Muhammad Muavia Khan - Operational Management

1. KFC - FACILITY LOCATION AND LAYOUT

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5. FACILITY LOCATION Facility location , is a branch of operations research concerning itself with mathematical modeling and solution of problems concerning optimal placement of facilities in order to minimize transportation costs , avoid placing hazardous materials near housing, outperform competitors' facilities, etc. also known as location analysis . Once a firm has decided to open a new facility OR relocate an existing facility, it must decide the site where that facility should be located. The selection of location is most important for organization. The business commenced without proper location analysis may have the high risk chances and may not longer compete with other competitors.

6. FACILITY LOCATION KFC & Facility Location: KFC Corporation, or KFC, founded and also known as Kentucky Fried Chicken is a chain of fast food restaurants based in Louisville, Kentucky. KFC is the third largest fast food chain with over 12,200 outlets in 99 countries . KFC has maintained its title, for the last 60 years , of being the chicken Experts. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997 . KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in eighteen major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 60 outlets nation-wide. The outlets comprise of franchises, company owned and affiliated. They used the proper method for facility location and layout analysis of new or existing outlets. Facility location involves the evaluation of various sites for a new facility.

12. FACILITY LOCATION Method of Factor Rating(Cont…) ow we will multiply each score by its corresponding factor weight: Weighted scores are calculated as: (Site Score) x (Factor Weight).

13. FACILITY LOCATION Method of Factor Rating(Cont…) From these results, the largest total weight is for Site A. It appears to be the best location. What happens if we change the factor weights. Lets use the following factor weights: Skilled labor: 0.45 ; Raw Materials: 0.40 ; and Market: 0.15 Then the following results are obtained: In this case, Site “C” appears to be the best choice with largest weight score. Therefore, factor rating method is very sensitive to the weights assigned to each factor.

16. FACILITY LOCATION Cost-Profit-Volume Analysis (Cont…): This graphic shows that annual production cost changes with different production volumes. - If the expected annual production volume is below 150 units, then choose site A . - If the expected annual production volume is between 150 and 350 units, then choose site B . - If the expected annual production volume is over 350 units, then choose site C .

19. FACILITY LAYOUT

20. KFC FACILITY LAYOUT MAP

21. FACILITY LAYOUT KFC Process Layout Map: KFC fallow the standardized process for production. The facility layout process schematic diagram are presented blow. KFC Old Process Layout: KFC Modern (New) Process Layout: Raw Material Cook Assemble Finished Goods Customer Place Order Deliver Raw Material Cook Assemble W. I. P. Customer Place Order Deliver

23. FACILITY LAYOUT Conclusion And Recommendation: KFC can progress rapidly by identifying new facility locations and increasing existing target market and facility locations by launching new competitive product chain at minimum cost. KFC’s Unity Drive had a simple but essential message and objective. To bring together the people of Pakistan by promoting in the words of KFC founder, “ Unity, Faith & Discipline ”. In a time of uncertainty and fear, KFC rose to the occasion and built a platform of solidarity and togetherness for the people of Pakistan. The campaign proved to be a successful initiative in not just providing hope for our patrons, but also allowed KFC Pakistan to take an effective step forward during tough times and entrust other responsive companies to act in a similar manner.