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Strategic Layout Planning for Efficient Operations

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Discover how to optimize physical arrangement to enhance productivity, minimize costs, and boost customer satisfaction. Learn about process, product, and hybrid layouts, and key criteria for performance evaluation.

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Strategic Layout Planning for Efficient Operations

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  1. CHAPTER 10 LAY OUT

  2. THE CONCEPT • Competitive priorities + process + capacity  physical arrangement of people, equipment/facilities and space • Lay out planning : planning that involves decisions about the physical arrangement of economic activity centers within the facility. So that the workers and equipment may operate effectively • Economic activity centers : what, how much space, configuration, location • Considering the issues of travel time, material handling cost, communication effectiveness

  3. STRATEGIC ISSUES How well lay out meets the firm’s competitive priorities ? • facilitating the flow of materials and information • increasing the efficient utilization of labor & equipment • increasing customer convenience and sales • reducing hazard to workers • improving employee morale • improving communication

  4. TYPES Process • Low volume, high-variety products • Grouping workstations/departments according to function • Resources are general purpose & less capital intensive • Flexible • High Utilization • More specialized supervision

  5. Product • Repetitive and continuous production • Workstations/departments are arranged in linear path • High volume, faster processing rate • Lower inventories • Less unproductive time lost to changeovers and material handling

  6. Hybrid • A combination of process and product layout - fabrication and assembly operations • A Cell : two or more dissimilar workstations located close together (GT, OWMM) • Flexible automation (flexible manufacturing system) : a group of computer-controlled workstataions

  7. Fixed Position • A product is fixed in place and workers along with their tools and equipment come to the product to work on it • Massive product and difficult to move

  8. PERFORMANCE CRITERIA • Level of capital investment • Requirements for material handling • Ease of stock picking • Work environment and atmosphere • Ease of equipment maintenance • Employee attitudes • Amount of flexibility needed • Customer convenience and level of sales

  9. DESIGNING PROCESS LAYOUT • Gather information : space requirement by center, available space and closeness factor • Develop a block plan • Design a detail layout • Warehouse and office layouts

  10. DESIGNING PRODUCT LAYOUT Line balancing : the assignment of work to stations to achieve the desired output rate with the smallest number of workstations • precedence diagram • desired output rate • cycle time • theoretical minimum • idle time, efficiency and balance delay

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