental impact; Zoning restrictions; . . . . .
Factors Affecting the Location Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Affecting the Location Decision ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Facility Types and Their Dominant Locational Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Facility Types and Their Dominant Locational Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some Reasons the Facility Location Decision Arises ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some Reasons the Facility Location Decision Arises ,[object Object],[object Object],[object Object],[object Object]
Analyzing Service Location Decisions Consumer Behavior Research Market Research Data Gathering for Each Location Alternative Revenue Projections for Each Location Alternative Why do customers buy our products and services? Who are our customers? What are their characteristics? What are the economic projections? What is the time-phased revenue? Profit Projections for Each Location Alternative What are the projected revenues less time-phased operating costs? Where are our customers concentrated? What are their traffic/spending patterns?
Analyzing Industrial Facility Locations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Analyzing Industrial Facility Locations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Qualitative Factors in Location Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Integrating Qualitative & Quantitative Factors ,[object Object],[object Object],[object Object]
Relative-Aggregate-Scores Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wrap-Up: World-Class Practice ,[object Object],[object Object],[object Object],[object Object]
End of Chapter 5, Part A

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  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Economies and Diseconomies of Scale Average Unit Cost of Output ($) Annual Volume (units) Best Operating Level Economies of Scale Diseconomies of Scale
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
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  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 41. A Sequence of Decisions National Decision Regional Decision Community Decision Site Decision Political, social, economic stability; Currency exchange rates; . . . . . Climate; Customer concentrations; Degree of unionization; . . . . . Transportation system availability; Preference of management; . . . . . Site size/cost; Environmental impact; Zoning restrictions; . . . . .
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48. Analyzing Service Location Decisions Consumer Behavior Research Market Research Data Gathering for Each Location Alternative Revenue Projections for Each Location Alternative Why do customers buy our products and services? Who are our customers? What are their characteristics? What are the economic projections? What is the time-phased revenue? Profit Projections for Each Location Alternative What are the projected revenues less time-phased operating costs? Where are our customers concentrated? What are their traffic/spending patterns?
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55. End of Chapter 5, Part A