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Assignment 4: Data Tech, Inc.

Case Study


1. Determine whether Jeff should give greater priority to a smaller facility with possibility of expansion or more into a larger facility immediately. According to Sliwinski & Gabryelczyk, As regards real property, facility management is a customer-oriented, complete service, covering the comprehensive decision-making principles for optimum planning, usage and adaptation of buildings, their installations, premises, and services -- reinforced by information systems supporting company management in a strategic manner and with regard to each job/performer participating in the core process. (December 2010, pg. Q1) Jeff should looking facilities management in order to decide which facility would be the most sensible choice. This type of management looks at each component necessary in choosing the proper facility for one’s business. In the business engineering architecture for both the organization and the FM area, processes link strategy to information systems, constituting a central element of the architecture. (Sliwinski & Gabryelczyk, December 2010, pg. Q2) Jeff

has only acquired two new clients, which adds to a total of only four clients. His strategy should include forecasting based on the four clients that he already has. He should look at the amount of time it took to obtain the third and fourth client and weight it with the time it took for him to got the first two clients. After he has ascertained that information, he can then work that into the facilities management process. Examining the profitability of a smaller facility to a larger one will help with determining the expansion rate Jeff should take. According to the Case Study of Data Tech, Inc., if Jeff moves into a large facility he has a profitability of $1,000,000 if the demand is high and a profitability

(Reid & Sanders. he has a profitability of $500. This amount of points seems more practical because of the potential merits that expanding a business contains. 2010. 2.000 if demand is low. 351) In order to save resources that are not currently needed and to cut down on waste. and he would still have a profitability of $500. For excess capacity. After computing the factor rating for each factor it would seem that Location Number Three would be the best choice.000 with a low demand. it may be more economical to decide on the smaller facility with the possibility of expanding.000 with high demand. Once you have selected the factors for the two (2) capacity alternatives. Determine weights for the two (2) capacity factors based on your finding above and discuss how you concluded these were appropriate weights. It is a waste of finite sources that company owners cannot afford to lose. It has a weighted score of four-hundred and ten points.000. If Jeff moves into the small facility with the opportunity to expand. the weighted points should be ten because excess capacity for any amount of time is wasteful. which is a . he’s looking at a profitability of $800. Inc. Anything in excess can lead to a loss in profitability. 3. it would be more advantageous to select a location based on potential when profitability can remain high. the potential expansion factor should receive twenty points. If he moves into a small facility and a low demand.Assignment 4: Data Tech. Case Study 2 of $600. Jeff will maintain profitability if he chooses the potential expansion factor over excess capacity. pg. Proper forecasting should alleviate any waste within a company’s facilities. use factor rating to select a new location for Data Tech. As there are only thirty points to left to allocate. When a company has the potential to expand and still maintain its profitability.

he should do so because of the other factors that are added to the equation. but it is . while Location Two has a weighted score of two-hundred and ninety points. (May 2006. If I had chosen Excess Capacity as the recipient of the twenty points. 95) The close to the business environment factor is the least important factor because it really has nothing to do with the final building mass. Location Number Two would have a weighted score of three-hundred and sixty points and would be the optimum location for Jeff to set up shop. It would be in Jeff’s best interest to start small with his expansion because it is not clear whether he will get more clients. which would seem the optimal location. Word of mouth is a great way to bring in more clients. Location One has a total weighted score of threehundred points.Assignment 4: Data Tech. It is. pg. it does not have a weighted score high enough to be considered a prime location. Determine how your factor analysis would be different if you had selected a different capacity alternative. Although this location has no zeroes for an y of the factors. the optimal location for excess capacity of the three locations. 4. Jeff would have an ideal location set up with extra space. According to Weitzner. Whichever location Jeff chooses. Case Study 3 much higher score that the other locations. The issue with this location is that excess capacity equals excess money spent and therefore less profitability. while Location Two would cause capacity issues and cost more money therefore decreasing profitability for Data Tech. Location Three would give optimum output in profitability. but would lose money. Inc. focusing on precision rather than accuracy is a mistake because groups confound facility planning decisions with issues that essentially have no influence on the final building mass. however.

Case Study 4 not a guarantee. Inc. Jeff should calculate perceived projections ( or forecasting) into his agenda.Assignment 4: Data Tech. Therefore he will have a better sense of any access materials he can afford to keep. .

Inc. Case Study 5 References Reid. Weitzner. R Dan.Assignment 4: Data Tech. (December 2010). Healthcare Financial Management. Facility management Process Architecture Framework. 5 Facility Planning Mistakes (and How to Avoid Them). (May 2006). NJ: John Wiley & Sons. Bartlomiej. Renata. (4th ed). Inc. Hoboken. Sliwinski. & Sanders Nada R. Journal of Internet Banking and Commerce. & Gabryelczyk. . (2010). Operations Management: An Integrated Approach. Wendy M.