Analysis of Facility Relocation Strategies

ANALYSIS OF FACILITY RELOCATION STRATEGIES

THE CRITERIA FOR ANALYSING RELOCATION STRATEGIES IN THE NEW ECONOMY

Author: Tafadzwa Magejo, MSc MSOM (UZ), BTech (Hons) Prod Eng, GradZweIE
Softex Tissue Products 202 Seke rd graniteside Harare
Mobile: [phone] Tel: [phone] ext Email: [e-mail], [e-mail]

Abstract
This paper presents an analysis of facility relocation strategies. The stimulants of facility relocation (what gives birth to facility relocation strategies) are presented. The various considerations that Production or operations managers (P/OMs) should make when taking a strategy to relocate their facilities. The various tools used by the P/OMs are stated but not discussed. This is a foundational guide to analyzing relocation strategies. Facility relocation strategies are considered as those decisions made by P/OM to move an existing facility to a new area due to the various reasons that may stimulate that movement. The conclusion of this paper is that the analysis of facility relocation strategies is important for business success and as such P/OMs must take time to analyze these strategies.

1.0 Introduction

Fixed capacity planning (FCP) is the first long term question with which production management is faced . This planning needs to be done thoroughly from the start. Fixed capacity planning involves the following issues: Identifying a suitable location Determining the size of the productive facility Layout of the productive unit Occupational safety etc
The issue of location strategies becomes a continuous problem to be addressed at every strategy session, even after setting up the facility. This is because the stimulants or the basis for facility location analysis are dynamic and business perspective changes along the way as well. As shall be seen later business strategy and facility location are heavily intertwined that is a change in strategy may mean a change in location. [Radical

References: J Arangies, P Boks ( 1995): Production and Operations Management a Practical approach Turban (1992): An Investigation of factors influencing a relocation decision, ERIC D Perg (2003): Corporate Relocation Strategy for Capitalizing on the New Economy Knowledge Worker; the Crypto graphics Relocation. J Zidel (2005): Relocating/consolidating facilities, Ritcher Consulting Group [RCG] ERI DL (2003): Office Relocation, Factors you must consider when relocating an office or plant in the US or overseas Wisner(2005): Principles of supply chain management: A balanced approach S Owen (1998): Strategic Facility Location: A Review; European Journal of Operational Research M Daskin (1998): Stochastic, Deterministic and Static Models for Facilities Location, North Western University R Schmenner (1980) Choosing new Industrial Capacity: On site expansion, Branching and Relocation, Quarterly journal of Economics M.E Porter 1998) competitive Advantage, (New York, Simon Schuster) S Rosenhek(2005) :When the next move is critical, Ritcher Consulting Group [RCG] R Hayter (1997): The dynamics of Industrial location, New York, John Wisely and Sons. L.C Yaseen(1960): Plant location; New York, American Research Council R Linge (1991): Just in Time: More or Less Flexible, Economic Geography Wisner(2005): Principles of supply chain management: A balanced approach