Jom Case Study

Facilities Planning

1. The unification of Europe has brought about changes in airline regulation that dramatically affect major European carriers such as British International Air, SAS, KLM, Air France, and Alitalia Sabena. With ambitious expansion plans, British International Air (BIA) has decided it needs a second service hub on the continent, to compliment its large Heathrow (London) repair facility location selection is critical, and with potential for 4000 new skilled blue-collar jobs on the line, virtually every city in Western Europe is actively bidding for BIA’s business.

After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 16 cities. Each is then rated on 12 factors, with the following table resulting

a. Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft.

b. After further investigation, Miller decides that an existing set of hanger facilities for repairs is not nearly as important as earlier thought. If he lowers the weight of that factor to 30, doe ranking change?

c. After Miller makes the change in part b, Germany announces it has reconsidered its offers if financial incentives, with an additional 200 million deutsche mark package to entice. Accordingly, BIA has raised Germany’s rating factor to 10. Is there any change in top rankings in part b?

LOCATION |

Factor | Importance Weight | Italy | France | Germany |

| | Milan | Rome | Genoa | Paris | Lyon | Nice | Munich | Bonn | Berlin |

Financial Incentives | 85 | 8 | 8 | 8 | 7 | 7 | 7 | 7 | 7 | 7 |

Skilled Labor pool | 80 | 4 | 6 | 5 | 9 | 9 | 7 | 10 | 8 | 9 |

Existing facility | 70 | 5 | 3 | 2 | 9 | 6 | 5 | 9 | 9 | 2 |

Wage rates | 70 | 9 | 8 | 9 | 4 | 6 | 6 | 4 | 5 | 5 |

Competition for jobs | 70 | 7 | 3 | 8 | 2 | 8 | 7 | 4 | 8 | 9 |

Ease of air traffic access | 65 | 5 | 4 | 6 | 2 | 8 | 8 | 4 | 8 | 9 |

Real Estate cost | 40 | 6 | 4 | 7 | 4 | 6 | 6 | 3 | 4 |...