CHAPTER 1: INTRODUCTION TO FACILITIES PLANNING  the unification of all supply chain links to

form a whole.
 Past: Facilities planning was primarily considered  Creates a complete pipeline from a
to be science. customer perspective.
 Today: Facilities planning is a strategy.  Result of Synthesis:
 Contemporary facilities planning considers the a. Increase Return of Assets (ROA)
facility as a dynamic entity and that a key b. Improved customer satisfaction
requirement for a successful facilities plan is its c. Reduced costs
adaptability and its ability to become suitable for d. An integrated supply chain
new use.  Not achieved overnight. It takes time to
take the links of a supply chain and remove
1.1 FACILITIES PLANNING DEFINED the boundaries between them. However, if
 The facilities we plan today must help an all links are visible and all collaborate,
organization achieve supply chain excellence. synthesis is within reach.
 Steps in supply chain excellence: 6. Velocity
1. Business as usual  Synthesis at the speed of light.
 When a company works hard to maximize  Proper facilities planning along the supply chain
the individual functions of the supply chain ensures that the product will follow the supply chain
(buy-make-move-store-sell). series to the satisfaction of the ultimate customer.
 The goal of individual department is to be  Characteristics of facilities in the supply chain:
the best department in the company. a. Flexibility – are able to handle a variety of
2. Link excellence requirements without being altered.
 Only after one’s link achieves performance b. Modularity – those with systems that
excellence can he/she begin to pursue cooperate efficiently over a wide range of
supply chain excellence. operating rates.
 To achieve link excellence, companies must c. Upgradability – gracefully incorporate
tear down internal boundaries until the advances in equipment systems and tech.
entire organization functions as one. d. Adaptability – taking into consideration the
3. Visibility implications of calendars, cycles, and peaks.
 Brings to light all links in the supply chain. e. Selective operability – understanding how
 It minimizes supply chain surprises because each facility segment operates and allows
it provides the info. links needed to contingency plans to be put in place.
understand the ongoing order status. f. Environmental and energy friendliness – LEED
 It could be considered the first real step
 Creating facilities with the ff. characteristics
toward supply chain excellence.
requires a holistic approach. Elements:
 Through this, organizations come to
a. Total integration – the integration of
understand their roles in a supply chain
material and info. flow in a true, top-down
and are aware of the other links.
progression that begins with the customer.
4. Collaboration
b. Blurred boundaries – the elimination of the
 The supply chain can determine how best
traditional customer/supplier and
to meet the demands of the marketplace.
manufacturing/warehousing relationships.
 The supply chain moves as a whole to
c. Consolidation – the merging of similar and
maximize customer satisfaction and
disparate business entities that result in
minimize inventories.
fewer and stronger competitors,
5. Synthesis
customers, suppliers.
 d. Reliability – the implementation of robust  Employee health and safety
systems, redundant systems, etc.  Energy conservation
e. Maintenance – a combination of  Community consideration
preventive and predictive maintenance.  Security
 Preventive maintenance – continuous  Fire protection
process that minimizes future  Pilferage
maintenance problems.  Customization of facilities required when building
 Predictive maintenance – anticipates facilities
potential problems by sensing the
operations of the machine or a system 1.3 OBJECTIVES OF FACILITIES PLANNING
f. Economic progressiveness – the adoption  Customer satisfaction be the primary objective of
of innovative fiscal practices that integrate facilities planning.
scattered info. into a whole that may be  Some objectives are:
used for decision making.  Improve customer satisfaction
 Increase ROA
 Facilities planning determines how an activity’s
 Maximize speed for quick customer response
tangible fixed assets best support achieving the
 Reduce costs and grow supply chain
activity’s objective.
profitability
 Facilities planning is divided into 2 components:
 Support organization’s vision
a. Facility location (macro) – refers to its
 Effectively utilize people, equipment, space
placement with respect to customers, suppliers,
 Maximize ROI
and other facilities with which it interface.
 Be adaptable and promote ease of
- also includes its placement and orientation
maintenance
on a specific plot of land.
 Assure sustainability and resilience
- Determining how the location of a facility
 It is not reasonable to expect that one facility design
supports meeting the facility’s objectives.
will be superior to others. Hence, it is important to
b. Facility design (micro) – facilities systems,
evaluate carefully the performance of each
layout and handling systems.
alternative.
- The determination of how the design
components of a facility support achieving 1.4 FACILITIES PLANNING PROCESS
the facility’s objectives  Facility Is planned only once, it is frequently
o Facility systems – consists of the replanned to synchronize the facility and its
structural, atmospheric, enclosure, constantly changing objectives.
sanitation systems and etc.  The engineering design process:
o Layout – consists of all equipment, 1. Define the problem
machinery, and furnishings within the  Define (redefine) the objective of the
building envelope. facility
o Handling systems – consists of the  Specify the primary and support activities
mechanisms needed to satisfy the to be performed in accomplishing
required facility interactions. objectives
2. Analyze the problem
1.2 SIGNIFICANCE OF FACILITIES PLANNING
 Determine the interrelationships among
 Economic Considerations force a constant re-
all the activities
evaluation and recognition of existing systems,
3. Determine the space requirements of all the
personnel, and equipment.
activities.
 Reduce or eliminate all activities that are
 Generate alternative facilities plan
unnecessary or wasteful.
4. Evaluate alternatives
 Evaluate alternative facilities plan
5. Select the preferred design
 Select a facilities plan
6. Implement the design
 Implement the facilities plan
 Maintain and adapt the facilities plan
 Redefine the objective of the facility