Brian&Chen&Fung&Mandy&Hau&Adriana&de&la&Torre&Thomasina&Scudere&Site%Selection %% Process&broken&down&into& 3&separate&focus&areas& Macroanalysis& Microanalysis& Specific&site&selection& Boeing&Case&Study&Macroanalysis% Top&level&analysis& How&many&locations&to&choose&from?& Where&are&these&locations?& Costs?&Macroanalysis%Issues% Service&Requirements& Transportation& Materials&Handling& Fixed&Costs& Inventory&C osts & Number&&&Location&of&Facilities&%%Macroanalysis%Approach%Microanalysis&Evaluate&Alternatives&Identify&Optimal&Locatio n &Identify&Optimal&Number&of&Facilities&Define&TradeOoff&Components&Define&Objective&Macroanalysis%Modeling% Three&major&types&of&modeling&used& Computer&spreadsheet&models& Uses&various&programs&for&the&input&of&data&and&manipulation,&to&provide&quick&results& Spreadsheets&allow&for&the&view&and&compilation&of&volumes&of&data& Mathematical&models& Everything&is&placed&into&a&mathematical&formula&for&solving& Network&simulation&models& Solves&various&models&automatically&to&provide&a&listing&of&all&potential&sites&and&which&is&best&&Macroanalysis%Results% The¯oanalysis&may&yield&an&answer&such&as&“the&midOwestern”®ion&or&“southeast”®ion&Microanalysis% Identifies&a&particular§or,&district&or&area&located&in&a&geographic®ion&identified&in&the&previous&Macroanalysis.&Microanalysis%–%Points%of%Focus% Availability&of&existing&sites&locations& Population:&Labor&availability& Taxes&and&Subsidies& Competitive&Climate.& Suppliers&availability& Local&Utilities& Potential&as&a&distribution&hub& Highway&access& Business&activity& Quality&of&Life&considerations& Weather&threats.&& Proximity&to&Airports&and&seaports.&Tools%for%Microanalysis:%%(Grid%Systems)% Analysis&of&spatial&relationships&using&Mathematical&Tools.&& Center&of&Gravity& Weighted&Center&of&Gravity&Center%of%Gravity%(CCOCG)%Approach% Patterns&are&set&on&a&map.& Grid:&horizontalOaxis&refers&to&miles&east&and&vertical&axis&are&set&to&miles&north.& Points&are&assigned&to&the&different&locations.& Average&distances&eastOwest&(x&displacement)&and&northOsouth&are&found&(yOdisplacement)& The&average&is÷d&by&the&number&of&existing&facilities.& The&best&location&is&one&with&&the&coordinates&of&the&above&&&averages&(x,y)&Weighted%CenterCofCGravity%Approach:%Similar%to%CCOCG% Takes&into&account&the&volume&a&particular&facility&receives.&& The&location&is&multiplied&by&the&monthly&volume&received.& The&average&is&calculated.& The&Weighted¢er&of&gravity&is&determined&for&the&location.&Results of Macroanalysis Potential Facility Locations Collect Information Labor Tax Locations Business Activities Utilities Competitors Support Services Comparative Analysis RecommendationMicroanalysis% Key&issues& Socioeconomic&area& Government&services& Transportation& Highway&congestion& Proximity&to&air,&rail,&sea& Availability&of&labor& Unemployment&rate& Land&Value& Competitive&climate&Site%Selection% Common&Elements& Construction&Site&Considerations& Existing&Facility&Considerations&Common%Elements% Labor&Pool& skill&level&distribution& Competition,&Present&and&Future& Neighborhoods&and&Surrounding&Areas& Union&Presence& Utilities&and&Communications& Potential&&limitations& Long&lead&time&for&hook&ups& Service&Interruptions& Potential&development&that&can&restrain&resources&Common%Elements% Surrounding&Neighbors&and&Tenants& Principle&use&of&area&surrounding&site& Availability&of&support&services&and&labor& Absence&or&dominance&of&similar&facilities& &Local&Support&Services& Absence&of&services&causes&higher&cost&&for&self&sufficiency&and&downtime& Examples:&waste&disposal,&computer&equipment&service,&fire&protection,&and&sanitation& Transportation&Pick&Up&Services& Examples:&parcel&deliveries,&proximity&to&parts&and&air&freight&terminals,&&local&cartage&Common%Elements%% Local&Tax es& All&taxes&may¬&be&reflected&in&real&estate&appraisal&& Could&add&sufficient&cost&to&operating&budget& Personal&taxes&may&require&a&higher&wage&to&offset& Examples:&corporate,&local,®ional,&personal,&property,&inventory,&fees,&licenses& Fire&Codes&and&Protection& Interpretation&of&codes&may&vary&in&different&jurisdictions&which&&can&impact&insurance& Type&of&protection&provided&–&volunteer,&professional& Union&Activity& Avoidance&or&alliance& Avoid&locations&know&for&unions&with&militant&activity,&work&interruptions,&or&excessive&grievance&filing&New%Construction%Versus%Existing%Facility% Availability&of&existing&facility& Make&vs.&buy&fin an cial&analysis& Sufficient&lead&time&to&construct&and&occupy&facility& Customization&requirement&s&of&existing&facility& Do¬&limit&to&one&or&the&other&Evaluation%of%Potential%Construction%Sites% 3&step&approach& Inventory&sites&for&construction&(list&of&sites&meeting&minimum&requirements)& Acreage& Zoning& Support&Services& Familiarization&with&local&building&practices&and&preparation&procedures& Land&preparation& Weather&effects& Regional&roof&requirements& Local&construction&practice&and&cost& Construction&methods& Building&Codes& Specific&Site&Evaluations&Specific%Evaluation%for%Constructed%or%Existing%Sites% Zoning&and&zone&appeal&process& Construction&permits,&code&requirements,&exceptions,&and&appeal&process& Building&site&restrictions& Environmental&Impact& Topographical&maps& Incentives&Existing%Facilities%Consideration%% First&sites&must&meet&minimum&requirements&in&terms&of&square&footage,&land&use,&and&other&nonOcorrectable&physical&characteristics& Second&a&list&of&recently&sold&or&leased&properties&in&the&same&geographical&areas&should&be&reviewed&Existing%Facilities%Consideration%% Third&the&physical&characteristics&of&the&properties&should&be&included& Total&square&footage& Type&of&construction&
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