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PRODUCTION AND OPERATIONSMANAGEMENT

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  LOCATIONSTRATEGY

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  CASE STUDY

ACCOCIATION FOR

COMPUTING

MANUFACTURING (ACM)

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Introduction:

  It is an electronic component manufacturing

company.

  It is located in singapore

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CASE PROBLEM

 1. Increase in labor costs

  2. Utility cost increased

SO, COMMITTEE SUGGESTED TO NE

LOCATIONS

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LOCATION STRATEGY

1

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!ONG " ONG

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!ONG " ONG

 

1. More access to labor and labor cost

decreased

2. Large seaport3. Good infrastructure

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MALAYSIA

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MALAYSIA

 

1. Give access to Natural Resources

  2. ransportation Infrastructure is good

  3. !eep sea port

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SINGAPORE

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SINGAPORE

  Offers by Government: Tax exemption Subsidized by Government.

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  #UESTIONS

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What advantages and disadvantages

does each potential location offer?

#UESTION N$% &

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SINGAPORE 

"dvantages•   Labor relatively c#eap$

•   Good transport infrastructure

◦   Incentives offered to stay.

!isadvantages%   Increasing labor costs

  Increasing utility costs.

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!ONG " ONG

"dvantages%

  1. Labor consistently c#eap and

2. Good transport infrastructure.

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MALAYSIA

  "dvantages%

  1. "ccess to ra& materials and natural resources

2. Ine'pensive labor 

  !isadvantages%

  1. (oncern &it# fre)uency of s#ip visits.

  2. ransportation cost increased.

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't ot'r r*+nt ctor- t't r not

.ntiond in t' c- -tud/ .i0't 1*/ ro* in

t'i- dci-ion2

#UESTION N$% 3

 

1. #e education of t#e &or*force

  2. +olitical stability &ill impact t#e decision.

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 '/ i- trn-1orttion inr-tructur -oi.1ortnt in t'i- dci-ion2

#UESTION N$% 4

ransportation costs &ill doubtlessly #ave a large

impact on t#e decision.

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T'i- i- *on05tr. -trt0ic dci-ion6 7't

ctor- .i0't c'n0 in t' n8t tn to t7nt/

/r-2 !o7 7i** t'i- in*unc t' dci-ion2

#UESTION N$% 9

,'amples of costs ic# are li*ely to

c#ange and ose c#ange &ould ma*e or

 brea* t#e decision

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ANY QUESIONS

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