1. Operations Management Layout Strategy Chapter 9

13. Layout Strategies Project (fixed-position) Job Shop (Process- oriented) Office Retail Warehouse (storage) Repetitive /Continuous (product- oriented) Examples Pittsburgh Airport Problem Ingal Ship Building Corp. Trump Plaza Shouldice Hospital Olive Garden Allstate Insurance Microsoft Kroger’s Supermarket Walgreens Bloomingdales Federal-Mogul’s Warehouse The Gap’s distribution center Sony’s TV Assembly Line Dodge Caravans Move material to the limited storage areas around the site Manage varied material flow for each product Locate workers requiring frequent contact close to each other Expose customer to high-margin items Balance low-cost storage with low-cost material handling Equalize the task time at each workstation

14. Layout Example

17. Layout Strategies, Examples, and Criteria Service/retail Drug store Grocery store Department store Expose customer to high margin items Storage Distributor Warehouse Minimize storage and handling costs Product oriented TV assembly line Minimize line imbalance, delay, and idle time Layout strategy Example Criteria

18. Areas of Concern in Layout Strategy Layout Strategy Material Flow Communication Work Cell Safety Material Attributes Warehousing Service Areas

22. Emergency Room Layout Surgery Radiology E.R. beds Pharmacy Billing/exit E.R.Triage room E.R. Admissions Patient B - erratic pacemaker Patient A - broken leg Hallway

24. Cost of Process-Oriented Layout

25. Interdepartmental Flow of Parts 1 2 3 4 5 6 1 2 3 4 5 6 50 100 0 0 20 30 50 10 0 20 0 100 50 0 0

26. Interdepartmental Flow Graph Showing Number of Weekly Loads 100 50 30 10 20 50 20 100 50 1 2 3 4 5 6

27. Possible Layout 1 Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 60’ 40’

28. Interdepartmental Flow Graph Showing Number of Weekly Loads 100 50 30 10 20 50 20 100 50 1 2 3 4 5 6

29. Possible Layout 2 Room 1 Room 2 Room 2 Room 4 Room 5 Room 6 60’ 40’

32. Improving Layouts by Moving to the Work Cell Concept

34. Work Cell Advantages Inventory Floor space Direct labor costs Equipment utilization Employee participation Quality

35. Work Cell Floor Plan Office Tool Room Work Cell Saws Drills

37. Work Cells, Focused Work Centers and the Focused Factory Work Cell A temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: job shop with rearranged machinery and personnel to produce 30 unique control panels Focused Work Center A permanent assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facility Example: manufacturing of pipe brackets at a shipyard Focused Factory A permanent facility to produce a product or component in a product-oriented facility Example: a plant to produce window mechanisms for automobiles

40. Office Layout Floor Plan Accounting Manager Brand X Finance Fin. Acct.

41. Relationship Chart 1 President O 2 Costing U A A 3 Engineering I O 4 President’s Secretary 1 2 3 Ordinary closeness: President (1) & Costing (2) Absolutely necessary: President (1) & Secretary (4) 4 I = Important U = Unimportant

44. Retail /Service Layout - Grid Design Office Carts Check- out Grocery Store Meat Bread Milk Produce Frozen Foods

45. Store Layout - with Dairy, Bread, High Drawer Items in Corners

46. Retail/Service Layout - Free-Flow Design Feature Display Table Trans. Counter Apparel Store

50. Warehouse Layout Floor Plan Zones Conveyor Truck Order Picker

59. An Assembly Line Layout

60. Repetitive Layout 1 3 2 4 5 Work Office Belt Conveyor Work Station Note: 5 tasks or operations; 3 work stations Work Station Station

64. Precedence Diagram Example A B E H C D F G I 10 Min. 5 11 12 3 7 3 4 11

65. Assembly Line Balancing Equations Cycle time = Production time available Demand per day Minimum number of work stations  Task times Cycle time Efficiency = =  Task times * (Cycle time) (Actual number of work stations)

66. Six Station Solution A B C E D F G I H 10 11 5 3 7 3 11 12