The importance of facility siting, the method of facility siting

For a company, facility location selection is the first step in establishing and managing the business, and it is also the first step in business expansion. The importance of facility siting is obvious. Its importance lies mainly in:

Facility selection detachment after the completion of the facility layout and production and operation costs, product and service quality after commissioning.

and cost. Once the choice is not right, the adverse consequences it brings cannot be remedied through other measures such as strengthening and improving management after completion. Therefore, when selecting a facility, it is necessary to fully consider the influence of many factors and make a prudent decision.

Secondly, in addition to the problem of the location of facilities for new enterprises, with the development of the economy, the size of the city.

As well as the development differences between regions, many enterprises are facing the problem of relocation. Wait a minute. It can be seen that the location of facilities is an important problem in the production and operation management of modern enterprises that many enterprises are facing.

Strategic Objectives. For a particular business, the optimal location depends on the type of business. Industrial site selection decisions are primarily driven by the pursuit of cost minimization; Retail or professional service organizations generally seek to maximize revenue; As for the location of the warehouse, it may be necessary to consider the cost and transportation speed.

In summary, the strategic goal of facility siting is to maximize the benefits of site selection for the plant.

The CEO of McDonald's said that the most important thing in catering is three things: location, location, and location! Location selection is the beginning of a restaurant career and is a top priority. However, the site selection work is complex and arduous, involving many changes and comprehensive factors.

1.Load distance method: The goal of the load distance method is to select a target scheme out of several candidates that can minimize the distance that the total load (goods, people, or others) can move.

When factors such as proximity to the market are critical, this approach allows you to quickly screen out the most attractive options from a wide range of candidates. This method can also be used in facility layouts.

2.Factor Scoring: Factor scoring is perhaps the most widely used of the commonly used site selection methods, as it combines a variety of different factors in a simple, easy-to-understand pattern.

It should be noted in the use of this factor scoring method that in the calculation process of using the factor scoring method, it can be felt that since the determination of weights and grade scores depends entirely on human subjective judgment, as long as there is an error in judgment, it will affect the score value, and finally affect the possibility of decision-making.

3.Site Location Metrics: Site selection metrics are a method that takes into account both quantitative and qualitative factors to support facility siting.

Extended Materials. 1. For an enterprise, facility site selection is not only the first step to establish and manage the enterprise, but also the first step to expand the business. The importance of the facility's location cannot be overstated.

Its importance mainly lies in: the selection of facilities, the separation of the layout of the facilities after the completion of the facilities, the production and operation costs, and the quality of products and services after they are put into operation.

costs and so on have a significant and long-term impact. Once the choice is not right, the adverse consequences cannot be remedied by strengthening and improving the management after completion. Therefore, when choosing a facility location, it is necessary to fully consider the influence of various factors and make a prudent decision.

Secondly, in addition to the location of facilities for new enterprises, with the development of the economy, the size of the city.

and the development differences between regions, many enterprises are facing the problem of relocation. Await. It can be seen that the location of facilities is an important problem faced by many enterprises in the production, operation and management of modern enterprises.

2. Strategic Goals: For a particular business, the best location depends on the type of business. The main purpose of industrial location decision-making is to minimize costs; Retail or professional services organizations generally seek to maximize revenue and profits; As for the location of the warehouse, it may be necessary to consider the cost and the speed of transportation.

In short, the strategic goal of facility siting is to maximize the benefits of the plant.

Trade-offs of influencing factors for facility location.

When it comes to facility location, companies have a lot to consider. When considering these factors, it is necessary to pay attention to: first, it is necessary to carefully weigh the listed factors and decide which ones are closely related to the location of the facility, and which are not related to the location of the facility although they are related to the operation or results of the business, so as to distinguish priorities and grasp the key in decision-making.

Otherwise, sometimes there are too many influencing factors listed, and it is easy to make a clear distinction between priorities and priorities in specific decisions, and the best decision cannot be made. Second, the same influencing factor will have different influencing effects in different circumstances, so it is absolutely not possible to copy any principle or copy the existing experience. Finally, it should also be noted that the influencing factors to consider and the importance of the same factors can be very different for both manufacturing and non-manufacturing companies.

A global survey of many manufacturing companies shows that companies believe that the following five sets of factors, each of which can be divided into several factors, must be considered when siting a facility:

1. Labor conditions;

2. Proximity to the market;

3. Quality of life;

4. Proximity to business and resources;

5. Relative location with other corporate facilities.

It can be seen that manufacturing enterprises should consider more regional factors when selecting the location of facilities, and for the service industry, because the service items are difficult to transport to distant places, the improvement of the service quality of service enterprises that need to be in direct contact with customers depends on the proximity and dispersion of the final market, and the facilities must be close to the customer base. For example, a laundry or a supermarket can be affected by a variety of factors, but the location of the facility plays a pivotal role. For example, the density of people around the facility, income level, traffic conditions, etc., will largely determine the operating income of the enterprise.

For a warehousing or distribution center, as with factory location in manufacturing, transportation costs are a factor to consider, but getting close to the market quickly may be more important to shorten lead times. In addition, the location of manufacturing production in relation to competitors is sometimes unimportant. And in the service sector, it can be a very important factor.

When selecting a location, service companies must not only consider the existing location of their competitors, but also estimate how they will react to the new facility. In this case, there may be a "focus effect", where the total number of customers attracted by a few companies focused on one location is greater than the number of customers who are scattered in different locations.

What factors should be considered when choosing a business location?

Answer]: Facility site selection is generally divided into four stages: preparation stage, area selection stage, site selection stage, and report preparation stage.

1) The main work content of the preparation stage is to clarify the requirements for the site selection objectives in the preliminary work. Based on these requirements, planners should list a number of specific requirements that should be met when siting a facility to ensure that these relevant factors are taken into account, as well as specific numerical requirements for the technical and economic indicators required for certain site selections.

2) Region Selection Stage:

1) Visit the competent departments of the industry and the regional planning department to collect and understand the requirements and policies of the industry planning and regional planning on the layout of facilities;

2) select a number of regions and collect relevant information;

3) Conduct protocol comparisons;

4) Comparison of participants in all aspects (production, sales, finance, etc.).

3) Site selection stage: In this stage, a site selection team is formed to conduct investigation and research and survey of several alternative sites in the preliminarily determined area.

1) Obtain topographic maps and urban planning maps of alternative locations from the local urban construction department and solicit opinions on site selection;

2) Obtain historical statistics on temperature, air pressure, humidity and snowfall, sunshine, wind direction, wind strength and other departments from local, meteorological, geology, ** and other departments;

3) Carry out preliminary survey and measurement of geology and hydrology, and obtain relevant survey data;

4) Collect local information on transportation, water supply, power supply, communications, heating and drainage facilities, and negotiate the connection issues related to transportation lines and highway pipelines;

5) Collect local economic data such as transportation costs, construction costs, construction costs, taxes and fees;

6) Check, analyze and calculate various data for various data and actual conditions, and select a suitable site plan after comparison.

4) Report preparation stage:

1) Organize the research and collected data;

2) Compile comprehensive materials according to the results of technical and economic comparison and statistical analysis, draw a map of the location of the facilities of the selected site and the preliminary general layout of the company;

3) Prepare a report on the loss of facility site selection, evaluate the selected site, and provide approval to the decision-making department.