Layout Strategies

Objectives:

• Examine the importance of layout strategies

• State the strategies used in the placement of
machines, equipment, etc.
• Explain the advantages and requirements of
cellular production
• Analyze the working conditions in a sample
office/retail/warehouse layout.
Which of the following innovations
made by McDonalds over the years
are considered as layout decision?
a. Indoor seating (1950s)

b. Drive thru windows (1970s)

c. Adding breakfast in the

menu (1980s)
d. Adding play areas (1990s)
 LAY-OUT STRATEGIES
The arrangement of people, equipment,
material and methods to create
products in order of process in
continuous flow.
 Strategic Importance of Layout
Decisions
A. One of the key decisions that determines the long run
efficiency of operation.

B. The objective of layout strategy is to develop an economic

layout that will meet the firm’s competitive requirements.
1. It establishes competitive priorities
2. It supports differentiation, low cost, and rapid response
strategies.
 Strategic Importance of Layout
Decisions
C. Layout design consideration include:
1. Higher utilization space, equipment, and people
2. Improved flow of information, materials, or people
3. Improved employee morale and safer working conditions.
4. Improved customer/client interaction
5. Flexibility
 Strategic Importance of Layout
Decisions
D. Layout designs must be viewed as flexible in order to keep
pace with the ever-changing dynamic work environment
1. Consider using small, flexible equipment
2. In order to make quick and easy changes, operations
managers must design flexibility into layouts by cross-training
workers, maintaining equipment, keeping investments low, and
placing work stations close together.
 GOOD LAYOUTS CONSIDER
1. Material handling equipment
2. Capacity and space requirements
3. Environment and aesthetics
4. Flows of information
5. Cost of moving between various work
areas
 TYPES OF LAYOUT
1.Office layout
2.Retail layout
3.Warehouse layout
4.Fixed-position layout
5.Process-oriented layout
6.Product-oriented layout
TYPES OF LAYOUT
• Office layout
• positions workers,
their equipment, and
space/offices
• provide for
movement of
information
• Typically in state of
flux due to frequent
technological
changes
TYPES OF LAYOUT
• Retail layout
• Allocates shelf space and
responds to customer
behavior
• Objective is to maximize
profitability per square
foot of floor space
• Sales and profitability
vary directly with
customer exposure
• Things at the counter
have the most exposure.
TYPES OF LAYOUT
• Warehouse layout
• Objective is to optimize
trade-offs between
handling costs and costs
associated with
warehouse space
• Maximize the total “cube”
of the warehouse – utilize
its full volume while
maintaining low material
handling costs
• More location than layout
decision
TYPES OF LAYOUT
• Warehouse layout
• Cross docking
• Materials are
moved directly from
receiving to shipping
and are not placed
in storage in the
warehouse
• Requires tight
scheduling and
accurate shipments,
typically with bar
code identification
TYPES OF LAYOUT
• Fixed position layout
• Product remains in one
place
• Workers and equipment
come to site
• Complicating factors
• Limited space at site
• Different materials
required at different stages
of the project
• Volume of materials
needed is dynamic
TYPES OF LAYOUT
• Process-oriented layout
• Machines and equipment are grouped together
• Flexible and capable of handling a wide variety
of products or services
• Scheduling can be difficult and setup, material
handling, and labor costs can be high
TYPES OF LAYOUT
• Work cell layout
• Reorganizes people and machines into groups to
focus on single products or product groups
• Minimize Transit Times: Between adjacent work
stations and work cells
• Simplify Work Flow: Provide an easily accessible
entrance and exit point
• Functionality: Make sure the workspace is
accessible, clear of obstructions, and spacious
 TYPES OF LAYOUT
• Work cell layout
• U-cell design
• Simple path distinguished from
entry to exit points
• Operators can access multiple
workstations
• Free access to semi-finished
work from one station to the
next
• Operators own the entire
workflow – from entry to exit
point
 TYPES OF LAYOUT
• Work cell layout
• T-cell design
• It is ideal for a semi-finished
product that requires two or
more sources of raw materials
• It is suitable for cross-function
manufacturing, where multiple
product lines can be worked on
simultaneously.
• Easy designation of entry and
exit points
 TYPES OF LAYOUT
• Work cell layout
• S-shaped or Z-shaped cell
design
• Ideal for working in and around
obstructions
• Focus points (A & B) allow for
easy access to either work
station: between stations #1 &
#2 as well as between stations
#3 & #4
TYPES OF LAYOUT
• Product-oriented layout
• Organized around products or families of similar high-
volume, low-variety products
• Volume is adequate for high equipment utilization
• Product demand is stable enough to justify high
investment in specialized equipment
• Product is standardized or approaching a phase of life
cycle that justifies investment
• Supplies of raw materials and components are adequate
and of uniform quality
 TYPES OF LAYOUT
• Product-oriented layout
• Fabrication line
• Builds components on a series of machines
• Machine-paced
• Require mechanical or engineering changes to balance

• Assembly line
• Puts fabricated parts together at a series of workstations
• Paced by work tasks
• Balanced by moving tasks

• Both types of lines must be balanced so that the time to

perform the work at each station is the same