Sarkis H Mesrobian
Dremari Warren-Gunn

• The Strategic Importance of Layout Decisions
• Types of Layout
• Office Layout
• Retail Layout
• Warehousing and Storage Layouts
• Fixed-Position Layout
• Process-Oriented Layout
• Video
• Work Cells
• Repetitive and Product Oriented Layout

Objective- to develop an effective and efficient layout that will meet the firm’s competitive requirements.
• -Higher utilization of space
• -Improved flow of information, materials, or people
Improved employee morale and safer working conditions
Improved customer/client interaction
Flexibility

• 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/(Storage) Layout- Addresses trade-offs between space and material handling
• Project Position Layout- Addresses the layout requirements of large, bulk projects such as ships and buildings
• Process Oriented Layout- Deals with low-volume, high variety production
• Work Cell Layout- Arranges machinery and equipment to focus on production of a single product or group of related products
• Product Oriented Layout- Seeks the best personnel and machine utilization in repetitive or continuous production

• Positions workers, their equipment, and spaces/offices to provide for movement of information
• Relationship Chart

-Based on the idea that sales and profitability vary directly with customer exposure to products-
1.
Locate the high-draw items around the periphery store
2.
Use Prominent locations for high-impulse and high margin items
3.
Distribute what are known as power items
4.
Use end aisle locations because they have a very high exposure rate
5.
Convey the mission of the store by carefully selecting the position of the lead-off department.

-Defined as the physical surroundings in which a service take place, and how they affect customers and employees.
1.
Ambient Conditions-background characteristics such as lighting, sound, smell, and temperature
2.
Spatial layout and functionality- customer circulation and path planning, aisle characteristics, and product grouping
3.
Signs, Symbols, and Artifacts- characteristics of building design that carry social significance

The Objective is to find the optimum trade-off between handling cos and costs associated with warehouse space.
• Cross –Docking- avoiding the placement of materials or supplies in storage by processing them as they are received for shipment
• Requires tight scheduling and accurate inbound product identification
• Random Stocking-used in warehousing to locate stock wherever there is an open location. Tasks include
1.
Maintaining a list of “open” locations
2.
Maintaining accurate records of existing inventory and its locations
3.
Sequencing items to minimize the travel time required to “pick” orders
4.
Combining orders to reduce picking time
5.
Assigning certain items or classes of items to specific warehouses so travel time is minimized.
Customizing- using warehousing to add value to a product through component modification, repair, labeling, and packaging.

A system that addresses the layout requirements of stationary projects.
Project remains in one place, workers and equipment come to that work area.
- Ex: highway, bridge, house
Techniques for addressing Fixed-position layout complicated by 3 factors:
Limited space at virtually all sites
At different stages of projects, different materials needed
The volume of materials needed is dynamic (rates of usage change as project progresses)

A layout that deals with low-volume, high-variety production in which like machines and equipment are grouped together.
Good for handling the manufacture of job lots and for production of wide variety of parts in different sizes or forms.
Job Lot: groups or batches of parts processed together.
Advantage: flexibility in equipment and labor assignments.
Disadvantage: orders could take more time to move through the systems because of difficult scheduling, changing setups, unique material handling.

https://www.youtube.com/watch?v=GaPBD9EaAKA

CRAFT (Computerized Relative Allocation of Facilities Technique)
ALDEP (Automated Layout Design Program)
CRLP (Computerized Relationship Layout Planning)
Factory Flow
Programs are interactive

An arrangement of machines and personnel that focuses on making a single product or family of related products.
Used when volume warrants a special arrangement of machinery and equipment.

Identification of families of products, often through the use of group technology codes or equivalents
A high level of training, flexibility, and empowerment of employees
Being self-contained, with its own equipment and resources
Test (poka-yoke) at each station in the cell

Reduced work-in-process inventory
Less floor space
Reduced raw material and finished goods inventories
Reduced direct labor cost
Heightened sense of employee participation
Increased equipment and machinery utilization
Reduced investment in machinery and equipment

Inspection is often immediate
Fewer works are needed
Workers can reach more of the work area
The work area can be more efficiently balanced
Communication is enhanced

Appropriate staffing involves determining takt time, then determine the number of operators required
Takt time= total work time available/Units required
Workers Required= total operation time required/Takt time
Work balance chart is also valuable for evaluating the operation times in work cells

Focused Work Center - Permanent or semi-permanent product-oriented arrangement of machines and personnel.
Moves production from a general purpose, process-oriented facility to a large work cell that remains part of the present plant.
Organized when a firm has identified a family of similar products that have a large and stable demand.
Focused Factory - Facility designed to produce similar products or components
A focused worked center in a separate facility.

Founded by Collins Industries in 1973.
Designs medical attack, rescue and fire emergency vehicles.
Manufactured in Central Florida.
Only ISO 9001:2008 registered manufacturer in the industry.

Uses a combo of assembly line and work cell layouts.
Proximity- Keeping support items, support functions, and support materials as close as possible to manufacturing process.
Eliminate as much distance, heightened communication.
Each Wheeled Coach is custom-made so it presents many challenges.

Deals with how products are created and in what fashion.
Fabrication Line-a machine-paced, product-oriented facility for building components
Assembly line- an approach that puts fabricated parts together at a series of workstations; used in repetitive processes.
Objective- is to minimize imbalance in the fabrication or assembly line

1.
The low variable cost per unit usually associated with high-volume, standardized products
2.
Low material handling costs
3.
Reduced work-in-process inventories
4.
Easier training and supervision
5.
Rapid throughput

1.
The high volume required because of the large investment needed to establish the process
2.
Work stoppage at any point ties up the whole operations
3.
A lack of flexibility when handling a variety of products or production rates

Objective- Obtaining output at each workstation on a production line so delay is minimized
Cycle Time-the maximum time that a product is allowed at each workstation
Cycle time= Production time available per day
Efficiency=
Units required per day
Task times
(actual number of workstations) X (Largest assigned cycle time)