Project Title:
Relocation Project Undertaken by a Small Facility
Objective:
The objective of this project is to assist a small manufacturing company,
currently located in Defence University Park, in relocating to a new location
conducive to its growth. In collaboration with the university, Postgraduate
students in Manufacturing or Industrial and Management Engineering will
investigate potential locations in Addis Ababa city or Bishoftu town and select
the most suitable one based on predefined criteria.
Project Tasks:
1.2 Classification of
Location Factors:
Critical Factors:
Minimum space requirement.
3-phase, 440 V, 200-A electrical
service.
Support service providers and
vendors within 100 mi.
Objective Factors:
Rent (space rented or leased).
Maintenance and insurance costs
and taxes.
Subjective Factors:
Shared facility.
Build to suit.
Condition of weather.
Proximity to customers.
Contract length.
Secretarial support.
Condition of building.
2. Data Collection:
Gather information on potential
sites and locations from reliable sources.
Data Collection
Template: Potential Site Information
Site Name/Address:
Location:
Site Size (m²):
Infrastructure:
Electricity:
Availability: [Yes/No]
Voltage: [Specify]
Water:
Availability: [Yes/No]
Water Source: [Specify]
Telecommunications:
Availability: [Yes/No]
Service Providers: [Specify]
Transportation Access:
Proximity to Roads/Highways:
[Specify]
Public Transportation Access:
[Specify]
Distance to Airport: [Specify]
Amenities:
Nearby Restaurants/Cafes:
Banks/Financial Institutions:
Hospitals/Medical Facilities:
Grocery Stores/Markets:
Environmental Considerations:
Environmental Assessments:
[Yes/No]
Any Environmental Risks/Concerns: [Specify]
Cost Analysis:
Rent/Lease Rate (Birr/year):
Utility Costs (Electricity/Water):
Property Taxes:
Maintenance Fees:
Site History:
Previous Land Use:
Zoning Changes:
Ownership History:
Regulatory/Permitting Requirements:
Zoning Regulations:
Building Codes:
Permit Requirements:
Market Analysis:
Demographic Data:
Population Density:
Age Distribution:
Income Levels:
Competitor Analysis:
Number of Competing Businesses:
Market Share:
Market Trends:
Demand for Similar
Products/Services:
Growth Trends:
Stakeholder Engagement:
Local Government Officials
Contacted: [Yes/No]
Community Engagement Activities:
Public Meetings/Forums Attended:
Feedback Received:
Standardized
Questionnaire:
Location:
Which city/town is the site
located in?
What is the specific address or
area of the site?
Infrastructure:
Is there access to electricity,
water, and telecommunications services?
What is the voltage of the
electrical service?
Is the site easily accessible by
road/public transportation?
Amenities:
What amenities are available in
the vicinity of the site (e.g., restaurants, banks, hospitals)?
How convenient are these amenities
for employees/customers?
Cost Analysis:
What are the expected costs
associated with renting/leasing the site?
Are there any additional expenses such
as utility costs, property taxes, or maintenance fees?
Market Analysis:
What is the demographic profile of
the area surrounding the site?
How competitive is the market for
the company’s products/services in this location?
Regulatory/Permitting Requirements:
Are there any specific zoning
regulations or building codes that need to be adhered to?
What permits or approvals are
required to operate at this location?
Stakeholder Engagement:
Have you engaged with local
government officials or community members regarding the site?
What feedback or concerns have
been expressed by stakeholders?
This standardized
questionnaire can be used to systematically gather information about potential
sites in Addis Ababa city and Bishoftu town, enabling a comprehensive evaluation
and comparison of each location’s suitability for the small manufacturing
company’s relocation.
Data Collection
Template: Potential Site Information
S/N
Category
Addis
Ababa City
Bishoftu
Town
1
Site
Name/Address
ABC
Industrial Park, XYZ Street, Addis Ababa
Bishoftu
Industrial Zone, Lake Road, Bishoftu
2
Location
Urban
area
Semi-urban
area
3
Site
Size (m²)
800
600
4
Infrastructure
–
Electricity: Available, 220V, single-phase – Water: Available, Municipal
Supply – Telecommunications: Available, Multiple Providers – Transportation
Access: Close to Major Roads, Public Transportation Accessible, 15 km from
Airport
–
Electricity: Available, 220V, single-phase – Water: Available, Local Well –
Telecommunications: Limited Providers – Transportation Access: Proximity to
Main Roads, Limited Public Transportation, 20 km from Airport
5
Amenities
Restaurants,
Banks, Hospitals
Local
Cafes, Basic Shops, Health Center
6
Environmental
Considerations
No
significant environmental risks identified
Potential
water contamination due to nearby agricultural activities
7
Cost
Analysis
Rent:
Birr 250,000/year
Rent:
Birr 200,000/year
8
Site
History
Formerly
a warehouse facility, zoned for industrial use
Agricultural
land, recently rezoned for industrial purposes
9
Regulatory/Permitting
Requirements
Zoning
regulations permit industrial development
Zoning
changes required, permit process ongoing
10
Market
Analysis
Diverse
population, high demand for industrial services
Growing
population, increasing demand for industrial products
11
Stakeholder
Engagement
Engaged
with local authorities for permits, Positive community feedback
Initial
discussions with local officials, Community concerns about water
contamination
Comparison based on
Standardized Questionnaire:
Location:
Both Addis Ababa City and Bishoftu
Town are viable locations, with Addis Ababa City being more urban and
Bishoftu Town semi-urban.
Infrastructure:
Addis Ababa City generally has
better infrastructure with reliable electricity, water, and telecommunication
services compared to Bishoftu Town. Transportation access is also more
convenient in Addis Ababa City.
Amenities:
Addis Ababa City offers a wider
range of amenities compared to Bishoftu Town, including more restaurants,
banks, and hospitals.
Cost Analysis:
The rent for the potential site in
Addis Ababa City is slightly higher compared to Bishoftu Town. However,
the difference is within the university’s budget range.
Environmental Considerations:
Addis Ababa City seems to have
fewer environmental risks compared to Bishoftu Town, where water
contamination might be a concern due to nearby agricultural activities.
Site History:
Both sites have different
historical backgrounds, but they are currently zoned for industrial use.
Regulatory/Permitting Requirements:
Addis Ababa City has more
straightforward regulatory requirements for industrial development
compared to Bishoftu Town, where zoning changes may be needed.
Market Analysis:
Both locations show potential for
industrial growth, with Addis Ababa City having a more diverse population
and higher demand for industrial services.
Stakeholder Engagement:
Addis Ababa City has already
engaged with local authorities and received positive community feedback,
while Bishoftu Town is still in the initial stages of discussions, with
some community concerns to address.
Based on this
comparison, Addis Ababa City seems to offer slightly better overall conditions
for the small manufacturing company’s relocation, considering factors like
infrastructure, amenities, and stakeholder engagement. However, Bishoftu Town
also has its advantages, such as potentially lower rent costs and a less
congested environment. Further evaluation and consideration of specific
priorities will be necessary to make the final decision.Top of Form
Bottom of Form
Top of Form
Bottom of Form
3. Elimination of
Sites:
Eliminate sites not meeting
critical objectives.
Develop a rating chart based on
remaining options.
Elimination of Sites:
After gathering
information on potential sites in Addis Ababa City and Bishoftu Town, we will
eliminate sites that do not meet the critical objectives outlined in the
project requirements. The critical objectives include:
Minimum space requirement.
Availability of 3-phase, 440 V,
200-A electrical service.
Support service providers and
vendors within 100 km.
Once sites meeting
these critical objectives are identified, we will develop a rating chart based
on the remaining options to further evaluate their suitability for the small
manufacturing company’s relocation.
Rating Chart:
Site Name/Address
Space Requirement
Electrical Service
Proximity to Suppliers and Vendors
Overall Rating (Out of 10)
ABC
Industrial Park, XYZ Street, Addis Ababa
✓
✓
✓
9
Bishoftu
Industrial Zone, Lake Road, Bishoftu
✓
✓
✓
9
DEF
Industrial Complex, ABC Avenue, Addis Ababa
✓
✓
✗
7
Lakeview
Industrial Estate, DEF Road, Bishoftu
✓
✗
✓
6
GHI
Business Park, GHI Street, Addis Ababa
✓
✗
✓
6
JKL
Industrial Area, JKL Avenue, Bishoftu
✗
✓
✓
5
MNO
Industrial Zone, MNO Road, Addis Ababa
✗
✗
✗
1
PQR
Business Complex, PQR Street, Bishoftu
✗
✗
✗
1
*Note:
✓
indicates that the site meets the criterion.
✗
indicates that the site does not meet the criterion
Based on the rating
chart, sites with an overall rating below 5, such as JKL Industrial Area in
Bishoftu and MNO Industrial Zone in Addis Ababa, are eliminated from
consideration due to not meeting critical objectives. The remaining sites will
undergo further evaluation in the site visits and evaluation phase of the
project.
1. Site
Visits and Evaluation:
During this phase, feasible sites in Addis Ababa city and Bishoftu town
will be visited to gather detailed information and evaluate each site according
to predefined criteria.
This table includes the
evaluation of feasible sites in both Addis Ababa city and Bishoftu town based
on various factors. The overall rating provides an assessment of each site’s
suitability for the relocation project.
Location
Site
Name
Date
of Visit
Space
Availability
Electrical
Service
Proximity
to Suppliers/Vendors
Building
Condition
Accessibility
Environmental
Factors
Overall
Rating (Out of 10)
Addis Ababa city
ABC Industrial Park
June 15, 2024
Adequate
3-phase, 440 V, 200-A
Within 50 km radius
Good, renovated
Easy access
No significant concerns
8.5
XYZ Business Center
June 18, 2024
Limited
Single-phase, 220 V
Within 100 km radius
Fair, needs repair
Moderate access
Some concerns
6.0
LMN Industrial Estate
June 20, 2024
Sufficient
3-phase, 380 V, 150-A
Within 80 km radius
Excellent
Excellent access
No concerns
9.0
Bishoftu town
PQR Industrial Park
June 22, 2024
Adequate
3-phase, 400 V, 100-A
Within 80 km radius
Good
Easy access
Minimal concerns
7.5
UVW Business Center
June 25, 2024
Limited
Single-phase, 220 V
Within 120 km radius
Fair, needs repair
Moderate access
Some concerns
6.5
RST Industrial Estate
June 28, 2024
Sufficient
3-phase, 380 V, 200-A
Within 90 km radius
Good
Good access
Some concerns
7.0
5. Conclusion:
Select the best location based on
comprehensive evaluation.
Provide recommendations for further
steps in the relocation process.
Based on
the comprehensive evaluation of feasible sites in Addis Ababa city and Bishoftu
town, it’s evident that both locations offer potential options for the
relocation of the small manufacturing company. However, after careful
consideration of the predefined criteria and site visits, the following
conclusions and recommendations are made:
Selection of the Best Location: The optimal location for the
small manufacturing company’s relocation is determined to be LMN
Industrial Estate in Addis Ababa city. This site offers sufficient
space, adequate electrical service, proximity to suppliers and vendors,
excellent building condition, and easy accessibility. With an overall
rating of 9.0 out of 10, LMN Industrial Estate aligns closely with the
company’s requirements and growth objectives.
Recommendations for Further
Steps:
Negotiation and Agreement: Initiate negotiations with
the property owner or management of LMN Industrial Estate to secure the
lease or purchase agreement.
Detailed Due Diligence: Conduct a detailed due
diligence process to verify all aspects of the selected site, including
legal compliance, environmental assessments, and infrastructure
reliability.
Development Planning: Collaborate with architects
and construction professionals to develop a comprehensive plan for the
construction or modification of facilities at the chosen site, ensuring
alignment with the company’s operational needs and future expansion
plans.
Relocation Planning: Develop a detailed relocation
plan, including timelines, budgeting, logistics, and communication
strategies to facilitate a smooth transition from the current location to
the new site.
Stakeholder Engagement: Engage relevant stakeholders,
including employees, suppliers, customers, and local authorities,
throughout the relocation process to ensure transparency, cooperation,
and support.
By
following these recommendations and executing the relocation plan with
diligence and attention to detail, the small manufacturing company can
successfully transition to its new location at LMN Industrial Estate, Addis
Ababa city, and position itself for continued growth and success in the
marketplace.
To calculate the
weighted score for each subjective factor, we’ll use the weighted sum formula:
Weighted Score = Weight × Factor Score
Let’s assume the factor
score ranges from 1 to 10, where 1 represents low importance and 10 represents
high importance. We’ll then multiply each factor score by its corresponding weight
and sum the results to get the overall weighted score for the subjective
factors.
Subjective
Factor
Weight
Factor
Score
Weighted
Score
Shared
facility
5
8
40
Build
to suit
4
7
28
Condition
of weather
3
6
18
Proximity
to customers
5
9
45
Contract
length
3
6
18
Secretarial
support
2
5
10
Condition
of building
4
8
32
Here’s the calculation
presented in a tabular format:
This table shows the
calculation of the weighted scores for each subjective factor, based on the
provided weights and factor scores.
Top of Form
Bottom of Form
Here’s the comparison
of the two locations, Addis Ababa city and Bishoftu town, based on the
subjective factors and their weighted scores in tabular format:
Subjective
Factor
Addis
Ababa city
Bishoftu
town
Shared
facility
40
35
Build
to suit
28
30
Condition
of weather
18
20
Proximity
to customers
45
40
Contract
length
18
20
Secretarial
support
10
12
Condition
of building
32
28
Total
Weighted Score
191
185
This table compares the
subjective factors and their weighted scores for both Addis Ababa city and
Bishoftu town. Based on the total weighted scores, Addis Ababa city has a total
score of 191, slightly higher than Bishoftu town’s score of 185.
Top of Form
Bottom of Form
Here’s the comparison
of Addis Ababa city and Bishoftu town based on various factors, presented in
tabular format:
Factors
Addis
Ababa city
Bishoftu
town
Space
Requirement
Met
Met
Power
Specifications
Met
Met
Rent
Budget
Feasible
Feasible
Relocation
Timeline
Within
8 months
Within
8 months
Proximity
to Suppliers and Vendors
Within
100 km
Within
100 km
Room
for Expansion
Adequate
Adequate
Proximity
to Major Customers
Closer
to urban center
Close
to urban center
Maintenance
Costs
Requires
evaluation
Requires
evaluation
Building
Condition
Requires
evaluation
Requires
evaluation
Based on this
comparison, both Addis Ababa city and Bishoftu town meet the minimum
requirements for the relocation project. However, Addis Ababa city may have
advantages in terms of proximity to major customers due to its urban nature and
potential for a larger customer base. Maintenance costs and building conditions
need further evaluation for both locations.
Given these factors,
Addis Ababa city appears to offer slightly better proximity to major customers,
which could be advantageous for the company’s growth. However, a thorough
evaluation of maintenance costs and building conditions is necessary to make a
final decision.
As for the minimum
location, considering the provided data, both Addis Ababa city and Bishoftu
town meet the minimum requirements for the relocation project. Therefore,
neither can be considered a minimum location based solely on the information
provided. Additional criteria or evaluation parameters may be needed to
determine a minimum location.
A
general summary comparing Addis Ababa city and Bishoftu town based on the
optimal and minimal aspects, along with a brief consideration of return on
investment (ROI):
Optimal Location: Addis
Ababa City
Pros:
Closer proximity to major
customers due to its urban nature, potentially leading to increased sales
and business opportunities.
Availability of diverse suppliers
and vendors within the city, facilitating smoother supply chain
management.
Urban infrastructure may offer
better amenities and services, enhancing operational efficiency.
Potential for a larger customer
base and market reach, contributing to business growth.
Higher likelihood of attracting
skilled labor and talent due to urban amenities and accessibility.
Cons:
Generally higher operational
costs, including rent and utilities, compared to suburban or rural areas.
Potential for higher competition
and market saturation, requiring strategic differentiation.
Minimal Location:
Bishoftu Town
Pros:
Potentially lower operational
costs, including rent and utilities, compared to urban centers like Addis
Ababa.
Relatively simpler logistics and
transportation due to smaller size and less congested roads.
Potential for a quieter and more
serene working environment, conducive to focused operations.
Possibility of enjoying tax
incentives or lower tax rates available in certain suburban or rural
areas.
Potential for community support
and collaboration due to smaller town dynamics.
Cons:
Limited access to a diverse pool
of suppliers and vendors compared to urban centers.
Potentially longer lead times for
sourcing materials or services due to distance from major suppliers.
Limited availability of skilled
labor and talent compared to urban centers, which may pose challenges for
hiring and retaining qualified staff.
Market reach and customer base may
be limited compared to urban centers, potentially impacting sales and
growth prospects.
Return on Investment
(ROI) Consideration:
Addis Ababa City: While initial
investment and operational costs may be higher, the potential for higher
sales volume and market reach may result in a more favorable ROI over the
long term.
Bishoftu Town: Lower operational
costs may lead to quicker breakeven and potentially higher short-term ROI,
but growth prospects and scalability may be limited compared to an urban
location like Addis Ababa.
Ultimately, the choice
between Addis Ababa city and Bishoftu town should be based on the specific
priorities, growth objectives, and financial considerations of the small
manufacturing company.
