Operations Management

Lesson 2 Facility Management

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What you will learn in this unit:

      Facilities Management Location Decisions Layout Decisions Logistic Decisions Labour Decisions Technology Choice and Selection 2

Facilities Management

Facilities management is the process of managing and improving capital investment of the organisation, these involves where to locate the operations, what are the layout to use, what logistic means that best for operations optimisation, who to engage to deliver the goods/services and what technologies to be utilised.

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Facilities Management Location Layouts Logistic Labor Technology

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Location Decision

Location is the geographical positioning of an operation relative to the input resources, other operations or customers with which it interacts (Slack, 2001).

Importance of location •It have significant impact on cost •Impact on speed of service •Attracting labour •Availability of raw materials 5

Supply-side factors Labour costs Land costs Energy costs Transportation costs Community factors The location of operations Operation Demand-side factors Labour skills Suitability of site Image Convenience for customers

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Site Selection Factors

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Historical – corporate towns Inherent Local Conditions

Climate Culture Ethics Language 7

Site Selection Factors

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Staffing

Labour Costs Social Laws Labour Competency Productivity Trade Unions Education Level Technological Sophistication Labour Mix 8

Site Selection Factors

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Infrastructure

Family Services Communications Environmental Regulations Legal Framework Transportation Rental costs Living Costs Country Stability 9

Site Selection Factors

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Construction

Land Cost Construction Labour Land Preparation Expansion Possibilities Zoning Regulations Environmental Regulations Materials Availability 10

Site Selection Factors

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Cash Flow Considerations

    Exchange Rates Repatriation of Funds Taxes Financial Aid 11

Site Selection Factors

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Proximity of Resources

     Raw Materials Process & Utility Water Power Supply Suppliers & Subcontractors Convenience for Customers 12

Layout Decision

 Layout – deciding where to put all the facilities, machines, equipment & staff in an operation (Slack, 2001) 13

Why is layout design important?

   Require substantial investments of resources Involve long term commitments – not easily changed Impact on the cost & efficiency of short term operations 14

The facilities layout decision procedure Volume and variety Strategic performance objectives

Decision 1

Process type

Decision 2

Basic layout type Project process Jobbing process Batch process Mass process Continuous process Fixed position layout Process layout Cell layout Product layout

Decision 3

Detailed design of layout The physical position of all transforming resources Flow of transformed resources

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Volume Manufacturing process types Basic layout types Basic layout types Fixed position layout Variety Service process types Professional services Jobbing processes Process layout Service shops Batch processes Cell layout Mass processes Continuous processes Product layout Mass services

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Fixed Position Layout

•      Transformed resources remain stationary Transforming resources move as necessary Effectiveness is governed by: Scheduling of transforming resources Reliability of transforming resources Eg’s – shipbuilding, construction projects, some surgery, restaurant 17

Process Layout

      Similar processes (or with similar needs) are located together Utilisation of transforming resources is improved Transformed resources move through the operation according to their needs Different products different routes  different needs  May be very complex Eg’s – supermarkets, some machine manufacture 18

Cell Layout

      Machines or services grouped into cells Cells determined by the process requirements of the family of product/services they transform Could be considered mini product layouts Can simplify a functional/process layout Flexible Duplicates some resources 19

Product Layout

    Locates the transforming resources entirely for the convenience of the transformed resources Transformed resources follow a specified route Flow is clear, predictable, easy to control Eg’s – car assembly, paper manufacture, self-service cafe 20

Low Volume-variety characteristics VOLUME Fixed position layout Process layout Cell layout Product layout High

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What makes a good layout

        Safety Length of flow Clarity of flow Staff comfort Management coordination Accessibility Space utilisation Long term flexibility 22

Logistic Decisions

Logistic decision takes into consideration the flow of goods, information and financial resources therefore firms would have identify the necessary resources to support their operation.

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Public Logistics Internal or Channel (Outbound) Logistics Information Logistics Supplier Logistics

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Labour Decisions

 Labour decisions that focus on the human resources that help to ensure the operation process are optimise. 25

Job analysis

The process of determining the requirements of the job 26

Job Analysis

   The process of developing a detailed description of the tasks and responsibilities involved in a job, determining the relationship job to other jobs, and of a given ascertaining the knowledge, skill and abilities necessary for an employee to perform the job successfully.

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Tangible outcomes of job analysis

Job description:

A written description of a job, the types of duties performed and the conditions under which these duties are performed

Person specification:

Details the qualifications, experience and personal qualities required of suitable job-holders

Job design:

Concerns the satisfaction of the job holder’s needs 28

Human engineering

 Aims to identify and respond to worker needs in the performance of their jobs  Adapts work environment and equipment to the person  Can improve efficiency and create a more harmonious work environment 29

Job design strategies

 Job enlargement  Job rotation  Job enrichment  Self-managing work teams  Adjustments in work schedules 30

Technology Decision

    

IT Technology Manufacturing technology Technology patents and processes R&D technology Material technology

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