Layouts

LAYOUTS AND TYPESLayout:The layout of an operation is concerned with the physical location of its transforming resources, that is deciding where to put the facilities, machines, equipment and staff in the operation

Layout types:

1. Fixed position layout2. Process layout3. Cell layout4. Product layout

Fixed position layout

1) In a fixed position layout, the transformed resource does not move between its transforming resources.

2) Equipment, machinery, plant and people who do the processing move as necessary because the product or customer is either:

i. Too largeii. Too delicate or

iii. Objects being moved

Process layout

1) In a process layout, similar processes or processes with similar needs are located together because:

i. It is convenient to group them together orii. The utilization of the transforming resource is improved

2) Different products of customer have different requirements therefore they may take different routes within the process.

3) The flow in a process layout can be very complex.

© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7

7.6 An example of a process layout in a library showing the path of just one customer

Entrance Exit

On-line and CD-ROM access room

Loan books in subject orderEn

quiri

es

Store room Counter staff

Copying area

Com

pany

repo

rts

To journal sack

Current journals

Reserve collection

Reference section

Study desks

Cell layout

1) In a cell layout, the transformed resources entering the operation move into a cell in which all the transforming resources it requires in located.

2) After being processed in the cell, the transformed resource may move to a different cell in the operation or it may be a finished product or service.

3) Each cell may be arranged in either a process or product layout.4) The cell type layout attempts to bring order to the complex flow seen in a process layout.


7.8 The ground floor plan of a department store showing the sports goods shop-within-a-shop

retail ‘cell’

Sports shop Menswear

Women’s clothes

Luggage and gifts

Confectionery, newspaper,

magazines and stationery

Books and

videos Footwear

Perfume& jewellery

Elevators

Entrance

Entr an c e

Product layout

1) In a product layout, the transformed resource flow a long a line of processes that has been prearranged.

2) Flow is clear, predictable and easy to control.


7.10 An army induction centre with uses product layout

Lecture theatre

Uniform issuing

area

Uniform store

Waiting area

Waiting area

Doctor

Doctor

Doctor

Doctor

Doctor

Doctor

Bloodtest

Bloodtest

Bloodtest

X-ray

X-ray

X-ray

Record personal

history and medical details


7.11 A restaurant complex with all four basic layout types

Fixed-position layout service restaurant

Cell layout buffet

Line layout cafeteria

Cool room

Freezer Vegetable prep Grill

Preparation

Ove

n

Process layout kitchen

Main course buffet

Star

ter

buffe

t

Des

ert

buffe

t

Service line


7.12

Fixed-position layout

Product layout

Cell layout

Process layout

VolumeLow High

Varie

tyLo

wH

igh

Flow is intermittent

Regular flow more important

Flow becomes

continuous

Reg

ular

flow

mor

e fe

asib

le

Volume-variety relationship


7.13

Project processJobbing processBatch processMass processContinuous process

Professional servicesService shopsMass services

Fixed position layoutProcess layoutCell layoutProduct layout

The physical position of all transforming resources

The flow of the operation’s

transformed resources

Process type

Basic layout type

Detailed design of layout

Volume and variety

Strategic performance

objectives

Decision 1

Decision 2

Decision 3

Layout selection steps

Selecting a layout type


7.151) The nature of the basic layout types

Basic layout types

Manufacturing process types

Serviceprocess types

Fixedposition layout

Project processes

Process layout

Cell layout

Product layout

Jobbing processes

Batch processes

Mass processes

Continuous processes

Professionalservices

Service shops

Mass services

Project processes


7.162) Advantages and disadvantages

Fixedpositionlayout

Process

layout

Cell

layout

Product

layout

Disadvantages

Advantages

- Very high mix and product flexibility- Product/customer not moved or disturbed.

- Very high unit cost.

- Scheduling space and activities can be difficult.

- High mix and product flexibility

- Relatively robust if in the case of disruptions

Low utilization of resources.

Can have very high WIP

Complex flow.

- Good compromise between cost and flexibility- Fast throughput.

- Group work can result in good motivation

Can be costly to rearrange existing layoutCan need more plant and equipment

Lo- w unit costs for high volume

- Gives Opportunities for specialization of equipment

Can have low mix and flexibilityNot very robust to disruption

Work can be very repetitive.

- High variety of tasks for staff

- Easy supervision of equipment of plant

- Gives Opportunities for specialization of equipment

EVALUATION & SELECTION OF APPROPRIATE PRODUCTION AND OPERATION TECHONOLOGY

Technologies for the production of goods, measured, or classes of goods, of near identical design or properties, whose output is in volumetric units. Technologies oriented to the manufacture/production of ores, implements and tools, glass sheets, cement, caustic soda, vegetable oils, pharmaceuticals, machinery (e.g. lathes), or components of machines and appliances typify this category. The production operation itself may involve mining, extraction, fabrication, assembly formulation, physical transformation or chemical conversion (process).

Technologies that enhance the properties, features or qualities of a product to create a commercially relevant advantage such as cost, convenience, performance or safety. Examples of product improvements include “free-flowing” salt, the twin blade shaving razor, cocoa butter substitutes for making chocolates and encapsulation of pharmaceuticals.

Technologies that produce one or more special effects, e.g. Hot and cold rolling steel; anodizing, galvanizing or electroplating metals; texturizing yarn; waterproofing, fireproofing and dyeing fabrics; fumigating and detoxifying grain, tubers or feeds; sterilizing and pasteurizing dairy or other processed food products. The product may be produced in-house, be a bought item, or it may be contracted out to a third party with expertise in the specific conditioning process.

Technologies that modify a production process or manufacturing system to bring about some advantage or leverage. Examples include : improving operating or public safety by eliminating pollutants in products and processes, removing phosphates in detergents and cleaning up automobile exhaust gases. Such technologies can also comprise the automation, computerization or robotization of processes and mechanical sequences to improve a particular feature. (these technologies do not always have a microeconomic significance but can enhance the image of the technology).

Technologies for the “production” of technical services, eg product/process design and engineering, computer software development and modeling and productivity enhancement techniques.

EVALUATION AND SELECTION OF TECHNOLOGYThe idea for an investment project rarely starts with the technology to be applied. Instead the investor normally takes as a starting point the availability of some resource or the identification of a good market opportunity. In the case of non-profit generating investments, the justification of the project almost always lies in the response to a social or community need.

A. Reconfirmation of the Scale of the Project

B. Choosing the Production Technology

C. Experience and Capacity of the Applicants

D. Maintenance and Repair

Figure 7 : Idealized technology selection process

THE NATIONAL MARKET ENVIRONMENT

Candidate products for manufacture

(Step A)

Market assessments

Product identification

Market size

(Step B)

Potential modes of production investment estimates

(Step C)

Preferred modes of production

(raw materials, energy forms, skills, etc)

(Step D)

Suitable technological routes

(Step E)

Potential technology suppliers

(Step F)

Select alternate technologies and respective technology sources

(Step G)

Evaluation of technology attributes

(trade marks, patents, etc)

(Step H)

Analysis of appropriateness of technologies

Analysis of technology risks

(Step I)

Preferred form of technology transfer

(joint venture, licence, etc)

(Step J)

Analysis of financial acceptability

(including technology costs)

(Step K)

Preferred technology and form of acquisition

(Step L)

Preferred mode of technology implementation

(turnkey, unpackaged,etc)

(Step M)

Preferred strategies of market entry and product establishment

(Step N)

Enterprise formation, * technology transfer and project implementation

(Step O)

Enterprise structure, funding etc. are not detailed here although some may have a bearing on technological selection.

Layouts

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