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Operations
Management
Layout Strategy
What is Facility Layout
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Location or arrangement of everything within
& around buildings
Determines long-run efficiency of operations
Helps achieve a strategy that supports
differentiation, low cost or quick response
Objective?
The objective of layout strategy is to develop
an effective and efficient layout that will
meet the firm’s competitive requirements.
Strategic Importance of Layout
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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
Layout Strategies
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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
Seven Layout Strategies
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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
Good Layout Requirements
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Material handling equipment: Managers must decide about
equipment to be used, including conveyors, cranes, automated
storage and retrieval systems, and automatic carts to deliver and
store material.
Capacity and space requirements: Only when personnel, machines,
and equipment require- ments are known can managers proceed
with layout and provide space for each compo- nent. In the case of
office work, operations managers must make judgments about the
space requirements for each employee. They must also consider
allowances for require- ments that address safety, noise, dust,
fumes, temperature, and space around equipment and machines.
Good Layout Requirements
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Environment and aesthetics: Layout concerns often require
decisions about windows, planters, and height of partitions to
facilitate air flow, reduce noise, and provide privacy.
Flows of information: Communication is important to any
organization and must be facili- tated by the layout. This issue
may require decisions about proximity, as well as decisions about
open spaces versus half-height dividers versus private offices.
Cost of moving between various work areas: There may be
unique considerations related to moving materials or to the
importance of having certain areas next to each other. For
example, moving molten steel is more difficult than moving cold
steel.