The six key factors operating managers consider when deciding to locate a facility are
adequacy of utilities, land, labor market conditions, transportation factors, Quality of life factors,
and legal and political environment.
Some examples of Adequacy of utilities are the supply of electricity reliable? Is there clean
water available? This is important because you need to have a place that has working electricity
so you can have light, use computers, printers, phone etc. You need to know if there is water
available because you need a bathroom with sinks and a water foundation.
The examples of land would be for a business is how much land is available? And what
would be the cost of the land? With the land you need to determine how much land you need.
Then you can determine how many offices, or stores that you can locate on the land. The cost of
the land is very important. This way you can determine how much of this land can I afford.
The examples of Labor market conditions are when are the workers with the right skills
available? And much does it cost for their labor? The people you hire should take a test to show
their education and skills. If they fail the test I wouldn’t hire them. Determine their salary based
on their education skills and working skills.
Examples of transportation factors are how close is the location near to customers and
suppliers? Is it appropriate transportation close to the businesses? Is your business in a place that
is heavy populated with a lot of people that will bring in customers?
Quality of life factors are based on what climate do they live. Are healthcare facilities
available? For example you won’t want to open a ski shop in Florida, where it is hot outside. It's
important the right healthcare in case you need to see a doctor. You’ll need someone who is
efficient and effective and close by the origination. It is how well a good or service satisfy's the...