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Layout Strategy

Layout Strategy. 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

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Layout Strategy

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  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:

  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 • 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

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