Data Tech, Inc. 2 Determine whether Jeff should give greater priority to a smaller facility with possibility of expansion or more into a larger facility immediately.
According to Sliwinski and Gabryelczyk, facility management is a customer-oriented
complete service, covering the comprehensive decision-making principles for optimum
planning, usage and adaption of buildings, their installations, premises, and services reinforced
by information systems supporting company management in a strategic manner and with regard to each job participating
in the core process (Sliwinski & Gabryelczyk, 2010). Jeff should be looking at facilities management in order to
decide which facility would be the most sensible choice. This type of management looks at each component necessary in
choosing the proper facility for one’s business. In the business engineering architecture for both the organization and the
FM area, processes link strategy to information systems, constituting a central element of the architecture (Sliwinski &
Gabryelczyk, 2010). Jeff has only acquired two new clients, which adds to a total of only four clients. His strategy should
include forecasting based on the four clients that he already has. He should look at the amount of time it took to obtain the
third and fourth client and weight it with time it took for him to get the first two clients. After he has ascertained that
information, he can them work that into the facilities management process.
Examining the profitability of a smaller facility to a larger one will help with determining the expansion rate Jeff should
take. According to the case study of Data Tech, Inc., if Jeff moves into a larger facility he has a profitability of $1,000,000 if
the demand is high and a profitability of $600,000 if demand is low. If he moves into a smaller facility with a low demand,
he has a profitability of $600,000. If Jeff moves into the small facility with the opportunity to expand, and
Data Tech, Inc 3
he will be looking at a profitability of $800,000 with a high demand, and he would still have a profitability of $500,000 with
a low demand (Reid & Sanders, 2010). In order to save resources that are not currently needed and to cut down on
waste, it may be more economical to decide on the smaller facility with the possibility of expanding.
Determine weights for the two capacity factors based on your finding above and discuss how you concluded these were appropriate weights.
There are only 30 points to allocate and the potential factor should receive 20 points. This amount of points seems more
practical because the potential merits expand a business. When a company has the potential to expand and still maintain
its profitability, the business would be more advantageous to select a location based on potential when profitability can
remain high. For excess capacity, the weighted points should be 10 because excess capacity for any amount of time is
wasteful. Proper forecasting should alleviate any waste within a company’s facility. It is a waste of finite sources that
company owners cannot afford to lose. Jeff will maintain profitability if he chooses the potential expansion factor over
excess capacity. Anything in excess can lead to a loss in profitability.
Once you have selected the factors for the two capacity alternatives, use factor rating to select a new location for Data Tech
After computing the factor rating for each factor it would seem that location three would be the best choice. It has a
weighted score of 410 points, which is a much higher score than the other locations. Location one has...
References: Reid, D.R. & Sanders, N.R. (2010). Operations Management: An integrated approach.
(4th edition). Hoboken, NJ: John Wiley & Sons, Inc.
Sliwinski, B. & Gabryelczyk, R. (2010). Facility Management Process Architecture
Framework. Journal of Internet Banking and Commerce.
Weitzner, W.M. (2006). Five Facility Planning Mistakes and How to Avoid Them.
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