1. Layout Strategy

2. Introduction What – Layout Decisions Where – For efficiency or customer appeal Why – Improve Profitability

3. What is Layout? Placement of machines Offices Service centers Efficient flow of materials, people, information

4. Layout Achieves Higher utilization of space, equipment, people Improved flow of information, materials, people Improved morale and safe working conditions Improved customer / client interaction Flexibility

5. Good Layout Requires Material handling equipment Capacity and space requirements Environment and aesthetics Flows of Information Cost of moving between work areas

6. Fixed Position Layout Project remains in one place Workers and equipment come to the work area Limited space At different stages, different materials needed Volume of materials needed is dynamic

7. New Innovations Move some construction off-site Modular construction – ie shipbuilding Group technology – group components

8. Process-Oriented Layout Low volume High variety Similar machines grouped together Product moves from one department to another Advantage: flexibility Disadvantage: set-up and movement

9. Material Handling Costs Arrange departments to minimize material handling

10. Work cells Temporary Product-oriented arrangement Reduced work-in-process inventory Less floor space Reduced raw material and finished goods inventory Reduced labour More employee participation Increased use of equipment Reduced investment in machinery

11. Work cells require Identified families of products Highly trained and flexible employees Support to get up and running

12. Focused Work Centre Product oriented arrangement

13. Office Layout Moving information instead of materials Work cell concept still valid Technology allows increasing layout flexibility Virtual companies – hoteling

14. Retail Layout Profitability related to customer exposure to products High-draw items around periphery Prominent locations for high-impulse and high-margin Disperse “power items” around store End-aisle locations have high exposure Convey mission by position lead-off department

15. Warehouse and Storage Layout Find optimum cost between material handling and storage space Variety of items stored and number of items picked per order Shipping and receiving areas

16. Cross-Docking Avoid placing in storage Ship what is received Reduce distribution costs Speed restocking Requires tight scheduling Requires accurate product information

17. Random Stocking Locate stock wherever there is space

18. Customizing Warehouse adds value to product by customizing it for customer Modification Repair Labeling Packaging

19. Repetitive Product-Oriented Layout High volume Low variety Expensive! Volume adequate for high equipment utilization Product demand stable Product standardized Adequate supplies of raw materials

20. Product Layouts Fabrication line Assembly line Time spent at each stage in the line must be balanced

21. Advantages Low variable cost per unit Low material handling cost Reduced work-in-process inventory Easier training and supervision Rapid throughput

22. Disadvantages High investment – requires high volume Work stoppage stops entire operation Low flexibility

23. Assembly-Line Balancing Cycle time = Production time available per day / units per day Minimum Workstations = Sum of task times / Cycle time Efficiency = Sum of task times / (actual workstations x assigned cycle time)