Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7

7.1


Layout and Flow
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.2
Chapter coverage
Basic layout types
Selecting a layout type
Detailed design of a layout
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.3
Layout:
The layout of an operation is concerned with the
physical location of its transforming resources, that
is deciding where to put the facilities, machines,
equipment and staff in the operation.
Layout types:
1) Fixed position layout
2) Process layout
3) Cell layout
4) Product layout
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.4
Fixed position layout
1) In a fixed position layout, the transformed resource
does not move between its transforming resources.
2) Equipment, machinery, plant and people who do
the processing move as necessary because the
product or customer is either:
i. Too large
ii. Too delicate or
iii. Objects being moved
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.5
Process layout
1) In a process layout, similar processes or processes
with similar needs are located together because:
i. It is convenient to group them together or
ii. The utilization of the transforming resource is
improved
2) Different products of customer have different
requirements therefore they may take different
routes within the process.
3) The flow in a process layout can be very complex.
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.6
An example of a process layout in a library
showing the path of just one customer
Entrance Exit
On-line and
CD-ROM
access room
Loan books in subject order
E
n
q
u
i
r
i
e
s

Store
room
Counter staff
Copying area
C
o
m
p
a
n
y

r
e
p
o
r
t
s

To
journal
sack
Current
journals
Reserve
collection
Reference
section
Study desks
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.7
Cell layout
1) In a cell layout, the transformed resources entering
the operation move into a cell in which all the
transforming resources it requires in located.
2) After being processed in the cell, the transformed
resource may move to a different cell in the
operation or it may be a finished product or service.
3) Each cell may be arranged in either a process or
product layout.
4) The cell type layout attempts to bring order to the
complex flow seen in a process layout.
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.8
The ground floor plan of a department store
showing the sports goods shop-within-a-shop
retail cell
Sports shop
Menswear
Womens clothes
Luggage
and gifts
Confectionery,
newspaper,
magazines and
stationery
Books
and
videos
Footwear
Perfume
& jewellery
Elevators
Entrance
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.9
Product layout
1) In a product layout, the transformed resource flow
a long a line of processes that has been
prearranged.
2) Flow is clear, predictable and easy to control.
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.10 An army induction centre with uses
product layout
Lecture theatre
Uniform
issuing
area
Uniform
store
Waiting
area
Waiting
area
Doctor
Doctor
Doctor
Doctor
Doctor
Doctor
Blood
test
Blood
test
Blood
test
X-ray
X-ray
X-ray
Record
personal
history and
medical
details
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.11
A restaurant complex with all four basic
layout types
Fixed-position layout
service restaurant
Cell layout buffet
Line layout cafeteria
Cool room
Freezer
Vegetable prep
Grill
Preparation
O
v
e
n

Process layout kitchen
Main course
buffet
S
t
a
r
t
e
r

b
u
f
f
e
t

D
e
s
e
r
t

b
u
f
f
e
t

Service line
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.12
Fixed-position
layout
Product
layout
Cell layout
Process
layout
Volume
Low High
V
a
r
i
e
t
y

L
o
w

H
i
g
h

Flow is
intermittent
Regular flow more important
Flow
becomes
continuous
R
e
g
u
l
a
r

f
l
o
w

m
o
r
e

f
e
a
s
i
b
l
e

Volume-variety relationship
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.13
Project process
Jobbing process
Batch process
Mass process
Continuous process
Professional services
Service shops
Mass services
Fixed position layout
Process layout
Cell layout
Product layout
The physical position
of all transforming
resources
The flow of the
operations
transformed resources
Process type
Basic layout type
Detailed design of
layout
Volume and
variety
Strategic
performance
objectives
Decision 1
Decision 2
Decision 3
Layout selection steps
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.14
Selecting a layout type
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.15
1) The nature of the basic layout types
B asic layout
types
Manufacturing
process types
Service
process types
Fixed
position layout
Project processes
Process layout
Cell layout
Product layout
Jobbing processes
Batch pro cesses
Mass processes
Continuous processes
Professional
services
Service shops
Mass services
Project processes
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.16
2) Advantages and disadvantages
Fixed
position
layout
Process
layout
Cell
layout
Product
layout
Disadvantages
Advantages
- Very high mix
and product
flexibility
- Product/customer
not moved or
disturbed.
- Very high unit cost.
- Scheduling space
and activities can be
difficult.
- High mix and
product flexibility
- Relatively robust
if in the case of
disruptions
Low utilization of
resources.
Can have very high
WIP
Complex flow.
- Good compromise
between cost and
flexibility
- Fast throughput.
- Group work can
result in good
motivation
Can be costly to
rearrange existing
layout
Can need more plant
and equipment
Lo- w unit costs for high
volume
- Gives Opportunities
for specialization of
equipment
Can have low mix and
flexibility
Not very robust to
disruption
Work can be very
repetitive.
- High variety of
tasks for staff
- Easy supervision
of equipment of
plant
- Gives Opportunities
for specialization of
equipment
Nigel Slack, Stuart Chambers & Robert Johnston, 2004 Operations Management, 4E: Chapter 7
7.17
(a) The basic layout types have different fixed and
variable cost characteristics which seem to determine
which one to use. (b) In practice the uncertainty about
the exact fixed and variable costs of each layout means
the decision can rarely be made on cost alone
Use fixed-position
Use fixed-position or process
Use process
Use process or cell
Use process or cell or product
Use cell or product
Use product
Volume
C
o
s
t
s

Fixed-position
Process
Cell
Product
Volume
C
o
s
t
s

Use
product
Use
cell
Use
process
Use
fixed-
position
(a) (b)
? ? ? ?
3) Consider total cost