Course Code and Title: CBME 1 - Operations Management with Total

Quality Management
Lesson Number: 11
Topic: Layout Strategies

Learning Objectives
At the end of this lesson, you should be able to:
1. Enumerate and describe the types of layout strategies.
2. Discuss the factors to consider in designing layout.
3. Explain how to balance production flow in a repetitive or product-oriented
facility.

Pre-Assessment
Select the letter of the best answer:
1. The servicescape consideration that addresses customer circulation path planning
and aisle characteristics is
spatial layout and functionality
artifacts
signs and symbols
ambient conditions
2. When warehouses add value to the product through component modification, repair,
 labeling and packaging, they are engaging in the practice of customizing
cross-docking
kitting
random stocking
3. Work cells typically have
reduced investment in machinery and equipment.
increased direct labor needs due to specialization.
Increased work-in process inventory
Increased raw materials and resources
4. A permanent product-oriented arrangement of machines and personnel in what is
ordinarily a process-oriented facility is called a
Focused work center
Assembly line
Work cell
Focused factory
5. Using the tasks, task times in minutes and required predecessors shown in the table,
what activities are assigned to the third station if the desired output is 150 units
per 8 hour day?

D and E
C
B
B and C

Lesson Development
Strategic Importance of Layout Decisions
 Layout refers to the specific configuration of physical facilities in an organization.
 It has numerous strategic implications because it establishes an organization’s
competitive priorities in regard to capacity, processes, flexibility, and cost, as well as
quality of work life, customer contact, and image.
 An effective layout can help an organization achieve a strategy that supports
differentiation, low cost, or response.
Examples: Benetton supports a differentiation strategy by heavy investment in
warehouse layouts that contribute to fast, accurate sorting and
shipping to its 5,000 outlets
Wal-Mart store layouts support a strategy of low cost, as do its
warehouse layouts.
Hallmark’s office layouts, where many professionals operate with open
communication in work cells, support response strategy through it rapid
development of greeting cards
 The objective of layout strategy is to develop an effective and efficient layout that
will meet the firm’s competitive requirements.
 In all cases, layout design must consider how to achieve the following:

Layout decisions include the best placement of machines(in production settings),

offices and desks (in office settings), or service centers ( in settings such as
hospitals or department stores)
OBJECTIVE #2: Discuss the factors to consider in designing layout.
Reinforcement:

Answer 7.10 in the Problems of Chapter Seven in the EBook.