Facility Layout

Facility LayoutSession 5 Operations Management

Strategic Importance of LayoutProper layout enables:

Higher utilization of space ,equipment and peopleImproved flow of information, materials or peopleImproved employee morale and safe working conditionsImproved customer /client interactionFlexibilityTypes of layoutOffice layoutRetail layoutWarehouse layoutFixed-position layoutProcess-oriented layoutProduct-oriented layoutCellular layout

Office layout

Office layoutDesign positions people, equipment, & offices for maximum information flowElectronic and conventional communication patterns , separation needs, and other conditions affecting employee effectiveness.One key layout trade-off is between proximity and privacyExamplesInsurance companySoftware company

Retail Layout

Retail layoutDesign maximizes product exposure to customersThe objective is to maximize the profitability per square foot of floor spaceCategory management: Using computers to evaluate the profitability of various merchandizing plans for hundreds of categoriesSlotting : Manufacturer pay a fees to get their goods displayed on the shelfService spacesAmbient conditions: which are background characteristics such as lighting,sound,smell and temperature .Spatial layout and functionality: which involve customer circulation path planningSigns ,symbols, and artifact:

Warehouse layout

Ware house layoutDesign balances space (cube) utilization & handling cost Handling costs consists of incoming transport, storage and outgoing transport of materials to be warehousedCross docking-Avoiding the placement of materials or supplies in storage by processing them as they are received for shipment.

Fixed Position layout

Fixed-Position LayoutFixed-position layoutsare typical of projects in which the product produced is too fragile, bulky, or heavy to move.In this layout, the product remains stationary for the entire manufacturing cycle. Equipment, workers, materials, and other resources are brought to the production site.Ships, houses, and aircraft are examples.Process oriented layout

Process-Oriented LayoutDeals with low volume high variety production (also called job shop) A Product or small order is produced by moving it from one department to another in a sequence required for that productAdvantage of this type of layout is that it brings greater flexibilityExample: Hospital LayoutProduct oriented layout

Product-Oriented LayoutBetter known asassembly lines,arrange activities in a line according to the sequence of operations that need to be performed Product layouts are suitable for mass production or repetitive operations in which one product is manufactured in large volume.The advantage of the product layout is its low variable cost and low throughput time.Assembly line balancing : Obtaining output at each workstation on a production line so delay is minimized

Product vs. Process LayoutCustomized Goods Functional grouping of activities.Varied Path Fixed cost low, variable cost highLabor skills highStandardized goodsSequential arrangement of activities.Fixed pathFixed cost high, variable cost lowLabor skills limitedProcessProductCellular Layout - Work CellsCombination of Product and process layoutIt combines the advantages of both layout systemsBrings flexibility as well as reduces variable cost and throughput