Foundation Place
description
Transcript of Foundation Place
![Page 1: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/1.jpg)
Foundation Place
![Page 2: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/2.jpg)
We will study: Definition and feature of foundation place Importance of foundation place Factors Criterias
![Page 3: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/3.jpg)
What does foundation place mean?
![Page 4: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/4.jpg)
The foundation place is a location where business is set up on and the business continued to work throughout the production activity
It is the best location in terms of economy It is the most suitable place for business
![Page 5: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/5.jpg)
An ideal location for production will include some or all of the following ingredients:
1. Closeness to point of sale. The higher the sales revenue - the higher the productivity will be.
2. Closeness to raw materials.
3. Away from centers of population - for noisy, environmentally unfriendly plant.
4. Near to skilled labour source.
5. Have good communication links
![Page 6: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/6.jpg)
When do we need a location?
![Page 7: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/7.jpg)
When we establish a new facility When we move to a new area or a new
building When having a new product design or
changing design When giving up the production of some
product
![Page 8: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/8.jpg)
The best location depends on the type of business and the types of goods and services.
Manufacturing industries often need to be close to sources of raw material transport links and market.
Service to people and businesses typically need to be located near to the centers of population.
![Page 9: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/9.jpg)
Importance of foundation place
![Page 10: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/10.jpg)
For a business the main purpose is to be successful in economic sense, namely profit, so the cost of inputs is very important at the stage of production.The location affects every input, also it affects productivty, so a well-chosen location is very important for our success.
![Page 11: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/11.jpg)
The establisment a new business and a new investment are versatile problems.
One of problems is choosing a foundation place.
![Page 12: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/12.jpg)
‘’in the right place,at the right time,the right quality investment’’
![Page 13: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/13.jpg)
Investors must behave according to these principles and they must choose the best place for their purpose.
![Page 14: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/14.jpg)
The wrong selection place gives rise to problems in the process of production and results of production are bad.
It is far to the market and to the raw material suppliers,
Labour is scarse, Costs of transportation is high.
![Page 15: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/15.jpg)
Shortly reaching the economic goals is very difficult in these conditions.
![Page 16: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/16.jpg)
Factors affecting the selection of location
Generally the factors of choice of location is approached under three main categories:
Economic factors
Natural factors
Social factors
![Page 17: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/17.jpg)
a)Economic factors
There are raw material, energy, work
manship, transportation facilities, land and
construction cost, proximity to market etc.
in this division.
![Page 18: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/18.jpg)
b)Natural factorsThe climate and land availabilty can
affect the choice of location. The height of the land, terrain, temperature differences, the degree of humidity,even the wind are effective.
![Page 19: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/19.jpg)
c)Social factorsAir pollution, noise or resistance of
community to waste is effective in this part.
![Page 20: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/20.jpg)
Also factors affecting the selection of location are investigated in ten main groups:
Market Labor Raw material and
services Transportation Energy and fuel
Water and waste Finance Community features Government Climate
![Page 21: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/21.jpg)
Location selection criterias
![Page 22: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/22.jpg)
Raw material
It is one of the most important input of production, so investors must work very carefully about the sources of raw materials.
![Page 23: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/23.jpg)
Water and adequacy of energy and fuel
Proxsimity to sources of cheap energy and fuel is very important for some businesses.
Also the chemical compotision of water, the amount of water, water tempreture, water hardness are very important for some facilities.
![Page 24: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/24.jpg)
MarketGenerally the business areas must be
close to market for service business for retail and wholesale businesses.
![Page 25: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/25.jpg)
Labor
The availability of workers, their skill level and wage rate they need to be paid is crucial in deciding the where to locate. Some businesses may need skilled labour whereas others require a large supply of lower-cost, unskilled labour.
![Page 26: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/26.jpg)
Infrastructure
Infrastructure covers the modes of transport for people, materials and information.
Businesses need to ensure there is
adequate infrastructure provision or costs
can rise, such as extra transport costs.
![Page 27: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/27.jpg)
Road/rail/sea and air links. The most appropriate mode will depend on the type of business and product, but road is used by over 80% of business.
Communications network. For example: Is there mobile phone coverage and suitable telephone lines?
![Page 28: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/28.jpg)
Transportation
Transportation is used at the start of production to bring raw materials, end of the production to distrubute products. So transportation costs musn’t be very high.
![Page 29: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/29.jpg)
Methods of choosing location
Comperative Methods Scoring Methods Load-Distance Model The Center of Gravity Method Break-Even Analysis
![Page 30: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/30.jpg)
Profit is the main purpose of all the operators and there are many competitive firms so behaviors of investors must be rational and investors must be careful when they choose location.
![Page 31: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/31.jpg)
THANKS FOR
LISTENING
![Page 32: Foundation Place](https://reader036.fdocuments.net/reader036/viewer/2022062314/56814923550346895db65d2c/html5/thumbnails/32.jpg)
Mehmet ASIL
Dokuz Eylül University
Industrial Engineering