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    1 views4 pages

    Document

    Uploaded by

    Aquib Shafi

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    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 4
    ringe capacity decisions and facility location deci- sions are among the moxt important of their strate gic decisions. Capital investment in production facilities is enormous, and the abifity of production to be used as a competitive weapon in capturing world markets hangs in the balance. Capacity plan- ‘ning covert such long periods of time that funda- mental changes can occur in the economy, consumer preferences, technology, demographics. and govern- ment fegulations. Such planning is therefore subject fo great uncertainty and risk. World-class companies justify enormous invest- ments in production facilities lesson how much they gave and on other conventional financial formulas of Telums, and more on how such facilities position their companies to capitalize on strategic opportunt- vies to capture shares of world markets. Reducing vertical integration through the development of an effective subcontractor network can lead to-improved production technology, reduced capital investment, increased flexibility and capacity, and more stable employment levels. This means that production. fs- cilities in general tend to be smaller, more widely dispersed, and located closer to customers, Facility location decisions at world-class com- panies increasingly involve a worldwide search for sites. National boundaries present less of an obsta- cle than in the past. A multitude of factors are: con sidered in location decisions, and the importance of these factors varies with the type of facility, The type of fucility—from heavy manufacturing to health services—has its own set of factors that must be carefully matched with those provided by potential site locations, The incentives offered by the gov- emments ef communities under consideration are important to the eventual choice of location. The eventual choice of facility location will involve the need to simultaneously consider many economic and qualitative factors. Facility layout greatly affects the performance of production systems, World-class companies pour eat effort into developing fayouts designed to achieve the competitive priorities for products in self-starting workers whe are teamed at proftem! solving, linke unnecessary imeentory, anal widest tons placed close to one another. Theis yout i relatively mall. compact. and tightly paced. with larger percentuze of floor space wed fer peudbuc tiers guided vehicle systems, more U-shaped peadction lines that allow more interaction and jot rotator of ‘workers, and more open areas with femer walls andl clear views of adjacent workststaos World-class producers of uernces ae desspmag layouts for back-room operations is mack he tater way a5 world-class manufactorers. Here the tech: nologies of production, processing. of pyysical mie terials. production costs anc flaibiley pide sede”) velopment of layouts, Additionally, as they comeete | for customers, service prodacers design thes fac | ity layouts with their customers in mind. Caitomer | parking. receiving. comfort, and waiting times eundie | the development of service layout ‘World-class companies use comultanes puter programs, and in-house staff experts to develop facility layouts. Many major corporations tavve de partments at their corporate headquarters that sappity facility design, construction, location, and layout ae- sistance to all divisions in the companies. Computer Software such as ArchiCAD and VixFactory is axed to analyze facility layouts. 2 es at

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