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PRODUCTION/OPERATIONS MANAGEMENT (MGT613)
Itefaq Motors (PVT) Limited is one of the home made suppliers of 800 to 1000cc cars in the country. The plant was set up in early 60s in the suburbs of Lahore city. Due to early entrant and rising demand the company has established itself and has flourished to a big car producer. Because of growing population of Lahore city, today the company’s plant has become the part of main city. Because of the pollution and heavy traffic mess, the district government has written a letter to Itefaq Motors to shift their plant from city to some other area.
What factors will affect the location decision; give your arguments being a production/operations manager?
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There are many factors which will affect location decision
Availability of man power
Availability of parts used for assembling
Man power pick and drop
Shipping of new cars to salers
at new place availability of power,water,land and location
Infrastructure means roads etc
I dont think that parts used for assembling and availability of man power is problem for the factory.