6 Elements of a Thorough Situation Analysis

A manufacturing analysis is the portion of a strategic plan that focuses on all the processes and materials related to manufacturing. A situation analysis is a major focus of the manufacturing analysis, serving as an in-depth look at the physical layout of the facility. The goal of situation analysis is to ensure that the technology and strategy you plan to implement are feasible in the physical space of your facility.

Be sure to review the following attributes for a thorough situation analysis:

  1. Site considerations—First, you must understand the location of your building site and how it affects your facility’s operations. This includes external soft costs that must be squared away before construction can begin. You’ll have to comply with permits for zoning, foundation, building and other items.
  2. Physical building and structure—Consider the physical capabilities and limitations of your building, both inside and out. Factor in future changes to the facility, whether it’s expansion or renovation. Food-safety requirements are also a major part of the physical aspects of the building, so consider which sanitation processes will be used and how they will affect your facility.
  3. Utility/process systems—Determine every aspect of your utility use, including which utilities are used most, how much is needed and where you will get them. Address utilities including gas, electricity and water services.
  4. Capacity—Production capacity will depend on your facility’s equipment. Can your existing equipment match your future production goals? Remember, you’ll need to plan for growth and expanded production, too.
  5. Material handling—Analyze where certain operations will occur within the facility and how food will move between them. Consider how much automation will factor into your food processing as well.
  6. Storage and distribution—Have a clear understanding of food handling, from arrival to distribution. Figuring out storage logistics early on can save you costs later.


By the end of your situation analysis, you should have a clear understanding of your capabilities for a well-rounded manufacturing plan.

For a more detailed look into your situation analysis, download The Strategic Planning Guide for Food Processors.  

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