2008 Prentice Hall, Inc. 9 – 1 Operations Management Chapter 9 – Chapter 9 – Layout Strategies Layout Strategies PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 7e Principles of Operations Management, 7e Operations Management, 9e Operations Management, 9e
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PowerPoint presentation to accompany PowerPoint presentation to accompany Heizer/Render Heizer/Render Principles of Operations Management, 7ePrinciples of Operations Management, 7eOperations Management, 9e Operations Management, 9e
Process-Oriented LayoutProcess-Oriented Layout Computer Software for Process-Computer Software for Process-
Oriented LayoutsOriented Layouts Work CellsWork Cells
Requirements of Work CellsRequirements of Work Cells Staffing and Balancing Work CellsStaffing and Balancing Work Cells The Focused Work Center and the The Focused Work Center and the
When you complete this chapter you When you complete this chapter you should be able to:should be able to:
1.1. Discuss important issues in office layoutDiscuss important issues in office layout
2.2. Define the objectives of retail layoutDefine the objectives of retail layout
3.3. Discuss modern warehouse management Discuss modern warehouse management and terms such as ASRS, cross-docking, and terms such as ASRS, cross-docking, and random stockingand random stocking
4.4. Identify when fixed-position layouts are Identify when fixed-position layouts are appropriateappropriate
8.8. Explain how to balance production flow Explain how to balance production flow in a repetitive or product-oriented facilityin a repetitive or product-oriented facility
Innovations at McDonald’sInnovations at McDonald’s
Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu
(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections
Innovations at McDonald’sInnovations at McDonald’s
Indoor seating (1950s)Indoor seating (1950s) Drive-through window (1970s)Drive-through window (1970s) Adding breakfast to the menu Adding breakfast to the menu
(1980s)(1980s) Adding play areas (late 1980s)Adding play areas (late 1980s) Redesign of the kitchens (1990s)Redesign of the kitchens (1990s) Self-service kiosk (2004)Self-service kiosk (2004) Now three separate dining sectionsNow three separate dining sections
Strategic Importance of Strategic Importance of Layout DecisionsLayout Decisions
The objective of layout strategy The objective of layout strategy is to develop a cost-effective is to develop a cost-effective layout that will meet a firm’s layout that will meet a firm’s
1.1. Office layout: Positions workers, Office layout: Positions workers, their equipment, and spaces/offices their equipment, and spaces/offices to provide for movement of to provide for movement of informationinformation
2.2. Retail layout: Allocates shelf space Retail layout: Allocates shelf space and responds to customer behavior and responds to customer behavior
3.3. Warehouse layout: Addresses trade-Warehouse layout: Addresses trade-offs between space and material offs between space and material handlinghandling
4.4. Fixed-position layout: Addresses Fixed-position layout: Addresses the layout requirements of large, the layout requirements of large, bulky projects such as ships and bulky projects such as ships and buildingsbuildings
5.5. Process-oriented layout: Deals with Process-oriented layout: Deals with low-volume, high-variety production low-volume, high-variety production (also called job shop or intermittent (also called job shop or intermittent production)production)
6.6. Work cell layout: Arranges Work cell layout: Arranges machinery and equipment to focus machinery and equipment to focus on production of a single product or on production of a single product or group of related productsgroup of related products
7.7. Product-oriented layout: Seeks the Product-oriented layout: Seeks the best personnel and machine best personnel and machine utilizations in repetitive or utilizations in repetitive or continuous productioncontinuous production
Grouping of workers, their equipment, Grouping of workers, their equipment, and spaces to provide comfort, and spaces to provide comfort, safety, and movement of informationsafety, and movement of information
Movement of Movement of information is main information is main distinctiondistinction
Typically in state of Typically in state of flux due to frequent flux due to frequent technological technological changeschanges
Five Helpful Ideas for Five Helpful Ideas for Supermarket LayoutSupermarket Layout
1.1. Locate high-draw items around the Locate high-draw items around the periphery of the storeperiphery of the store
2.2. Use prominent locations for high-impulse Use prominent locations for high-impulse and high-margin itemsand high-margin items
3.3. Distribute power items to both sides of Distribute power items to both sides of an aisle and disperse them to increase an aisle and disperse them to increase viewing of other itemsviewing of other items
4.4. Use end-aisle locationsUse end-aisle locations
5.5. Convey mission of store through careful Convey mission of store through careful positioning of lead-off departmentpositioning of lead-off department
characteristics such as lighting, sound, characteristics such as lighting, sound, smell, and temperaturesmell, and temperature
Spatial layout and functionality - which Spatial layout and functionality - which involve customer involve customer circulation path planning, circulation path planning, aisle characteristics, and aisle characteristics, and product groupingproduct grouping
Signs, symbols, and Signs, symbols, and artifacts - characteristics artifacts - characteristics of building design that of building design that carry social significancecarry social significance
Warehousing and Storage Warehousing and Storage LayoutsLayouts
Objective is to optimize trade-offs Objective is to optimize trade-offs between handling costs and costs between handling costs and costs associated with warehouse spaceassociated with warehouse space
Maximize the total “cube” of the Maximize the total “cube” of the warehouse – utilize its full volume warehouse – utilize its full volume while maintaining low material while maintaining low material handling costshandling costs
Warehousing and Storage Warehousing and Storage LayoutsLayouts
Warehouse density tends to vary Warehouse density tends to vary inversely with the number of different inversely with the number of different items storeditems stored
Automated Storage and Automated Storage and Retrieval Systems (ASRSs) Retrieval Systems (ASRSs) can significantly improve can significantly improve warehouse productivity by warehouse productivity by an estimated 500%an estimated 500%
Dock location is a key Dock location is a key design elementdesign element
Cross-DockingCross-Docking Materials are moved directly from Materials are moved directly from
receiving to shipping and are not receiving to shipping and are not placed in storage placed in storage in the warehousein the warehouse
Requires tight Requires tight scheduling and scheduling and accurate shipments, accurate shipments, bar code or RFIDbar code or RFIDidentification used foridentification used foradvanced shipmentadvanced shipmentnotification as materialsnotification as materialsare unloadedare unloaded
As much of the project as possible As much of the project as possible is completed off-site in a product-is completed off-site in a product-oriented facilityoriented facility
This can This can significantly significantly improve efficiency improve efficiency but is only but is only possible when possible when multiple similar multiple similar units need to be createdunits need to be created
Like machines and equipment are Like machines and equipment are grouped togethergrouped together
Flexible and capable of handling a Flexible and capable of handling a wide variety of products or wide variety of products or servicesservices
Scheduling can be difficult and Scheduling can be difficult and setup, material handling, and labor setup, material handling, and labor costs can be highcosts can be high
1.1. Construct a “from-to matrix”Construct a “from-to matrix”
2.2. Determine the space requirementsDetermine the space requirements
3.3. Develop an initial schematic diagramDevelop an initial schematic diagram
4.4. Determine the cost of this layout Determine the cost of this layout
5.5. Try to improve the layoutTry to improve the layout
6.6. Prepare a detailed plan Prepare a detailed plan
Arrange six departments in a factory to Arrange six departments in a factory to minimize the material handling costs. minimize the material handling costs. Each department is 20 x 20 feet and the Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide.building is 60 feet long and 40 feet wide.
Three dimensional visualization Three dimensional visualization software allows managers to view software allows managers to view possible layouts and assess process, possible layouts and assess process, material material handling, handling, efficiency, efficiency, and safety and safety issuesissues
Reorganizes people and machines Reorganizes people and machines into groups to focus on single into groups to focus on single products or product groupsproducts or product groups
Group technology identifies Group technology identifies products that have similar products that have similar characteristics for particular cellscharacteristics for particular cells
Volume must justify cellsVolume must justify cells
Cells can be reconfigured as Cells can be reconfigured as designs or volume changesdesigns or volume changes
Improving Layouts Using Improving Layouts Using Work CellsWork Cells
Current layout - workers in Current layout - workers in small closed areas. small closed areas. Cannot increase output Cannot increase output without a third worker and without a third worker and third set of equipment.third set of equipment. Improved layout - cross-trained Improved layout - cross-trained
workers can assist each other. workers can assist each other. May be able to add a third worker May be able to add a third worker as additional output is needed.as additional output is needed.
Improving Layouts Using Improving Layouts Using Work CellsWork Cells
Current layout - straight Current layout - straight lines make it hard to balance lines make it hard to balance tasks because work may not tasks because work may not be divided evenlybe divided evenly
Improved layout - in U Improved layout - in U shape, workers have better shape, workers have better access. Four cross-trained access. Four cross-trained workers were reduced.workers were reduced.
Figure 9.10 (b)Figure 9.10 (b)
U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection
Staffing Work Cells ExampleStaffing Work Cells Example
600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart
total operation time total operation time = 140= 140 seconds seconds
Staffing Work Cells ExampleStaffing Work Cells Example
600 600 Mirrors per day requiredMirrors per day requiredMirror production scheduled for Mirror production scheduled for 88 hours per day hours per dayFrom a work balance chart From a work balance chart
total operation time total operation time = 140= 140 seconds seconds
Takt timeTakt time = = (8(8 hrs hrs x 60x 60 mins mins) / 600) / 600 units units = .8= .8 mins mins = 48= 48 seconds seconds
Workers requiredWorkers required ==Total operation time requiredTotal operation time required
Focused Work Center and Focused Work Center and Focused FactoryFocused Factory
Focused Work CenterFocused Work Center Identify a large family of similar products Identify a large family of similar products
that have a large and stable demandthat have a large and stable demand
Moves production from a general-purpose, Moves production from a general-purpose, process-oriented facility to a large work cellprocess-oriented facility to a large work cell
Focused FactoryFocused Factory A focused work cell in a separate facilityA focused work cell in a separate facility
May be focused by product line, layout, May be focused by product line, layout, quality, new product introduction, flexibility, quality, new product introduction, flexibility, or other requirementsor other requirements
Focused Work Center and Focused Work Center and Focused FactoryFocused Factory
Table 9.2Table 9.2
Work CellWork Cell Focused Work CenterFocused Work Center Focused FactoryFocused Factory
A work cell is a A work cell is a temporary product-temporary product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.
A focused work center is A focused work center is a permanent product-a permanent product-oriented arrangement oriented arrangement of machines and of machines and personnel in what is personnel in what is ordinarily a process-ordinarily a process-oriented facility.oriented facility.
A focused factory is a A focused factory is a permanent facility to permanent facility to produce a product or produce a product or component in a component in a product-oriented product-oriented facility. Many focused facility. Many focused factories currently factories currently being built were being built were originally part of a originally part of a process-oriented process-oriented facility.facility.
Example: A job shop Example: A job shop with machinery and with machinery and personnel rearranged personnel rearranged to produce 300 unique to produce 300 unique control panels.control panels.
Example: Pipe bracket Example: Pipe bracket manufacturing at a manufacturing at a shipyard.shipyard.
Example: A plant to Example: A plant to produce window produce window mechanism for mechanism for automobiles.automobiles.
Repetitive and Product-Repetitive and Product-Oriented LayoutOriented Layout
1.1. Volume is adequate for high equipment Volume is adequate for high equipment utilizationutilization
2.2. Product demand is stable enough to justify high Product demand is stable enough to justify high investment in specialized equipmentinvestment in specialized equipment
3.3. Product is standardized or approaching a phase Product is standardized or approaching a phase of life cycle that justifies investment of life cycle that justifies investment
4.4. Supplies of raw materials and components are Supplies of raw materials and components are adequate and of uniform qualityadequate and of uniform quality
Organized around products or families of Organized around products or families of similar high-volume, low-variety productssimilar high-volume, low-variety products
Product-Oriented LayoutsProduct-Oriented Layouts Fabrication lineFabrication line
Builds components on a series of machinesBuilds components on a series of machines Machine-pacedMachine-paced Require mechanical or engineering changes Require mechanical or engineering changes
to balanceto balance Assembly lineAssembly line
Puts fabricated parts together at a series of Puts fabricated parts together at a series of workstationsworkstations
Paced by work tasksPaced by work tasks Balanced by moving tasksBalanced by moving tasks
Both types of lines must be balanced so that the Both types of lines must be balanced so that the time to perform the work at each station is the sametime to perform the work at each station is the same
Objective is to minimize the imbalance Objective is to minimize the imbalance between machines or personnel while between machines or personnel while meeting required outputmeeting required output
Starts with the precedence Starts with the precedence relationshipsrelationships
1.1. Determine cycle timeDetermine cycle time
2.2. Calculate theoretical Calculate theoretical minimum number of minimum number of workstationsworkstations
3.3. Balance the line by Balance the line by assigning specific assigning specific tasks to workstationstasks to workstations
This means that This means that tasks B and E tasks B and E cannot be done cannot be done until task A has until task A has been completedbeen completed
PerformancePerformance Task Must FollowTask Must FollowTimeTime Task ListedTask Listed