Bài giảng Operations Management - Chapter 9: Layout Strategy

Operations ManagementLayout StrategyChapter 91OutlineGLOBAL COMPANY PROFILE: MCDONALD’STHE STRATEGIC IMPORTANCE OF LAYOUT DECISIONSTYPES OF LAYOUTFIXED-POSITION LAYOUTPROCESS-ORIENTED LAYOUTComputer Software for Process-Oriented LayoutsWork CellsThe Focused Work Center and the Focused Factory2Outline - ContinuedOFFICE LAYOUTRETAIL LAYOUTServicescapesWAREHOUSING AND STORAGE LAYOUTSCross-DockingRandom StockingCustomizingREPETITIVE AND PRODUCT-ORIENTED LAYOUTAssembly-Line Balancing3Learning ObjectivesWhen you complete this chapter, you should be able to :Identify or Define: Fixed-position layoutProcess-oriented layoutWork cellsFocused work centerOffice layoutRetail layoutWarehouse layoutProduct-oriented layoutAssembly-line factory4Learning ObjectivesWhen you complete this chapter, you should be able to :Describe or explain:How to achieve a good layout for the process facilityHow to balance production flow in a repetitive or product-oriented facility5McDonald’s - New Kitchen LayoutFifth major innovation - kitchen designNo food prepared ahead except pattyElimination of some steps, shortening of othersNew bun toasting machine (11 seconds vs 30 seconds)Repositioning condiment containers (one motion, not two)Sandwiches assembled in orderProduction levels controlled by computerDiscard only meat when sandwiches do not sell fast enoughSavings of $100,000,000 per year in food costs6McDonald’s - New Kitchen LayoutNo food prepared ahead except pattyElimination of some steps, shortening of othersNew bun toasting machine (11 seconds vs 30 seconds)Repositioning condiment containers (one motion, not two)7Innovation at McDonald’sIndoor seating (1950’s)Drive-through window (1970s)Adding breakfast to the menu (1980s)Adding play areas (1990s)(three out of the four are layout decisions)8Objectives of the Layout StrategyDevelop an economical layout which will meet the requirements of:product design and volume (product strategy)process equipment and capacity (process strategy)quality of work life (human resource strategy)building and site constraints (location strategy)9Types of LayoutsFixed-position layoutProcess-oriented layoutOffice layoutRetail layoutWarehouse layoutProduct-oriented layout10What is Facility LayoutLocation or arrangement of everything within & around buildingsObjectives are to maximizeCustomer satisfaction Utilization of space, equipment, & peopleEfficient flow of information, material, & peopleEmployee morale & safety11Strategic Importance of LayoutProper layout enables:Higher utilization of space, equipment,and peopleImproved flow of information, materials, or peopleImproved employee morale and safer working conditionsImproved customer/client interactionFlexibility12Six Layout StrategiesFixed-position layoutlarge bulky projects such as ships and buildingsProcess-oriented layoutdeals with low-volume, high-variety production (“job shop”, intermittent production)Office layoutpositions workers, their equipment, and spaces/offices to provide for movement of information13Six Layout Strategies - continuedRetail/service layoutallocates shelf space and responds to customer behaviorWarehouse layoutaddresses trade-offs between space and material handlingProduct-oriented layoutseeks the best personnel and machine use in repetitive or continuous production14Layout StrategiesProject(fixed-position)Job Shop(Process-oriented)OfficeRetailWarehouse(storage)Repetitive/Continuous(product-oriented)ExamplesPittsburgh AirportProblemIngal Ship Building Corp.Trump PlazaShouldice HospitalOlive GardenAllstate InsuranceMicrosoftKroger’s SupermarketWalgreensBloomingdalesFederal-Mogul’s WarehouseThe Gap’s distribution centerSony’s TV Assembly LineDodge Caravans MinivansMove material to the limited storage areas around the siteManage varied material flow for each productLocate workers requiring frequent contact close to each otherExpose customer to high-margin itemsBalance low-cost storage with low-cost material handlingEqualize the task time at each workstation15Layout Example - Office16Requirements of a Good Layoutan understanding of capacity and space requirementsselection of appropriate material handling equipmentdecisions regarding environment and aestheticsidentification and understanding of the requirements for information flowidentification of the cost of moving between the various work areas17Constraints on Layout ObjectivesProduct design & volumeProcess equipment & capacityQuality of work lifeBuilding and site 18Layout Strategies, Examples, and CriteriaService/retailDrug storeGrocery storeDepartment storeExpose customer to highmargin itemsStorageDistributorWarehouseMinimize storage andhandling costsProduct orientedTV assembly lineMinimize line imbalance,delay, and idle timeLayout strategy Example Criteria19Areas of Concern in Layout StrategyLayoutStrategyMaterialFlowCommunicationWorkCellSafetyMaterialAttributesWarehousingServiceAreas20Fixed-Position LayoutDesign is for stationary project Workers and equipment come to siteComplicating factorsLimited space at siteChanging material needs21Factors Complicating a Fixed Position LayoutThere is limited space at virtually all sitesAt different stages in the construction process, different materials are needed – therefore, different items become critical as the project developsThe volume of materials needed is dynamic22Process-Oriented LayoutDesign places departments with large flows of material or people togetherDepartment areas having similar processes located in close proximitye.g., All x-ray machines in same areaUsed with process-focused processes23Emergency Room LayoutSurgeryRadiologyE.R. bedsPharmacyBilling/exitE.R.Triage roomE.R. AdmissionsPatient B - erratic pacemakerPatient A - broken legHallway24Steps in Developing a Process-Oriented LayoutConstruct a “from-to matrix”Determine space requirements for each departmentDevelop an initial schematic diagramDetermine the cost of this layoutBy trial-and-error (or more sophisticated means), try to improve the initial layoutPrepare a detailed plan that evaluates factors in addition to transportation cost25Cost of Process-Oriented Layout26Interdepartmental Flow of Parts1234561234565010000203050100200100500027Interdepartmental Flow Graph Showing Number of Weekly Loads1005030102050201005012345628Possible Layout 1AssemblyDepartment(1)PrintingDepartment (2)Machine ShopDepartment (3)ReceivingDepartment(4)ShippingDepartment (5)TestingDepartment (6)Room 1 Room 2 Room 2Room 4 Room 5 Room 660’40’29Interdepartmental Flow Graph Showing Number of Weekly Loads1005030102050201005012345630Possible Layout 3PaintingDepartment(2)AssemblyDepartment (1)Machine ShopDepartment (3)ReceivingDepartment(4)ShippingDepartment (5)TestingDepartment (6)Room 1 Room 2 Room 2Room 4 Room 5 Room 660’40’31Computer Programs to Assist in LayoutCRAFTSPACECRAFTCRAFT 3-DMULTIPLECORELAPALDEPCOFADFADES - expert system32Out-Patient Hospital ExampleCRAFTAAAABBAAAABBDDDDDDCCDDDDFFFFFDEEEEEDDDDDBBDDDDBBDDDEEECCDEEFAAAAAFAAAFFF1 2 3 4 5 61 2 3 4 5 6123456123456Total cost: 20,100Est. Cost Reduction .00Iteration 0Total cost: 14,390Est. Cost Reduction 70.Iteration 3Legend:A = xray/MRI roomsB = laboratoriesC = admissionsD = exam roomsE = operating roomsF = recovery rooms33Cellular Layout - Work CellsSpecial case of product-oriented layout - in what is ordinarily a process-oriented facilityConsists of different machines brought together to make a productTemporary arrangement onlyExample: Assembly line set up to produce 3000 identical parts in a job shop34Improving Layouts by Moving to the Work Cell Concept35Work Cells - Some AdvantagesReduced work-in-process inventoryLess floor space requiredReduced raw material and finished goods inventories requiredReduced direct labor costsHeightened sense of employee participationIncreased utilization of equipment machineryReduced investment in machinery and equipment36Work Cell AdvantagesInventoryFloor spaceDirect labor costsEquipment utilizationEmployee participationQuality37Work Cell Floor PlanOfficeTool RoomWork CellSawsDrills38Requirements for Cellular ProductionIdentification of families of products - group technology codesHigh level of training and flexibility on the part of the employeesEither staff support or flexible, imaginative employees to establish the work cells initiallyTest (poka-yoke) at each station in the cell39Work Cells, Focused Work Centers and the Focused FactoryWork CellA temporary assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facilityExample: job shop with rearranged machinery and personnel to produce 30 unique control panelsFocused WorkCenterA permanent assembly-line-oriented arrangement of machines and personnel in what is ordinarily a process-oriented facilityExample: manufacturing of pipe brackets at a shipyardFocused FactoryA permanent facility to produce a product or component in a product-oriented facilityExample: a plant to produce window mechanisms for automobiles40Number of Product Lines and Operating Performance-5051015 D(6) J(1) I(2) G(1) H(2) K(2)More focusedplants E(4) A(6) F(6) C(5) B(5)Less focusedplantsSales ($M)10041Office LayoutDesign positions people, equipment, & offices for maximum information flowArranged by process or productExample: Payroll dept. is by processRelationship chart usedExamplesInsurance companySoftware company© 1995 Corel Corp.42Office Layout Floor PlanAccountingManagerBrand XFinanceFin.Acct.43Relationship Chart1 PresidentO2 CostingUAA3 EngineeringIO4 President’s Secretary123Ordinary closeness: President (1) & Costing (2)Absolutely necessary: President (1) & Secretary (4) 4I = ImportantU = Unimportant44Office Relationship Shart1 President2 Chief Technology Officer3 Engineer’s Area4 Secretary5 Office entrance7 Equipment cabinet8 Photocopy equipment9 Storage room9 Storage roomUIIAUOE IOEIOAOAXOUEA I IEUAII EAXUUOOUOVal.ClosenessAAbsolutely necessaryEEspecially importantIImportantOOrdinary OKUUnimportantXNot desirable45Retail/Service LayoutDesign maximizes product exposure to customersDecision variablesStore flow patternAllocation of (shelf) space to products TypesGrid designFree-flow designVideo46Retail Layouts - Some Rules of ThumbLocate high-draw items around the periphery of the storeUse prominent locations such as the first or last aisle for high-impulse and high margin itemsRemove crossover aisles that allow customers the opportunity to move between aislesDistribute what are known in the trade as “power items” (items that may dominate a shopping trip) to both sides of an aisle, and disperse them to increase the viewing of other itemsUse end aisle locations because they have a very high exposure rate47Retail /Service Layout -Grid DesignOfficeCartsCheck-outGrocery StoreMeatBreadMilkProduceFrozen Foods48Store Layout - with Dairy, Bread, High Drawer Items in Corners49Retail/Service Layout - Free-Flow DesignFeatureDisplay TableTrans.CounterApparel Store50Retail Store Shelf Space PlanogramComputerized tool for shelf-space managementGenerated from store’s scanner data on salesOften supplied by manufacturerExample: P&G2 ft.5 facingsVO-5VO-5VO-5SUAVESUAVEVO-5PERTPERTPERTPERTPERTVO-551A Good Service Layout (Servicescape) ConsidersAmbient conditions - background characteristics such as lighting, sound, smell, and temperature.Spatial layout and functionality - which involve customer circulation path planningSigns, Symbols, and Artifacts - characteristics of building design that carry social significance52Warehouse LayoutDesign balances space (cube) utilization & handling costSimilar to process layoutItems moved between dock & various storage areasOptimum layout depends onVariety of items storedNumber of items picked53Warehouse Layout Floor PlanZonesConveyorTruckOrder Picker54Cross DockingTransferring goods from incoming trucks at receiving docks to outgoing trucks at shipping docksAvoids placing goods into storageRequires suppliers provide effective addressing (bar codes) and packaging that provides for rapid transhipmentIn-comingOutgoing© 1984-1994 T/Maker Co.© 1995 Corel Corp.55Random Stocking Systems Often:Maintain a list of “open” locationsMaintain accurate records of existing inventory and its locationsSequence items on orders to minimize travel time required to pick ordersCombine orders to reduce picking timeAssign certain items or classes of items, such as high usage items, to particular warehouse areas so that distance traveled is minimized56Product-Oriented LayoutFacility organized around productDesign minimizes line imbalanceDelay between work stationsTypes: Fabrication line; assembly line57Product-Oriented RequirementsStandardized productHigh production volumeStable production quantitiesUniform quality of raw materials & components58Product-Oriented Layout - AssumptionsVolume is adequate for high equipment utilizationProduct demand is stable enough to justify high investment in specialized equipmentProduct is standardized or approaching a phase of its life cycle that justifies investment in specialized equipmentSupplies of raw materials and components are adequate and of uniform quality to ensure they will work with specialized equipment59Product-Oriented Layout TypesAssembles fabricated partsUses workstationRepetitive processPaced by tasksBalanced by moving tasksBuilds componentsUses series of machinesRepetitive processMachine pacedBalanced by physical redesignFabrication LineAssembly Line60Product-Oriented Layout AdvantagesLower variable cost per unitLower material handling costsLower work-in-process inventoriesEasier training & supervisionRapid throughput61Product-Oriented Layout DisadvantagesHigher capital investment Special equipmentAny work stoppage stops whole processLack of flexibilityVolumeProduct62An Assembly Line Layout63Repetitive Layout13245WorkOfficeBelt ConveyorWork StationNote: 5 tasks or operations; 3 work stationsWork StationStation64Assembly Line BalancingAnalysis of production linesNearly equally divides work between workstations while meeting required outputObjectivesMaximize efficiencyMinimize number of work stations65Assembly Line BalancingThe General ProcedureDetermine cycle time by taking the demand (or production rate) per day and dividing it into the productive time available per dayCalculate the theoretical minimum number of work stations by dividing total task time by cycle timePerform the line balance and assign specific assembly tasks to each work station66Assembly Line Balancing Steps1. Determine tasks (operations)2. Determine sequence3. Draw precedence diagram4. Estimate task times5. Calculate cycle time 6. Calculate number of work stations7. Assign tasks 8. Calculate efficiency67ABEHCDFGI10 Min.51112373411Precedence Diagram Example68Assembly Line Balancing EquationsCycle time = Production time available Demand per dayMinimum number of work stations  Task timesCycle timeEfficiency == Task times* (Cycle time)(Actual number of work stations)69Six Station SolutionABCEDFGIH10115373111270Layout Heuristics for Assigning Tasks in Assembly Line BalancingLongest task time - choose task with longest operation timeMost following tasks - choose task with largest number of following tasksRanked positional weight - choose task where the sum of the times for each following task is longestShortest task time - choose task with shortest operation timeLeast number of following tasks - choose task with fewest subsequent tasks71