Transcript Chapter 9
Site Selection and Layout Planning Back to Table of Contents Site Selection and Layout Planning Chapter 9 Site Selection and Layout Planning 9.1 Community and Site Selection 9.2 Layout Planning 2 Site Selection and Layout Planning 9.1 List the factors involved in deciding on a community in which to locate a business. Identify the factors to consider when selecting a business site. Describe the resources that can be used in finding potential business sites. Explain the steps involved in analyzing potential sites for a business and choosing between those sites. Describe the advantages of starting a business at home or in an incubator. Section 9.1 Community and Site Selection 3 Site Selection and Layout Planning 9.1 Selecting a community and a specific location in which to establish a business involves a systematic process. Section 9.1 Community and Site Selection 4 Site Selection and Layout Planning 9.1 economic base incentive census tract Section 9.1 Community and Site Selection trade area industrial park incubator 5 Site Selection and Layout Planning Factors in Community Selection Factors to consider when selecting a community include: economic base financial incentives population makeup labor supply Section 9.1 Community and Site Selection 6 Site Selection and Layout Planning Factors in Community Selection As an entrepreneur, the decision of where to locate your new business is an important one. A location can determine who sees your business and how easily customers can get to it. Section 9.1 Community and Site Selection 7 Site Selection and Layout Planning Is the Economic Base Favorable? First, you should determine the community’s economic base. economic base the major industries that provide employment in an area That base can be either primarily industrial or primarily service-oriented. Section 9.1 Community and Site Selection 8 Site Selection and Layout Planning Are There Financial Incentives? A community may try to attract new businesses to locate there by offering a special incentive. Section 9.1 Community and Site Selection incentive a reward or advantage that helps businesses, including lower taxes, cheaper land, and employee training programs 9 Site Selection and Layout Planning What Is the Makeup of the Population? Trends such as aging populations or young families can affect businesses. These trends determine who will spend, how much they will spend, and what types of products or services they will want. Section 9.1 Community and Site Selection 10 Site Selection and Layout Planning What Is the Makeup of the Population? Demographics and population size can tell you if a location matches your target market. Section 9.1 Community and Site Selection 11 Site Selection and Layout Planning What Is the Makeup of the Population? Access the Census Bureau’s Census 2000 Web site to research the demographics of a census tract that interests you. Section 9.1 Community and Site Selection census tract a small geographic area into which a state or country is divided for the purpose of gathering and reporting census data 12 Site Selection and Layout Planning Does the Labor Supply Match Your Needs? When considering a community, consider your labor needs and how well the local labor pool meets those needs. Section 9.1 Community and Site Selection 13 Site Selection and Layout Planning Does the Labor Supply Match Your Needs? Business owners need to consider: how many employees they need If the labor pool meets their needs if the available pool has the appropriate skills Section 9.1 Community and Site Selection 14 Site Selection and Layout Planning Criteria for Site Selection Once you determine that a community is suitable for your business, you can begin looking at sites. The factors to consider and the criteria used to judge sites vary with the type of business activity. Section 9.1 Community and Site Selection 15 Site Selection and Layout Planning Retail Business Considerations Retail businesses need to determine their trade area in order to be accessible to their target market. Section 9.1 Community and Site Selection trade area the region or section of the community from which a business draws customers 16 Site Selection and Layout Planning Retail Business Considerations Once you pinpoint a community you want to serve and determine your business’s trade area, examine these issues: number and size of competing businesses nature of the competition character of the area accessibility and traffic Section 9.1 Community and Site Selection 17 Site Selection and Layout Planning Service/Wholesale Business Considerations Service and wholesale businesses have similar needs to those of retail businesses. However, many service and wholesale businesses do not have customers coming to their business sites and do not need expensive, high-profile locations. Section 9.1 Community and Site Selection 18 Site Selection and Layout Planning Manufacturing/Extraction Business Considerations Manufacturing/extraction businesses need to be accessible to sources of supply and transportation and are subject to local zoning laws. Section 9.1 Community and Site Selection 19 Site Selection and Layout Planning Manufacturing/Extraction Business Considerations An industrial park is usually located close to major transportation routes. Section 9.1 Community and Site Selection industrial park an area set aside in a community for industrial use 20 Site Selection and Layout Planning E-Business Considerations Location and space are not major considerations for an e-business because electronic business sites can be located almost anywhere and require little space. However, larger operations need more space for equipment, personnel, and shipping. Section 9.1 Community and Site Selection 21 Site Selection and Layout Planning Locating Potential Sites There are a number of ways to locate potential business sites. Read the classified sections of newspapers. Consult with realtors who specialize in business properties. Conduct visual surveys by driving through prospective communities. Network with personal or business contacts. Section 9.1 Community and Site Selection 22 Site Selection and Layout Planning Site Analysis and Decision Making Once an entrepreneur identifies possible sites for a business, he or she must consider three things before making a decision: the surrounding area the building the costs of buying, building, or leasing Section 9.1 Community and Site Selection 23 Site Selection and Layout Planning Surrounding Area Analysis Surrounding areas should be evaluated by the same criteria used for site selection: number and size of competing businesses nature of the competition character of the area accessibility and traffic Section 9.1 Community and Site Selection 24 Site Selection and Layout Planning Building Evaluation The building must be large enough to take care of present needs and to allow for expansion. Check the building’s interior to see how it meets your needs and the exterior’s construction, soundness, appearance, and parking. Section 9.1 Community and Site Selection 25 Lease, Buy, or Build? Leasing Advantages No large cash outlay Section 9.1 Community and Site Selection Reduced risk Tax deductibl e lease expenses 26 Site Selection and Layout Planning Making Your Decision For each of the possible sites, compare these variables: cost advantages and disadvantages desirability Section 9.1 Community and Site Selection 27 Site Selection and Layout Planning Alternative Sites Two sites that do not fit the traditional mold are the home-based business and the incubator. Section 9.1 Community and Site Selection incubator an enterprise that is set up to provide flexible and affordable leases, office space, equipment, management assistance, mentoring assistance, and access to financing for new businesses 28 Site Selection and Layout Planning 9.1 1. List the factors involved in deciding on a community in which to locate a business. Factors to consider include the community’s economic base, financial incentives, population makeup, and labor supply. Section 9.1 Community and Site Selection 29 Site Selection and Layout Planning 9.1 2. Identify the factors to consider when selecting a business site. Factors to consider when selecting a business site vary with the type of business. For example, a retail store needs to be accessible to customers; an extraction business must be near the product it is extracting. Section 9.1 Community and Site Selection 30 Site Selection and Layout Planning 9.1 3. Describe the resources that can be used in finding potential business sites. A number of resources can be used to find potential business sites: newspapers, realtors, the Internet, visual surveys, and personal or business contacts. Section 9.1 Community and Site Selection 31 Site Selection and Layout Planning 9.1 4. Explain the steps involved in analyzing potential sites for a business and choosing between those sites. An analysis of potential business sites needs to be done in three areas: Surrounding area analysis is based on site area considerations for the type of business. Building evaluation includes both the interior and exterior. Deciding whether to lease, buy, or build involves analyzing the three options for the site. Choosing between the sites would involve a comparison on the basis of cost, advantages and disadvantages, and desirability. Section 9.1 Community and Site Selection 32 Site Selection and Layout Planning 9.1 5. Describe the advantages of starting a business at home or in an incubator. The main advantage of starting a business at home is financial due to lower rent and less taxes. Advantages of starting a business in an incubator are lower rent, shared secretarial and administrative services, and the availability of business development services. Section 9.1 Community and Site Selection 33 Site Selection and Layout Planning 9.2 List the steps in layout planning that are common to all businesses. Describe the layout needs for each type of business. Discuss the final details of layout planning. Section 9.2 Layout Planning 34 Site Selection and Layout Planning 9.2 The steps in layout planning apply to all types of businesses. However, development of a facility layout is based on the operational needs of the business. Section 9.2 Layout Planning 35 Site Selection and Layout Planning 9.2 layout workstation Section 9.2 Layout Planning façade appointments 36 Site Selection and Layout Planning Physical Layout A well-planned layout can mean a more efficient operation, a more appealing sales floor, and greater customer convenience. Section 9.2 Layout Planning layout a floor plan or map that shows the interior and exterior arrangement of a business, including such items as display cases, lighting fixtures, traffic patterns, landscaping, and parking spaces 37 Physical Layout Six Steps in Layout Planning 1 Define the objectives of the facility. 2 Identify the primary and supporting activities that will take place. 3 Determine access, arrangement, and flow among the activities. 4 Determine space requirements for all activities. 5 Design alternative layouts for the facility. 6 Evaluate the various layouts and choose one. Section 9.2 Layout Planning 38 Site Selection and Layout Planning Layout Needs and Possibilities Although the steps in layout planning are the same for all businesses, the options and considerations are not. Different types of businesses have different operational needs. Section 9.2 Layout Planning 39 Manufacturing Businesses production processes production sequence Layout space Considerations for requirements Manufacturing Businesses environmental needs Section 9.2 Layout Planning materials flow control 40 Manufacturing Businesses Types of Manufacturing Layouts product layout Section 9.2 Layout Planning fixed-product layout process layout 41 Site Selection and Layout Planning Manufacturing Businesses In a product layout, all machines and supporting activities are arranged along a product flow line. workstation an area in a business with equipment for a single worker As products come down the line, something is done to them at each workstation. Section 9.2 Layout Planning 42 Retail Businesses products to be sold aisle exposure Retail Layout Considerations product coordination Section 9.2 Layout Planning projected clientele sales per square foot of selling space sales value of area within store 43 Site Selection and Layout Planning Wholesale Businesses When planning the layout of a wholesale business, storage and space utilization are the most import considerations. Section 9.2 Layout Planning 44 Site Selection and Layout Planning Wholesale Businesses When planning for storage, follow these guidelines: Store popular items near shipping points. Store items together that were received together and will be shipped together. Provide a wide variety of storage space. Assign storage space on the basis of handling ease and popularity. Section 9.2 Layout Planning 45 Site Selection and Layout Planning Wholesale Businesses Most wholesale businesses are located in singlestory buildings, which makes controlling and moving stock easy. Receiving, storage, order assembly, and shipping areas should be arranged so goods can be moved through them quickly and easily. Section 9.2 Layout Planning 46 Site Selection and Layout Planning Service Businesses The physical layout of a service business depends largely on the specific service it provides. There is no prescribed set of guidelines or patterns for these enterprises. Section 9.2 Layout Planning 47 Site Selection and Layout Planning Extraction Businesses Like service businesses, extraction firms have unique layouts. They share a few common features: an office area, storage areas for equipment and supplies, and the extraction business site itself. Section 9.2 Layout Planning 48 Site Selection and Layout Planning E-Businesses The layout of an e-business depends on its site and its operations. If the e-business ships products, storage and shipping areas are needed. Section 9.2 Layout Planning 49 Site Selection and Layout Planning Finishing Touches Once a business owner chooses a particular layout, he or she can begin planning the finishing touches. facade the face or front of a building Such details include planning interior design features, as well as alterations or improvements to the facade. Section 9.2 Layout Planning 50 Site Selection and Layout Planning Planning for Office Space You have two options to consider when planning office space: open office layout: best if cost, space, employee supervision, or access to files and equipment are important closed office layout: if privacy and noise reduction are of primary concern Section 9.2 Layout Planning 51 Site Selection and Layout Planning Planning for Office Space You can define the traffic patterns of an office space with appointments. Section 9.2 Layout Planning appointments the furniture, equipment, and accessories contained in a building 52 Site Selection and Layout Planning 9.2 1. List the steps in layout planning that are common to all businesses. (1) Define the objectives of the facility. (2) Identify the primary and supporting activities that will take place in the facility. (3) Determine the interrelationship—access, arrangement, and flow—between activities. (4) Determine the space requirements for all activities. (5) Design alternative layouts for the facility. (6) Evaluate the various layouts and choose one. Section 9.2 Layout Planning 53 Site Selection and Layout Planning 9.2 2. Describe the layout needs for each type of business. Layout needs differ for each type of business. Considerations for manufacturing, retail, wholesale, service, and extraction businesses and for e-businesses are described in the second section of the chapter. Section 9.2 Layout Planning 54 Site Selection and Layout Planning 9.2 3. Discuss the final details of layout planning. Final details of layout planning include determining office space and space for equipment, furnishings, and supplies as well as planning for interior design features and alterations or improvements to the face of the building. Section 9.2 Layout Planning 55 Site Selection and Layout Planning The Components of an Effective E-Commerce Site The Internet has developed into an enormous consumer network with many e-commerce sites. A successful e-commerce site incorporates good content and design, offers credit card processing, and has a security certificate. Section 9.2 Layout Planning 56 Site Selection and Layout Planning Tech Terms payment gateway software that automatically processes credit-card information so that it does not have to be manually typed in real-time transaction a process that instantly transfers funds from buyer to seller Section 9.2 Layout Planning 57 Site Selection and Layout Planning Tech Terms security certificate a credential issued by a third-party company that assures the user that all transactions made on a Web site are private and safe sticky content the information and features on a Web site that gives users a compelling reason to visit it Section 9.2 Layout Planning 58 End of Site Selection and Layout Planning Back to Table of Contents