Production management- Layout types

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Ground rules

Arrive on time.

Turn your cell phone off.

Do not leave class early without okaying it with the lecturer in advance.

80% attendance is compulsory

Participate actively.

Submit one page summary of the lecture.

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Layout decisions

NNC Pushpamali

Dept. of Management of Technology

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Intended learning outcomes

Recognize the strategic importance of layout decisions

Identify the factors concerned in layout decisions

Evaluate different types of layout

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Strategic Importance of Layout Decisions

• One of the key decisions that determines the long-run efficiency of operations.

• It established an organization’s competitive priorities in regard to capacity, processes, flexibility, and cost as well as quality of work life, customer contact and image.

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The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements.

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Layout Design Considerations

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

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Layout decisions include the best placement of machines (in production settings), offices and desks (in office settings) or service centers (in settings such as hospitals or department stores)

An effective layout facilities the flow of materials, people, and information within and between areas.

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Types of Layout

1. Office layout

2. Retail layout

3. Warehouse layout

4. Fixed-position layout

5. Process-oriented layout

6. Work-cell layout

7. Product-oriented layout

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Types of Layout

1. Office layout: Positions workers, their equipment, and spaces/offices to provide for movement of information

2. Retail layout: Allocates shelf space and responds to customer behavior

3. Warehouse layout: Addresses trade-offs between space and material handling

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Types of Layout

4. Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings

5. Process-oriented layout: Deals with low-volume, high-variety production (also called job shop or intermittent production)

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Types of Layout

6. Work cell layout: Arranges machinery and equipment to focus on production of a single product or group of related products

7. Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production

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Good Layouts Consider

Material handling equipment

Capacity and space requirements

Environment and aesthetics

Flows of information

Cost of moving between various work areas

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Office Layout

Grouping of workers, their equipment, and spaces to provide comfort, safety, and movement of information

Movement of information is main distinction

Typically in state of flux due to frequent technological changes

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https://www.google.lk/search?q=office+relationship+chart&espv=2&biw=1024&bih=599&tbm=isch&imgil=OopO8KUhWLKI6M%253A%253BJpMt7GIHB4Nv-M%253Bhttp%25253A%25252F%25252Fwww.slideshare.net%25252Fshilpijain23%25252Flayout-

strategies&source=iu&pf=m&fir=OopO8KUhWLKI6M%253A%252CJpMt7GIHB4Nv-M%252C_&usg=__2gITO01__eUogCemyXt_yB-BECY%3D&ved=0CCQQyjdqFQoTCJ_drvvJ9sgCFUiclAod7E4AoQ&ei=V-A5Vt_VEMi40gTsnYGICg#imgrc=gluv_bCVJI64vM%3A&usg=__2gITO01__eUogCemyXt_yB-BECY%3D

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Office relationship chart

https://www.google.lk/search?q=office+relationship+chart&espv=2&biw=1024&bih=599&tbm=isch&imgil=OopO8KUhWLKI6M%253A%253BJpMt7GIHB4Nv-M%253Bhttp%25253A%25252F%25252Fwww.slideshare.net%25252Fshilpijain23%25252Flayout-strategies&source=iu&pf=m&fir=OopO8KUhWLKI6M%253A%252CJpMt7GIHB4Nv-

M%252C_&usg=__2gITO01__eUogCemyXt_yB-BECY%3D&ved=0CCQQyjdqFQoTCJ_drvvJ9sgCFUiclAod7E4AoQ&ei=V-A5Vt_VEMi40gTsnYGICg#imgrc=49JgSWU39GkTxM%3A&usg=__2gITO01__eUogCemyXt_yB-BECY%3D

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Supermarket Retail Layout

Objective is to maximize profitability per square foot of floor space

Sales and profitability vary directly with customer exposure to the products

Greater the rate of exposure, the greater the sales and the higher the return on investment

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Five Helpful Ideas for Supermarket Layout

1. Locate high-draw items around the periphery of the store

2. Use prominent locations for high-impulse and high-margin items

3. Distribute power items to both sides of an aisle and disperse them to increase viewing of other items

4. Use end-aisle locations

5. Convey mission of store through careful positioning of lead-off department

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Retail Slotting

Manufacturers pay fees to retailers to get the retailers to display (slot) their product

Contributing factors

Limited shelf space

An increasing number of new products

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Servicescapes

1. Ambient conditions - background characteristics such as lighting, sound, smell, and temperature

2. Spatial layout and functionality - which involve customer circulation path planning, aisle characteristics, and product grouping

3. Signs, symbols, and artifacts - characteristics of building design that carry social significance

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Warehousing and Storage Layouts

Trade-off between handling cost and costs associated with warehouse space.

Material handling cost: incoming transport, storage, outgoing transport,: equipment, people, material, supervision, insurance and depreciation

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Cross-Docking

Materials are moved directly from receiving to shipping and are not placed in storage in the warehouse

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Fixed-Position Layout

Product remains in one place

(a ship, a highway, a bridge, a house, an operating table)

Workers and equipment come to site

Complicating factors

Limited space at site

Different materials required at different stages of the project

Volume of materials needed is dynamic

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Process oriented layout

Can simultaneously handle a variety of products or services.

When making products with different requirements or when handling customers, patients or clients with different needs.

Most common tactic is to arrange department or work centers so as to minimize the costs of material handling

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e.g.

Walters company management wants to arrange the six departments of its factory in a way that will minimize interdepartmental material handling costs. (They make an initial assumption that each department is 20*20 feet and that the building is 60 feet long and 40 feet wide

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Construct a from-to-matrix

https://books.google.lk/books?id=wUHzc8JtZzUC&pg=PA319&lpg=PA319&dq=Walters+company+management+wants+to+arrange+the+six+departments+of+its+factory+in+a+way+that+will+mi

nimize+interdepartmental+material+handling+costs.+(They+make+an+initial+assumption+that+each+department+is+20*20+feet+and+that+the+building+is+60+feet+long+and+40+feet+wide&s

ource=bl&ots=EGMdjuDSTD&sig=rIVOMm4jnfkqniQt6uBEHGan9t8&hl=en&sa=X&ved=0ahUKEwjy59fU76XJAhUCH5QKHcd9DdkQ6AEIGzAA#v=onepage&q&f=false

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Determine the space requirement




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Develop an initial schematic diagram




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Determine the cost of this layout

Adjacent dept. $1

Non adjacent dept. $2

($ 570)

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By trial and error, improve the layout

$ 480




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workcells

An arrangement of machines and personnel that focus on making a single product or family of related products.

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Staffing and Balancing workcells

1. Takt time: pace (frequency) of production units necessary to meet customer orders.

= Total work time available/ units required

2. Number of operators required

= Total operation time required/ takt time

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e.g.

Stepehn Hall’s company makes auto mirrors. The major customer is the Honda plant nearby. Honda expects 600 mirrors delivered daily, and the work cell producing the mirrors is scheduled for 8 hours.

Determine the takt time and the number of workers required.

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Cont.…

Total operation time required is 140 seconds.

Assemble= 50 seconds

Paint= 45 seconds

Test= 10 seconds

Label= 20 seconds

Pack for shipping= 15

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answer

Takt time: (8 hour* 60 minutes)/ 600 units= 480/600= 0.8 minutes= 48 seconds

Workers required: 140/48 = 2.92

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Product- oriented layout

Are organized around products or families of similar high-volume, low-variety products. Repetitive production and continous production

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McDonald’s Assembly Line

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Developing a precedence diagram for an assembly

line Boeing wants to develop a

precedence diagram for an electrostatic wing component that require a total assembly time of 66 minutes.

Staff gather tasks, assembly times and sequence requirements for the component as below.

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480 productive minutes production schedule requires that 40 units

Task Assembly time

(minutes)

Task must follow

task listed below

A 10 -

B 11 A

C 5 B

D 4 B

E 12 A

F 3 C,D

G 7 F

H 11 E

I 3 G,H

TOTAL TIME 66

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Steps

Cycle time (The maximum time that a product is allowed at each station)=

production time available per day ÷ units required per day

Minimum number of workstation=

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Cycle time= 480 m/ 40 units

= 12 minutes/ unit

Minimum number of workstation= Total task time/ cycle time= 66/12= 5.5 or 6 stations

© 2011 Pearson Education

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Heizer, J., & Render, B., Operation Management, Global Edition, Pearson

https://mrtashfeen.wikispaces.com/file/view/Layout+Decisions.ppt

Documents

Production management- Layout types