Facilities Planning and Design: Where Every Step Costs Money
Where to build and how to arrange it: site selection, layout types, systematic layout planning, flow analysis, layout algorithms, material handling, storage and manufacturing cells.
Try 3 questions
1. In the factor-rating method for choosing a plant site, how is each candidate site compared?
- By the price of the land alone
- By its distance to the nearest capital city
- By a weighted sum of scores on key factors
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Answer: By a weighted sum of scores on key factors
Planners pick factors such as labor, transport and utilities, weight them by importance and add up each site's weighted scores.
2. What is a key weakness of the factor-rating method for site selection?
- Weights and scores are subjective judgments
- It ignores all qualitative factors entirely
- It can only compare two sites at once
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Answer: Weights and scores are subjective judgments
Different planners can assign different weights and scores, so the ranking may reflect opinions as much as facts.
3. In locational break-even analysis, a site with high fixed costs but low variable costs is best when?
- At high production volumes
- At low production volumes
- At any volume equally
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Answer: At high production volumes
Low variable cost per unit only pays back the higher fixed cost once enough units are produced.
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