Scribd Logo
Upload

Welcome to Scribd!

  • 29 views

    Om 7 - 8

    Uploaded by

    manik singh
    This document discusses factors to consider when determining a facility location and methods for choosing a location. It covers local, regional, and international location factors as well as service-related factors. Methods discussed include the factor rating method, Bridgeman method, and center of gravity method. An example of each is provided. The document also discusses characteristics of a good facility layout and types of layouts such as product, process, mixed/combination, fixed, and cellular layouts. Systematic layout planning and computerized layout planning methods are mentioned.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Om 7 - 8

    Uploaded by

    manik singh
    29 views14 pages
    This document discusses factors to consider when determining a facility location and methods for choosing a location. It covers local, regional, and international location factors as well as service-related factors. Methods discussed include the factor rating method, Bridgeman method, and center of gravity method. An example of each is provided. The document also discusses characteristics of a good facility layout and types of layouts such as product, process, mixed/combination, fixed, and cellular layouts. Systematic layout planning and computerized layout planning methods are mentioned.

    Original Title

    OM 7 -8

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses factors to consider when determining a facility location and methods for choosing a location. It covers local, regional, and international location factors as well as service-related factors. Methods discussed include the factor rating method, Bridgeman method, and center of gravity method. An example of each is provided. The document also discusses characteristics of a good facility layout and types of layouts such as product, process, mixed/combination, fixed, and cellular layouts. Systematic layout planning and computerized layout planning methods are mentioned.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views14 pages

    Om 7 - 8

    Uploaded by

    manik singh
    This document discusses factors to consider when determining a facility location and methods for choosing a location. It covers local, regional, and international location factors as well as service-related factors. Methods discussed include the factor rating method, Bridgeman method, and center of gravity method. An example of each is provided. The document also discusses characteristics of a good facility layout and types of layouts such as product, process, mixed/combination, fixed, and cellular layouts. Systematic layout planning and computerized layout planning methods are mentioned.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 14

    Operations Management- I

    Faculty – Dr. CP Garg, IIM Rohtak


    Operations Management
    Facility Location Factors :
    Local
     Taxes and Incentives
     Attractiveness of the Community
     Compatible Industry
     Transportation Network
     Government Policy and Attitude
     Environmental Regulations
    Operations Management
    Regional
     Market Proximity
     Proximity to Raw Materials
     Availability of Utilities
     Labour Supply and Unionization
    International
     National Taxes
     Legal Restrictions
    Service
     Access & Exposure
    Operations Management
    Methods for Facility Location
     Factor rating method
     Bridgeman method
     Centre of gravity method
    Factor Rating

    • Factor Rating
    – General approach to evaluating locations that includes quantitative and
    qualitative inputs
    • Procedure:
    1. Determine which factors are relevant
    2. Assign a weight to each factor that indicates its relative importance compared
    with all other factors.
    • Weights typically sum to 1.00
    3. Decide on a common scale for all factors, and set a minimum acceptable score
    if necessary
    4. Score each location alternative
    5. Multiply the factor weight by the score for each factor, and sum the results for
    each location alternative
    6. Choose the alternative that has the highest composite score, unless it fails to
    meet the minimum acceptable score
    Example: Factor Rating

    • A photo-processing company intends to open a new branch store. The following


    table contains information on two potential locations. Which is better?

    Scores
    (Out of 100)
    Factor Weight Alt 1 Alt 2
    Proximity to
    existing source
    .10 100 60
    Traffic volume .05 80 80
    Rental costs .40 70 90
    Size .10 86 92
    Layout .20 40 70
    Operating Cost .15 80 90
    1.00
    Center of Gravity Method
    • When the quantities to be shipped to every location are unequal, you can
    obtain the coordinates of the center of gravity by finding the weighted
    average of the x-coordinates and the average of the y-coordinates

    x
     xQ i i

    Q i

    y
     yQ i i

    Q i

    where
    Qi  Quantity t o be shipped to destination i
    xi  x coordinate of destination i
    yi  y coordinate of destination i
    Example: Center of Gravity
    • Suppose the shipments for the problem depicted in Figure 8.1a are not all
    equal. Determine the center of gravity based on the following information.

    Weekly
    Destination x y Quantity
    D1 2 2 800
    D2 3 5 900
    D3 5 4 200
    D4 8 5 100
    18 16 2,000

    8-10
    Example: Center of Gravity

    x
     xQ i i

    2(800)  3(900)  5(200)  8(100) 6,100
      3.05
    Q i 2,000 2,000

    y
     yQ
    i
    i 2(800)  5(900)  4(200)  5(100) 7,400
    i
      3.7
    Q i 2,000 2,000

    • The coordinates for the center of gravity are (3.05, 3.7). You may round
    the x-coordinate down to 3.0, so the coordinates for the center of gravity
    are (3.0, 3.7). This is south of destination D2 (3, 5).
    Operations Management
    Characteristics of Good Layout
     Planned activity inter-relationship
     Planned straight line materials flow
     Minimum back-tracking
     Minimum handling and Scrap Removal
     Layout adaptable to changing operations
     Adequate storage space and density
     Adequate employee service functions
     Planned control of noise, dirt, fumes, humidity
     Receiving and shipping in logical locations
     Maximum flexibility and visibility - safety
    Operations Management
    Types of Layouts
     Product layout
     Process layout
     Mixed or Combination layout
     Fixed layout
     Cellular layout
    Development of Layout
     Systematic layout (SLP) – REL Chart
     Computerized layout (CLP) – CRAFT, ALDEP, CORELAP
    Systematic Layout Planning for a Floor of a Department Store

    You might also like