Operations Management and Factor Rating - Assignment Example

Task Operations Management DQ Operations Management is a sector of management that deals with overseeing, scheming, and reforming operations in the manufacture of goods or services. The main responsibility of this sector is to ensure that facility operations are efficient in relation of exhausting as little resources as required, and effective in relation to meeting customer desires. Its utmost concern is management of the procedure that changes inputs into outputs. Moreover, it decides on the location of a new facility by considering all the criteria that should be put into consideration before setting it up. The place where to locate a facility, particularly a new one, is extremely beneficial. Furthermore, the place where a new facility is located illustrates the possibilities of your facility succeeding or not succeeding. My organization puts into considerations various criteria on deciding the location of a new facility. Customer criterion is one of the principles to reflect. The nature of your business determines the nature of your customers, for example, if a facility is a restaurant where many people gather, and busy high streets are the best location to place the restaurant (Bognanno, Keane, and Yang, 171). Employees’ criterion is considered, since for them, the best location is where there is accessibility of public transport and reliable local facilities. Suppliers’ criterion is considered since our facility depends heavily on supplies from other facilities. However, when locating the suitable place, for our facility, we consider expedient infrastructure links to ensure deliveries are quick and easy. Business competitors’ criterion is another factor we consider when placing a facility. Our organization ensures we deal with different products from our competitors, and we are not particularly near to them. However, sometimes if we have a competitor with a business rivaling our products we prefer being close to more customers. The criteria my organization considers are appropriate because our facilities have been appreciably successful. Our organization has been effective in choosing appropriate facility location by fully debating on each criterion, depending on the products we are intending to offer and the people we are intending to reach to come with the best locations. DQ1 Responses Strategically selecting a facility is exceptionally vital, as it is one of the major factors to consider when setting up a new facility. Advantages of strategically selecting a location of a facility are easy accessibly to the organization, customer influx in to the organization, easy and quick delivery of supplies and accessibility of good and decent local amenities and communal transport by employees. Advantages of strategically selecting a location for a facility are well demonstrated by the location of ideal Inland Ports. Spee and Wim demonstrate advantages of the location of the Ideal Island Ports as competent access to logistics services, infrastructure systems and consumer markets (34). Furthermore, its location has supported easy access to advanced transportations infrastructures. The previous ports that are in close vicinity with Inland Port were unsuccessful due to poor selection of a potential site (Spee and Wim, 38). The ports were unable to access convenient transportation, delayed supplies of goods, had poor logistics, the consumer market was undesirable, the employees could not access communal transport and decent facilities. These caused the Ports a lot of money to hire transport for the delivery of their supplies. In addition, due to poor communal transport and local amenities the company incurred extra cost in proving its employees with transport and facilities. The cost incurred by the company is decidedly vital, since if it is not incurred by the company it will lose its employees and its customers due to lack of accessibility to transportation. In addition, the delivery of supplies will become slow, difficult, poor, undesirable services would be offered, and poor logistics may lead to mismanagement of company’s recourses. DQ2 Factor Rating Systems is a technique used for selecting a location, since they analyze various factors in an easy, clearly manner. According to MacCarthy and Atthirawong, strategists repeatedly split valuation of potential sites into macro analysis and microanalysis (800). Factor rating system is one of the main macro analysis techniques. Macro analysis is part of location strategy that includes the assessment of different regions and populations to predetermine the merits of a potential site. Factor rating system merely involves a biased list of factors our organization puts into considerations the most vital and variety of values for each consideration (Chase, Aquilano, and Jacobs, 410). The considerations are overall factors of the rating system, which includes energy availability, laboravailability, transportation, supplies, taxes, regulations and infrastructure. Our organization rates each site with a value from the range based on the cost and benefits they offer by the substitute localities and multiply this value by the right weight. These numbers are then added up to acquire a total factor rating our organization then matches the total ratings of the alternative localities. This method allows our organization to select a location analytically grounded on the best. Based on these concerns, our organization is able to select a location that will best oblige our needs and enable us achieve our overallgoal. Factor rating system adheres to part of our overall organization strategy and our organization to become a worldwide lead in their profits. The technique of Factor Rating System qualifies our organization to select a locality analytically grounded on the best rating. DQ 2 Responses Factor Rating is an assessment of factors to consider when deciding on an appropriate location of a facility with a rate from the variety based on the costs and profits existing to the alternative sites (Vallabhaneni, 49). The values obtained from rating are multiplied by the appropriate weight and the values of all factors are then added to acquire an overall factor rating. This overall factor rating is tremendously important as the organization can use it to compare with the overall rating of the factors of alternatives locations. An appropriate site is a key element for a business success. Strategically selecting an appropriate location of a facility the factors to rates are accessibility to quick, easy transportation, respectable and decent amenities by the employees, energy availability, labor availability, supplies, taxes, and regulations. The factor rating assists the organization in selecting the best site since they acquire the best site by comparing all the alternative factors available on each factor. The factor rating should be necessary to all organization because if not considered in locating a site of a facility, the possibility of a facility failing are higher than of its success. Ideal Island Port is one of the well-known companies that used factor rating and they were successful. It is clear that from the successfulness of Ideal Island Port, the factor rating is a vital tool on selecting a strategic location of a facility. Therefore, factor rating is a key element for successful selection of a new facility. Conclusively, location frequently plays a pivotal role in an organization success (Spee and Wim, 33). A site strategy is a plan for acquiring the optimal site for a company essentials and aims. It is clear that factor rating systems is a radical tool of verifying the effectiveness of a suitable site of a facility. A successful organization will try to exploit an opportunity while reducing costs and risks. Works Cited Bognanno, Mario &, Keane, Michael and Yang, Donghoon. The Influence of Wages and Industrial Relations Environments on the Production Location Decisions of U.S. Multinational Corporations. Industrial & Labor Relations Review, 2005, Vol 58, Number 2. Chase, Richard & Aquilano, Nicholas and Jacobs, Robert. Operations management for Competitive advantage. McGraw-Hill, 2004. Pp 410-411. Print. McCarthy, B. and Atthirawong, W. Factors Affecting Location Decisions in International Operations. Chicago: International Journal of Operations and Production Management, 2003, Vol 23, issue 7. Spee, Roel, and Wim, Douw. Cost-Reduction Location Strategies. Journal of Corporate Real Estate, 2003, Vol. 6 Iss: 1, pp. 30 – 38. Vallabhaneni, Devi. What's Your MBA IQ?: A Manager's Career Development Tool. New York: John Wiley and Sons, 2009.   Read More