15. Layout Strategies Project (fixed-position) Job Shop (Process- oriented) Office Retail Warehouse (storage) Repetitive /Continuous (product- oriented) Examples Pittsburgh Airport Problem Ingal Ship Building Corp. Trump Plaza Shouldice Hospital Olive Garden Allstate Insurance Microsoft Kroger’s Supermarket Walgreens Bloomingdales Federal-Mogul’s Warehouse The Gap’s distribution center Sony’s TV Assembly Line Dodge Caravans Minivans Move material to the limited storage areas around the site Manage varied material flow for each product Locate workers requiring frequent contact close to each other Expose customer to high-margin items Balance low-cost storage with low-cost material handling Equalize the task time at each workstation
19. Layout Strategies, Examples, and Criteria Service/retail Drug store Grocery store Department store Expose customer to high margin items Storage Distributor Warehouse Minimize storage and handling costs Product oriented TV assembly line Minimize line imbalance, delay, and idle time Layout strategy Example Criteria
20. Areas of Concern in Layout Strategy Layout Strategy Material Flow Communication Work Cell Safety Material Attributes Warehousing Service Areas
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24. Emergency Room Layout Surgery Radiology E.R. beds Pharmacy Billing/exit E.R.Triage room E.R. Admissions Patient B - erratic pacemaker Patient A - broken leg Hallway
31. Possible Layout 3 Painting Department (2) Assembly Department (1) Machine Shop Department (3) Receiving Department (4) Shipping Department (5) Testing Department (6) Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 60’ 40’
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33. Out-Patient Hospital Example CRAFT 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 Total cost: 20,100 Est. Cost Reduction .00 Iteration 0 Total cost: 14,390 Est. Cost Reduction 70. Iteration 3 Legend: A = xray/MRI rooms B = laboratories C = admissions D = exam rooms E = operating rooms F = recovery rooms A A A A B B A A A A B B D D D D D D C C D D D D F F F F F D E E E E E D D D D D B B D D D D B B D D D E E E C C D E E F A A A A A F A A A F F F
40. Work Cells, Focused Work Centers and the Focused Factory Work Cell A temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: job shop with rearranged machinery and personnel to produce 30 unique control panels Focused Work Center A permanent assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: manufacturing of pipe brackets at a shipyard Focused Factory A permanent facility to produce a product or component in a product-oriented facility Example: a plant to produce window mechanisms for automobiles
44. Relationship Chart 1 President O 2 Costing U A A 3 Engineering I O 4 President’s Secretary 1 2 3 Ordinary closeness: President (1) & Costing (2) Absolutely necessary: President (1) & Secretary (4) 4 I = Important U = Unimportant
45. Office Relationship Shart 1 President 2 Chief Technology Officer 3 Engineer’s Area 4 Secretary 5 Office entrance 7 Equipment cabinet 8 Photocopy equipment 9 Storage room 9 Storage room U I I A U O E I O E I O A O A X O U E A I I E U A I I E A X U U O O U O Val. Closeness A Absolutely necessary E Especially important I Important O Ordinary OK U Unimportant X Not desirable
46. Retail/Service Layout Design maximizes product exposure to customers Decision variables Store flow pattern Allocation of (shelf) space to products Types Grid design Free-flow design Video
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48. Retail /Service Layout - Grid Design Office Carts Check- out Grocery Store Meat Bread Milk Produce Frozen Foods
49. Store Layout - with Dairy, Bread, High Drawer Items in Corners
51. Retail Store Shelf Space Planogram Computerized tool for shelf-space management Generated from store’s scanner data on sales Often supplied by manufacturer Example: P&G 2 ft . 5 facings VO-5 VO-5 VO-5 SUAVE SUAVE VO-5 PERT PERT PERT PERT PERT VO-5
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53. Warehouse Layout Design balances space (cube) utilization & handling cost Similar to process layout Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked
61. Product-Oriented Layout Advantages Lower variable cost per unit Lower material handling costs Lower work-in-process inventories Easier training & supervision Rapid throughput
62. Product-Oriented Layout Disadvantages Higher capital investment Special equipment Any work stoppage stops whole process Lack of flexibility Volume Product
69. Assembly Line Balancing Equations Cycle time = Production time available Demand per day Minimum number of work stations Task times Cycle time Efficiency = = Task times * (Cycle time) (Actual number of work stations)
Students should be asked to consider how these features contribute to a competitive advantage for Pittsburgh Airport. Perhaps the first question they should answer is “Who is the customer?” You may need to point out to them that passengers flying through a hub are basically captive to the airlines’ decisions.
Students should be asked to consider how these features contribute to a competitive advantage for Pittsburgh Airport. Perhaps the first question they should answer is “Who is the customer?” You may need to point out to them that passengers flying through a hub are basically captive to the airlines’ decisions.
This may be again a good time to reinforce the point that all of an organization’s strategies must work together.
Give a brief description of each. You might also ask students for an example of each.
In addition to discussing what facility layout is, you might also raise some of the issues that may make it problematic.
May be useful here to present a brief discussion of each benefit.
This slide enables some comparing and contrasting of the six strategies.
Students should be asked to consider the working conditions in each of the rooms depicted.
Students should be asked if they perceive the relative importance of these requirements to be changing with the increased use of automated information technology.
Having discussed each of these constraints in turn, you might ask students what other constraints they might expect to find in a practical situation.
It is most important that students understand the choice of criteria by which to evaluate layouts. They should be asked to consider why these as opposed to other criteria were chosen.
Students might be asked to suggest instances when one or another of these concerns might be given especially high or low priority.
Students should be able to supply examples of the use of this layout strategy.
Students should be asked to suggest additional limitations or complications related to the fixed-positions layout
Students should be asked to suggest why this is not our “standard” layout - at least where the product is movable or transportable.
Students may be asked to evaluate alternative layouts for an emergency room. Perhaps a visit to view a local emergency room might be helpful.
The criterion for this methodology is basically a number-of-parts (or people)-times-distance measure. Is this always useful or appropriate?
Now that cost can be determined, ask students (1) whether this is an appropriate criteria, and (2) how they would go about minimizing cost.
Note that the matrix above basically measures the flow between sites, direction is immaterial. We can also develop entries for the remainder of the matrix if a different cost or route applies depending upon whether one is coming or going.
It is probably useful to note that these programs operate on the basis of heuristics - and do not necessarily produce the optimal answer.
Students should be asked to comment upon the technology required to implement the concept of work cells. Under what conditions is such a cellular arrangement possible?
Students should be reminded here to consider both the advantages and the disadvantages. They might also be asked to consider why this approach might require a larger capital investment and result in a lower machine utilization than other approaches (Green and Sadowski).
Students should be asked to consider if worker union activities have an impact on the organization’s ability to use cellular production.
The more focused the plant, the larger the number of product lines for equivalent sales performance.
This slide could be used to initiate a discussion of layout designed around product flow as opposed to layout designed around information flow.
Students should be asked for examples of features they find common to the design of retail layouts with which they are familiar.
Students can be asked to provide examples of instances in which these rules were implemented.
Students should be asked to identify differences between this and the previous slide.
Some of the options to be considered when developing a random stocking system
Students should be asked to suggest the conditions under which a product-oriented layout is most appropriate.
Some answers to the previous question.
Having discussed the individual assumptions, one should then turn to the question of what is “adequate,” or “enough,” i.e., how does one go about making these decisions.
Students should be aware that it is best to run balanced assembly lines - if they are not, then the need for balancing should be covered before discussing the process.
Students should be walked through an example in class. One of the most useful examples is typically the student registration system. Students are familiar with it, they are able to estimate task time, and they are certainly impacted by the overall process,