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Operations Management: Layout Strategy
Operations Management: Layout Strategy
Management
Layout Strategy
1
What is Facility Layout
2
Strategic Importance of Layout
Proper layout enables:
Higher utilization of space, equipment and people
Improved flow of information, materials, or people
Improved employee morale and safer working
conditions
Improved customer/client interaction
Flexibility to change--use small, movable or modular
equipment; etc
3
Layout Strategies
Office layout
positions workers, their equipment, and
spaces/offices to provide for movement of
communication and information
Retail/service layout
allocates shelf space and responds to customer
behavior
Warehouse layout
addresses trade-offs between space and
material handling
4
Seven Layout Strategies
Fixed-position layout
large bulky projects such as ships and buildings
Process-oriented layout
deals with low-volume, high-variety production
(“job shop”, intermittent production)
Product-oriented layout
seeks the best personnel and machine use in
repetitive or continuous production, line balancing
5
Office Layout
6
Office Layout Floor Plan
Accounting
Finance
Fin. Acct.
Manager Brand X
7
Retail/Service Layout
Design maximizes product exposure to
customers
Decision variables
Store flow pattern
Allocation of (shelf) space to products
8
Retail Layouts -
Some Rules of Thumb
Locate high-draw items around the periphery
of the store
Use prominent locations such as the first or last
aisle for high-impulse and high margin items
Distribute “power items” (items that may
dominate a shopping trip) to both sides of an
aisle, and disperse them to increase the
viewing of other items
Use end aisle locations because they have a
very high exposure rate
9
A Good Service Layout Considers
10
Warehouse Layout
11
Fixed-Position Layout
12
Process-Oriented Layout
13
Emergency Room Layout
Patient B – heart
problems
Labs
14
Product-Oriented Layout
15
Steps in Developing a
Process-Oriented Layout
1 Construct a “from-to matrix”
2 Determine space requirements for each
department
3 Develop an initial schematic diagram
4 Determine the cost of this layout
5 By trial-and-error (or more sophisticated
means), try to improve the initial layout
6 Prepare a detailed plan that evaluates
factors in addition to transportation cost
Cost of Process-Oriented Layout
n n
Minimize cost X ijC ij
i 1 j1
1 50 100 0 0 20
2
30 50 10 0
3 20 0 100
4
50 0
5
0
6
Interdepartmental Flow Graph
Showing Number of Weekly Loads
100
1 3
50 2 30
100
10
6
4 50 5
Possible Layout 1
Room 1 Room 2 Room 2
40’
Receiving Shipping Testing
Department Department Department
(4) (5) (6)
2 2 3
50 1 100
2
1
100
4 5 6
50
Possible Layout 3
Room 1 Room 2 Room 2
40’
Receiving Shipping Testing
Department Department Department
(4) (5) (6)
5
C
10 11 3 7 3
Min.
A B F G I
4
D
12 11
E H
Assembly Line Balancing Equations
Production time available
Cycle time =
Demand per day
10 11
3 7
A B F G
3
D I
12 11
E H