Layout Strategies
Project
Job Shop
(fixed-position)
(Processoriented)
Office
Retail
Warehouse
(storage)
Repetitive
/Continuous
(productoriented)
Examples
Ingal Ship
Building Corp.
Shouldice
Hospital
Allstate
Insurance
Kroger’s
Supermarket
Federal-Mogul’s
Warehouse
Sony’s TV
Assembly Line
Trump Plaza
Olive
Garden
Microsoft
Walgreens
The Gap’s
distribution center
Dodge
Caravans
Minivans
Balance lowcost storage
with low-cost
material
handling
Equalize the
task time at
each
workstation
Pittsburgh
Airport
Bloomingdales
Problem
Move material
to the limited
storage areas
around the site
Manage varied Locate workers
material flow for requiring
each product
frequent contact
close to each
other
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-1
Expose
customer to
high-margin
items
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Fixed-Position Layout
 Design is for stationary project
 Workers and equipment come to site
 Complicating factors
Limited space at site
 Changing material needs

Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-2
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Factors Complicating a Fixed
Position Layout
 There is limited space at virtually all sites
 At different stages in the construction process,
different materials are needed – therefore,
different items become critical as the project
develops
 The volume of materials needed is dynamic
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-3
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Emergency Room Layout
E.R.Triage
room
Patient A broken leg
Patient B - erratic
pacemaker
Hallway
E.R. beds
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-4
Pharmacy
Billing/exit
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Improving Layouts by Moving to
the Work Cell Concept
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-5
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Work Cell Floor Plan
Saws
Tool Room
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
Drills
Office
Work Cell
9-6
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Office Layout
 Design positions people, equipment, & offices
for maximum information flow
 Arranged by process or product

Example: Payroll dept. is by process
 Relationship chart used
 Examples


Insurance company
Software company
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-7
© 1995
Corel Corp.
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Office Layout Floor Plan
Accounting
Finance
Fin.
Manager
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
Acct.
Brand X
9-8
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458
Layout Example - Office
Transparency Masters to accompany Heizer/Render –
Principles of Operations Management, 5e, and Operations
Management, 7e
9-9
© 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458