Operations Management Chapter – Layout Strategies PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e © 2008 Prentice Hall, Inc 9–1 Outline  Global Company Profile: McDonald’s  The Strategic Importance of Layout Decisions  Types of Layout  Office Layout © 2008 Prentice Hall, Inc 9–2 Outline – Continued  Retail Layout  Servicescapes  Warehousing and Storage Layouts  Cross-Docking  Random Docking  Customizing  Fixed-Position Layout © 2008 Prentice Hall, Inc 9–3 Outline – Continued  Process-Oriented Layout  Computer Software for ProcessOriented Layouts  Work Cells  Requirements of Work Cells  Staffing and Balancing Work Cells  The Focused Work Center and the Focused Factory © 2008 Prentice Hall, Inc 9–4 Outline – Continued  Repetitive and Product-Oriented Layout  Assembly-Line Balancing © 2008 Prentice Hall, Inc 9–5 Learning Objectives When you complete this chapter you should be able to: Discuss important issues in office layout Define the objectives of retail layout Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking Identify when fixed-position layouts are appropriate © 2008 Prentice Hall, Inc 9–6 Learning Objectives When you complete this chapter, you should be able to: Explain how to achieve a good processoriented facility layout Define work cell and the requirements of a work cell Define product-oriented layout Explain how to balance production flow in a repetitive or product-oriented facility © 2008 Prentice Hall, Inc 9–7 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 © 2008 Prentice Hall, Inc 9–8 Innovations at McDonald’s  Indoor seating (1950s)  Drive-through window (1970s) Six out of the  Adding breakfast to the menu seven are (1980s) layout  Adding play areas (late 1980s) decisions!  Redesign of the kitchens (1990s)  Self-service kiosk (2004)  Now three separate dining sections © 2008 Prentice Hall, Inc 9–9 McDonald’s New Layout  Seventh major innovation  Redesigning all 30,000 outlets around the world  Three separate dining areas  Linger zone with comfortable chairs and Wi-Fi connections  Grab and go zone with tall counters  Flexible zone for kids and families  Facility layout is a source of competitive advantage © 2008 Prentice Hall, Inc – 10 Work Balance Charts  Used for evaluating operation times in work cells  Can help identify bottleneck operations  Flexible, cross-trained employees can help address labor bottlenecks  Machine bottlenecks may require other approaches © 2008 Prentice Hall, Inc – 63 Focused Work Center and Focused Factory  Focused Work Center  Identify a large family of similar products that have a large and stable demand  Moves production from a general-purpose, process-oriented facility to a large work cell  Focused Factory  A focused work cell in a separate facility  May be focused by product line, layout, quality, new product introduction, flexibility, or other requirements © 2008 Prentice Hall, Inc – 64 Focused Work Center and Focused Factory Work Cell Focused Work Center Focused Factory A work cell is a temporary productoriented arrangement of machines and personnel in what is ordinarily a processoriented facility A focused work center is a permanent productoriented arrangement of machines and personnel in what is ordinarily a processoriented facility A focused factory is a permanent facility to produce a product or component in a product-oriented facility Many focused factories currently being built were originally part of a process-oriented facility Example: A job shop Example: Pipe bracket with machinery and manufacturing at a personnel rearranged shipyard to produce 300 unique control panels © 2008 Prentice Hall, Inc Example: A plant to produce window mechanism for automobiles Table 9.2 – 65 Repetitive and ProductOriented Layout Organized around products or families of similar high-volume, low-variety products Volume is adequate for high equipment utilization Product demand is stable enough to justify high investment in specialized equipment Product is standardized or approaching a phase of life cycle that justifies investment Supplies of raw materials and components are adequate and of uniform quality © 2008 Prentice Hall, Inc – 66 Product-Oriented Layouts  Fabrication line  Builds components on a series of machines  Machine-paced  Require mechanical or engineering changes to balance  Assembly line  Puts fabricated parts together at a series of workstations  Paced by work tasks  Balanced by moving tasks Both types of lines must be balanced so that the time to perform the work at each station is the same © 2008 Prentice Hall, Inc – 67 Product-Oriented Layouts Advantages Low variable cost per unit Low material handling costs Reduced work-in-process inventories Easier training and supervision Rapid throughput Disadvantages High volume is required Work stoppage at any point ties up the whole operation Lack of flexibility in product or production rates © 2008 Prentice Hall, Inc – 68 McDonald’s Assembly Line Figure 9.12 © 2008 Prentice Hall, Inc – 69 Disassembly Lines • Disassembly is being considered in new product designs • “Green” issues and recycling standards are important consideration • Automotive disassembly is the 16th largest industry in the US © 2008 Prentice Hall, Inc – 70 Assembly-Line Balancing  Objective is to minimize the imbalance between machines or personnel while meeting required output  Starts with the precedence relationships Determine cycle time Calculate theoretical minimum number of workstations Balance the line by assigning specific tasks to workstations © 2008 Prentice Hall, Inc – 71 Wing Component Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C B D B E 12 A F C, D G F H 11 E I G, H Total time 66 © 2008 Prentice Hall, Inc This means that tasks B and E cannot be done until task A has been completed – 72 Wing Component Example Performance Task Must Follow Time Task Listed Task (minutes) Below A 10 — B 11 A C B D B E 12 A F C, D G F 10 H 11 E A I G, H Total time 66 11 B 12 E C D F G 11 I H Figure 9.13 © 2008 Prentice Hall, Inc – 73 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — B 11 A Production time C B available per day Cycle D B time = Units required per day E 12 A = 480 / 40 F C, D = 12 minutes per unit C G F 10 11 n H 11 E Time for taskFi A i∑ B G =1 Minimum I G, H number of = Cycle Dtime Total time 66 workstations I 12 11 = 66 / 12 E H = 5.5 or stations Figure 9.13 © 2008 Prentice Hall, Inc – 74 WingLine-Balancing Component Example Heuristics Longest task time Choose the available 480 task available Performance Task Must Follow with the longest task time mins per day Time Task Listed Task2 Most (minutes) 40 task units required following tasksBelow Choose the available number of= 12 mins A 10 —with the largestCycle time B 11 Afollowing tasksMinimum = 5.5 or C Ranked5 positional BChoose the available workstations task for D Bwhich the sum of following weight4 E 12 Atask times is the longest F C, D the available C task G Shortest task time FChoose 10 shortest 11 with the task time H 11 E A B G F I Least number G, H of Choose the available task with the least number of Totalfollowing time 66 tasks D I 12 11 following tasks E H Table 9.4 Figure 9.13 © 2008 Prentice Hall, Inc – 75 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum Station C 52 B workstations = 5.5 or C B D 11 E 10 12 A B F G F A C, D G F D E Station H 11 I I G, H 12 11 Station Stationtime 66 Total E H Station © 2008 Prentice Hall, Inc Station Figure 9.14 – 76 Wing Component Example 480 available Performance Task Must Follow mins per day Time Task Listed Task (minutes) Below 40 units required A 10 — Cycle time = 12 mins B 11 A Minimum C B workstations = 5.5 or D B E 12 A F C, D ∑ Task times G F Efficiency = (Actual number ofEworkstations) x (Largest cycle time) H 11 I G, H = 66 minutes / (6 stations) x (12 minutes) Total time 66 = 91.7% © 2008 Prentice Hall, Inc – 77 ... Objectives When you complete this chapter you should be able to: Discuss important issues in office layout Define the objectives of retail layout Discuss modern warehouse management and terms such as... layouts are appropriate © 2008 Prentice Hall, Inc 9–6 Learning Objectives When you complete this chapter, you should be able to: Explain how to achieve a good processoriented facility layout Define... Conditioner Shampoo Shampoo Shampoo Conditioner Conditioner  Computerized tool for shelfspace management  Generated from store’s scanner data on sales  Often supplied by manufacturer ft ©