SERVICE OPERATIONS
MANAGEMENT
LOCATION
AND
FACILITY LAYOUT
,Learning Objectives
Upon completion of this lecture, students will
be able to:
• identify and explain the factors that
influence location strategies
• Identify the types of Facilities and Layouts
• design basic Service Process Layouts
,Factors affecting location of
premises:
• business policy
• objectives of the organisation
, Location and business policy
1. A business policy which requires speed or ease
of access of service to customers
2. A business policy that stresses efficient use of
resources. We should maximise existing
resources or make do with less.
3. A business policy that takes into account the
value chain approach
– will take the location of suppliers into
consideration and build their premises near the
supplier.
– Operations managers will want to be close to the
customers or close to the suppliers (raw
materials)
MANAGEMENT
LOCATION
AND
FACILITY LAYOUT
,Learning Objectives
Upon completion of this lecture, students will
be able to:
• identify and explain the factors that
influence location strategies
• Identify the types of Facilities and Layouts
• design basic Service Process Layouts
,Factors affecting location of
premises:
• business policy
• objectives of the organisation
, Location and business policy
1. A business policy which requires speed or ease
of access of service to customers
2. A business policy that stresses efficient use of
resources. We should maximise existing
resources or make do with less.
3. A business policy that takes into account the
value chain approach
– will take the location of suppliers into
consideration and build their premises near the
supplier.
– Operations managers will want to be close to the
customers or close to the suppliers (raw
materials)
