The Importance Of Determining A Seed Location

The location of a plant or center is the geographical positioning of any operation in accordance with the suggestions resources and other functions or customers with which it interacts. Andrew Greasly (2003) discovered three main reasons why a location decision is required. The first reason is that a new company has been created and needs a facility to make products or deliver something to its customers. The second reason is that there is a decision to relocate a preexisting business anticipated to a number of factors like the need for bigger premises or even to be nearer to a specific customer base. The third reason is relocate into new premises to be able to expand functions.

Decisions in relation to where an organisation can locate its seed or facility aren't taken often, nonetheless they still have a tendency to be very important for the firm's profitability and long-term success. An organisation which selects an unacceptable location because of its premises could have problems with a number of factors, and would find it difficult and expensive to relocate. Location decisions tend to be taken more regularly for service procedures than processing facilities. Facilities for service related companies are usually smaller in size, less expensive, and are situated in a spot that is convenient and easily accessible to customers (Russell and Taylor, 2003). When deciding where to locate a manufacturing facility different reasons apply, like the cost of making a plant or factory. Even though the most imporant factor for a service related business is usage of customers, a set of different criteria are essential for a manufacturing facility (Russell and Taylor, 2003). Included in these are the nature of the work force, proximity to suppliers and other marketplaces, distribution and vehicles costs, the option of energy and its cost, community infrastructure, federal government regualtions and fees, among others (Russell and Taylor, 2003).

Location Strategy

The facilities location problem is one of major importance in every types of business. It's important to notice the various issues that may come up whilst looking to choose the right location. Normally, the decision on siting proceeds in two levels: in the first, the overall area is chosen; and then a detailed survey of that area is carried out to find suitable sites where the plant or center could be located (Muhlemann, Oakland and Lockyer, 1992). However, the ultimate decision concerning where to locate a facility is made by taking under consideration more detailed requirements. The following are lots of factors which can influence the decision of location (Muhlemann, Oakland and Lockyer, 1992).

Proximity to advertise: organisations may decide to locate their facility near to their market, to have the ability to lower transport costs, & most importantly, to have the ability to provide their customers with a much better service. If the plant or center is located near to the customer, the company would be in a better position to provide just-in-time delivery, to react to fluctuations popular and to respond to field or service problems.

Availability of labour and skills: lots of geographical areas have traditional skills but it's very difficult for an organisation to find a location which has the correct skilled and unskilled labour, both readily available and in the desired quantities. Even so, new skills can be tought, techniques simplified and key personnel moved from one area to some other.

Availability of amenities: organisations would like to find their facilities in a location which gives good external amenities such as real estate, outlets, community services and communication systems.

Availability of inputs: a spot which is near main suppliers will reduce cost and allow personnel to meet suppliers easily to go over quality, complex or delivery problems, amongst others. Additionally it is important that certain supplies which are expensive or difficult to procure by transfer should be readily available in the locality.

Availability of services: there are six main services which have to be considered whilst a location is being chosen namely; gas and electricity, water, drainage, removal of waste material and marketing communications. An examination must be made of the requirements for these, and a spot which gives most or many of these services could be more attractive than another which will not.

Room for expansion: organisations should leave room for growth within the chosen location unless permanent forecast express very accurately that the plant will never have to be altered or extended. This is not the case and thus adequate room for extension should be allowed.

Safety requirements: certain development and manufacturing models may present potential risks to the encompassing neighbourhood. For instance certain plants such as nuclear ability stations and chemical factories should be situated in remote control areas.

Site cost: the price of the site is an essential factor, however it is necessary to prevent immediate benefit from jeopardising the long-term strategies of an organisation.

Political, ethnical and monetary situation: additionally it is important to consider the politics situation of potential locations. Whether or not other considerations demand a specific site, understanding of the political, social and economic problems can assist in going for a quantity of decisions.

Special grants, local taxes and transfer/export barriers: it is often advantegous for an company to develop its plant or service in a spot where the government and local authorities often offer special grants, low-interest lending options, low rentals or taxes and other grants.

Location Selection Techniques

The location selection process consists of the id of the right region/country, the indentification of an appropriate area within that region and finally comparing and choosing the site from that area which is suitable for an organisation. Listed below are lots of analytical techniques from the number of which have been developed to aid firms when choosing a spot.

Weighted Score

The weithed credit scoring technique will try to take a range of things to consider into account, including cost (Greasly, 2006). This technique, which is also referred to as 'factor score', includes determining a set of factors that are relevant to the location decision. Each factor is then given a weighting that conveys its importance compared with the other factors. Each location is then have scored on each factor and this score is multiplied by the factor value. The alternative with the best credit score is then chosen (Greasly, 2006).

Locational Break-Even Analysis

This technique employs cost-volume examination to make an economical comparability of location alternatives. An organisation would need to identify the fixed and changing costs and graphing them for every location, thus identifying which one provides the lowest cost. Locational break-even evaluation may be completed mathematically or graphically. The procedure for graphical cost-volume analysis is as uses (Falzon, 2009)

Determine the fixed and changing costs for every location.

Plot the full total cost (i. e. the fixed + the changing) lines for the positioning alternatives on the graph.

Choose the location with the cheapest total cost range at the expected development volume level level.

2. 1. 2 Plant Layout

According to Andrew Greasly (2007), the structure of a seed or facility can be involved with the physical placement of resources such as equipment and storage facilities, that ought to be designed to facilitate the reliable flow of customers or materials through the manufacturing or service system. He also noted that the design design is vital and should be taken very seriously as it can have a significant impact on the price and efficiency of your operation and can require substantial investment in time and money. The decisions considered based on the facility layout will have a direct influence how efficiently workers can carry out their jobs, how much and exactly how fast goods can be produced, how difficult it is to automate something, and how the system set up can respond to any changes with regards to service or product design, product combination, or demand volume level (Russell and Taylor, 2003).

In many businesses installing a new structure, or redesign of an existing design, can be difficult to improve once they are implemented because of the significant investment required on items such as equipment. Therefore, it is crucial to ensure that the insurance plan decisions associated with the company, method and work stream are made prior to the facilities are laid out rather than hoping to match these three in to the layout. That is an important area of production and procedures management since it is working with the capital equipment of the company which, generally, is difficult to relocate once it's been placed into position.

Muhlemann, Oakland and Lockyer (1992) discussed that the plant layout process is rather complex, "which can't be place down with any finality, and one in which experience plays a great part". The author also explained that it is impossible for an company to design the perfect design, however he talked about a number of criteria which should be followed to create a good layout, namely the next:

Maximum Flexibility

A good structure should be designed so that adjustments could rapidly take destination to meet changing circumstances, and so should be devised with the possible future needs of the procedure at heart.

Maximum Co-ordination

The layout should be designed so that access into, and removal from, any department or efficient area should be completed in the most convenient way to the issuing and recieving departments.

Maximum use of volume

The facility is highly recommended as cubic devices and maximum use is usually to be made of the quantity available. This basic principle is useful in stores, where goods can be stored at significant heights without leading to any trouble.

Maximum visibility

The authors further insists that the employees and materials should be commonly observable at all times and that there should be no invisible places into which goods or information could easily get misplaced and overlooked. Organisations should be cautious when they utilize partitioning or screening as these may present unwanted segregation which reduces the effective use of floor space.

Maximum accessibility

The equipment, equipment and other installations shouldn't in any way obstruct the servicing and maintenance points, which should be commonly accessible all the time. Obstructing certain service points such as electricity and drinking water mains could hinder the creation process in place.

Minimum distance and Material handling

All movements taking place within the seed should be both necessary and immediate. Handling work does add the cost but will not boost the value, thus any unecessary motion should be prevented in case present, eliminated. It's best not to deal with the materials and information, however if this is essential it ought to be reduced to a minimum by using appropriate devices.

Inherent Safety

All processes which can constitute a risk to either the staff or customers should not be accessible to the unauthorised. Flame prevails should be evidently proclaimed with uninhibited gain access to and pathways should be obviously described and uncluttered.

Unidirectional Flow

All materials which can be being found in the creation process should always flow in a single direction, starting from the storage, transferring through all operations and facilities, and lastly leading to the done product which is later dispatched for storage area or sold right to the customer.

Management Coordination

Supervision and communication should be assisted by the positioning of personnel and communication equipment in place within the chosen layout.

2. 2 Quality Management

There is a widespread popularity that organisations view quality as an important tactical primary competence and a essential competitive weapon that ought to be used to get a competitive gain at the trouble of competitors. Several organisations have been able to reep a number of benefits, such as substanstial cost savings and higher income, after implementing an excellent improvement process to their operations. Consequently, this led them to invest substantial levels of money yearly on applying and sustaining quality programs and intiatives.

The American National Standards Organization (ANSI) and the North american Society for Quality Control (ASQC) define quality as "the totality of features and characteristics of a product or service that bears on its capacity to satisfy given needs". Similarily, Feigenbaum (2005), who is an American quality control expert, has defined quality as "the full total amalgamated product and service characteristics of marketing, executive, make, and maintenance through which the merchandise and service used will meet up with the expectation by the client". Quite simply, this identifies an organisation's capability to manufacture something or deliver a service which meet the customers' requirements and needs, and which comply with specifications.

Muhlemann, Oakland and Lockyer, authors of Creation and Businesses Management (1992), mentioned that organisations must be dedicated to the continous improvement of quality and must use systematic control systems that are designed to prevent the production or delivery of products which do not comply with requirements. To assist in this process, organisations should first create a quality insurance policy statement which explains their basic quality orientation and which is used to aid as a framework to use it. Once create, top management would be asked to

ensure that is it understood whatsoever levels of the organisation;

identify the needs of the organisation's customers;

evaluate the organisation's capacity to meet these needs;

make sure all the materials and services supplied fit the mandatory benchmarks of efficiency and performance;

continously coach the workforce for quality improvement;

assess and screen the quality management systems set up.

2. 2. 1 Quality Control and Guarantee in the Conversion Process

Ray Crazy (2002) has known that the capability of the change process directly affects the amount to that your product or service conforms to the given standards. If the change process is capable of producing products at the specific level, then the products or services are provided at the required quality level. Once the standards of the result is well known and a proper process is offered, management must be sure that the end result will comply with the specification. To be able to achieve this objective Ray Crazy (2002) has identified three different phases which are defined in number 2. 1; each discussed below.

Figure 2. : The phases, processes and methods of quality control and assurance

Essentials of Operations Management by Ray Wild (2002)

Control of Inputs

Before agreeing to any items as inputs, organisations must make sure that they comply with the required technical specs and criteria. Normally, before items are offered to an company, they are put through some type of quality control by the dealer. The organisation may also ask its suppliers for information about the grade of the items whilst they may be being prepared, ask for a duplicate of the ultimate inspection paperwork, or ask an authorized such as an insurance company to make sure that all the things supplied conform to the mandatory quality benchmarks.

Even so, organisations still find the need to inspect the things supplied after they are recieved and before they are really inserted in to the alteration process. This inspection can be executed by either inspecting every item recieved from suppliers, or by making use of the approval sampling technique, which includes taking a random sample from a larger batch or whole lot of material to be inspected. Organisations might also use the vendor ranking method whereby suppliers are ranked by taking into account a number of quality related factors like the percentage of acceptable items recieved before, the grade of the product packaging, and the price.

Control of Process

All production organisations must ensure that appropriate inspection is carried out during operations to ensure that faulty items do not check out the next operations, and also to predict when the process is most likely to create faulty items so that precautionary alterations could be used (Ray Outdoors 2002). The quality control of the production process is facilitated by using control charts, which convey whether the process looks as though it is undertaking as it should, or alternatively if it's going out of control. Among the benefits of this procedure is that it can help management to take action before problems actually take place. Ray Wild (2002) also notes that organisations should establish procedures for the selection and inspection of goods that are being used in the change process, for the taking and analysis of data, scrapping of defectives, as well as for opinions of information.

Control of Outputs

Organisations must ensure that the qulity inspection of end result items is completed effectively since any undetected faulty items would be passed on to the customer. The inspection of result items is generally carried out by making use of a sampling process, such as acceptance sampling, or by undertaking exhaustive investigations. Ray Wild (2002) notes that it's vital for an company to have set up suitable procedures created for the collection and retention of inspection data, for the correction, replacing or further study of defective items, as well as for the adjustment or adjustment of either prior inspection or handling operations in order to eliminate the creation of defective items.

2. 2. 2 HACCP

Nowadays, the food industry is in charge of producing safe products and also for conveying in a translucent manner the way the safeness of food is being planned, handled and assured. In order to do so, organisations in the meals industry desire a system that may ensure that food procedures are designed to be safe and that potential dangers are taken into account (Mitchell, 1992). One such system is the Threat Evaluation of Critical Control Details which really is a scientific and organized method used to make sure food safe practices, and a tool for the development, implementation and management of effective protection assurance strategies (Ropkins and Beck, 2000). The HACCP is known to be one of the better methods used for guaranteeing product safeness and is recognized as a prerequisite for food manufacturing companies who want to export their products into international market segments.

The aim of the HACCP system is to guarantee that the safe development of food by utilizing an excellent system which protects the entire food production string, from the promary sector up to the final consuming of the product (Fai Pun and Bhairo-Beekhoo, 2007). It really is with the capacity of analysing the potential risks in a food procedure, identifying the details in the procedure where the hazards might take place, and deciding which of these may be harmful to consumers (Mitchell, 2002). These factors, which are known as the critical control details, are continously watched and remedial action is effected if any of these points are not within safe restrictions. The HACCP is the system of choice in the management of food security; one which is highly advertised by the meals safety authorities in america, Canada and European Union.

2. 3 Just-In-Time Scheduling

2. 3. 1 Scheduling in Manufacturing

Decision making with regards to scheduling has turned into a very important factor in processing as well as in service industries. Arranging is a decision making process whereby limited resources are assigned to specific tasks as time passes in order to create the required outputs at the desired time (Psarras and Ergazakis, 2003). This process helps organisations to allocate their resources properly, which would further enable these to optimise their objectives and achieve their goals. Several functions, conveyed in shape 2. 2, must be performed whilst scheduling and handling a production operation.

Figure 2. : Functions performed in arranging and managing a development operation

Adopted from the journal, Production scheduling in ERP systems, by Psarras & Ergazakis (2003)

In creation systems, arranging is highly reliant on the quantity and variety mix of the production system itself. Mass process-type systems, which normally use a flow (product) layout in which a standard item is produced in high volumes, employ specialised equipment focused on achieve an best movement of work throughout the system (Greasly, 2006). Greasly records that this is very important since all items follow the same series of operations. Among the main objectives of any stream system is to make certain that development is held at an equal rate in each creation that takes place. This could be ensured by using the line controlling technique, making sure the output of every production level is equal and that all resources all totally utilised (Greasly, 2006).

2. 3. 2 Just-In-Time

The Just-In-Time Philosophy

The just-in-time philosophy originated from the Japanese auto manufacturer Toyota after Taiichi Ohno came up with the Toyota Production System whose purpose was to interface developing more tightly with the business's customers and suppliers. This specific philosophy is an approach to production which looks for to provide the right amount of materials when it is required, which leads to the reduction of work-in-progress inventories and goals to maximise efficiency within the production process (Singh and Brar, 1991). The authors, Slack, Chambers and Johnston, of Functions Management (2001) described the JIT philosophy as "a disciplined approach to improving overall efficiency and elimination of waste". They also state that it "offers the necessary quantity of parts at the right quality, at the right time and place, while by using a minimum amount of facilities, equipment, materials and human resources". Thus, put simply the JIT system of production is one predicated on the viewpoint of total removal of throw away, which seeks the utmost rationality in the manner production is carried out.

Bicheno (1991) further states that "JIT is designed to meet demand instantaneously, with perfect quality and no waste". In order to accomplish that, an organisation takes a whole new methodology in how it operates. Harrison (1992) determined three important issues as the center of JIT idea, namely the eradication of throw away, the involvement of everyone and continous improvement. The next is a short description of the three key issues (adapted from Procedures Management by Andrew Greasly, 2006).

Eliminate Waste

Waste may be defined as any activity which will not add value to the procedure. Ohno (1995) and Toyota have discovered seven types of waste material, which apply in many different types of operations, in both production and service establishments. All of these kind of wastes are viewed in number 2. 3 below.

The participation of everyone

Organisations that put into action a JIT system are able to create a fresh culture where all employees are encouraged to continously improve by coming up with ideas for advancements and by undertaking a range of functions. In order to involve employees as much as possible, organisations would need to provide training to personnel in an array of areas and techniques, such as Statistical Process Control and much more general problem solving techniques (Andrew Greasley 2002).

Figure 2. : Types of wastes present in various types of operations

Operations Management by Andrew Greasly (2002)

Continuous Improvement

Slack and Johnston (2001) note that JIT objectives are often expressed as ideals. Futhermore, Greasly (2002) areas that through this school of thought, organisations can get to these ideals of JIT by a continuous stream of improvements as time passes.

The Great things about Just-In-Time

According to Russell and Taylor (2003), after fives years from applying JIT a number of U. S. manufacturers were able to reap the benefits of 90 percent reductions in processing circuit time, 70 percent reductions in inventory, 50 percent reductions in labour costs, and 80 percent reductions in space requirements. These results are not achieved by each and every organisation that implements a JIT system, however JIT does indeed provide a variety of benefits, including

Reduced inventory

Improved quality

Lower costs

Reduced space requirements

Shorter lead time

Increased productivity

Greater flexibility

Better relations with suppliers

Simplified arranging and control activities

Better use of individual resources

Increased capacity

More product variety

2. 4 Health and Safety Management

The International Labour Company (ILO) and the earth Health Organisation (WHO) define occupational health as "the campaign and maintenance of the highest degree of physical, mental and cultural well-being of staff in all occupations; the prevention amongst staff of departures from health triggered by their working conditions; the safeguard of workers in their job from risks caused by factors adverse to health; and the placing and maintenance of the worker in an occupational environment designed to his physiological and subconscious capabilities".

Many countries have released legislation which requires employers to manage the health and safe practices of their employees, and others who might be influenced (Waring, 1996). To honour health and basic safety legislation, organisations have found it essential to introduce active programs of accident prevention. The planning of an adequately though-out health insurance and safety policy, which is continously watched, could dramatically reduce or eliminate incidents and damage to health (Muhlemann, Oakland and Lockyer, 1992).

2. 4. 1 Obligations for Safety

All employees in an company should be effective in creating and maintaining healthy and safe working conditions which can be aimed to avoid crashes. Once a health insurance and safety policy is established in an company, roles and duties should be allocated within the management structure (Muhlemann, Oakland and Lockyer, 1992). As with other areas such as quality and production within an company, health and basic safety would only have the ability to progress effectively if all employees are completely co-operative and determined in doing so. Several organisations have motivated this 'total engagement' by creating protection representitives, committees, and group discussions whereby all employees in a particular unit meet routinely for conversations about safe practices (Muhlemann, Oakland and Lockyer, 1992).

2. 4. 2 Planning Safety

Systematic planning must ensure effective planning health and safety in all workplaces. A health and safety insurance policy should be part of a continous review process which has no tolerance for accidents. This could only happen if the company in question adopts a technique of never-ending improvement (Muhlemann, Oakland and Lockyer, 1992). It will set the world from the most notable with regards to top management values, intentions, priorities and need from managers and workforce (Waring, 1996). The overall plan should consist of the basic elements conveyed in shape 2. 4 below.

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