Site Planning - Operations Management - 2024/25 PDF

2 Site Planning 2.1 Introduction The Operating Site Site = place where the operational premises are located (administrative building, production halls, stores, branches, (central) warehouses,...) An operation may have one or more sites. The following can then be distinguished: Research and deve...

2 Site Planning 2.1 Introduction The Operating Site Site = place where the operational premises are located (administrative building, production halls, stores, branches, (central) warehouses,...) An operation may have one or more sites. The following can then be distinguished: Research and development site Production site Administration site Warehouse location Sales location … © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Site Selection as a Decision-making Problem Site selection as a multi-stage decision-making process e.g., under cost aspects: The first task is to "discover" interesting locations. Locations that do not meet certain minimum criteria are eliminated in advance. Location-dependent costs and services are then determined for the remaining locations. The location with the largest expected location-dependent profit (as the difference in location-dependent performances and location-dependent costs) is selected. © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Site Selection as a Decision- making Problem When does this actually have to be "decided"? 100% Logical conclusion, deterministically knowledge Degree of Decide! 0% Guess > - you can not make decisions if you don't know anything © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Site Selection as a Decision-making Problem Problems with this approach: Neither location-dependent costs nor location- dependent performances can be estimated with 1 certainty. dynamic - everything is constantly changing Future deviations from the expected values are possible -> location suboptimal! 2 Site selection is a decision-making problem! Alternative calculations with pessimistic or optimistic 3 estimated values! Cost analyses in the context of the business strategy. Do they exist? Time horizon? 4 © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction...why you have to think about locations - and changes in the location structure: Strategy adjustment, changes to product portfolio if it sell better or worse Capacity expansion/reduction - than befor Modernization of buildings and technical facilities restructoring Site merger - together > - bring workers more plants Shifting focus of demand > - make sense to ↳ doesn't to far transport packaging Material coal is coming from Relocation of raw material sources > - asia and not germany anymore - © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction...why you have to think about locations - and changes in the location structure: Relocation for cost reasons > - if you can produce somewhere cheaper Relocation for political or social reasons need to produce where Entry into new markets > - you to enter a new market you want line directly to the production Switch to "just-in-time” > - > no - inventory times when it's hard Attractiveness for (new) employees in > - to find enough employees … © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Site Planning Scenarios Use existing sites – Evaluation and optimization or adaptation Plan new sites - Company start-up - Planning new sites while retaining the old sites - Planning new sites and closure of old sites © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Reasons for the Evaluation and Optimization of Existing Sites Integration of the business into existing cooperation networks Systematically underestimated start-up times and costs for new sites to achieve the necessary quality and productivity No cost center schemes for the visualization of site-related overhead costs Better and more realistic comparability of the sites by including the optimization potentials © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Evaluation of Existing Sites Using Benchmarks Benchmark analysis with the best- performing competitor Productivity/ 5 performance factors & production costs material ⑨ => time for delivery until we of raw build the customer Lead times · E Innovative - capability - I - ⑳ Product and production flexibility - -j G Product quality © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Evaluation of Existing Sites Using Benchmarks Simplified representation of the business reality through a measure search grid 4 fields of modernization Technology Organization Human Resources Product design © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Analysis of the Benchmarking Study WORKSHOP CONCEPT Participation of decision-makers from all areas of the company that can be optimized Structuring of optimization measures 1 already implemented Cause-effect analysis with the measure 2 search grid Assessment of the "worthwhile" 3 modernization grids Assessment of performance potential not yet exploited 4 © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Evaluation of the Potential of Regional Cooperations Location factors not all "given" but can be shaped by your own activity Unused potential of regional cooperations with other businesses ↳ partnes in the same area ( industy Grown regional networks of customers, suppliers, and service providers © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Fields and Measures of Coorperating Purchasing: joint procurement activities buying together > - oil Human Resources: workforce sharing and pools, joint training activities Production reciprocal capacity balancing askpartnertohepproducincity > a - Site development: site marketing, infrastructure … © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails  2 Site Planning 2.1 Introduction Criteria for Site Selection Attractiveness of the economic area Geographical proximity to sales markets (particularly important for the consumer goods industry) Proximity to suppliers Access to raw material sources (heavy industry) Political stability of the region Legal regulations for production (environmental protection restrictions, occupational health and safety) Wage levels, availability and quality of labor Regional economic development and subsidies Infrastructure accessibility and transportation options etc. © Prof. Dr. Elmar Bräkling, Prof. Dr. Bert Leyendecker, Koblenz University of Applied Sciences, Operations Management, WS 2024/25– The spoken word prevails