Facility Layout

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FACILITY LAYOUT

Session 5

Operations Management

STRATEGIC IMPORTANCE OF
LAYOUT
Proper layout enables:
Higher utilization of space ,equipment and
people
Improved flow of information, materials or people
Improved employee morale and safe working
conditions
Improved customer /client interaction
Flexibility

TYPES OF LAYOUT
Office layout
Retail layout
Warehouse layout
Fixed-position layout
Process-oriented layout
Product-oriented layout
Cellular layout

OFFICE LAYOUT

OFFICE LAYOUT

Design positions people, equipment, & offices for


maximum information flow
Electronic and conventional communication
patterns , separation needs, and other conditions
affecting employee effectiveness.
One key layout trade-off is between proximity
and privacy

Examples

Insurance company
Software company

RETAIL LAYOUT

RETAIL LAYOUT

Design maximizes product exposure to


customers
The objective is to maximize the profitability per
square foot of floor space
Category management: Using computers to
evaluate the profitability of various
merchandizing plans for hundreds of categories
Slotting : Manufacturer pay a fees to get their
goods displayed on the shelf

SERVICE SPACES
Ambient conditions: which are background
characteristics such as lighting,sound,smell and
temperature .
Spatial layout and functionality: which
involve customer circulation path planning
Signs ,symbols, and artifact:

WAREHOUSE LAYOUT

WARE HOUSE LAYOUT

Design balances space (cube) utilization &


handling cost
Handling costs consists of incoming transport,
storage and outgoing transport of materials to
be warehoused
Cross docking-Avoiding the placement of
materials or supplies in storage by processing
them as they are received for shipment.

FIXED POSITION LAYOUT

FIXED-POSITION LAYOUT

Fixed-position layoutsare typical of projects


in which the product produced is too fragile,
bulky, or heavy to move.
In this layout, the product remains stationary for
the entire manufacturing cycle.
Equipment, workers, materials, and other
resources are brought to the production site.
Ships, houses, and aircraft are examples.

PROCESS ORIENTED LAYOUT

PROCESS-ORIENTED LAYOUT

Deals with low volume high variety production


(also called job shop)
A Product or small order is produced by moving
it from one department to another in a sequence
required for that product
Advantage of this type of layout is that it brings
greater flexibility
Example: Hospital Layout

PRODUCT ORIENTED LAYOUT

PRODUCT-ORIENTED LAYOUT
Better known asassembly lines,arrange
activities in a line according to the sequence of
operations that need to be performed
Product layouts are suitable for mass production
or repetitive operations in which one product is
manufactured in large volume.
The advantage of the product layout is its low
variable cost and low throughput time.
Assembly line balancing : Obtaining output at
each workstation on a production line so delay is
minimized

PRODUCT VS. PROCESS LAYOUT


Process

Product

Functional grouping of activities.

Customized Goods

Varied Path

Fixed cost low, variable cost high

Labor skills high

Standardized goods

Sequential arrangement of
activities.

Fixed path

Fixed cost high, variable cost low

Labor skills limited

CELLULAR LAYOUT - WORK CELLS

Combination of Product and process layout


It combines the advantages of both layout
systems
Brings flexibility as well as reduces variable cost
and throughput

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