MANAGEMENT
LOCATION
AND
FACILITY LAYOUT
,Learning Objectives
Upon completion of this lecture, students will
be able to:
• identify and explain the factors that
influence location strategies
• Identify the types of Facilities and Layouts
• design basic Service Process Layouts
,Factors affecting location of
premises:
• business policy
• objectives of the organisation
, Location and business policy
1. A business policy which requires speed or ease
of access of service to customers
2. A business policy that stresses efficient use of
resources. We should maximise existing
resources or make do with less.
3. A business policy that takes into account the
value chain approach
– will take the location of suppliers into
consideration and build their premises near the
supplier.
– Operations managers will want to be close to the
customers or close to the suppliers (raw
materials)