Submitted in partial completion of the requirements For the course Production and Operations Management
Submitted by: Dote, Jane Frances A.
Submitted to: Dr. Pedrito A. Salvador
January 29, 2011 2nd Term, School Year 2010-2011
PRODUCTION AND OPERATIONS MANAGEMENT
CHAPTER 9: DEVELOPING LAYOUT STRATEGIES The objective of office layout strategy is to develop a cost-effective layout that meets a firm’s competitive needs. There are seven types of layout: 1. Office layout – positions of workers and their equipments to provide movement of information. 2. Retail layout – allocates shelf space and responds to customer behavior 3. Warehouse layout – addresses trade-offs between space and material handling 4. Fixed-position layout – addresses the layout requirements of large projects 5. Process-oriented layout – deals with low-volume, high-variety production 6. Work-cell layout – arranges machinery and equipment to focus on production of single or group related products 7. Product-oriented layout – seeks the best personnel and machine utilization in continuous production Office layout is the grouping of workers, their equipment and spaces to provide for comfort, safety and movement of information. The main distinction of office layouts is the importance placed on the flow of information. Managers examine both electronic and conventional communication patterns, separation needs and other conditions affecting employee effectiveness. A useful tool is the relationship chart. Retail layout is an approach that addresses flow, allocates space and responds to customer behavior. The main objective of retail layout is to maximize profitability per square foot of floor space. Warehouse layout is a design that attempts to minimize total cost by addressing trade-offs between space and material handling. The objective is to find the optimum trade-off between handling cost and costs associated