1. Facilities design and layout

2. Question from last lesson
Explain how productivity improvements can increase the
business competitiveness of an organisation.
Explanation should refer to productivity improvements decreasing
the costs of inputs and waste [1 mark],
which should lead to an organisation's producing goods and services
cheaper, which will increase its competitiveness [1 mark].

3. Outcomes (What you need to know and be able to do)
• Explain in your own words what is meant by the term
‘facilities design and layout’.
• Identify the key factors that an operations manager needs
to consider when determining optimal layout.
• Outline the operations needs that influence: (a) fixed
position layout, (b) product layout, (c) process layout, (d)
retail layout, (e) office layout.
• Explain how the facilities design and layout can influence
productivity.

4. How could the facilities design and layout impact on the
efficiency of an LSO

5. In a fixed-position layout, the workers and equipment come to the product. A
fixed-position layout is used when it is not feasible to move the product (for
example, because of its size, shape or dangerous composition). Examples include
aircraft manufacturing and household electrical repairs.
Fixed-position layout

6. In a product-oriented layout, the facility is arranged so that
equipment and workstations are in line to provide a sequence of
specialised tasks.A product layout is best when one standardised
product is being produced in large volumes. Examples include
motor vehicle manufacturing and automatic car washes.
Product layout

7. In a process-oriented layout, the facility is arranged so that
equipment and workstations are grouped together according to
their function (the task they carry out). A process layout is best
when there are a variety of products or variations on a single
product. Examples include warehouses and hospitals.
Process layout

8. Exit Question
Discuss how a service organisation may use a facilities
operations management strategy to produce effective
outcomes.
Suggested solution
!
Discussion of strategy should include explanation of how facility
layout and design strategy allows efficient flow of service.
!
Award 1 mark for valid description of strategy and 1 mark for
linking it to effective outcomes.