Strategic Management: Formulation and Implementation

Facilities

Facilities are the land, buildings, equipment, and other major physical inputs that substantially determine productivity capacity, require time to alter, and involve significant capital investments. Facilities issues confronting managers focus mainly on expansion and contraction decisions, facilities location, and facilities layout.

Expansion and Contraction Decisions. Typically, the facilities decision process involves four steps:

In expanding capacity, top managers generally have three major policy options:

Facilities Location. The location of plants, warehouses, and service facilities is an important aspect of facilities decisions. Most facilities location problems fall into one of four categories:

Facilities Layout. There are three main types of layouts for facilities: