Operations ManagementLayout Strategy
Discuss important issues in office layout
Define work cell and the requirements of a work cell (cellular
manufacturing)
Define product-oriented layout
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Adding play areas (late 1980s)
Redesign of the kitchens (1990s)
Self-service kiosk (2004)
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Three separate dining areas
Grab and go zone with tall counters
Flexible zone for kids and families
Facility layout is a source of competitive advantage
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Strategic Importance of Layout Decisions
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Improved Customer Interaction
Aesthetically pleasing
Hotel-ing Program
Moveable Offices
Programming Teams 3-6 mths, project manager, software architect, 2
h/w engineers, 5 programmers,
QA and Testing
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Flow of shoppers
High draw items to the periphery
Servicescapes
Maintain low handling costs
Example white goods vs. car parts
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Limited space for equipment and materials
Different materials are needed at different times
Sub assemblies are completed off site
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Batches, slow throughput
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Use of work cells
Use of production lines
Xidex disc manufacturing
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Work Cells ‘cellular manufacturing’
Reorganises people and machines into groups to focus on single
products or product groups
Volume must justify cells
Cells can be reconfigured as designs or volume changes
50% of factories in the USA with less than 100 use cell
manufacturing
75% of larger companies use cellular production methods
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WIP
Improving Layouts Using Work Cells
Current layout - straight lines make it hard to balance tasks
because work may not be divided evenly
Improved layout - in U shape, workers have better access.
Figure 9.10 (b)
U-shaped line may reduce employee movement and space requirements
while enhancing communication, reducing the number of workers, and
facilitating inspection
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Similar products
High volume
Low variety
Stable demand
Standardised product
Low material handling costs
Work stoppage at any point ties up the whole operation
Lack of flexibility in product or production rate
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References
Heizer, J., & Render, B. (2008). Operations management (9th
ed.). Saddle River, New Jersey: Pearson Prentice Hall.
Gardiner, D.,(2008). Operations Management for Business Excellence
(2nd ed.). Rosedale, North Shore: Pearson Education New
Zealand.
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