Layout Strategy

Importance of Layout The objective of the layout design is to help the firm meet its competitive requirements Layout design must achieve: Higher utilization of space Improved flow of information and inputs Increased employee morale and safer working conditions Improved customer interaction Flexibility

Types of Layout Layout includes the placement of desks, machines, offices, or service centers Flow of the inputs and information should be facilitated Seven Approaches: Office Layout Retail Layout Warehouse Layout Fixed Position Layout Process Oriented Layout Work-Cell Layout Product Oriented Layout

Office Layout Comfort and safety are common requirements that should be met in all layouts Flow of information is an additional requirement in the office layout Even with the technological advancements, hard copies still exist Technological advancements do provide flexibility in the office layout

Office Layout Cubicles depend on teamwork, status, authority, and conditions Office layout is part art and part science An office relationship chart is useful to organize an office layout

Retail Layout The more you see, the more you buy Objective: To maximize profitability per square foot of floor space Considerations while making retail layout: Locate the high draw items in the outskirts of the store. Ex. Bread and Milk Use prominent locations for high impulse and high margin items.

Retail Layout Slotting Fees Items that are the purpose of the visit, power items, should be distributed and spread out in the aisles Strategically use end of aisle; extremely high exposure Mission of the store should be in the two ends, where the customer prominently see Slotting Fees

Retail Layout Servicescapes Ambient conditions Spatial layout and functionality Signs, symbols, and artifacts

Warehouse Layout Objectives: To find the best trade-off between handling costs and warehouse cost Handling Costs: Costs related to the incoming transport, storage, and outgoing transport of materials to be warehoused. Also includes equipment, people, material, supervision, insurance, and depreciation Minimize damage and spoilage

Warehouse Layout ASRS: Automated Storage and Retrieval Systems Can improve productivity by 500% Cross Docking: Avoids unnecessary storage costs by processing inventory as soon as it comes in Must have tight scheduling and accurate inbound product identification Random Stocking: Putting stock in any open location in the warehouse

Warehouse Layout AIS: Automatic Identification Systems SKU: Stock Keeping Units Computerized random stocking systems include the following tasks: Maintain list of open locations Maintain records of inventory and their locations Sequence items to minimize travel time Combine orders to optimize time Make classes according to usage to minimize travel time Customizing: Adding value to the product while its at the warehouse

Fixed Position Layout The product (or project) remains in one “fixed” place while the workers and equipment build it the same area Difficulties: Lack of space Material requirement variation Dynamic volume of materials Therefore, trend towards modules

Process Oriented Layout Used for low volume high variety production, machines and labor placed together in job shops Advantages: Flexibility Breakdown of machine does not stop process Good for manufacturing in small batches Costs are a function of: The number of loads to be moved between each department The distance related costs of moving loads between departments

Process Oriented Layout Software for Process Oriented Layout: CRAFT: Computer Relative Allocation of Facilities Technique ALDEP: Automated Layout Design Program COPELAP: Computerized Relationship Layout Planning Factory Flow

Work Cells Machines and personnel are arranged in a manner that focuses on making a single product or related products High level of communication and understanding of different cells Widely used in manufacturing

Product Oriented Layout Fabrication Line: Machines are building components Assembly Line: Fabricated parts are put together at a series of workstations Assembly Line Balancing Disassembly lines