Question

Write two page paper on the topics of process strategy, Location management and layout Strategies. For each topic define give an example and indicate the importance and total of 2 external references. Add your personal life experiences on topics of process, location and layout strategies.

Answer 1

Process Strategy

A process strategy is the approach of an organization in order to transform their resources into goods and services.

The main objective of a process strategy in an organization is to construct a production process that could favor its customer requirements and their product specification within the budgets, and other constraints.

The process which is selected will always have a long-term effect on the efficiency and flexibility of the cost, quality and production as well.

There are 3 principles in building a process strategy in an organization.

· The key to create a successful process strategy is to make choices that would fit the current situation.

· Individual processes are considered to be the building blocks that are eventually the factors which would manager the firm’s whole supply chain.

· The organization should pay close attention to all the interfaces between processes which exists in the supply chain.

There are four directions a manager can make out a process strategy

· Process focus- When the production capacity is designed to manage low volume and high variety.

Ex: Welding, grinding, and painting jobs in factory and in an office environment this process might involve accounts payable, sales, and also payroll

· Repetitive focus: The repetitive process is considered to be a product-oriented production process which typically uses modules. Modules are the parts or components of a previously manufactured, often in a continuous process.

Ex: Fast-food firms are the best example of the repetitive process which uses modules.

· Product focus: This involves the cases where there are high volume and low variety processes; also called as a continuous process.

Ex: The products such as light bulbs, beers and rolls of paper examples of this product process

· Mass customizations focus: This involves when there is a rapid and low-cost production that provides to the constantly changing customer desires

Ex: manufacturing of same pattern T-Shirts, car parts to be fit to a specific car engine

Location Strategy:

A location Management strategy is considered to be a plan to obtain the optimal location for an organization by identifying its objectives and needs. The search for the locations should always be compatible with these objectives and needs.

This location strategy should always conform with the overall corporate strategy. The executives and managers of a company often develops the location strategies, or they might hire consultants to undertake the task of developing a location strategy.

In order to figure out a location strategy for a company, the following factors must be considered,

 Facilities- Helps in determining the kind of space a company to develop its short-term and long-term goals.

 Feasibility. Helps in finding out the operating costs and other factors linked with different locations.

 Logistics- Logistics evaluation is considered as the appraisal of the transportation options and costs for manufacturing and also warehousing facilities.

 Labor- Helps in determining the locations that can meet the company's labor needs to achieve its short-term and long-term goals.

 Trade zones: Organizations will have to consider the benefits offered by free-trade zones, where goods can be brought in with minimal customs requirements.

 Political risk. When considering expansion into other countries.

 Governmental regulation. There might be always government barriers and restrictions if they consider expanding into other countries.

 Environmental regulation. This might have a great impact on the relationship between a company and the local community around a location.

There are some basic requirements a company has to consider in order to choose a location for its operations. They are,

· Size of the property

· Population of the area

· Traffic around the area

· Total costs that might incur to establish the facility

· Infrastructure requirements such as the transport connectively.

· Supplier companies present in the location

Techniques used to select a location

Factor-rating systems are considered to be the most commonly used techniques for choosing a location.

This is because they analyze the diverse factors (As below table) in an easily understandable manner. This factor-rating system consists of a weighted list of factors an organization which considers the range of values for each of these factors

For example: An automobile company.

   In order to finalize a facility for establishing a car company the above factors. There should be abundant source of power and water which is the basis for this industry. Then comes the labor availability in and around the area. The transportation facilities are another factor, even though the company can provide transportation, traffic and road infrastructure can be a main decisive factor. Then there are other factors like supplier locations and the government regulations in that area.

Layout Strategies:

It is considered to be the strategy which will effectively meet the company’s competitive requirements.

Factors to be considered for a regular layout strategy,

· Higher utilization of space and equipment

· Improved information flow

· Safer work conditions

· Flexibility

· Client interactions

But in order to choose a good layout the following factors has to be considered strictly,

· Equipment handling the materials

· The regular flow of information

· Higher utilization of space and equipment

· Aesthetics and environment

· Cost of moving between work areas.

Types of layouts are:

· Office layout- Ex. a construction administration office

· Retail layout- Ex. cloth Store

· Fixed position layout- Ex. A job Shop

· Process oriented layout- Ex. Call Center

· Product oriented layout: Ex. A Car assembly station

For Example,

A product-oriented layout in an automobile car building facility is shown below. The Raw material is taken from the warehouse, then sent to the cutting department for cutting it into exact sizes. Then it is sent to grinding and heating departments in order to mold them into required shapes. Finally, there are sent to the assembly department. So, in order to maintain an easy flow, the company has to keep all these areas closer to each other which involves a proper layout design strategy.

My real-life example for these strategies

Process Strategy: I worked with a chain store located in Northern California which produces hot dogs and burgers. Here the process was considered to be a repetitive focus process where the a previously manufactured patty would be a component of the burger or hot dog.

Location Strategy: When I worked for a glass manufacturing industry, the company was set up in a industrial area which might be compliable for the government regulations. The location was also in outskirts of a big town where they can get all their other resources like abundant power, labor, transport facilities etc.

Layout Strategy: When I worked for a call center which served as a back office for a top bank in the U.S, I observed the layout of the call center was set up in a way where the entire team including the trainers can contact each other without any difficulty

This way was a best example for the best-chosen layout strategy.

Thanks & Goodluck!!!

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