Operations Management Layout Strategy 1
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Transcript Operations Management Layout Strategy 1
Operations
Management
Layout Strategy
1
What is Facility Layout
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
2
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 safer working
conditions
Improved customer/client interaction
Flexibility to change--use small, movable or modular
equipment; etc
3
Layout Strategies
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
4
Seven Layout Strategies
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
5
Office Layout
Design positions people, equipment, &
offices for maximum people and
information flow, comfort and safety
Relationship chart used
Examples
Banks
Software company
6
Office Layout Floor Plan
Finance
Accounting
Fin.
Manager
Acct.
Brand X
7
Retail/Service Layout
Design maximizes product exposure to
customers
Decision variables
Store flow pattern
Allocation of (shelf) space to products
8
Retail Layouts Some Rules of Thumb
Locate high-draw items around the periphery
of the store
Use prominent locations such as the first or last
aisle for high-impulse and high margin items
Distribute “power items” (items that may
dominate a shopping trip) to both sides of an
aisle, and disperse them to increase the
viewing of other items
Use end aisle locations because they have a
very high exposure rate
9
A Good Service Layout Considers
Ambient conditions - background characteristics
such as lighting, sound, smell, and temperature.
Spatial layout and functionality - which involve
customer circulation path planning
Signs, Symbols, and Artifacts - characteristics
of building design that carry significance
10
Warehouse Layout
Design balances between space utilization &
handling cost
Similar to process layout
Items moved between dock & various storage
areas
Optimum layout depends on
Variety of items stored
Number of items picked
11
Fixed-Position Layout
Design is for stationary project
Workers and equipment come to site
Complicating factors
Limited space at site
House, shipyard etc….
12
Process-Oriented Layout
Design places departments with large flows of
material or people together
Department areas having similar processes
located in close proximity
e.g., All x-ray machines in same area
Supports process-focused strategy i.e. product
differentiation stategy
13
Emergency Room Layout
Triage room
Patient A broken leg
Patient B – heart
problems
Labs
E.R. beds
Pharmacy
Billing/exit
14
Product-Oriented Layout
Facility organized around product
Design minimizes line imbalance
Delay between work stations
Types: Fabrication line; assembly line
15
Steps in Developing a
Process-Oriented Layout
1
2
3
4
5
6
Construct a “from-to matrix”
Determine space requirements for each
department
Develop an initial schematic diagram
Determine the cost of this layout
By trial-and-error (or more sophisticated
means), try to improve the initial layout
Prepare a detailed plan that evaluates
factors in addition to transportation cost
Cost of Process-Oriented Layout
n
n
Minimize cost X ijC ij
i 1 j1
where n total number of work centers
or department s
i, j individual department s
X ij number of loads moved from
department i to department j
C ij cost to move a load between
department i and department j
Interdepartmental Flow of Parts
1
1
2
3
4
5
6
2
3
4
5
50
6
100
0
0
20
30
50
10
0
20
0
100
50
0
0
Interdepartmental Flow Graph
Showing Number of Weekly Loads
100
1
50
2
30
3
100
10
4
50
5
6
Possible Layout 1
Room 1
Room 2
Room 2
Assembly
Printing
Machine Shop
Department
Department
Department
(1)
(2)
(3)
Receiving
Shipping
Testing
Department
Department
Department
(4)
Room 4
(5)
Room 5
60’
(6)
Room 6
40’
Interdepartmental Flow Graph
Showing Number of Weekly Loads
30
2 2
2
1
50
1
100
3
100
4
50
5
6
Possible Layout 3
Room 1
Room 2
Painting
Assembly
Machine Shop
Department
Department
Department
(2)
(1)
Room 2
(3)
Receiving
Shipping
Testing
Department
Department
Department
(4)
Room 4
(5)
Room 5
60’
(6)
Room 6
40’
Assembly Line Balancing
Analysis of production lines
Nearly equally divides work between
workstations while meeting required output
Objectives
Maximize efficiency
Minimize number of
work stations
Assembly Line Balancing
The General Procedure
Determine cycle time by taking the demand (or
production rate) per day and dividing it into the
productive time available per day
Calculate the theoretical minimum number of work
stations by dividing total task time by cycle time
Perform the line balance and assign specific
assembly tasks to each work station
Assembly Line Balancing Steps
1.
2.
3.
4.
5.
6.
7.
8.
Determine tasks (operations)
Determine sequence
Draw precedence diagram
Estimate task times
Calculate cycle time
Calculate number of work stations
Assign tasks
Calculate efficiency
Precedence Diagram Example
10
Min.
A
11
B
C
4
5
3
7
3
F
G
I
D
12
11
E
H
Assembly Line Balancing Equations
Production time available
Cycle time
Minimum
number of
work
stations
Efficiency
=
Demand per day
Task times
=
=
Cycle time
Task times
(Actual number
* (Cycle time)
of work
stations)
Cycle time calc.
On the basis of precedence diagram and
activity times given above, the firm determines
that there are 480 productive minutes of work
available per day. Furthermore, production
schedule requires that 40 units be completed
as output from the assembly line each day.
Cycle time:480/40=12 minutes per unit
Min no. of workstations:66/12=5.5 or 6
Six Station Solution
5
C
10
11
A
B
3
7
F
G
3
I
D
12
11
E
H