Professional Documents
Culture Documents
Operations
Management
9-1
Innovations at McDonald’s
Indoor seating (1950s)
Drive-through window (1970s)
Adding breakfast to the menu
(1980s)
Adding play areas (late 1980s)
Redesign of the kitchens (1990s)
Self-service kiosk (2004)
Now three separate dining sections
Project (fixed Move material to the limited Ingall Ship Building Corp.
position) storage areas around the site Trump Plaza
Pittsburgh Airport
Table 9.1
Table 9.1
Figure 9.1
Objective is to maximize
profitability per square foot of
floor space
Sales and profitability vary
directly with customer exposure
Figure 9.2
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 18
Retail Slotting
Manufacturers pay fees to retailers
to get the retailers to display (slot)
their product
Contributing factors
Limited shelf space
An increasing number of new
products
Better information about sales
through POS data collection
Closer control of inventory
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 19
Retail Store Shelf Space
Planogram
5 facings
Computerized
tool for shelf-
Shampoo
Shampoo
Shampoo
Shampoo
Shampoo
space
management
Generated from
store’s scanner
Conditioner
Shampoo
Shampoo
Shampoo
Shampoo
data on sales Conditioner
Conditioner
Often supplied
by manufacturer
2 ft.
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 20
Servicescapes
1. Ambient conditions - background
characteristics such as lighting, sound,
smell, and temperature
2. Spatial layout and functionality - which
involve customer
circulation path planning,
aisle characteristics, and
product grouping
3. Signs, symbols, and
artifacts - characteristics
of building design that
carry social significance
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 21
Warehousing and Storage
Layouts
Conveyor
Staging
Office
Shipping and receiving docks
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 28
Warehouse Layout
Cross-Docking Layout
Office
Shipping and receiving docks
Laboratories
Figure 9.3
Local
nursing pod
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 34
Process-Oriented Layout
Arrange work centers so as to
minimize the costs of material
handling
Basic cost elements are
Number of loads (or people)
moving between centers
Distance loads (or people) move
between centers
Figure 9.4
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 38
Process Layout Example
Area 1 Area 2 Area 3
40’
Figure 9.5
60’
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 39
Process Layout Example
Interdepartmental Flow Graph
100
Figure 9.6
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 40
Process Layout Example
n n
= $570
10
20 20 100
50
Figure 9.7
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 42
Process Layout Example
n n
= $480
40’
Figure 9.8
60’
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 44
Computer Software
Graphical approach only works for
small problems
Computer programs are available to
solve bigger problems
CRAFT
ALDEP
CORELAP
Factory Flow
A A A A B B D D D D B B
D D D D D D D D D E E E
C C D D D D C C D E E F
F F F F F D A A A A A F
E E E E E D A A A F F F
(a) (b)
Figure 9.9
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 46
Computer Software
Three dimensional visualization
software allows managers to view
possible layouts and assess process,
material
handling,
efficiency,
and safety
issues
30
20
10
Figure 9.12
G 7 F 10 11
C
3 7
H 11 E
A B F G
I 3 G, H 4
3
Total time 66 D I
12 11
E H
Figure 9.13
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 66
Wing Component Example
Performance Task Must Follow 480 available
Time Task Listed mins per day
Task (minutes) Below 40 units required
A 10 —
B 11 A Production time
C 5 B available per day
D 4 Cycle
B time = Units required per day
E 12 A = 480 / 40
F 3 C, D 5
= 12 minutes per unit
G 7 F 10 11
C
3 7
H 11 E n
Minimum A ∑ TimeB for taskFi G
I 3 G, H 4
number of = i = 1 3
Total time 66 workstations Cycle time
D
12 11 I
= 66 / 12
E H
= 5.5 or 6 stations
Figure 9.13
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9 - 67
WingLine-Balancing
Component Example
Heuristics
1. Longest task time Choose the available480 task
available
Performance Task Must Follow
with the longest task time
Time Task Listed mins per day
Task2. Most
(minutes)
following tasksBelow
Choose the available40 task
units required
A 10 —with the largestCycle
number
timeof= 12 mins
following tasks
B 11 A Minimum
C 3. Ranked5 positional BChoose the available
workstations = 5.5 or 6
task for
D weight4 Bwhich the sum of following
E 12 Atask times is the longest
F 3 C, D 5