运营管理基础 4E-戴维斯英文IMChap007.docx

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1、CHAPTER 7 FACILITY DECISIONS: LOCATION AND CAPACITYChapter OverviewThis chapter examines several aspects related to the facilitylocation, and capacity. The location of either a factory or a service operation is important. Many factors influence the location decision. Additionally, these factors vary

2、 between manufacturing and service. This chapter also examines the basic concepts impacting capacity.Major Points of ChapterBoth qualitative and quantitative factors should be considered in selecting the location of a manufacturing facility. Qualitative factors include local infrastructure, worker e

3、ducation and skill, product content requirements, and political/economic stability. Quantitative factors include labor costs, distribution costs, facility costs, and exchange rates.1. Location of service operations is based on customer-driven factors.2. When determining the capacity level, the best

4、operating level, economies and diseconomies of scale, capacity flexibility, and capacity balance should be considered.3. The three capacity strategies are proactive, neutral, and reactive.Review and Discussion QuestionsList some practical limits to economies of scale; that is, when should a plant st

5、op growing in size?The obvious answer is that a plant should stop growing when its long-run average cost curve hits the inflection point. However, since this determination is often difficult to make (in the short run), other factors such as coordination problems, excess capacity, capacity imbalance,

6、 and market shifts indicate a need to consider setting capacity limits.89Facility Decisions: Location and CapacityWhat are some capacity balance problems faced by the following organizations or facilities?a. An airline terminal.Waiting areas, distances from boarding gates, ground crew requirements,

7、landing strips.b. A university computing center.Input/output time vs. computer processing time; CPU capacity vs. peripheral storage capacity; high speed, high capacity computer vs. multiple low speed, low capacity computers; computer center consultant9s skill vs. customer requirements.c. A clothing

8、manufacturer.Many manufacturers now use highly decentralized shops to make clothes. This means that capacity of multiple sites must be accounted for in planning production.1. What are the primary capacity planning considerations for foreign companies locating their facilities in the United States?Fo

9、r a company locating is the US, one of the primary reasons has been the prevention of trade restrictions. Although the labor and overhead costs are relatively high in the U.S. than in many other countries, the cost of shipping materials and finished goods is lower because of the proximity to the mar

10、ketplace and to sources of raw material. Additionally, delivery time is speeded up because of proximity, giving these companies a competitive advantage against other foreign competitors. Moreover, the ability to tap U.S. research gives these firms an advantage in potential new process and product de

11、velopment.2. What are some major capacity considerations in a hospital? How do they differ from those of a factory?Some capacity considerations are size and composition of nursing staff (RNs vs. LPNs), balance between operating room and intensive care units, emergency rooms, etc., and, of course, ho

12、w many beds are to be available. One of the differences in capacity considerations between a hospital and a factory is that a hospital can add capacity rather quickly in the short run, through “simply“ adding more staff and more beds. A factory is usually technologically limited, and, therefore, mus

13、t plan well in advance to add major chunks of capacity. On the other hand, though, the general uncertainty which surrounds the demand for hospital services on any given day is much greater than would be faced by a factory. Additionally, factory management generally has the ability to backlog demand

14、or carry inventory in such a way as to achieve more efficient levels of capacity utilization than does a hospital.3. What are some of the location factors that a manufacturer needs to take into consideration in locating a factory in a foreign country?The primary consideration is the stability of the

15、 country. Is my investment safe? Other considerations are the availability of many items taken for granted in the U.S. There include communications equipment, roads, and utilities. Also, the laws relating to pollution, taxation should be considered. Additionally, will employees be sent over to the c

16、ountry? What will their life be like? What about their families? Can I find workers with the appropriate skill? Are the90necessary resources available? These are just some of the questions to consider before locating in a foreign country.4. In what respects is facility layout a marketing problem in

17、services? Give an example of a service system layout designed to maximize the amount of time the customer is in the system.The facility layout must be designed to meet customer expectations. Unlike fast food outlets, many finer restaurants will try to maximize the time that a customer is in system v

18、ia requiring a waiting period before seating customers (even those with reservations). Many customers will patronize the cocktail lounge (thus enhancing profits).5. Identify some of the site selection criteria that should be considered by a high-end, fullservice hotel chain such as Hilton, Hyatt, or

19、 Marriott. (By full-service we mean that the hotel has a restaurant, cocktail lounge, meeting rooms, and catering facilities to accommodate large functions such as conferences and weddings.)The primary criteria would be location. Is this a site that people will like? Additionally, ease of getting to

20、 the facility, such as locating close to highways or airports is important. Also, local attractions that would draw people to the area would be helpful. Availability of land for the facility and associated parking is important.6. Identify some of the site selection factors that should be considered

21、for a budget motel that primarily provides only rooms, such as Motel 6, Days Inn, and EconoLodge.Many of the same factors as above in the above question also apply. Probably location is of even greater important. Customers are not as willing to travel as far as with the high-end hotels. Therefore, l

22、ocating right off of interstates is important. Also, locating close to other hotels (known as clustering) is also common strategy. In this way, it is easier to find budget hotels.7. What are some of the factors that should be taken into consideration when evaluating potential sites for a distributio

23、n center of quasi-manufacturing operation that directly supports retail operations?Transportation systems and associated cost are a vital factor in locating a distribution facility. Additionally, locating closer to the retail stores can speed the replenishment of products in the stores, which can be

24、 an advantage. Another factor could be the availability and cost of local labor to run the facility.Facility Decisions: Location and CapacityProblemsResultsTotalWeighted sumResultsTotalWeighted sum100555058255950Site C becomes the best choice.921. a.ProblemType of ProblemDifficultyCheck Figure in Ap

25、pendix DFactor RatingCenter of GravitySpreadsheet approach1YesEasy2YesModerate3YesModerate4YesModerate5YesModerate6YesModerate7YesModerate8YesModerateWeightSite ASite BSiteCProximity to hospitals25304575Population over age 6530605535Access to major158065highwaysNumber of nursing20459055homesLocal ta

26、x incentives1085607080ResultsTotalWeighted sum100550060255800Site B has the highest score, and it therefore recommended.b.WeightSite ASiteBSiteCProximity to hospitals25308075Population over age 6530604535Access to major5807065highwaysNumber of nursing20459055homesLocal tax incentives208585802.Weight

27、 Site A Site BProximity to business School207055Access to highways204075Telecommunications407590Quality of life306085Proximity to major airport258050WeightXYA25000002045B40000003515C1800000550ResultsSum830000060110Weighted Average23.975931.62651Facility Decisions: Location and Capacityc.WeightXYA250

28、00002045B40000003515C1800000550D32000004510E14000003030ResultsSum12900000135150Weighted Average 29.84496 26.08527The preferred location shifts.4. a.b.WeightXYWashington7450006053Maryland4830001378Virginia6120002142ResultsSum184000094173Weighted Average34.6907655.9038945.WeightDistance to ATotalWashi

29、ngton7450001712665000Maryland483000104830000Virginia6120002515300000Total32795000WeightDistance to BTotalWashington7450001410430000Maryland483000125796000Virginia6120001811016000Total27242000Therefore, select site B. The total is smaller.6.Weight XYSmithtown128009381Jonesville1730027116Moore City950

30、07534Results19559.8484823185.01515Sum39600Weighted Average7.WeightDistance to ATotalSmithtown128007.596000Jonesville173004.679580Moore City95008.076000Total251580WeightDistance to BTotalSmithtown128009.7124160Jonesville173003.153630Moore City95006.258900Total236690Site B should be selected.Facility

31、Decisions: Location and Capacity8. a.ABCResultsSum WeightsWeight60008200700021200 d AverageX150100275525171.934Y75300380755262.7358b. Yes,:see the following table.WeightXYA800015075B6200100300C7000275380ResultsSum21200525755Weighted Average176.6509241.509496Case: Brueqqers Baqel BakeriesCommissary-

32、HinghamBagels (doz.)Distance (miles)Time(min)Sub.CostCompany TruckLocation BakeryDorchester18014.9519134.5519.00East Milton1359.91466.8314.00Hanover1655.661146.7011.00Hingham1206.262537.5625.00$285.63$69.00Commissary- QuincyBagels (doz.)Distance (miles)Time(min)Sub. CostCompany TruckLocation BakeryD

33、orchester1808.991680.9116.00East Milton1353.951126.6611.00Hanover16512.7320105.0220.00Hingham1205.792134.7421.00$247.34$68.00Distances and times are found in the above table. They were obtained from Mapquest . Answers may vary based upon the Web site used.1. Using the subcontracting approach, the Qu

34、incy commissary would be best based on lower cost.2. Using a company truck option, the choices are very close, but again the Quincy commissary is preferred. The costs are calculated by doubling the time to the bakery location (round-trip, distance and times shown are for a one-way trip) times the $3

35、0 per hour cost for the truck and driver. It is assumed that the truck will make a round-trip before going to the next bakery. Additional time could be saved if the truck was able to make multiple stops on one trip.3. The cost of a company truck is substantially cheaper at $68.00 per day versus $247.34.4. Additional factors to consider are the costs of the locations, cost of running the commissary, future expansion, etc.