Facilities Design & Layout Chapter 7 Pages 148 – 155

Facilities Design & Layout  This strategy area should really be considered well before the businesses is set up.  It involves looking at the best way to set out the actual business so as to optimise efficiency in terms of movement and space, leading to cost reductions.

Facilities Design and Layout  The first decision will be the geographic location of the operations facility.  Considerations here include: Availability of labour Access to markets Access to suppliers Land zoning regulations Purchasing costs involved

 Some factors that may influence the facilities location and design include: The product being manufactured or the service being performed Amount of physical space required The use of equipment Equipment and facilities maintenance Access to raw materials Location of finished products Facilities Design and Layout

 Considerations must be given to: The work environment of employees. Workplace ergonomics can affect productivity. Legal requirements and obligations. These include things such as occupational health and safety. Communication channels. Visual appeal. Facilities Design and Layout

Facilities Design & Layout  Key questions to consider when establishing the design and layout of an operations system:  How much space do we need?  Where are our suppliers located?  What do we produce?  What are our security needs and concerns?

 Facility layout – the physical layout of a work environment.  The processes and the different stages of production must be linked so that production needs are met. Facilities Design & Layout

 There are three main types of operation layouts: The fixed position layout (Everything in one place) The process layout (Resources and equipment are/is organised according to their/its function) The product layout (The sequential development of the product determines the location of equipment)

Activity / Physical Demo  Fixed position layout – 4 volunteers  Process layout – 6 volunteers  Product layout – 6 volunteers

Worksheet  Types of facilities layout  Put the following terms in your glossary: Batch production Mass production Assembly line

Facilities Design & Layout EXAMPLES

Retail Layout  There are a few ways in which retail stores organise their products – one way would be according to the type of item.

Retail Layout  Some stores, such as Ikea, carefully plan pathways, entrances and exits in their stores so that customers walk through the entire store to get to the checkout.  Maximising customers’ exposure to the products ca lead to impulse sales, giving the retailer more profit.

Retail Layout  Retail layouts must also: Cater to customer needs Provide sufficient customer access Promote a safe shopping environment Support delivery and storage systems Follow laws and government regulations

Office Layout  An office deals with the flow of information.  These administration facilities must effectively support the operations of the organisation and the specific needs of the department.

Static Functional Needs  Relates to those functions whereby an employee has to complete their tasks at the location of their work station.  Static employees have a fixed base of operations.  Static employees require direct access to all the information, equipment and materials needed to perform their duties.

Dynamic Functional Needs  Relates to those functions whereby the employee performs some of their work tasks away from their work station.  Dynamic employees require immediate access to information.  They will also generally require to be supported by flexible equipment and materials.