Factor rating localization | Free template
Factor rating localization is a free template for evaluating various location alternatives by assigning weights to factors and rate the location alternatives on each factor.
There are many factors to take into account when determining where to place a factory, office or business geographically. These factors can be both qualitative and quantitative. Factor rating for localization is an objective method that can be used to compare different alternatives and decide which option is best based on weighting and rating of both qualitative and quantitative factors.
When you are about to make a factor rating you should first identify the critical success factors which are factors essential to success. Critical success factors may include labor costs, availability of labor, education level of labor, proximity to raw materials, proximity to customers, taxes and investment expenses.
When the critical success factors have been selected, those are assigned weights in order to distinguish the more important factors from the less important factors, in this template the weights should sum to 100%. The weighting is based on the company's objectives and strategies, these objectives and strategies should be reflected in the factor weights.
When the key success factors are weighted, each location is rated on each factor, according to a predetermined scale, such as 1 to 10 or 1 to 100. The sum of the weight multiplied by the rating provides a weighted total score for each location option, and this overall rating is used to compare and choose the location.
You can use this template to make a factor rating for localization and choose the alternative that has the highest weighted total score.
01-01-2015 | Created by All-templates.biz
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Tags: location decisions localization strategies optimal localization