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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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