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7/27/2019 Presentation Sample 3.
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Team #: 4
Sandeep Kaushik
Ravi Siruvuri
1Plant Layout Strategy and Types of Layout
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The objective of layout strategy is to develop an economic layout that will
meet the organizations competitive requirements and help achieve the
differentiation and low cost .
Layout design must consider how to achieve :
Higher utilization of space, equipment, and people
Improved flow of information, materials, or people
Improved employee morale and safer working conditions
Improved customer/client interactionFlexibility and room for future changes.
2Plant Layout Strategy and Types of Layout
Objective & Considerations
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REQUIREMENTS OF A GOOD LAYOUTREQUIREMENTS OF A GOOD LAYOUT
An understanding of capacity and space requirementsAn understanding of capacity and space requirements
Selection of appropriate material handling equipmentSelection of appropriate material handling equipment
Decisions regarding environment and aestheticsDecisions regarding environment and aesthetics
Identification and understanding of the requirements for informaIdentification and understanding of the requirements for information flowtion flow
Identification of the cost of moving between the various work arIdentification of the cost of moving between the various work areaseas
3Plant Layout Strategy and Types of Layout
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McDonalds Layout Consideration and savings :McDonalds Layout Consideration and savings :
No Food prepared ahead except patty. Eliminate someNo Food prepared ahead except patty. Eliminate some
steps and introduce new bun toasting machine ,steps and introduce new bun toasting machine ,
repositioning condiment containers . This helped withrepositioning condiment containers . This helped with
savings of $100 million per year due to increate insavings of $100 million per year due to increate inefficiency and reducing losses and waste.efficiency and reducing losses and waste.
IKEA Layout Consideration and philosophyIKEA Layout Consideration and philosophy ::
IKEA stores are usually very large buildings with fewIKEA stores are usually very large buildings with fewwindows and yellow accents (the company's colorswindows and yellow accents (the company's colors
are also the national colors ofare also the national colors ofSwedenSweden). They are). They are
often designed around a "oneoften designed around a "one--way" layout whichway" layout which
leads customers along "the long natural way.". Thisleads customers along "the long natural way.". This
layout is designed to encourage the customer to seelayout is designed to encourage the customer to see
the store in its entirety (as opposed to a traditionalthe store in its entirety (as opposed to a traditionalretail store, which allows a consumer to go right toretail store, which allows a consumer to go right to
the section where the goods and services needed arethe section where the goods and services needed are
displayed) although there are often shortcuts to otherdisplayed) although there are often shortcuts to other
parts of the showroom. The sequence first involvesparts of the showroom. The sequence first involves
going through furniture showrooms making note ofgoing through furniture showrooms making note ofselected items.selected items.
Examples:
4Plant Layout Strategy and Types of Layout
http://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Sweden7/27/2019 Presentation Sample 3.
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TYPES OF LAYOUT :TYPES OF LAYOUT :
Office layout : positions workers, their equipment, and spaces/offices to provide
for movement of information
Retail layout : allocates shelf space and responds to customer behavior
Warehouse layout : addresses trade-offs between space and material handling
Fixed-position layout : addresses the layout requirements of large, bulky projectssuch as ships and buildings
Process-oriented layout : deals with low-volume, high-variety production (alsocalled job shop or intermittent production)
Work cell layout : a special arrangement of machinery and equipment to focuson production of a single product or group of related products
Product-oriented layout : seeks the best personnel and machine utilizations inrepetitive or continuous production
5Plant Layout Strategy and Types of Layout
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Office LayoutOffice Layout
ObjectiveObjective -- Group people, equipment and spaces to provide comfort, safety,Group people, equipment and spaces to provide comfort, safety, and movementand movementof information.of information.
Key elementKey element -- Movement of informationMovement of information
Change as Technology advancesChange as Technology advances
Build Relationship chartsBuild Relationship charts
Customize based on importance of workCustomize based on importance of work
environment factorsenvironment factors
Convenient access to most commonlyConvenient access to most commonly
used locations of the buildingused locations of the building
.
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Retail Layout :Retail Layout : ObjectiveObjectiveExpose as many products as possible to the customerExpose as many products as possible to the customer
Factors to consider for product arrangement:Factors to consider for product arrangement:
Place popular items around the store peripheryPlace popular items around the store periphery
Place highPlace high--margin products in prime spotsmargin products in prime spots
Use endUse end--aisle locations effectivelyaisle locations effectively
New line of products should be in the broadNew line of products should be in the broad
view of customersview of customers
Category managementCategory managementmaximize profit permaximize profit per
square foot of spacesquare foot of space
Slotting feesSlotting fees
ServicescapesServicescapes
Ambient conditionsAmbient conditions
Spatial layoutSpatial layout Signs, symbols and artifactsSigns, symbols and artifacts
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Warehouse Layout :
ObjectiveObjectiveFind optimal tradeFind optimal trade--off between handling costs andoff between handling costs andwarehouse storage costswarehouse storage costs
Minimize material handling costs,
damage and spoilage
Use ASRS
Identify location and type of Docks
Cross-docking
Tight scheduling Accurate product identification
Random Stocking
List of open locations
Accurate records of inventory
Sequencing items
Combing orders
Assigning locations for specific items Customizing
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Fixed Position Layout
ObjectiveObjectiveOptimize schedule, materials and space around the productOptimize schedule, materials and space around the product
Product remains at one placeProduct remains at one place
Process is complicated because of 3Process is complicated because of 3
factors:factors:
Limited spaceLimited space
Type of Materials required changes asType of Materials required changes as
project progressesproject progresses
Volume of materials required changesVolume of materials required changes
Build subBuild sub--projects at remote siteprojects at remote site
Associated costsAssociated costs ConvenienceConvenience
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Process Oriented Layout
ObjectiveObjectiveProvide maximum flexibility in assigning labor and equipment toProvide maximum flexibility in assigning labor and equipment toaccomplish a taskaccomplish a task
Process is used when variety of productsProcess is used when variety of products
need to be handled simultaneously.need to be handled simultaneously.
Advantage is it provides maximum flexibilityAdvantage is it provides maximum flexibility
Disadvantages include:Disadvantages include:
Takes more time to produce a productTakes more time to produce a product
Labor should skilled and wellLabor should skilled and well--trainedtrained
Extra consideration to arrange work cells toExtra consideration to arrange work cells tominimize material handling costs.minimize material handling costs.
For large layouts, use Software programs toFor large layouts, use Software programs to
design the layout (ex: CRAFT, ALDEP,design the layout (ex: CRAFT, ALDEP,
CORELAP)CORELAP)
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Work Cells
ObjectiveObjectiveOrganize people and equipment to focus on single product or groOrganize people and equipment to focus on single product or groupupof similar productsof similar products
Advantages include:
Reduced work-in-process inventory
Less floor space is required
Reduced raw materials and finished goods inventory
Reduced direct labor costsHeightened sense of employee satisfaction
Increased equipment and machinery utilization
Reduced investment in machinery and equipment
Some of the requirements are:Identification of families of products
High level of employee training and flexibility
Being self-contained, with its equipment and resources
Test at each station of the cell
Once proper sequence and equipment are identified, next step is to staff and balance the cell
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Product Oriented Layout
ObjectiveObjectiveMinimize imbalance in fabrication and assembly lines.Minimize imbalance in fabrication and assembly lines.
Types of Layout:Types of Layout:
Fabrication lineFabrication linebuilds components on a series ofbuilds components on a series ofworkstationsworkstations
Assembly lineAssembly lineputs fabricated parts together at aputs fabricated parts together at a
series of workstations.series of workstations.
Advantages of productAdvantages of product--oriented layout are:oriented layout are:Low variable cost per unitLow variable cost per unit
Low material handling costLow material handling cost
Reduced workReduced work--inin--process inventoriesprocess inventories
Easier training and supervisionEasier training and supervisionRapid throughputRapid throughput
Disadvantages include:Disadvantages include:
High volume of products are requiredHigh volume of products are required
If one work area is disrupted, entire line is affectedIf one work area is disrupted, entire line is affected
Cannot handle variety of productsCannot handle variety of productsPlant Layout Strategy and Types of Layout 12
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Effective plant layout is a very important strategic step for firms success
There is no one optimal solution
Its partly science and partly art
Summary
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14Plant Layout Strategy and Types of Layout
Q & A