Ch09_Layout Strategies.pptx

Layout Strategies 9 PowerPoint presentation to accompany Heizer, Render, Munson Operations Management, Thirteenth Edition, Global Edition Principles of Operations Management, Eleventh Edition PowerPoint slides by Jeff...

Layout Strategies 9 PowerPoint presentation to accompany Heizer, Render, Munson Operations Management, Thirteenth Edition, Global Edition Principles of Operations Management, Eleventh Edition PowerPoint slides by Jeff Heyl Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-1  Learning Objectives When you complete this chapter you should be able to: 9.1 Discuss important issues in office layout 9.2 Define the objectives of retail layout 9.3 Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking 9.4 Identify when fixed-position layouts are appropriate Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-2  Learning Objectives When you complete this chapter you should be able to: 9.5 Explain how to achieve a good process- oriented facility layout 9.6 Define work cell and the requirements of a work cell 9.7 Define product-oriented layout 9.8 Explain how to balance production flow in a repetitive or product-oriented facility Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-3  Strategic Importance of Layout Decisions The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-4  Layout Design Considerations ► Higher utilization of space, equipment, and people ► Improved flow of information, materials, and people ► Improved employee morale and safer working conditions ► Improved customer/client interaction ► Flexibility Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-5  Types of Layout 1. Office layout 2. Retail layout 3. Warehouse layout 4. Fixed-position layout 5. Process-oriented layout 6. Work-cell layout 7. Product-oriented layout Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-6  Types of Layout 1. Office layout: Positions workers, their equipment, and spaces/offices to provide for movement of information 2. Retail layout: Allocates display space and responds to customer behavior 3. Warehouse layout: Addresses trade- offs between space and material handling Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-7  Types of Layout 4. Fixed-position layout: Addresses the layout requirements of large, bulky projects such as ships and buildings 5. Process-oriented layout: Deals with low-volume, high-variety production (also called job shop or intermittent production) Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-8  Types of Layout 6. Work-cell layout: Arranges machinery and equipment to focus on production of a single product or group of related products 7. Product-oriented layout: Seeks the best personnel and machine utilizations in repetitive or continuous production Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9-9  Retail Layout ▶ Objective is to maximize profitability per square foot of floor space ▶ Sales and profitability vary directly with customer exposure Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 10  Five Helpful Ideas for Supermarket Layout 1. Locate high-draw items around the periphery of the store 2. Use prominent locations for high-impulse and high-margin items 3. Distribute power items to both sides of an aisle and disperse them to increase viewing of other items 4. Use end-aisle locations 5. Convey mission of store through careful positioning of lead-off department Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 11  Store Layout Figure 9.2 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 12  Retail Layout Objective ▶ Maximize profitability per square foot of floor space ▶ Category Management – analysis of profitability of merchandising plans for hundreds of categories ▶ Slotting – manufacturers pay slotting fees to retailers to get the retailers to display (slot) their product Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 13  Slotting ▶ Contributing factors ▶ Limited shelf space ▶ An increasing number of new products ▶ Better information about sales through POS data collection ▶ Closer control of inventory ▶ Ethical issues ▶ Stifle new products ▶ Limit expansion Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 14  Servicescapes 1. Ambient conditions - background characteristics such as lighting, sound, smell, and temperature 2. Spatial layout and functionality - which involve customer circulation path planning, aisle characteristics, and product grouping 3. Signs, symbols, and artifacts - characteristics of building design that carry social significance Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 15  Warehouse and Storage Layouts ▶ Objective is to find the optimum trade- offs between handling costs and costs associated with warehouse space ▶ Maximize the total "cube" of the warehouse – utilize its full volume while maintaining low material handling costs Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 16  Warehousing and Storage Layouts ▶ Warehouse density tends to vary inversely with the number of different items stored ▶ Automated Storage and Retrieval Systems (ASRSs) can significantly improve warehouse productivity ▶ Dock location is a key design element Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 17  Cross-Docking ▶ Materials are moved directly from receiving to shipping and are not placed in storage in the warehouse ▶ Requires tight scheduling and accurate shipments, bar code or RFID identification used for advanced shipment notification as materials are unloaded Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 18  Random Stocking ► Typically requires automatic identification systems (AISs) and effective information systems ► Allows more efficient use of space ► Key tasks 1. Maintain list of “open” locations 2. Maintain accurate records 3. Sequence items to minimize travel, “pick” time 4. Combine picking orders 5. Assign classes of items to particular areas Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 19  Customizing ▶ Value-added activities performed at the warehouse ▶ Enables low cost and rapid response strategies ▶ Assembly of components ▶ Loading software ▶ Repairs ▶ Customized labeling and packaging Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 20  Fixed-Position Layout ▶ Product remains in one place ▶ Workers and equipment come to site ▶ Complicating factors ▶ Limited space at site ▶ Different materials required at different stages of the project ▶ Volume of materials needed is dynamic Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 21  Process-Oriented Layout ▶ Like machines and equipment are grouped together ▶ Flexible and capable of handling a wide variety of products or services ▶ Scheduling can be difficult and setup, material handling, and labor costs can be high Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 22  Process Layout Example Arrange six departments in a factory to minimize the material handling costs. Each department is 20 x 20 feet and the building is 60 feet long and 40 feet wide. 1. Construct a "from-to matrix" 2. Determine the space requirements 3. Develop an initial schematic diagram 4. Determine the cost of this layout 5. Try to improve the layout 6. Prepare a detailed plan Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 23  Computer Software ▶ Graphical approach only works for small problems ▶ Computer programs are available to solve bigger problems ▶ Flowcharts ▶ Multi-story capability ▶ Storage and container placement ▶ Material volumes ▶ Time and cost analysis Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 24  Computer Software ▶ Proplanner flow path calculator ▶ Generate material flow diagrams ▶ Calculate material handling distances, times, costs ▶ Color-coded flow lines ▶ Helps identify excessive material handling Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 25  Computer Software ▶ Three-dimensional visualization software allows managers to view possible layouts and assess process, material handling, efficiency, and safety issues Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 26  Focused Facilities ▶ A family of similar products with reasonably stable demand ▶ Match facilities to customer requirements and demand ▶ Reduces waste and capacity requirements Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 27  Work Cells ▶ Reorganizes people and machines into groups to focus on single products or product groups ▶ Group technology identifies products that have similar characteristics for particular cells ▶ Volume must justify cells ▶ Cells can be reconfigured as designs or volume changes Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 28  Requirements of Work Cells ▶ Identification of families of products ▶ A high level of training, flexibility and empowerment of employees ▶ Self-contained, with its own equipment and resources ▶ Testing (poka-yoke) at each station in the cell Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 29  Advantages of Work Cells 1. Reduced work-in-process inventory 2. Less floor space required 3. Reduced raw material and finished goods inventories 4. Reduced direct labor cost 5. Heightened sense of employee participation 6. Increased equipment and machinery utilization 7. Reduced investment in machinery and equipment Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 30  Focused Work Center and Focused Factory ▶ Focused Work Center ▶ Cells may be organized as focused work centers – plant within a plant ▶ Moves production from a general-purpose, process-oriented facility to a large work cell ▶ Focused Factory ▶ A focused work cell in a separate facility ▶ May be focused by product line, layout, quality, new product introduction, flexibility, or other requirements Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 31  Product-Oriented Layouts ► Fabrication line ► Builds components on a series of machines ► Machine-paced ► Require mechanical or engineering changes to balance ► Assembly line ► Puts fabricated parts together at a series of workstations ► Paced by work tasks ► Balanced by moving tasks Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 32  Product-Oriented Layouts ► Fabrication line ► Builds components on a series of machines ► Machine-paced ► Require mechanical or engineering changes to balance ► Assembly line Both types of lines ► Puts fabricated parts together at a series must of be balanced workstations so that the time to ► Paced by work tasks perform the work at each station is the ► Balanced by moving tasks same Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 33  Product-Oriented Layouts Advantages 1. Low variable cost per unit 2. Low material handling costs 3. Reduced work-in-process inventories 4. Easier training and supervision 5. Rapid throughput Disadvantages 1. High volume is required 2. Work stoppage at any point ties up the whole operation 3. Lack of flexibility in product or production rates Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 34  Assembly-Line Balancing ▶ Objective is to minimize the imbalance between machines or personnel while meeting required output ▶ Starts with the precedence relationships ▶ Determine cycle time ▶ Calculate theoretical minimum number of workstations ▶ Balance the line by assigning specific tasks to workstations Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 9 - 35