1. Layout Strategy

2. 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

3. 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

4. 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

5. 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

6. 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.

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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