Transcript Chapter 9

Site Selection
and Layout
Planning
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Site Selection and Layout Planning
Chapter 9
Site Selection and
Layout Planning
9.1
Community and Site Selection
9.2
Layout Planning
2
Site Selection and Layout Planning
9.1
List the factors involved in deciding on a community in
which to locate a business.
Identify the factors to consider when selecting a
business site.
Describe the resources that can be used in finding
potential business sites.
Explain the steps involved in analyzing potential sites
for a business and choosing between those sites.
Describe the advantages of starting a business at
home or in an incubator.
Section 9.1 Community and Site Selection
3
Site Selection and Layout Planning
9.1
Selecting a community and a specific location in
which to establish a business involves a
systematic process.
Section 9.1 Community and Site Selection
4
Site Selection and Layout Planning
9.1
economic base
incentive
census tract
Section 9.1 Community and Site Selection
trade area
industrial park
incubator
5
Site Selection and Layout Planning
Factors in Community
Selection
Factors to consider when selecting a community
include:
economic base
financial incentives
population makeup
labor supply
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
Factors in Community
Selection
As an entrepreneur, the decision of where to locate
your new business is an important one.
A location can determine who sees your business
and how easily customers can get to it.
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Site Selection and Layout Planning
Is the Economic Base
Favorable?
First, you should determine
the community’s economic
base.
economic base the
major industries that
provide employment in
an area
That base can be either
primarily industrial or
primarily service-oriented.
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
Are There Financial
Incentives?
A community may try to
attract new businesses to
locate there by offering a
special incentive.
Section 9.1 Community and Site Selection
incentive a reward or
advantage that helps
businesses, including
lower taxes, cheaper
land, and employee
training programs
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Site Selection and Layout Planning
What Is the Makeup of the
Population?
Trends such as aging populations or young
families can affect businesses.
These trends determine who will spend, how
much they will spend, and what types of products
or services they will want.
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Site Selection and Layout Planning
What Is the Makeup of the
Population?
Demographics and population size can tell you if
a location matches your target market.
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
What Is the Makeup of the
Population?
Access the Census
Bureau’s Census 2000
Web site to research the
demographics of a census
tract that interests you.
Section 9.1 Community and Site Selection
census tract a small
geographic area into
which a state or country
is divided for the purpose
of gathering and
reporting census data
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Site Selection and Layout Planning
Does the Labor Supply
Match Your Needs?
When considering a community, consider your
labor needs and how well the local labor pool
meets those needs.
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
Does the Labor Supply
Match Your Needs?
Business owners need to consider:
how many employees they need
If the labor pool meets their needs
if the available pool has the appropriate skills
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
Criteria for Site Selection
Once you determine that a community is suitable
for your business, you can begin looking at sites.
The factors to consider and the criteria used to
judge sites vary with the type of business activity.
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Site Selection and Layout Planning
Retail Business
Considerations
Retail businesses need to
determine their trade area
in order to be accessible to
their target market.
Section 9.1 Community and Site Selection
trade area the region or
section of the community
from which a business
draws customers
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Site Selection and Layout Planning
Retail Business
Considerations
Once you pinpoint a community you want to serve
and determine your business’s trade area,
examine these issues:
number and size of competing businesses
nature of the competition
character of the area
accessibility and traffic
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Site Selection and Layout Planning
Service/Wholesale
Business Considerations
Service and wholesale businesses have similar
needs to those of retail businesses.
However, many service and wholesale
businesses do not have customers coming to
their business sites and do not need expensive,
high-profile locations.
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Site Selection and Layout Planning
Manufacturing/Extraction
Business Considerations
Manufacturing/extraction businesses need to be
accessible to sources of supply and transportation
and are subject to local zoning laws.
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Site Selection and Layout Planning
Manufacturing/Extraction
Business Considerations
An industrial park is
usually located close to
major transportation
routes.
Section 9.1 Community and Site Selection
industrial park an area
set aside in a community
for industrial use
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Site Selection and Layout Planning
E-Business
Considerations
Location and space are not major considerations
for an e-business because electronic business
sites can be located almost anywhere and require
little space.
However, larger operations need more space for
equipment, personnel, and shipping.
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Site Selection and Layout Planning
Locating Potential Sites
There are a number of ways to locate potential
business sites.
Read the classified sections of newspapers.
Consult with realtors who specialize in business
properties.
Conduct visual surveys by driving through
prospective communities.
Network with personal or business contacts.
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Site Selection and Layout Planning
Site Analysis and
Decision Making
Once an entrepreneur identifies possible sites for a
business, he or she must consider three things
before making a decision:
the surrounding area
the building
the costs of buying, building, or leasing
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Site Selection and Layout Planning
Surrounding Area Analysis
Surrounding areas should be evaluated by the
same criteria used for site selection:
number and size of competing businesses
nature of the competition
character of the area
accessibility and traffic
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Site Selection and Layout Planning
Building Evaluation
The building must be large enough to take care of
present needs and to allow for expansion.
Check the building’s interior to see how it meets
your needs and the exterior’s construction,
soundness, appearance, and parking.
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Lease, Buy, or Build?
Leasing Advantages
No large
cash
outlay
Section 9.1 Community and Site Selection
Reduced
risk
Tax
deductibl
e lease
expenses
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Site Selection and Layout Planning
Making Your Decision
For each of the possible sites, compare these
variables:
cost
advantages and disadvantages
desirability
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Site Selection and Layout Planning
Alternative Sites
Two sites that do not fit the
traditional mold are the
home-based business and
the incubator.
Section 9.1 Community and Site Selection
incubator an enterprise
that is set up to provide
flexible and affordable
leases, office space,
equipment, management
assistance, mentoring
assistance, and access
to financing for new
businesses
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Site Selection and Layout Planning
9.1
1. List the factors involved in deciding on a
community in which to locate a business.
Factors to consider include the community’s
economic base, financial incentives, population
makeup, and labor supply.
Section 9.1 Community and Site Selection
29
Site Selection and Layout Planning
9.1
2. Identify the factors to consider when
selecting a business site.
Factors to consider when selecting a business
site vary with the type of business. For example,
a retail store needs to be accessible to
customers; an extraction business must be near
the product it is extracting.
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
9.1
3. Describe the resources that can be used in
finding potential business sites.
A number of resources can be used to find
potential business sites: newspapers, realtors,
the Internet, visual surveys, and personal or
business contacts.
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Site Selection and Layout Planning
9.1
4. Explain the steps involved in analyzing
potential sites for a business and choosing
between those sites.
An analysis of potential business sites needs to be done in three
areas: Surrounding area analysis is based on site area
considerations for the type of business. Building evaluation
includes both the interior and exterior. Deciding whether to lease,
buy, or build involves analyzing the three options for the site.
Choosing between the sites would involve a comparison on the
basis of cost, advantages and disadvantages, and desirability.
Section 9.1 Community and Site Selection
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Site Selection and Layout Planning
9.1
5. Describe the advantages of starting a
business at home or in an incubator.
The main advantage of starting a business at home is
financial due to lower rent and less taxes. Advantages of
starting a business in an incubator are lower rent,
shared secretarial and administrative services, and the
availability of business development services.
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Site Selection and Layout Planning
9.2
List the steps in layout planning that are
common to all businesses.
Describe the layout needs for each type of
business.
Discuss the final details of layout planning.
Section 9.2 Layout Planning
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Site Selection and Layout Planning
9.2
The steps in layout planning apply to all types of
businesses.
However, development of a facility layout is based
on the operational needs of the business.
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Site Selection and Layout Planning
9.2
layout
workstation
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façade
appointments
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Site Selection and Layout Planning
Physical Layout
A well-planned layout can
mean a more efficient
operation, a more
appealing sales floor, and
greater customer
convenience.
Section 9.2 Layout Planning
layout a floor plan or
map that shows the
interior and exterior
arrangement of a
business, including such
items as display cases,
lighting fixtures, traffic
patterns, landscaping,
and parking spaces
37
Physical Layout
Six Steps in Layout Planning
1
Define the objectives of the facility.
2
Identify the primary and supporting activities that will take place.
3
Determine access, arrangement, and flow among the activities.
4
Determine space requirements for all activities.
5
Design alternative layouts for the facility.
6
Evaluate the various layouts and choose one.
Section 9.2 Layout Planning
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Site Selection and Layout Planning
Layout Needs and
Possibilities
Although the steps in layout planning are the same
for all businesses, the options and considerations
are not.
Different types of businesses have different
operational needs.
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Manufacturing Businesses
production
processes
production
sequence
Layout
space
Considerations for
requirements Manufacturing
Businesses
environmental
needs
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materials
flow
control
40
Manufacturing Businesses
Types of Manufacturing Layouts
product
layout
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fixed-product
layout
process
layout
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Site Selection and Layout Planning
Manufacturing Businesses
In a product layout, all
machines and supporting
activities are arranged
along a product flow line.
workstation an area
in a business with
equipment for a single
worker
As products come down the
line, something is done to
them at each workstation.
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Retail Businesses
products to
be sold
aisle
exposure
Retail Layout
Considerations
product
coordination
Section 9.2 Layout Planning
projected
clientele
sales per
square foot
of selling
space
sales value of
area within
store
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Site Selection and Layout Planning
Wholesale Businesses
When planning the layout of a wholesale business,
storage and space utilization are the most import
considerations.
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Site Selection and Layout Planning
Wholesale Businesses
When planning for storage, follow these
guidelines:
Store popular items near shipping points.
Store items together that were received
together and will be shipped together.
Provide a wide variety of storage space.
Assign storage space on the basis of handling
ease and popularity.
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Site Selection and Layout Planning
Wholesale Businesses
Most wholesale businesses are located in singlestory buildings, which makes controlling and
moving stock easy.
Receiving, storage, order assembly, and shipping
areas should be arranged so goods can be moved
through them quickly and easily.
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Site Selection and Layout Planning
Service Businesses
The physical layout of a service business depends
largely on the specific service it provides.
There is no prescribed set of guidelines or
patterns for these enterprises.
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Site Selection and Layout Planning
Extraction Businesses
Like service businesses, extraction firms have
unique layouts.
They share a few common features: an office
area, storage areas for equipment and supplies,
and the extraction business site itself.
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Site Selection and Layout Planning
E-Businesses
The layout of an e-business depends on its site
and its operations.
If the e-business ships products, storage and
shipping areas are needed.
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Site Selection and Layout Planning
Finishing Touches
Once a business owner
chooses a particular layout,
he or she can begin planning
the finishing touches.
facade the face or
front of a building
Such details include planning
interior design features, as
well as alterations or
improvements to the facade.
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Site Selection and Layout Planning
Planning for Office Space
You have two options to consider when planning
office space:
open office layout: best if cost, space,
employee supervision, or access to files and
equipment are important
closed office layout: if privacy and noise
reduction are of primary concern
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Site Selection and Layout Planning
Planning for Office Space
You can define the traffic
patterns of an office space
with appointments.
Section 9.2 Layout Planning
appointments the
furniture, equipment,
and accessories
contained in a building
52
Site Selection and Layout Planning
9.2
1. List the steps in layout planning that are
common to all businesses.
(1) Define the objectives of the facility. (2) Identify the primary
and supporting activities that will take place in the facility. (3)
Determine the interrelationship—access, arrangement, and
flow—between activities. (4) Determine the space
requirements for all activities. (5) Design alternative layouts for
the facility. (6) Evaluate the various layouts and choose one.
Section 9.2 Layout Planning
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Site Selection and Layout Planning
9.2
2. Describe the layout needs for each type of
business.
Layout needs differ for each type of business.
Considerations for manufacturing, retail,
wholesale, service, and extraction businesses
and for e-businesses are described in the
second section of the chapter.
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Site Selection and Layout Planning
9.2
3. Discuss the final details of layout planning.
Final details of layout planning include determining
office space and space for equipment, furnishings,
and supplies as well as planning for interior design
features and alterations or improvements to the
face of the building.
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Site Selection and Layout Planning
The Components of
an Effective E-Commerce Site
The Internet has developed into an enormous consumer
network with many e-commerce sites.
A successful e-commerce site incorporates good content
and design, offers credit card processing, and has a security
certificate.
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Site Selection and Layout Planning
Tech Terms
payment gateway
software that automatically processes credit-card information so that it
does not have to be manually typed in
real-time transaction
a process that instantly transfers funds from buyer to seller
Section 9.2 Layout Planning
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Site Selection and Layout Planning
Tech Terms
security certificate
a credential issued by a third-party company that assures the user that
all transactions made on a Web site are private and safe
sticky content
the information and features on a Web site that gives users a
compelling reason to visit it
Section 9.2 Layout Planning
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End of
Site Selection
and Layout
Planning
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