Chapter 7 - Layout and Flow

What is Layout?

Layout
o Is how an operation's transforming resources are positioned relative to
each other and how its various tasks are allocated to these transforming
resources

Basic Layout Types used in Operations

1 Fixed Position Layout

The materials or people being transformed do not move but the
transforming resources move around them
Typically used when the product is too large to be moved, too delicate
to be moved, or objects to being moved
Ex. Motorway construction, Open-heart surgery, High-class service
restaurant, Shipbuilding, Mainframe computer maintenance
2 Functional Layout
Similar transforming resources are grouped together in the operation
When products, information, or customers flow through the operation,
they will take a route from activity to activity according to their needs
Ex. Hospital, Supermarket
3 Cell Layout
Resources of a particular class of product are grouped together in
some way
After being processed, the transformed resources may go on to
another cell
Ex. Maternity unit in a hospital, Component manufacturing (dedicated
special area),
4 Product Line Layout
Transforming resources are located in sequence specifically for the
convenience of products or product types
The transformed resources 'flow' along a 'line' of processes
Ex. Automobile assembly, Mass immunization programs, Self-service
cafeteria

What Type of Layout Should an Operation Choose?

Nature of the process type

Volume-variety characteristics of an operation

Cost Analysis
Fixed costs tend to increase as one moves from fixed-position, through
process and cell, to product layout
Variable costs per product tend to decrease however

Servicescapes
The look and feel of an environment within an operation