Layout Strategy
Chapter 9 Layout Strategies Learning Objectives
When you complete this chapter, you should be able to:
1. Discuss important issues in office layout
2. Define the objectives of retail layout
3. Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking 4. Identify when fixed-position layouts are appropriate
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-1
Learning Objectives
When you complete this chapter, you should be able to:
5. Explain how to achieve a good processoriented facility layout 6. Define work cell and the requirements of a work cell
7. Define product-oriented layout
8. Explain how to balance production flow in a repetitive or product-oriented facility
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-2
Innovations at McDonald’s
Indoor seating (1950s)
Drive-through window (1970s)
Adding breakfast to the menu (1980s)
Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-3
Strategic Importance of Layout Decisions
The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements
© 2011 Pearson Education, Inc. publishing as Prentice Hall
9-4
Types of Layout
1. Office layout
2. Retail layout
3. Warehouse layout
4. Fixed-position layout
5. Process-oriented layout
6. Work-cell layout
7. Product-oriented layout
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-5
Layout Strategies
Objectives
Office Locate workers requiring frequent contact close to one another Expose customer to highmargin items
Examples
Allstate Insurance Microsoft Corp. Kroger’s Supermarket Walgreen’s Bloomingdale’s
Retail
Warehouse (storage)
Project (fixed position)
Balance low cost storage with low-cost material handling
Move material
When you complete this chapter, you should be able to:
1. Discuss important issues in office layout
2. Define the objectives of retail layout
3. Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking 4. Identify when fixed-position layouts are appropriate
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-1
Learning Objectives
When you complete this chapter, you should be able to:
5. Explain how to achieve a good processoriented facility layout 6. Define work cell and the requirements of a work cell
7. Define product-oriented layout
8. Explain how to balance production flow in a repetitive or product-oriented facility
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-2
Innovations at McDonald’s
Indoor seating (1950s)
Drive-through window (1970s)
Adding breakfast to the menu (1980s)
Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-3
Strategic Importance of Layout Decisions
The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive requirements
© 2011 Pearson Education, Inc. publishing as Prentice Hall
9-4
Types of Layout
1. Office layout
2. Retail layout
3. Warehouse layout
4. Fixed-position layout
5. Process-oriented layout
6. Work-cell layout
7. Product-oriented layout
© 2011 Pearson Education, Inc. publishing as Prentice Hall 9-5
Layout Strategies
Objectives
Office Locate workers requiring frequent contact close to one another Expose customer to highmargin items
Examples
Allstate Insurance Microsoft Corp. Kroger’s Supermarket Walgreen’s Bloomingdale’s
Retail
Warehouse (storage)
Project (fixed position)
Balance low cost storage with low-cost material handling
Move material