LAYOUTS AND TYPES

Layout:
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 layout
2. Process layout
3. Cell layout
. Product layout
Fixed position layout
1! "n a fixed position layout, the transformed resource does not mo#e $etween its transforming
resources.
2! %quipment, machinery, plant and people who do the processing mo#e as necessary $ecause the
product or customer is either&
i. Too large
ii. Too delicate or
iii. '$(ects $eing mo#ed
Process layout
1! "n a process layout, similar processes or processes with similar needs are located together
$ecause&
i. "t is con#enient to group them together or
ii. The utili)ation of the transforming resource is impro#ed
2! *ifferent products of customer ha#e different requirements therefore they may ta+e different
routes within the process.
3! The flow in a process layout can $e #ery complex.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.6
An example of a process layout in a library
showing the path of just one customer
Entrance Exit
On-line and
C-!O"
access room
#oan boo$s in subject order
E
n
%
u
i
r
i
e
s
&tore
room
Counter staff
Copying area
C
o
m
p
a
n
y

r
e
p
o
r
t
s
'o
journal
sac$
Current
journals
!eser(e
collection
!eference
section
&tudy des$s
Cell layout
1! "n a cell layout, the transformed resources entering the operation mo#e into a cell in which all
the transforming resources it requires in located.
2! ,fter $eing processed in the cell, the transformed resource may mo#e to a different cell in the
operation or it may $e a finished product or ser#ice.
3! %ach cell may $e arranged in either a process or product layout.
! The cell type layout attempts to $ring order to the complex flow seen in a process layout.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.)
'he ground floor plan of a department store
showing the sports goods shop-within-a-shop
retail *cell+
&ports shop "enswear
,omen+s clothes
#uggage
and gifts
Confectionery-
newspaper-
maga.ines and
stationery
/oo$s
and
(ideos 0ootwear
1erfume
2 jewellery
Ele(ators
Entrance
E
n
t
r
a
n
c
e
Product layout
1! "n a product layout, the transformed resource flow a long a line of processes that has $een
prearranged.
2! Flow is clear, predicta$le and easy to control.
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.34 An army induction centre with uses
product layout
#ecture theatre
5niform
issuing
area
5niform
store
,aiting
area
,aiting
area
octor
octor
octor
octor
octor
octor
/lood
test
/lood
test
/lood
test
6-ray
6-ray
6-ray
!ecord
personal
history and
medical
details
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.33
A restaurant complex with all four basic
layout types
0ixed-position layout
ser(ice restaurant
Cell layout buffet
#ine layout cafeteria
Cool room
0ree.er
7egetable prep 8rill
1reparation
O
(
e
n
1rocess layout $itchen
"ain course
buffet
&
t
a
r
t
e
r

b
u
f
f
e
t

e
s
e
r
t

b
u
f
f
e
t
&er(ice line
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.39
0ixed-position
layout
1roduct
layout
Cell layout
1rocess
layout
7olume
Low High
7
a
r
i
e
t
y
L
o
w
H
i
g
h
0low is
intermittent
!egular flow more important
0low
becomes
continuous
!
e
g
u
l
a
r

f
l
o
w

m
o
r
e

f
e
a
s
i
b
l
e
-olume.#ariety relationship
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.3:
1roject process
;obbing process
/atch process
"ass process
Continuous process
1rofessional ser(ices
&er(ice shops
"ass ser(ices
0ixed position layout
1rocess layout
Cell layout
1roduct layout
'he physical position
of all transforming
resources
'he flow of the
operation+s
transformed resources
1rocess type
/asic layout type
etailed design of
layout
7olume and
(ariety
&trategic
performance
objecti(es
ecision 3
ecision 9
ecision :
Layout selection steps

Selecting a layout type
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.3<
3= 'he nature of the basic layout types
/asic layout
types
"anufacturing
process types
&er(ice
process types
0ixed
position layout
1roject processes
1rocess layout
Cell layout
1roduct layout
;obbing processes
/atch processes
"ass processes
Continuous processes
1rofessional
ser(ices
&er(ice shops
"ass ser(ices
1roject processes
© Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter
7.36
9= Ad(antages and disad(antages
0ixed
position
layout
1rocess
layout
Cell
layout
1roduct
layout
isad(antages
Ad(antages
! "er# high mi$
an% pro%uct
&le$ibilit#
! 'ro%uct(customer
not mo)e% or
%isturbe%*
! "er# high unit cost*
! Sche%uling space
an% acti)ities can be
%i&&icult*
! +igh mi$ an%
pro%uct &le$ibilit#
! Relati)el# robust
i& in the case o&
%isruptions
,o- utili.ation o&
resources*
Can ha)e )er# high
/0'
Comple$ &lo-*
! 1oo% compromise
bet-een cost an%
&le$ibilit#
! 2ast throughput*
! 1roup -ork can
result in goo%
moti)ation
Can be costl# to
rearrange e$isting
la#out
Can nee% more plant
an% e3uipment
,o! - unit costs &or high
)olume
! 1i)es 4pportunities
&or speciali.ation o&
e3uipment
Can ha)e lo- mi$ an%
&le$ibilit#
Not )er# robust to
%isruption
/ork can be )er#
repetiti)e*
! +igh )ariet# o&
tasks &or sta&&
! Eas# super)ision
o& e3uipment o&
plant
! 1i)es 4pportunities
&or speciali.ation o&
e3uipment
EALUAT!ON " SELECT!ON OF APP#OP#!ATE P#ODUCT!ON AND OPE#AT!ON
TEC$ONOLO%Y
• 5echnologies &or the pro%uction o& goo%s, measure%, or classes o& goo%s, o& near i%entical %esign or
properties, -hose output is in )olumetric units* 5echnologies oriente% to the manu&acture(pro%uction
o& ores, implements an% tools, glass sheets, cement, caustic so%a, )egetable oils, pharmaceuticals,
machiner# 6e*g* lathes7, or components o& machines an% appliances t#pi&# this categor#* 5he
pro%uction operation itsel& ma# in)ol)e mining, e$traction, &abrication, assembl# &ormulation, ph#sical
trans&ormation or chemical con)ersion 6process7*
• 5echnologies that enhance the properties, &eatures or 3ualities o& a pro%uct to create a commerciall#
rele)ant a%)antage such as cost, con)enience, per&ormance or sa&et#* E$amples o& pro%uct
impro)ements inclu%e 8&ree!&lo-ing9 salt, the t-in bla%e sha)ing ra.or, cocoa butter substitutes &or
making chocolates an% encapsulation o& pharmaceuticals*
• 5echnologies that pro%uce one or more special e&&ects, e*g* +ot an% col% rolling steel: ano%i.ing,
gal)ani.ing or electroplating metals: te$turi.ing #arn: -aterproo&ing, &ireproo&ing an% %#eing &abrics:
&umigating an% %eto$i&#ing grain, tubers or &ee%s: sterili.ing an% pasteuri.ing %air# or other processe%
&oo% pro%ucts* 5he pro%uct ma# be pro%uce% in!house, be a bought item, or it ma# be contracte% out
to a thir% part# -ith e$pertise in the speci&ic con%itioning process*
• 5echnologies that mo%i&# a pro%uction process or manu&acturing s#stem to bring about some
a%)antage or le)erage* E$amples inclu%e : impro)ing operating or public sa&et# b# eliminating
pollutants in pro%ucts an% processes, remo)ing phosphates in %etergents an% cleaning up automobile
e$haust gases* Such technologies can also comprise the automation, computeri.ation or roboti.ation
o& processes an% mechanical se3uences to impro)e a particular &eature* 6these technologies %o not
al-a#s ha)e a microeconomic signi&icance but can enhance the image o& the technolog#7*
• 5echnologies &or the 8pro%uction9 o& technical ser)ices, eg pro%uct(process %esign an% engineering,
computer so&t-are %e)elopment an% mo%eling an% pro%ucti)it# enhancement techni3ues*
• %-,/0,T"'1 ,1* 2%/%CT"'1 'F T%C31'/'45
5he i%ea &or an in)estment pro;ect rarel# starts -ith the technolog# to be applie%* 0nstea% the in)estor normall# takes as a starting point the
a)ailabilit# o& some resource or the i%enti&ication o& a goo% market opportunit#* 0n the case o& non!pro&it generating in)estments, the ;usti&ication o& the
pro;ect almost al-a#s lies in the response to a social or communit# nee%*
A. Reconfirmation of the Scale of the Project
B. Choosing the Production Technology
C. E!erience and Ca!acity of the A!!licants
". #aintenance and Re!air
0igure 7 > ?deali.ed technology selection process
5+E N<504N<, =<R>E5 EN"0R4N=EN5
Can%i%ate pro%ucts &or manu&acture
6Step <7
=arket assessments
Product identification
=arket si.e
6Step ?7
Potential modes of production investment estimates
6Step C7
Preferred modes of production
(raw materials, energy forms, skills, etc)
6Step @7
Suitable technological routes
6Step E7
Potential technology suppliers
6Step 27
Select alternate technologies and respective technology sources
6Step 17
E)aluation o& technolog# attributes
6tra%e marks, patents, etc7
6Step +7
<nal#sis o& appropriateness o& technologies
<nal#sis o& technolog# risks
6Step 07
're&erre% &orm o& technolog# trans&er
6;oint )enture, licence, etc7
6Step J7
<nal#sis o& &inancial acceptabilit#
6inclu%ing technolog# costs7
6Step >7
're&erre% technolog# an% &orm o& ac3uisition
6Step ,7
Preferred mode of technology implementation
6turnke#, unpackage%,etc7
6Step =7
're&erre% strategies o& market entr# an% pro%uct establishment
6Step N7
Enterprise &ormation, A technolog# trans&er an% pro;ect implementation
6Step 47
Enterprise structure, &un%ing etc* are not %etaile% here although some ma# ha)e a bearing on technological
selection*