Production and Operation Management Essay

Words: 882
Pages: 4
Open Document
Being in the right location is a key ingredient in a business's success. If a company selects the wrong location, it may have adequate access to customers, workers, transportation, materials, and so on. Consequently, location often plays a significant role in a company's profit and overall success. A location strategy is a plan for obtaining the optimal location for a company by identifying company needs and objectives, and searching for locations with offerings that are compatible with these needs and objectives. Generally, this means the firm will attempt to maximize opportunity while minimizing costs and risks.
A company's location strategy should conform with, and be part of, its overall corporate strategy. Hence, if a company strives …show more content…
Based on these considerations, companies are able to choose a site that will best serve their needs and help them achieve their goals.
COMPANY REQUIREMENTS
The initial part of developing a location strategy is determining what a company will require of its locations. These needs then serve as some of the primary criteria a company uses to evaluate different options. Some of the basic requirements a company must consider are: * Size. A company must determine what size property or facility it needs. * Traffic. If it is in the service business, a company must obtain statistics on the amount of traffic or the number of pedestrians that pass by a prospective location each day. * Population. Whether a service or manufacturing operation, a company must examine the population of prospective locations to ensure that there is a sufficient number of potential customers (if a service business) or a sufficient number of skilled or trainable workers. In addition, manufacturers also benefit from being close to their customers, because proximity to customers reduces shipment time and increases company responsiveness to customers. * Total costs. Companies must determine the maximum total costs they are willing to pay for a new location. Total costs include distribution, land, labor, taxes, utilities, and construction costs. More obscure costs also should be considered, such as transportation costs to ship materials and supplies, and the loss of customer
Show More

Related Documents: Production and Operation Management Essay

Management and Production Essay

Chapter 6 operations management functions Operation management- management of resources to achieve efficient output of goods and services Capacity planning- operations decision concerned with the quantity of goods or services to be produced Capacity- volume or potential ability to produce a certain amount of product Operations- a series of procedures and processes undertaken in order to create outputs Outputs- transformed inputs that are returned to the external environment as products…

Words 2370 - Pages 10

The Importance Of Operations Management

Lecture 1 Value Chain: Factors of Production => Organize Human Resources  Operations ManagementManagement Information Systems Marketing Accounting Finance => $$$$$$$$$ Operations: The process of turning factors of production into saleable goods and services. Transforming things Fabrication, Assembly, Chemical , Transportation Production implies that we make products. Products are tangible goods. Capacity Planning; forecast likely demand, are the facilities (shop…

Words 728 - Pages 3

Student notes week 1 Essays

and structure Topic    1 Operations The role of operations management Influences on operations management Operations strategies: Business Planning Topic     2 Marketing The role of marketing. What is marketing? Influences on marketing Marketing Process Marketing strategies Part of the Navitas Group Introduction Course content and structure Topic    3 Finance The role of financial management Influences on financial management Process of financial management • Monitoring and controlling…

Words 721 - Pages 3

supply chain Essay

wordpress.com/2011/07/08/week-10-lean-operations/ The approach that is taken to Lean Operations this week is that it is a philosophy of management that will influence how operations take place across the organisation. It will influence the way that work is organised and the way that people are managed.This posting discusses lean as a philosophy and the involvement of people in lean operations. It explains how a pull system works and the key concepts in the Toyota Production System. It examines the attributes…

Words 1892 - Pages 8

Essay on Chapter 11 Achieving World Class Oper

Chapter 11 - Achieving World-Class Operations Management 1. Describe with examples, the types of decisions involved in production and operations management. Market production – product or service which is intended for sale at a money- price in a market Public Production- Household production – that they purchase but from commodities they transform into good through a house hold production Operations management Marketing ( manages Customers ) Operations ( Manages Creation of good and services…

Words 1189 - Pages 5

Essay about Supply Chain Management Study Questions

Chapter 1 Introduction to Operations and Supply Chain Management TRUE/FALSE 1. Every organization has an operations function. Answer: True Reference: Why Study Operations and Supply Chain Management? Difficulty: Easy Keywords: organization, operations, function 2. Most organizations function as part of a larger supply chain. Answer: True Reference: Why Study Operations and Supply Chain Management? Difficulty: Easy Keywords: organization, supply, chain, supply…

Words 2692 - Pages 11

Essay on Managing Operations Chapter 1

Audrey Pond BA 339 - Crawford STUDY OUTLINE FOR CHAPTER 1 INTRODUCTION TO MANAGING OPERATIONS ACROSS THE SUPPLY CHAIN 1. Describe the operational strategies that give Apple a competitive advantage. Apple capitalizes on volume and gets big discounts on parts, manufacturing capacity and air freight. They work closely with suppliers by sometimes living out of hotel rooms for months just to be close to suppliers and manufacturers to help tweak the industrial processes and tools that translate prototypes…

Words 1628 - Pages 7

operations notes Essay

OPERATIONS Role of operations management Strategic role of operations Operations management is an essential key business function that overlaps with the other business functions such as marketing, finance and human resources management. Strategic means ‘affecting all key business areas’; that is, the strategic role of operations management involves operations managers contributing to the strategic plan of the business. Some of the different costs in the operations function include; input costs…

Words 3840 - Pages 16

Manging operations Essay

Abstract Operations management can simply be defined as a system the transforms inputs by planning, controlling and scheduling products into valuable outcomes. It is also termed as a function that enables the organisation to perform in order to achieve its business goals (Russell 2011). The MH practice simulation tool provided an insight on connecting the operations management concepts to real world scenarios and to understand the role of operations in supply chain, human resource, sales and other…

Words 980 - Pages 4

Essay on resume 1

SCHOOL OPERATION DIRECTOR Topperforming, solutionsdriven manager with ten years experience managing complex business operations. Decisive and resultsoriented with outstanding leadership and crisis management. A skilled professional with the ability to make timely decisions that positively influence bottom line performance. An engaging, professional communicator with the ability to put others at ease, quickly building relationships based on mutual trust and benefit. CORE COMPENTENCIES Budget Planning…

Words 339 - Pages 2