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Operations Management: Layout Strategy

The document discusses facility layout strategies. It explains that facility layout involves arranging everything within and around buildings to achieve long-term operational efficiency and support business strategy. The objective of a layout strategy is to develop an effective and efficient layout that meets competitive requirements. A good layout considers material handling equipment needs, capacity requirements, environmental factors, information flow needs, and costs of moving between work areas. The document outlines different types of layout strategies for offices, retail spaces, and warehouses.

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Marjon Villanueva
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491 views16 pages

Operations Management: Layout Strategy

The document discusses facility layout strategies. It explains that facility layout involves arranging everything within and around buildings to achieve long-term operational efficiency and support business strategy. The objective of a layout strategy is to develop an effective and efficient layout that meets competitive requirements. A good layout considers material handling equipment needs, capacity requirements, environmental factors, information flow needs, and costs of moving between work areas. The document outlines different types of layout strategies for offices, retail spaces, and warehouses.

Uploaded by

Marjon Villanueva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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1

Operations
Management
Layout Strategy
What is Facility Layout
10

 Location or arrangement of everything within


& around buildings
 Determines long-run efficiency of operations

 Helps achieve a strategy that supports


differentiation, low cost or quick response
Objective?

 The objective of layout strategy is to develop

an effective and efficient layout that will

meet the firm’s competitive requirements.


Strategic Importance of Layout
12

Proper layout enables:


 Higher utilization of space, equipment and people

 Improved flow of information, materials, or people

 Improved employee morale and safer working


conditions
 Improved customer/client interaction

 Flexibility to change--use small, movable or modular


equipment; etc
Layout Strategies
13

 Office layout
 positions workers, their equipment, and spaces/offices
to provide for movement of communication and
information
 Retail/service layout
 allocates shelf space and responds to customer
behavior
 Warehouse layout
 addresses trade-offs between space and material
handling
Seven Layout Strategies
14

 Fixed-position layout
 large bulky projects such as ships and buildings

 Process-oriented layout
 deals with low-volume, high-variety production (“job
shop”, intermittent production)
 Product-oriented layout
 seeks the best personnel and machine use in repetitive
or continuous production, line balancing
Good Layout Requirements
15

 Material handling equipment: Managers must decide about


equipment to be used, including conveyors, cranes, automated
storage and retrieval systems, and automatic carts to deliver and
store material.

 Capacity and space requirements: Only when personnel, machines,


and equipment require- ments are known can managers proceed
with layout and provide space for each compo- nent. In the case of
office work, operations managers must make judgments about the
space requirements for each employee. They must also consider
allowances for require- ments that address safety, noise, dust,
fumes, temperature, and space around equipment and machines.
Good Layout Requirements
16

 Environment and aesthetics: Layout concerns often require


decisions about windows, planters, and height of partitions to
facilitate air flow, reduce noise, and provide privacy.

 Flows of information: Communication is important to any


organization and must be facili- tated by the layout. This issue
may require decisions about proximity, as well as decisions about
open spaces versus half-height dividers versus private offices.

 Cost of moving between various work areas: There may be


unique considerations related to moving materials or to the
importance of having certain areas next to each other. For
example, moving molten steel is more difficult than moving cold
steel.

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