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Facilities Planning

Facilities Planning is a crucial part of achieving supply chain excellence since it ensures how smooth the products’ movement from raw materials to the end used-users. This supply chain provides benefits to the companies such as increased customer satisfaction, reducing costs, and having an integrated supply chain. According to (Tompkins), Designing these facilities consider the following characteristics:


• Flexibility

How facilities handle various specifications and requirements without significant changes or adjustments.

• Modularity

How facilities cooperate over different operating rates.

• Upgradability

How facilities adapt and cope with the latest systems and technology.

• Adaptability

How facilities adjust themselves to different scenarios and schedules. • Selective Operability

How each facility operates and what contingency plans for each facility.

• Environmental and energy friendliness

How to reduce resource consumption emission in every facility to support environmental health.


Facilities planning could be divided into two subjects: facilities location and facilities design. Generally, facilities location evaluates the macro-issues within the supply chain. The location implies the distance from one facility (i.e., the whole factory and office) to customers, suppliers, and other stakeholders.





It also considers the transportation system of the facility, such as point of entry and costs, and the land orientation. On the other hand, facilities design discusses three main subjects: the facility systems, layout, and handling system.


Facility Systems evaluate how every system is structured within the facility such as structural system, atmospheric system, electrical system, safety procedures, sanitation, and other necessary systems. Layout in facilities design assesses equipment, machinery, warehouses, and other furnishings within the facility.


The handling system consists of structure and mechanisms o

n how to efficiently move products within the facility. Because facilities planning is a part of the supply chain, they share the same objective: customer satisfaction.


Understanding what customers demand and needs are critical during the facilities planning phase because this could lead to multiple benefits such as cost reduction, productivity increase, and maximizing return on investments.



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