Endstri Mhendisliine Giri ENM 111 BLM 08 Fabrika

Endüstri Mühendisliğine Giriş ENM 111 BÖLÜM 08 Fabrika Yer Seçimi ve Servis Sistemlerinde Lokasyon Belirleme Yöntemleri © 2006 Prentice Hall, Inc.

Location Strategy þ One of the most important decisions a firm makes þ Increasingly global in nature þ Long term impact and decisions are difficult to change þ The objective is to maximize the benefit of location to the firm © 2006 Prentice Hall, Inc. 8– 2

Location and Innovation þ Cost is not always the most important aspect of a strategic decision þ Four key attributes when strategy is based on innovation þ High-quality and specialized inputs þ An environment that encourages investment and local rivalry þ A sophisticated local market þ Local presence of related and supporting industries © 2006 Prentice Hall, Inc. 8– 3

Location Decisions þ Long-term decisions þ Decisions made infrequently þ Decision greatly affects both fixed and variable costs þ Once committed to a location, many resource and cost issues are difficult to change © 2006 Prentice Hall, Inc. 8– 4

Location Decisions Country Decision Figure 8. 1 © 2006 Prentice Hall, Inc. Critical Success Factors 1. Political risks, government rules, attitudes, incentives 2. Cultural and economic issues 3. Location of markets 4. Labor availability, attitudes, productivity, costs 5. Availability of supplies, communications, energy 6. Exchange rates and currency risks 8– 5

Location Decisions Region/ Community Decision MN WI MI IL Figure 8. 1 © 2006 Prentice Hall, Inc. IN OH Critical Success Factors 1. Corporate desires 2. Attractiveness of region 3. Labor availability, costs, attitudes towards unions 4. Costs and availability of utilities 5. Environmental regulations 6. Government incentives and fiscal policies 7. Proximity to raw materials and customers 8. Land/construction costs 8– 6

Location Decisions Site Decision Critical Success Factors 1. Site size and cost 2. Air, rail, highway, and waterway systems 3. Zoning restrictions 4. Nearness of services/ supplies needed 5. Environmental impact issues Figure 8. 1 © 2006 Prentice Hall, Inc. 8– 7

Factors That Affect Location Decisions þ Labor productivity þ Wage rates are not the only cost þ Lower productivity may increase total cost Labor cost per day = cost per unit Productivity (units per day) Connecticut Juarez $70 = $1. 17 per unit 60 units $25 = $1. 25 per unit 20 units © 2006 Prentice Hall, Inc. 8– 8

Factors That Affect Location Decisions þ Exchange rates and currency risks þ Can have a significant impact on cost structure þ Rates change over time þ Costs þ Tangible - easily measured costs such as utilities, labor, materials, taxes þ Intangible - less easy to quantify and include education, public transportation, community, quality-of-life © 2006 Prentice Hall, Inc. 8– 9

Factors That Affect Location Decisions þ Attitudes þ National, state, local governments toward private and intellectual property, zoning, pollution, employment stability þ Worker attitudes towards turnover, unions, absenteeism þ Globally cultures have different attitudes towards punctuality, legal, and ethical issues © 2006 Prentice Hall, Inc. 8 – 10

Factors That Affect Location Decisions þ Proximity to markets þ Very important to services þ JIT systems or high transportation costs may make it important to manufacturers þ Proximity to suppliers þ Perishable goods, high transportation costs, bulky products © 2006 Prentice Hall, Inc. 8 – 11

Factors That Affect Location Decisions þ Proximity to competitors þ Called clustering þ Often driven by resources such as natural, information, capital, talent þ Found in both manufacturing and service industries © 2006 Prentice Hall, Inc. 8 – 12

Factor-Rating Method þ Popular because a wide variety of factors can be included in the analysis þ Six steps in the method 1. Develop a list of relevant factors called critical success factors 2. Assign a weight to each factor 3. Develop a scale for each factor 4. Score each location for each factor 5. Multiply score by weights for each factor for each location 6. Recommend the location with the highest point score © 2006 Prentice Hall, Inc. 8 – 13

Factor-Rating Example Critical Success Factor Labor availability and attitude People-to car ratio Per capita income Tax structure Education and health Totals Scores (out of 100) Weight France Denmark Weighted Scores France Denmark . 25 70 60 . 05 50 60 . 10. 39 85 75 80 70 (. 10)(85) = 8. 5 (. 10)(80) = 8. 0 (. 39)(75) = 29. 3 (. 39)(70) = 27. 3 . 21 60 70 (. 21)(60) = 12. 6 (. 21)(70) = 14. 7 1. 00 (. 25)(70) = 17. 5 (. 25)(60) = 15. 0 (. 05)(50) = 2. 5 70. 4 (. 05)(60) = 3. 0 68. 0 Table 8. 3 © 2006 Prentice Hall, Inc. 8 – 14

Locational Break-Even Analysis þ Method of cost-volume analysis used for industrial locations þ Three steps in the method 1. Determine fixed and variable costs for each location 2. Plot the cost for each location 3. Select location with lowest total cost for expected production volume © 2006 Prentice Hall, Inc. 8 – 15

Locational Break-Even Analysis Example Three locations: Fixed Variable Total City Cost Akron $30, 000 $75$180, 000 Bowling Green $60, 000 $45$150, 000 Chicago $110, 000 $25$160, 000 Selling price = $120 Expected volume = 2, 000 units Total Cost = Fixed Cost + Variable Cost x Volume © 2006 Prentice Hall, Inc. 8 – 16

Annual cost Locational Break-Even Analysis Example Figure 8. 2 © 2006 Prentice Hall, Inc. – $180, 000 – – $160, 000 – $150, 000 – e – curv t s o $130, 000 – go c a c i – Ch $110, 000 – n ee r – g G rve n i – wl t cu o $80, 000 – B cos t s – co n $60, 000 – ro rve k – A cu – Akron Bowling Green $30, 000 – lowest cost – cost $10, 000 – | | | – 0 500 1, 000 1, 500 2, 000 Volume Chicago lowest cost | | 2, 500 3, 000 8 – 17

Center-of-Gravity Method þ Finds location of distribution center that minimizes distribution costs þ Considers þ Location of markets þ Volume of goods shipped to those markets þ Shipping cost (or distance) © 2006 Prentice Hall, Inc. 8 – 18

Center-of-Gravity Method þ Place existing locations on a coordinate grid þ Grid origin and scale is arbitrary þ Maintain relative distances þ Calculate X and Y coordinates for ‘center of gravity’ þ Assumes cost is directly proportional to distance and volume shipped © 2006 Prentice Hall, Inc. 8 – 19

Center-of-Gravity Method x - coordinate = ∑dix. Qi i ∑Qi i y - coordinate = ∑diy. Qi i ∑Qi i where © 2006 Prentice Hall, Inc. dix = x-coordinate of location i diy = y-coordinate of location i Qi = Quantity of goods moved to or from location i 8 – 20

Center-of-Gravity Method North-South New York (130, 130) Chicago (30, 120) 120 – Pittsburgh (90, 110) 90 – 60 – 30 – | – Atlanta (60, 40) | 30 Arbitrary origin © 2006 Prentice Hall, Inc. | | 60 90 120 150 East-West 8 – 21

Center-of-Gravity Method Number of Containers Store Location Shipped per Month Chicago (30, 120) 2, 000 Pittsburgh (90, 110) 1, 000 New York (130, 130) 1, 000 Atlanta (60, 40) 2, 000 (30)(2000) + (90)(1000) + (130)(1000) + (60)(2000) x-coordinate = 2000 + 1000 + 2000 = 66. 7 (120)(2000) + (110)(1000) + (130)(1000) + (40)(2000) y-coordinate = 2000 + 1000 + 2000 = 93. 3 © 2006 Prentice Hall, Inc. 8 – 22

Center-of-Gravity Method North-South New York (130, 130) Chicago (30, 120) 120 – Pittsburgh (90, 110) + 90 – Center of gravity (66. 7, 93. 3) 60 – 30 – | – Atlanta (60, 40) | 30 Arbitrary origin © 2006 Prentice Hall, Inc. | | 60 90 120 150 East-West 8 – 23

Transportation Model þ Finds amount to be shipped from several points of supply to several points of demand þ Solution will minimize total production and shipping costs þ A special class of linear programming problems © 2006 Prentice Hall, Inc. 8 – 24