Layout performance measures
Airport—customer convenience, requirements for materials handling, capital
For a bank layout, important criteria would include customer convenience,
atmosphere, sales (loan applications), communication, and capital investment.
Product Design—communication with production, work environment.
For a law firm, important criteria would include client convenience, capital
investment, communication, flexibility, atmosphere, organizational structure, and
Metal fabricator—important criteria would include capital investment, materials
handling, flexibility, labor productivity, ease of maintenance, work environment, and
For a parking lot, important criteria would include capital investment, material
handling (flow of cars), and safety.
Human resources—proximity to entrance, privacy of communications.
Student answers will vary - here are two examples.
The Lower Florida Keys Health
System (LFKHS) offers a broad range of services to its patients, using a process choice
that matches its small size and low volume. The flexible-flow
layout of the main
hospital facility is such that activities are grouped according to function, which is typical
of such a process. The customized services provided to each patient cause jumbled
patient flows, with lots of individual handling. This layout is particularly appropriate for
LFKHS, as demand levels are too low or unpredictable for management to set aside
human and capital resources exclusively for a particular type of patient—except for
Chapparal Steel is a high-volume producer of standardized products. The strategy
used for the Bar Mill is a line flow in which products follow a one-directional route from
the reheat furnace to storage of the finished product. Due to the capital-intensive nature
of the work at Chapparal Steel, a line-flow layout is most appropriate. A product layout
allows faster processing rates, lower inventories and less unproductive time lost to
changeovers and materials handlings.