I've worked in manufacturing for more than a decade, and i've been working on dozens of sites, large and small, from small hardware mills off the coast to steaming plants in the interior. To be honest, the most deadly link in the management of production operations is not de-production, not quality control, but location. A factory moved in the wrong place, and the team in the back ran the marathon at the wrong starting point. The importance of site selection, many of whose owners have lost millions before they really come to terms with it, is often too late。
What's the price of the wrong location
One of the most typical cases was that encountered in the previous year at a supérieure factory where precision parts were made. The owner, who had chosen a new factory on one side of the town for the purpose of renting it for the province, had a 30 per cent unit price lower than that of the next county, felt smart. As a result, it took a turn to discover that the most recent high-speed entrance is 17 kilometres away and that the logistics radius stretches by more than 40 kilometres。It costs $20,000 a day to runOver the course of the year, logistical losses plus overtime fines have more than tripled the savings on land leases, followed by customer complaints。
The price is more hidden in the recruitment chain. The factory ran away in two or three months after it was in an industrial zone with no decent canteens around it. More than 30 jobs have been lost during the season, and temporary labour offers have been made. There's a guy who's been working with me on a stick-in-the-show, re-training, milling scraps, temporary worker premiumIt's almost double the direct wageI don't know. The location thing, which appears to be the difference in the price of the land lease, is actually mineting the entire operating cost for the next five years, and you couldn't hear it。
What are the targets
Every time someone asks me what to look at, my first reaction is to ask where your client is. This is not a catchphrase, it is the bottom logic of the site of the management of production operations. Your main clients are concentrated in the long triangle, and you've gone to the midwest to build a factory, and it's true that you've saved human costs, but the supply chain has doubled its response time and the customers can't wait, and the orders are slowly being diverted. I've seen too many small factories go where they think it's cheap, and after three years the clients have been intercepted by more responsive counterparts, less than 40 percent of the capacity, and then the equipment has to be sold。
The other side depends on municipal support and environmental assessment spaces. Don't wait for the plant to move in to find out that the sewage index is inadequate, or that the perimeter plans to fix a high speed, and it'll take you six months to change the line. The site assessment cycle, which i generally recommend, is eight to ten months, and i'll run it all over again and over again, so that we don't lose time in decision-making。
To return to the importance of site selection in the management of production operations, one sentence:It's the only one you've got a chance to make the right decision, not the wrong oneI don't know. The equipment can be changed, the process can be changed, the people can be discouraged, but once the plant is moved in, the line is fixed, it is a daily cost of sinking, and the best operating team will not come back。
