Factor Rating Method
Method for combining diverse critical factors by assigning range of weightages to each factor affect a set of potential location
Locational cost-volume analysis
itungan (choose lowest total cost Q substitute with units)
4 Main Considerations when choosing layout decisions
- Safety
Worker safety is paramount. The layout should be designed to minimize accident, injury, and strain-related problems. - Space Utilization
Layout should maximize the use of available space while ensuring there is enough space for workers, materials, machinery and storage. Proper spacing can reduce congestion and facilitate easy movement of personnel and equipment - Flow of Materials and Process
Efficient flow minimize bottlenecks and reduces the distance materials need to travel between workstations. Layout should support a logical sequence of processes to optimize production efficiency. - Flexibility and Scalability
Layout allows for future changes and expansions. As product demands evolve, the layout should be adaptable without requiring extensive modification.
Outsourcing
Transfer usual internal tasks focus on score competencies and specifications
MAKE or BUY
MAKE
-Able to produce at lower production cost
-Unable to find suitable suppliers
-Ensure ready supply in terms of quantity and delivery
-Protect patent rights (protect from imitators and competitors)
BUY
-Cheaper to buy from suppliers
-Get technical expertise
-Reduce inventory cost (avoid keeping too much stocks)
-Free management to deal with core competences
-Firms have sufficient production capacity
Opportunities
Vendor Managed Inventory
Supplier Manages materials for buyer’s using production (refer from squared paper book)
Blanket Orders
Long Term Procurement to a supplier for purchased items
Example : instead of purchasing 12 times for 12 months (1 month 1x), buy 12 in one time for the supply 12 months reducing order cost
Postponement
Delay Customisation as late as possible
Earlier process standard -> attain Econ of Scale -> unit cost can be deduced. Customer also experience higher more choices available
Delaying product customization or final assembly until actual customer demand to enhance flexibility and reduce inventory.
Vertical Integration
Company expands operations in the same industry by controlling different stages of production process
MB : developing ability to generate goods or services that were previously purchased from ext sources
