Page 245 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes

Notes State/District specific factors are:
1. State/District government 10. Concentration of customers
2. Local business regulations 11. Taxes

3. Environmental regulations 12. Construction/Leasing costs
4. Government services (Chamber of Commerce, etc.)
5. Availability of sites 13. Land cost

6. Financial services 14. Business climate
7. Labour pool 15. State amenities
8. State inducements 16. Transportation system
9. Proximity of suppliers 17. Proximity of customers

12.4.3 Plant Location

The site selection process eventually narrows down to the determination of the best location
within a community. In many cases a community may have only one or a few acceptable sites,
so that once the community is selected the site selection is an easy decision. Alternatively, if
many potential sites exist, a thorough evaluation is required of sites that are potentially very
similar. For service and retail operations, customer concentrations become a very important
consideration in selecting a site within a community, as does cost.

Notes Plant specific factors are:

1. Customer base 7. Land use restrictions
2. Construction/Leasing cost 8. Traffic
3. Land cost 9. Safety/Security
4. Site size 10. Competition
5. Transportation 11. Area business climate
6. Utilities 12. Income level

Task Take examples of any three manufactured products and three services firms in your
city and find out why they opened their facilities in your city.

Self Assessment

Fill in the blanks:
9. When the site selection process is initiated, the pool of potential locations for a
manufacturing facility is……………...

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