11-1

Obtaining and Laying Out Operating Facilities

Functions Of Operating SystemFunctions Of Operating SystemChoosing The Right LocationChoosing The Right LocationPlanning Physical FacilitiesPlanning Physical FacilitiesRole Of TelecommutingRole Of TelecommutingUsing Standards To Improve Using Standards To Improve OperationsOperations

Ch

apte

r

11

11-2McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Elements Of Elements Of Operating SystemOperating System

1)1) System For ChangingSystem For Changinga)a) FormFormb)b) PlacePlacec)c) TimeTime

2)2) Sequence For Inputs > OutputsSequence For Inputs > Outputs3)3) Skills, Tools, Machines For ChangeSkills, Tools, Machines For Change4)4) Instructions/Goods IdentificationInstructions/Goods Identification5)5) Time Frame For CompletionTime Frame For Completion

11-3McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Operating SystemOperating System

InputsInputs ProcessesProcesses OutputsOutputs

11-4McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Operating SystemsOperating Systems

11-5McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Operations/ProductionOperations/Production

“…“…converting inputs converting inputs into outputs for into outputs for

customers.”customers.”

11-6McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Producing A WhopperProducing A Whopper

11-7McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Burger King SystemsBurger King Systems

MarketingMarketing

ProductionProduction

DeliveryDeliveryJohn A. Rizzo/Getty Images

11-8McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Beginning OperationsBeginning Operations

Choose Right LocationChoose Right LocationPlan FacilitiesPlan FacilitiesDecide On Decide On LayoutLayoutImplement PlansImplement Plans

11-9McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Types Of LocationsTypes Of LocationsRetailer- Sells Goods To Retailer- Sells Goods To ConsumerConsumer

Producer- Converts Large Volume Producer- Converts Large Volume Of Materials Into Products For Of Materials Into Products For Others To SellOthers To Sell

Service Company- Provides Service Company- Provides Service To CustomerService To CustomerRetailer or producer?Retailer or producer?

Royalty-Free/CORBIS

11-10McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

LocationLocationFactors- GeneralFactors- General

Access To Work ForceAccess To Work ForceAvailability Of Supplies Availability Of Supplies & Services& Services

Availability Of Availability Of TransportationTransportation

Taxes/RegulationsTaxes/RegulationsAvailability Of UtilitiesAvailability Of Utilities

Scenics of America/PhotoLink/Getty Images

11-11McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Retailer LocationRetailer LocationFactors- SpecificFactors- Specific

Trade AreaTrade AreaPopulation TrendsPopulation TrendsPurchasing PowerPurchasing PowerTrade PotentialTrade PotentialCompetitionCompetitionShopping CentersShopping Centers

Janis Christie/Getty Images

11-12McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Some EclipsSome Eclips

http://eclips.cornell.edu/search?http://eclips.cornell.edu/search?querytext=location&id=id&clipID=querytext=location&id=id&clipID=8176&tab=TabClipPage8176&tab=TabClipPage

http://eclips.cornell.edu/search?http://eclips.cornell.edu/search?querytext=location&id=id&clipID=querytext=location&id=id&clipID=10371&tab=TabClipPage10371&tab=TabClipPage

11-13McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Market LocationMarket LocationVendor LocationVendor LocationLabor AvailabilityLabor AvailabilityTransportationTransportationUtilitiesUtilitiesGovernment/TaxesGovernment/TaxesSchools/RecreationSchools/Recreation

Producer LocationProducer LocationFactors- SpecificFactors- Specific

11-14McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Site Selection Rating SheetSite Selection Rating Sheet

11-15McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Types Of StoresTypes Of Stores

ConvenienceConvenience

ShoppingShopping

SpecialtySpecialtyRoyalty-Free/CORBIS

11-16McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Types Of LocationsTypes Of LocationsDowntown Business DistrictDowntown Business DistrictFreestanding StoresFreestanding StoresShopping CentersShopping CentersDesigned To Draw Designed To Draw TrafficTraffic

Anchor StoresAnchor Stores Royalty-Free/CORBIS

11-17McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Calculating Total RentCalculating Total Rent

Some add 5-7% of gross over $xSome add 5-7% of gross over $x

Source For Determining Average Cost Per Source For Determining Average Cost Per Square Foot In Your City-Square Foot In Your City-

http://www.inc.com/keyword/realestatehttp://www.inc.com/keyword/realestate

Some add 5-7% of gross over $xSome add 5-7% of gross over $x

Source For Determining Average Cost Per Source For Determining Average Cost Per Square Foot In Your City-Square Foot In Your City-

http://www.inc.com/keyword/realestatehttp://www.inc.com/keyword/realestate

11-18McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Planning Physical FacilitiesPlanning Physical Facilities

Determine ProductDetermine Product

Identify Identify

Operations/ActivitiesOperations/Activities

Determine Space NeedsDetermine Space Needs

Decide On Best LayoutDecide On Best Layout

Keith Brofsky/Getty Images

11-19McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Layout ExampleLayout Example

11-20McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

LayoutLayoutTypeTypeProduct orProduct orProcessProcess

GeneralGeneralFinalFinalImplementImplement

11-21McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Issues AboutIssues AboutProduction LayoutProduction Layout

?Space For MovementSpace For Movement?UtilitiesUtilities?SafetySafety?Working ConditionsWorking Conditions?CleanlinessCleanliness?Product QualityProduct Quality?AestheticsAesthetics

Ryan McVay/Getty Images

11-22McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Reasons To TelecommuteReasons To Telecommute1.1. Flexible HoursFlexible Hours2.2. Save On Save On

ClothesClothes3.3. Save On Dry-Save On Dry-

CleaningCleaning4.4. Save On Save On

ParkingParking5.5. Save Commute Save Commute

TimeTime

6.6. Avoid Office Avoid Office PoliticsPolitics

7.7. Not Micro-Not Micro-ManagedManaged

8.8. Time With Time With FamilyFamily

9.9. More More ProductiveProductive

10.10.Helping Helping EnvironmentEnvironment

Source: PageWise, http://idid.essortment.com/telecommutejob_rqzb.htm

11-23McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Telecommuting ConsiderationsTelecommuting Considerations

Access To TechnologyAccess To TechnologyGet Best TechnologyGet Best TechnologyShipping MethodsShipping MethodsSupplies SourceSupplies SourceYear-Round WeatherYear-Round WeatherTransportationTransportationContingency PlansContingency PlansTelecommuting Aptitude Test- Telecommuting Aptitude Test-

http://www.ednes.org/telesol/jc/QuizTSP.http://www.ednes.org/telesol/jc/QuizTSP.htmhtm

Javier Pierini/Getty Images

11-24McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Steps To TelecommutingSteps To Telecommuting

Determine Whether Determine Whether Telecommuting is Telecommuting is Right For You Right For YouDevelop A PlanDevelop A PlanTalk To ManagerTalk To ManagerGet Needed Training/EquipmentGet Needed Training/EquipmentStart TelecommutingStart Telecommuting

Source: CNNMONEY, “Telecommuting: the pitch, Sept. 21, 1999, http://money.cnn.com/1999/09/21/life/q_telecommute/

Ryan McVay/Getty Images

11-25McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Improving OperationsImproving OperationsState ProblemState ProblemCollect/Record Collect/Record InformationInformation

Develop/Analyze Develop/Analyze AlternativesAlternatives

Select/Install/Follow UpSelect/Install/Follow UpSet/Use Performance StandardsSet/Use Performance Standards

TRBfoto/Getty Images