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Chapter 1:

Introduction
Dr. Rosario Rosas-Vega
IE 4355 : Facilities Design
Texas State University

Introduction



About 8% of Gross National Product (GNP) has been spent in new facilities in US.
Facilities planning has taken on a new meaning in today’s competitive global marketplace. 




In the past it was considered a science.
Today it is a strategy.

Formerly competing entities are now organized into supply chains to remain competitive. What is a Supply Chain?



Facilities must help an organization achieve supply chain excellence
The term comes from a picture of how organizations are linked together

What is a Supply Chain?




The network of facilities, functions, activities for producing & delivering product or service from supplier to customer.
Facilities:






Plants
Warehouses
Distribution centers
Service centers
Retail operations

https://www.youtube.com/watch?v=ElYNhGbOTOQ

http://mortonavewarehouse.com/about-us/

What is a Supply Chain?


Functions:










Forecasting demand
Selecting suppliers
Ordering materials
Inventory control
Scheduling production
Shipping & delivery
Information management
Quality management
Customer service

Facilities Planning Defined


Facilities must help achieve supply chain excellence: 








Business as usual: Individual excellence.
Link excellence: Function as one.
Visibility: Highlight the links.
Collaboration: Meet marketplace demands.
Synthesis: Unification of links.
Velocity: Synthesis at speed.

Proper facilities planning ensures that the product will follow the supply chain series buymake-move-store-sell to the satisfaction of the ultimate customer.

Importance of Manufacturing Facilities Design and Material Handling





Facilities planning is a complex and broad subject that cuts across several specialized disciplines (civil, electrical, industrial, mechanical, etc.)
Facilities planning determines how an activity’s tangible fixed assets best support achieving the

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