Presentation Sample 3

7/27/2019 Presentation Sample 3.

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Team #: 4

Sandeep Kaushik

Ravi Siruvuri

1Plant Layout Strategy and Types of Layout


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The objective of layout strategy is to develop an economic layout that will

meet the organizations competitive requirements and help achieve the

differentiation and low cost .

Layout design must consider how to achieve :

Higher utilization of space, equipment, and people

Improved flow of information, materials, or people

Improved employee morale and safer working conditions

Improved customer/client interactionFlexibility and room for future changes.


Objective & Considerations


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REQUIREMENTS OF A GOOD LAYOUTREQUIREMENTS OF A GOOD LAYOUT

An understanding of capacity and space requirementsAn understanding of capacity and space requirements

Selection of appropriate material handling equipmentSelection of appropriate material handling equipment

Decisions regarding environment and aestheticsDecisions regarding environment and aesthetics

Identification and understanding of the requirements for informaIdentification and understanding of the requirements for information flowtion flow

Identification of the cost of moving between the various work arIdentification of the cost of moving between the various work areaseas



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McDonalds Layout Consideration and savings :McDonalds Layout Consideration and savings :

No Food prepared ahead except patty. Eliminate someNo Food prepared ahead except patty. Eliminate some

steps and introduce new bun toasting machine ,steps and introduce new bun toasting machine ,

repositioning condiment containers . This helped withrepositioning condiment containers . This helped with

savings of $100 million per year due to increate insavings of $100 million per year due to increate inefficiency and reducing losses and waste.efficiency and reducing losses and waste.

IKEA Layout Consideration and philosophyIKEA Layout Consideration and philosophy ::

IKEA stores are usually very large buildings with fewIKEA stores are usually very large buildings with fewwindows and yellow accents (the company's colorswindows and yellow accents (the company's colors

are also the national colors ofare also the national colors ofSwedenSweden). They are). They are

often designed around a "oneoften designed around a "one--way" layout whichway" layout which

leads customers along "the long natural way.". Thisleads customers along "the long natural way.". This

layout is designed to encourage the customer to seelayout is designed to encourage the customer to see

the store in its entirety (as opposed to a traditionalthe store in its entirety (as opposed to a traditionalretail store, which allows a consumer to go right toretail store, which allows a consumer to go right to

the section where the goods and services needed arethe section where the goods and services needed are

displayed) although there are often shortcuts to otherdisplayed) although there are often shortcuts to other

parts of the showroom. The sequence first involvesparts of the showroom. The sequence first involves

going through furniture showrooms making note ofgoing through furniture showrooms making note ofselected items.selected items.

Examples:

http://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Sweden


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TYPES OF LAYOUT :TYPES OF LAYOUT :

Office layout : positions workers, their equipment, and spaces/offices to provide

for movement of information

Retail layout : allocates shelf space and responds to customer behavior

Warehouse layout : addresses trade-offs between space and material handling

Fixed-position layout : addresses the layout requirements of large, bulky projectssuch as ships and buildings

Process-oriented layout : deals with low-volume, high-variety production (alsocalled job shop or intermittent production)

Work cell layout : a special arrangement of machinery and equipment to focuson production of a single product or group of related products

Product-oriented layout : seeks the best personnel and machine utilizations inrepetitive or continuous production



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Office LayoutOffice Layout

ObjectiveObjective -- Group people, equipment and spaces to provide comfort, safety,Group people, equipment and spaces to provide comfort, safety, and movementand movementof information.of information.

Key elementKey element -- Movement of informationMovement of information

Change as Technology advancesChange as Technology advances

Build Relationship chartsBuild Relationship charts

Customize based on importance of workCustomize based on importance of work

environment factorsenvironment factors

Convenient access to most commonlyConvenient access to most commonly

used locations of the buildingused locations of the building

.



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Retail Layout :Retail Layout : ObjectiveObjectiveExpose as many products as possible to the customerExpose as many products as possible to the customer

Factors to consider for product arrangement:Factors to consider for product arrangement:

Place popular items around the store peripheryPlace popular items around the store periphery

Place highPlace high--margin products in prime spotsmargin products in prime spots

Use endUse end--aisle locations effectivelyaisle locations effectively

New line of products should be in the broadNew line of products should be in the broad

view of customersview of customers

Category managementCategory managementmaximize profit permaximize profit per

square foot of spacesquare foot of space

Slotting feesSlotting fees

ServicescapesServicescapes

Ambient conditionsAmbient conditions

Spatial layoutSpatial layout Signs, symbols and artifactsSigns, symbols and artifacts

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Warehouse Layout :

ObjectiveObjectiveFind optimal tradeFind optimal trade--off between handling costs andoff between handling costs andwarehouse storage costswarehouse storage costs

Minimize material handling costs,

damage and spoilage

Use ASRS

Identify location and type of Docks

Cross-docking

Tight scheduling Accurate product identification

Random Stocking

List of open locations

Accurate records of inventory

Sequencing items

Combing orders

Assigning locations for specific items Customizing



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Fixed Position Layout

ObjectiveObjectiveOptimize schedule, materials and space around the productOptimize schedule, materials and space around the product

Product remains at one placeProduct remains at one place

Process is complicated because of 3Process is complicated because of 3

factors:factors:

Limited spaceLimited space

Type of Materials required changes asType of Materials required changes as

project progressesproject progresses

Volume of materials required changesVolume of materials required changes

Build subBuild sub--projects at remote siteprojects at remote site

Associated costsAssociated costs ConvenienceConvenience



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Process Oriented Layout

ObjectiveObjectiveProvide maximum flexibility in assigning labor and equipment toProvide maximum flexibility in assigning labor and equipment toaccomplish a taskaccomplish a task

Process is used when variety of productsProcess is used when variety of products

need to be handled simultaneously.need to be handled simultaneously.

Advantage is it provides maximum flexibilityAdvantage is it provides maximum flexibility

Disadvantages include:Disadvantages include:

Takes more time to produce a productTakes more time to produce a product

Labor should skilled and wellLabor should skilled and well--trainedtrained

Extra consideration to arrange work cells toExtra consideration to arrange work cells tominimize material handling costs.minimize material handling costs.

For large layouts, use Software programs toFor large layouts, use Software programs to

design the layout (ex: CRAFT, ALDEP,design the layout (ex: CRAFT, ALDEP,

CORELAP)CORELAP)

Plant Layout Strategy and Types of Layout 10


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Work Cells

ObjectiveObjectiveOrganize people and equipment to focus on single product or groOrganize people and equipment to focus on single product or groupupof similar productsof similar products

Advantages include:

Reduced work-in-process inventory

Less floor space is required

Reduced raw materials and finished goods inventory

Reduced direct labor costsHeightened sense of employee satisfaction

Increased equipment and machinery utilization

Reduced investment in machinery and equipment

Some of the requirements are:Identification of families of products

High level of employee training and flexibility

Being self-contained, with its equipment and resources

Test at each station of the cell

Once proper sequence and equipment are identified, next step is to staff and balance the cell



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Product Oriented Layout

ObjectiveObjectiveMinimize imbalance in fabrication and assembly lines.Minimize imbalance in fabrication and assembly lines.

Types of Layout:Types of Layout:

Fabrication lineFabrication linebuilds components on a series ofbuilds components on a series ofworkstationsworkstations

Assembly lineAssembly lineputs fabricated parts together at aputs fabricated parts together at a

series of workstations.series of workstations.

Advantages of productAdvantages of product--oriented layout are:oriented layout are:Low variable cost per unitLow variable cost per unit

Low material handling costLow material handling cost

Reduced workReduced work--inin--process inventoriesprocess inventories

Easier training and supervisionEasier training and supervisionRapid throughputRapid throughput

Disadvantages include:Disadvantages include:

High volume of products are requiredHigh volume of products are required

If one work area is disrupted, entire line is affectedIf one work area is disrupted, entire line is affected

Cannot handle variety of productsCannot handle variety of productsPlant Layout Strategy and Types of Layout 12


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Effective plant layout is a very important strategic step for firms success

There is no one optimal solution

Its partly science and partly art

Summary



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Presentation Sample 3