layout strategy - university of northern iowaschragec/present 9.pdf · layout strategy operations...
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Layout Strategy
Operations ManagementChapter 9
Chris Schrage OPS9 �
Objective
To develop a cost-effective layout that meets the firm’s competitive needs.
Utilization of space, equipment, peopleImproved flow of information, materials, peopleImproved employee moraleImproved customer/client interactionflexibility
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Types of layouts
Office RetailWarehouseFixed-positionProcess-orientedWork-cell Product-oriented
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Main considerations
Material handling equipmentCapacity and space requirementsEnvironment and aestheticsFlows of informationCost of movement between work areas
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Office
Relationship chartsGuidelines
100 SF per person400 SF per executive25 SF per person in conference roomsNot universal
Technology has impacted space requirements-especially in virtual operations
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Work Space Design
SizeThe trend is away from traditional allocation of space based on organizational statue towards a flexible open space design that accommodates group and team activities.
ArrangementOpen arrangements foster social interaction and influence the formality of relationships
PrivacyIndividual employee needs for workplace privacy are largely a function of the type of work that the employee does (e.g., programmers, HR managers, receptionists).
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Work Space Design (cont’d)
Feng ShuiDesigning work surroundings so the “Chi” or life force of the space is in harmony and balance with nature.
Workspace Design and ProductivityWorkspaces alone don’t provide substantial motivation.Workspaces make it easier for employees to perform behaviors that make them more effective.“Cognitive ergonomics”: matching the office to the brain work.
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Retail
Consider customer behaviorsPlacement of high-draw items (milk and bread)Flow of both stockers and customersAllocation of space to product type
Slotting fees
Maximize profitability per square foot of floor space
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Servicescapes
Ambient conditionsPianist at Von MaurCinnabon in airports
Spatial layout and functionalitySitting areas in Barnes and Noble
Signs, symbols, artifactsApplebees’ photo and collectibles of area sports teams
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Warehouse/Storage
Optimum trade-offHandling costs – warehouse costs
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Options
ASRS Automated Storage and Retrieval Systems
Cross-DockingTight schedulingAccurate product identification system
Random StockingPlace goods in open slots throughout the facility
CustomizingProduce gradingRepackaging into different size lots
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Fixed Position
Workers come to site Equipment is mobileSome aspects may be completed in another location
Wausaw HomesAmerican Design
Stationary projects
Coordination of materials and labor
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Process-Oriented
High variety of productionMachines/or equipment grouped into process groupingsMost work described as job lots
Print orderSmall batch of parts
ConsiderationsNumber of loads or people to be moved in a given periodDistance-related costs of moving the above
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Work Cells
AdvantagesInspection is immediateFewer workers neededSmaller work spacesSpace more balancedEnhanced communication
Focus on single or groups of related products
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Balancing Work Cells
Pace of production to meet customer demands.
Takt time =Total work time available/Units required
Workers required =Total operation time required/Takt time
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Balanced Work Chart
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Fabrication Assembly Inspection Shipment
Sta
ndar
d ti
me
requ
ired
(m
inut
es)
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Repetitive / Product-oriented
Volume is adequate for high equipment utilizationStable product demand allows for investmentFairly standard productMaterials and components standard
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Assembly Line Balancing
AdvantagesLow variable costsLow material handling costReduced WIP inventoryTraining easierRapid throughput
DisadvantagesHigh volume requiredWork stoppage ties up entire flowReduction of flexibility
Minimize imbalance Fabrication or assembly line
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Cycle time
Maximum time allowed at each workstation
Cycle time = Production time available per dayUnits required per day
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Heuristics
Heuristics can provide solutions but not necessarily indicate the most optimalLongest task timeMost following tasksRanked positional weightShortest task timeLeast following tasks