Facility and Market Analysis for Production Efficiency

Design of Equipment and Facilities

Product layout: These layouts are the most efficient, but they have the disadvantage that if you stop the assembly line, all staff remain idle.

Process layout: Groups staff and teams by task; they are more flexible, but the workflow is more difficult to manage.

Fixed-position layout: These focus on the workplace itself; all labor, materials, and supplies are brought to the job site.

Location Considerations

• Conditioning of existing facilities and future maintenance.
• Determinants of choice of venue for the installation of a new company.

Limitations and Consequences

Difficulties arise when changing the location due to the high cost of refurbishment of equipment and facilities, transport costs, and administrative reshuffle. Consequences of a market shift away from an ill-chosen location directly influence production costs and may result in reduced profitability from an erroneous site selection.

Factors to Study

Study the following factors: market, supply sources, shape of product placement, and available media information.

Market and Market Research

Market aspects: For starting a business or launching a new product, it is essential to maintain constant awareness of the consumer market for a particular product.

Market Research:

1. Using the scientific method: The investigation must be based on causal observation and apply standardized observation methods presented according to generally accepted scientific practice.
2. Applying to the solution of problems: Research should reduce uncertainty so it is possible to choose among several alternatives and obtain a reliable result.
3. Marketing and distribution: Refers primarily to the process from the output of the company's products until they reach the final consumer.

Stages of Market Research

Analysis of the situation: Full research on the available information regarding the marketing of the company's products.

Preliminary investigations: Initial contact with consumers, distributors, and key people in the field to grasp the problem.

Final plan of investigation: Planning the procedure by which to conduct market research.

Data collection: Obtain field data according to the chosen method.

Tabulation and analysis: Review, sort, and process data to derive results.

Interpretation of results: The investigator determines the outcome of the investigation for the purpose of preparing recommendations to be implemented.

Presentation of results: Present findings to business leaders and other stakeholders to facilitate understanding.

Back control (follow-up): Ensure that recommendations have been implemented and that the intended results have been achieved.