Krajewski IN Chapter 8 - Chapter 8 Process Layout TEACHING...

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Chapter 8 Process Layout TEACHING TIP Open with Rivertown Crossings’ revising existing layouts at the shopping mall. A. Managing Process Layout Across the Organization Revising layouts is another way of improving processes. TEACHING TIP This chapter focuses on layout planning, which involves decisions about the physical arrangement of economic activity centers needed by a facility’s various processes. Layouts affect not just the flow of work between processes at a facility; they also affect processes throughout the value chain. 1. Layouts are found in every area of a business 2. Each process in a facility has a layout that should be carefully designed 3. Layouts can affect: a. Material handling costs b. Customer attitudes (and therefore sales) c. Throughput times d. Employee attitudes and productivity 4. Redesigning layouts can require large capital investments B. Layout Planning 1. Decisions regarding physical arrangement a. What centers should the layout include? b. How much space and capacity does each center need? c. How should each center’s space be configured? d. Where should each center be located? 2. The location of a center has two dimensions a. Relative location b. Absolute location TEACHING TIP Refer to grocery store layout (see Figure 8.1(a) and (b)) 8-1
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8 - 2 Chapter 8: Process Layout C. Strategic Issues 1. Performance criteria a. Customer satisfaction Customer loyalty Emotional connection Customer convenience b. Capital investment c. Materials handling d. Flexibility e. Other criteria Labor productivity Equipment maintenance Work environment Organizational structure 2. Layout choices can help in communicating an organization’s product plans and competitive priorities. TEACHING TIP Discuss Managerial Practice 8.1 “Retailers Match Layouts to Strategies,” how layout choices help communicate an organization’s product plans and competitive priorities. 3. Layout types a. Flexible-flow layout Low volume and high customization Organizes resources by function rather than by service or product Advantages General purpose, flexible resources are less capital intensive Less vulnerable to changes in product mix or new market strategies Equipment utilization can be higher, because not dedicated to one product line Employee supervision can be more specialized Major challenge: locate centers so that they bring some order to the apparent chaos of divergent processes with jumbled work flows b. Line-flow layout A layout in which workstations or departments are arranged in a linear path Dedicates resources to a product or closely related product family Repetitive, high-volume, continuous production
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Chapter 8: Process Layout 8-3 Less need to decouple on operation from the next Workstations or departments are arranged in a linear path, which is consistent with the routing sequence of the product, although when a straight line is not always best, layouts may take an L, O, S, or U shape
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Krajewski IN Chapter 8 - Chapter 8 Process Layout TEACHING...

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