The Number of Your Facilities
If you produce products or services that are distinctly different from each other, then it is typically more efficient to divide up their production. Mixing the production of different products tends to slow the entire process down and the lack of continuity opens the process up to mistakes.
If your production needs are large enough, you may want to put them into separate facilities. In most cases, however, it is sufficient to break your existing facility into various production departments.
If you produce more than one unique product, how might this affect the general layout of your production space? Will you need more than one physical space to efficiently produce your products or are they similar enough so that everything can be efficiently accomplished in one location?
Location of Facilities
It is likely that you already have an established location and moving may not be part of your foreseeable future. If your current location is not ideal, however, you may wish to consider a move to a more beneficial spot. Following are some things to consider if this is a possibility for you.
- Are your transportation needs affected by your location? For example, would it be useful for you to be located near the freeway or near the airport? How about near your suppliers?
- Do you have enough room in your current facility to handle your future growth potential? If not, how much space might you need? (We'll get specific with this question in the following section.)
- What about your labour needs? You will typically find less expensive labour in the inner city regions, but you may find less of certain types of experience as well. On the other hand, the financial or business district will typically attract a different type of employee.
- Different locations will cost different amounts as well. For example, is a prestigious address worth the added expense for your business, or is price your primary concern?
- While this is a marketing question, it would be unwise not to consider your customers needs as well. Review your work in “Marketing” on Geographic Segmentation, and then note your marketing needs concerning your facility location in the space below.
If your production and sales locations are separate, or if your customers do not come to your location, you may leave this question blank.