Parkin electronics is a company with a turnover of $ 20 million, and it manufactures emergency switchgear, electronic shaft driving controller and small crane motors. This electronic company has its leases up for renewal, and thus the company managing director is considering relocating to a place which can accommodate its employees while meeting its cost constraint of $1,000 000 pa. Therefore, four sub-urban development sites have been proposed by the managing director and these are Punchbowl, Randwick, Fairfield and Pennant Hills. Among the four sites, the best location for relocation must be able to satisfy the space requirements of the managing director, not be too expensive and be spacious enough to enable the company’s employees to be together.
Site ranking using Simple Multi-Attribute Rating Technique (SMART)
As a consultant chosen by the company, I will use SMART to analyze every location selected by the managing director to determine the best place among the four localities which will best suit the objectives and the attributes the company is looking for. These attributes include a spacious area, less costly and one which can accommodate all its employees.
The decision makers of Parkin electronics are the management team, and the main issue or problem affecting the company is lack of enough space in their current location which can accommodate its employees, limited parking and congestion in the workplace. Therefore, a value tree can best be used to express the general concerns of the management team who are the company’s decision-makers with the two main attributes being the benefits .
According to the value tree, the management team considers three kinds of costs which are; rent of the new site, the means of transportation to the site plus the time it takes and the cost they will incur on electricity since as a manufacturing company, electricity is a necessity. The benefits of the company can also be subdivided into the working environment and turnover. In the working environment, the management team considers the main benefits that they should get after relocating is staff comfort, enough parking space, a large site allowing for future expansion and a shorter commuting distance for its staff. The management team also considers activities that can help in improving the company’s turnover, and these include nearness to customers, a good image for the company and the visibility of the site.
Therefore, to solve this problem, the company has considered relocating to a different place and has thus selected four sites, and these sites include punchbowl, Randwick, Fairfield, and Pennant Hills. The main attributes that will distinguish the four locations are space, working environment and costs. The best option for the company will be to relocate to a site which is spacious enough and provides an excellent and comfortable working environment for all workers and also a place which is not too expensive and is within the company’s constraint of $ 1,000 000. Therefore, the attributes of the four sites will be compared and evaluated to determine the best location for the company to relocate there as discussed below:
This site doesn’t fit to be used as the new site for the company despite it being near SYDNEY CBD. This is because its old brick building may be uncomfortable for the staff and won’t give them a good working environment. This site is also surrounded by residential areas which are in a terrible condition which thus may not be a conducive environment for the staff and may also be insecure due to too much congestion and increased crime rates as mostly low-class people live there.
Additionally, this site has limited parking for only ten vehicles, and since it rests in the street, it will make it difficult for the company to expand as streets are always fixed any expansion that will extend to the street may be demolished. Additionally, if the company may want to expand, it will have to incur a very high cost which won’t be favorable. Besides that, a lot of time will be consumed by the staff and skilled workers while commuting whether it is by car or public means thus making it an unsuitable site.
This site has a new building on a redeveloped commonwealth land which may suit the staff very well as it will be very comfortable and conducive environment for them to work effectively. However, this site rests in trees which has meters, and it will be difficult to cut down the trees for expansion as this will be violating the law. This thus makes it very difficult to expand this site once the company relocates in the site. Moreover, if in case the company may consider expanding, it can only do that for the next two years. Additionally, the fact that the site rest in trees indicates that, it is far from trading centres or residential areas thus the company will not be able to reach most of their customers.
Besides that, it has limited parking of only 50 vehicles, and it also takes a lot of time for the management and the employees to commute to the workplace. This is because the residential areas seem to be far that the management can take 45 minutes by car and 90 minutes using public transport while the skilled worker can take 50 minutes by car and 60 minutes by public transport. This site thus will not be convenient for the staff and management due to the distance from where they will go to the workplace.
Site 3 – Fairfield
First and foremost, the state of the building “old solid building” makes it unsuitable for the staff as it will be uncomfortable and will not give them a conducive working environment. The conditions of the building may also be deplorable because, since the building is ancient, it may have used for long to the extent that most of its structures have worn out and may not meet the company’s needs. The site also does not provide any room for expansion, and once the company relocates here, they will have to be ready to remain in the same space and never think of ever-expanding which is very disadvantageous for the company as it won’t be able to expand when the company grows in future.
Moreover, it takes 10 minutes for the staff to reach the bus stop and 5 minutes to reach the railway station while also, using private vehicles seems to be very effective than using public means as less time will be used. This will be very inconveniencing for most workers as most of them do not own cars, and this will affect the company’s operations as the more the time is taken by the employees the site, the more time is wasted for the company. However, this site has ample parking space of 100 cars, but this one advantage does not justify this site to be used by Parkin electronics for relocation as its costs outweigh its benefits.
This is the best site for Parkin electronics to relocate here. This is because, the buildings are new and the site has new estates in park-like surrounding indicating that, the environment is calm, very appealing to the public and also proves to be very clean and healthy making it a very comfortable place for its staff. Additionally, the site has an ample parking space of 100 cars, and it has room for expansion in that, whenever the company wishes to expand, it will always do so without any difficulty or fear of going against the law and risking demolition. Moreover, the time is taken by the management and by the skilled labor, whether by car or by public means consumes little time compared to the other three sites. It is also very convenient for the skilled workers to travel by public means as most of them don’t afford cars and they will only take 40 minutes to the workplace.
Furthermore, the distance between there residential areas to the railway or bus stop is the same and may be located in one place. Thus, they can choose any transport means as both will take them 10 minutes to reach the station and board it, unlike other sites where the railway station is near residential areas than bus stop thus when you miss the railway you may have to go again to the bus station consuming another additional time. The site also is found near the South and North shore where most of the staff are located which will make it easier for the employees to work for the company conveniently.
Based on the SMART ranking of the four sites, it can be concluded that the best location for Parkin electronics choose for relocation is Pennant hills as it meets all the conditions that the managing director is looking for. Although the other three places are less expensive than patent hills, their costs outweigh their benefits. Punchbowl has poor structures with its location being in an area with houses which are in adverse conditions, it is found along the street and also has minimal parking. On the other hand, Randwick has new buildings good for the staff but, the structure rests in trees, cannot expand after two years, requires more time for staff to travel to the workplace and has high insecurity as it is located in the run-down suburban surrounding. Additionally, despite Fairfield having ample parking space and less commuting time of the staff to the workplace, it has old buildings unsuitable for the staff comfort and has no room for expansion. Therefore, Pennant Hills has proven to be the best site for relocation.
Therefore, the best site where Parkin electronics can relocate to is Pennant hills. This site has the best attributes that the company is looking for starting from ample space, functional structures, its cost is within the constraint of the company, and there is also room for company’s future expansion. This will thus best suit the company, and even though the company will pay $ 1,000 000 pa. which is the same as its cost constraint, it won’t have to worry again about relocating to other places in the future as it will find a permanent solution in this site.
Thus, it is very critical for the management of the company to make critical decisions before taking any actions as this will increase the company’s operations efficiency. This will also guarantee the success of the company and enable it to remain in operation.