Site Selection Process in Operations Management

The physical location where a company conducts its operations, including administration, production, warehousing, and sales.

A location dedicated to research and development activities, focusing on innovation and product development.

A location where goods are manufactured, assembled, or processed.

A location where administrative tasks, such as accounting, finance, and human resources, take place.

A location dedicated to storing goods before they are shipped to customers.

A location where goods or services are sold to customers.

The process of choosing the best location for a company's operations, considering factors like cost, accessibility, and market demand.

A multi-step process for selecting a location, starting with identifying potential sites, analyzing costs and benefits, and ultimately choosing the most profitable option.

Costs and performance that vary depending on the chosen location.

Uncertainty in estimating costs and performance at a specific location.

Site selection involves making decisions with incomplete information, requiring careful consideration of potential risks and opportunities.

Using optimistic or pessimistic estimates to analyze different scenarios in site selection.

Analyzing costs within the context of the company's overall goals and strategic direction.

Changes in the product mix offered by a company, impacting production and distribution needs.

Adjusting production capacity based on changes in demand or market conditions.

Updating facilities and equipment to improve efficiency or meet new regulatory requirements.

Combining two or more locations to create a more efficient operation.

Moving a production facility to a new location to reduce costs.

Shifting production to a new location due to political or social factors, such as government policies or social unrest.

Establishing production in a new geographic market to gain access to customers and expand business.

Changing production location to minimize delays and reduce inventory, relying on timely deliveries from suppliers.

Moving a production facility to an area with a more attractive workforce, potentially offering better wages, living conditions, or career opportunities.

The process of selecting a suitable location for a production facility or business operation.

The analysis and consideration of factors that influence the decision of where to locate a production facility.

The act of altering the structure of a company's production locations, potentially involving new facilities, closures, or relocations.

A method for evaluating existing business sites by comparing them to industry benchmarks.

A structured grid used to measure and analyze the performance of a business site across four key areas: technology, organization, human resources, and product design.

A workshop where decision-makers from all areas of a company come together to identify and discuss opportunities for process improvement.

The process of identifying and analyzing the root causes of issues or problems that can be optimized within a business.

A grid used to assess the potential for improvement in different areas of a business, based on the identified causes and effects.

The process of evaluating the potential for improvement based on untapped performance opportunities.

A systematic approach to identifying and implementing changes that can modernize and improve business operations.

A critical step in the site planning process, focusing on identifying and assessing areas for improvement.

The ability to influence location factors through your business activity.

Collaboration between businesses in the same area, sharing resources and expertise.

Benefits of regional cooperation, such as joint purchasing, workforce sharing, and combined training programs.

Joint procurement of goods or services by multiple businesses, often resulting in lower prices.

Sharing employees and resources for training, utilizing the expertise of multiple businesses.

Factors that influence the attractiveness of a location for businesses.

The proximity of a location to markets where goods will be sold.

Access to raw materials, essential for businesses involved in manufacturing.

Evaluating and optimizing existing sites can help businesses identify opportunities to improve efficiency, reduce costs, and enhance competitiveness.

A systematic approach to compare a company's performance with that of its best competitor, assessing factors like productivity, production costs, lead times, innovation, flexibility, and product quality.

A new company needs to carefully select a location for its operations, taking into account factors like cost, accessibility, and proximity to customers and suppliers.

When a company needs to expand its capacity, it must decide if it's more efficient to build a new site, retain existing sites, or close existing sites and open new ones.

It's important to factor in the costs of opening a new site, beyond just construction. Delays and unexpected expenses can impact profitability.

A structured system to track and analyze the costs associated with operating a site, ensuring that all costs are accounted for and can be compared across different locations.

Evaluating existing business sites against their potential allows for a more accurate assessment of the company's overall performance and reveals opportunities for improvement.

Connecting a business to existing networks can lead to better collaboration, increased efficiency, and stronger competitive advantages.

Site planning is an ongoing process, and continually evaluating and optimizing sites helps businesses stay competitive and adapt to changing conditions in the market.