Definition Objectives Characteristics of good layout Types of layout

Definition
Key decision that determine long run efficiency of operations. Good layout establishes competitive priorities. Effective layout helps an organization achieve its strategy.

Objectives of layout design

To develop an economic layout that will meet the firms competitive requirements:
space, equipment, people improved flow of information, materials or people improved employee morale and safer working conditions Improved customer/client interactions Flexibility in the sense layouts can quickly adapt to changes due to product changes
higher utilization of

A good layout requires that:

Materials handling equipment. Capacity and space requirement. Environment and aesthetics. Flow of information. Cost of moving operations between work areas.

Types of layout

Fixed position layout

Process oriented layout

Office layout

Retail layout

Warehouse layout

Product layout

Fixed Position Layout

The project remains in one place. The product remain stationery. It is used when product are huge, large, bulky or fragile. Three main factors:
 Limited space  Different material are used different stages of construction  Volume materials needed is dynamic

Example: Building a ship, constructing a highway or bridge, housing project and oil wells.

Process Layout

Can simultaneously handles low volume but a wide variety of product and services. It is the layout that are efficient for handling customer with different needs and product with different sequence of operation. It is where a part or item that is being worked on travels form from one area to another. It is also referred as job shop layout.

A D V A N T A G E S

Its flexibility in equipment and labor assignment. It is suitable for small lots or small order of product. Equipment, supervision and skills are organized around the process. Able to accommodate different product routes by using general purpose machines. D I S A D V A N T A G E S

Take more time. Tendency to create more WIP inventories. Require high labor skills.

Work Cells/ Cellular Layout/ Group Technology

Requires special arrangement of machinery and equipment. Identifies product that have similar characteristic to be processed. People and machines are organized in groups. Arrange in U-shaped layout. Example: Tuner adjustment work cell to preset all audio products to the frequency stations, a work cell on sewing all button or zippers.

Advantages
Reduced

WIP inventory.

Less floor space required. Reduced raw material and finished goods inventories. Reduced direct labor cost. Increase employee participation. Increased use of equipment machinery. Reduced investment. Improved operator expertise skills.

High level of training and flexibility on part of employees

Identification of families of product

Requirements

U-Shape layout

Office Layout
Provide comfort, safety and easy movement of people and information. Guidelines:
 100 square feet per person (including corridor)  Conference room: 25 square feet per person  Layout arranged base on relationship chart

Retail Layout
An approach that addresses flow, allocates space, and responds to customers behavior. Based on idea that sales and profitability vary directly with customer exposure to products-try to expose customers to as many products as possible. E.g: Shopping Malls Main objective: to maximize profitability per square foot of floor space Issue: Slotting Fees

Hints for determining overall arrangement of many stores:

Locate the high-draw items around the periphery of the store. Use prominent locations for high-impulse and high-margin items: Housewares Beauty aids Shampoos

Continue
Distribute power items to both sides of an aisle, and disperse them to increase the viewing of other items. Use end-aisle locations. Convey the mission of the store by careful selection in the positioning of the lead-off department.

Servicescapes
The physical surroundings in which the service is delivered and how the surroundings have a humanistic effect on customers and employees. Elements to be consider to provide good service layout:  Ambient conditions  Spatial layout and functionality  Signs, symbols, and artifacts

Warehouse Layout
3 types: types: Cross-docking Cross Random Stocking Customizing

A design that attempts to minimize total cost by addressing trade-offs tradebetween space and material handling.

Product Layout
High volume + Low variety of product

Repetitive Production + Continuous Production

Types of Product Layout

FABRICATION LINE Machine to machine. Builds components and parts of another subassembly or assemblies. ASSEMBLY LINE Hand to hand. Progressive assembly parts are assemble and put together on a moving conveyer system.

Advantages
Reduced WIP inventory.
Less floor space. Reduced raw material and finished goods inventories. Reduced direct labor. Increase employee participation. Increased use of equipment and machinery. Reduced investment in machinery and equipment. Improved operator expertise and skills.

Disadvantages
High demand

Work stoppages at any point ties up the whole operation

Lack of flexibility