Ch%209_mod - Operations Management MGT 3200 Dr. Samia Siha...

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Unformatted text preview: Operations Management MGT 3200 Dr. Samia Siha Layout Strategy Chapter 09 Chapter Map Layout Strategy Layout Strategy Office Layout Office Layout Relationship Chart Relationship Chart Technology Technology Retail Layout Retail Layout Product arrangement Product arrangement Servicescape Servicescape Warehousing Warehousing Layout Layout Cross­Docking Cross­Docking Random Stocking Random Stocking Customizing Customizing Fixed–Position Fixed–Position Layout Layout Process oriented Process oriented Layout Layout Work cell Layout Work cell Layout © Copyrighted Product­Oriented Product­Oriented Layout Layout 2 Learning Objectives 1. Recognize key considerations of layout design 2. Describe office layout considerations 3. Describe retail layout considerations 4. Describe warehousing and storage layout approaches 5. Describe a fixed-position layout 6. Define process and product oriented layouts. Define 7. 7. Compare the strengths and weaknesses of process and product Compare oriented layouts oriented 8. Define work cell and list at least three advantages 9. Describe the objective of assembly line balancing © Copyrighted 3 Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Adding breakfast to the menu Adding (1980s) (1980s) Adding play areas (1990s) Three out of the four are Three layout decisions! layout © Copyrighted 4 Strategic Importance of Layout Decisions The objective of layout strategy The is to develop an economic layout that will meet the firm’s competitive requirements competitive This is one of the Plant Tour project This requirement requirement © Copyrighted 5 Layout Design Considerations Higher utilization of space, equipment, Higher and people and Improved flow of information, materials, Improved or people or Improved employee morale and safer Improved working conditions working Improved customer/client interaction Flexibility Examples for each © Copyrighted 6 Good Layouts Consider 1. Material handling equipment 2. Capacity and space requirements 3. Environment and aesthetics 4. Flows of information 5. Cost of moving between various Cost work areas work Examples © Copyrighted 7 Types of Layout 1. Office layout Office 2. Retail layout 2. Retail 3. Warehouse layout 3. 4. Fixed-position layout 5. Process-oriented layout 6. Work cell layout Work 7. Product-oriented layout 7. © Copyrighted 8 Office Layout Grouping of workers, their Grouping equipment, and spaces to provide comfort, safety, and movement of information information Movement of information is main Movement distinction distinction Typically in state of flux due to Typically frequent technological changes frequent © Copyrighted 9 Relationship Chart Value A Chief Technology Officer Engineer’s area Secretary Office entrance Central files Equipment cabinet Photocopy equipment Storage room © Copyrighted Absolutely necessary E Especially important I Important O Ordinary OK U 1 President Closeness Unimportant X Not desirable 2 3 O 4 U A 5 A I O I I E X U E 9 O O E U O I X O U 8 U A U O U O I A 7 I I I A 6 A E E Figure 9.1 10 Supermarket Retail Layout Objective is to maximize Objective profitability per square foot of floor space floor Sales and profitability vary Sales directly with customer exposure directly allocates shelf space and allocates responds to customer behavior responds © Copyrighted 11 Five Helpful Ideas for Supermarket Layout 1. Locate high-draw items around the Locate periphery of the store periphery 2. Use prominent locations for high-impulse Use and high-margin items and 3. Distribute power items to both sides of Distribute an aisle and disperse them to increase viewing of other items viewing 4. Use end-aisle locations 5. Convey mission of store through careful Convey positioning of lead-off department positioning © Copyrighted 12 Servicescapes Ambient conditions - background Ambient characteristics such as lighting, sound, smell, and temperature sound, Spatial layout and functionality Spatial which involve customer circulation path planning, aisle characteristics, and product grouping and Signs, symbols, and artifacts Signs, characteristics of building design that carry social significance that © Copyrighted 13 Retail Slotting Manufacturers pay fees to retailers Manufacturers to get the retailers to display (slot) their product their Contributing factors Limited shelf space An increasing number of new An products products Better information about sales Better through POS data collection through © CopyrightedCloser control of inventory 14 Retail Store Shelf Space Planogram Shampoo Shampoo Shampoo Shampoo 5 facings Shampoo Shampoo Conditioner Shampoo Shampoo Conditioner Conditioner Shampoo Computerized tool for shelf-space management Generated from store’s scanner data on sales Often supplied by manufacturer 2 ft. © Copyrighted 15 Warehousing and Storage Layouts Objective is to optimize trade-offs Objective between handling costs and costs associated with warehouse space associated Maximize the total “cube” of the Maximize warehouse – utilize its full volume while maintaining low material handling costs handling © Copyrighted 16 Warehousing and Storage Layouts Material Handling Costs All costs associated with the transaction Incoming transport Storage Finding and moving material Outgoing transport Equipment, people, material, supervision, Equipment, insurance, depreciation insurance, Minimize damage and spoilage © Copyrighted 17 Warehousing and Storage Layouts Warehouse density tends to vary Warehouse inversely with the number of different items stored different Automated Storage and Retrieval Automated Systems (ASRS) can significantly improve warehouse productivity improve Dock location is a key design Dock element element © Copyrighted 18 Cross-Docking Materials are moved directly from Materials receiving to shipping and are not placed in storage in the warehouse warehouse Requires tight scheduling and Requires accurate shipments, typically with bar code identification with © Copyrighted 19 Random Stocking Typically requires automatic identification Typically systems (AISs) and effective information systems systems Random assignment of stocking locations Random allows more efficient use of space allows 1. Maintain list of open locations 2. Maintain accurate records 3. Sequence items to minimize travel time 4. Combine picking orders 5. Assign classes of items to particular areas © Copyrighted 20 Customization Value-added activities performed at Value-added the warehouse the Enable low cost and rapid response Enable strategies strategies Assembly of components Loading software Repairs Customized labeling and packaging © Copyrighted 21 Warehouse Layout Traditional Layout Customization Storage racks Conveyor Staging © Copyrighted Shipping and receiving docks Office 22 Warehouse Layout Cross-Docking Layout Office Shipping and receiving docks Shipping and receiving docks © Copyrighted 23 Fixed-Position Layout Product remains in one place Product Workers and equipment come to Workers site site Complicating factors Limited space at site Different materials required at Different different stages of the project different Volume of materials needed is Volume dynamic dynamic © Copyrighted 24 Alternative Strategy As much of the project as possible As is completed off-site in a productis oriented facility This can significantly improve This efficiency but is only possible when multiple similar units need to be created created © Copyrighted 25 Process-Oriented Layout Like machines and equipment are Like grouped together grouped Flexible and capable of handling a Flexible wide variety of products or services services Scheduling can be difficult and Scheduling setup, material handling, and labor costs can be high labor © Copyrighted 26 ...
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This note was uploaded on 01/20/2012 for the course MGT 3200 taught by Professor Moodie during the Spring '08 term at Kennesaw.

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