U OF G HUIWANG1Facility LayoutFacility LayoutOperations ManagementChapter 6CONTENTsßFacility Layout and Basic FormatsßTypes of LayoutÞProcess-Oriented LayoutÞProduct-oriented LayoutÞFixed-Position LayoutÞGroup Technology (Cellular) Layout ßService LayoutU OF G HUIWANG2Guiding Case: McDonald’s Looks for Competitive Advantage with its New High-Tech Kitchen LayoutIn its half-century of corporate existence, McDonald’s has revolutionized the restaurant industry by inventing the limited-menu fast-food restaurant . It has five major innovations.ßThe first, the introduction of indoor seating(1950s), was a strategic issue of facility layout.ßThe second ,drive-through windows(1970s)ßThe third, adding breakfast to the menu(1980s), was a product strategy.U OF G HUIWANG3ßThe fourth, adding play areas (1990s), was again a layout decision.ßIn 2000, McDonald’s is reaching for its fifth major innovation, and not surprisingly, it is a new layout to facilitate a mass customization process. This time the corporation is banking on the radical redesign of the kitchens in its 13,500 North American outlets. Dubbed the “made for you” kitchen system, sandwiches are now assembled to order and production levels are controlled by computers. The new layout is intended to both improve the taste of food by ensuring it is always freshly made, U OF G HUIWANG4and to facilitate the introduction of new products. ßUnder the new restaurant design, total production process were shorten to 45 seconds, some steps were eliminated and some shortened.The payoff for the layout change? will save $100 million per year in food costs. The company is banking that with the new layout, new standards of efficiency and happier customers will provide a competitive advantage.Topic: Differences in Layout McDonald’s, Burger King and Pizza Hut.U OF G HUIWANG5Facility Layout DefinedFacility layout can be defined as the process by which the placement of departments, workgroups within departments, workstations, machines, and stock-holding points within a facility are determined. U OF G HUIWANG6ßLayout is one of the key decisions that determine the long-run efficiency of operations. ?????ßAn effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response .CASE : Wal-Mart store layouts support a strategy of low cost, as do its warehouse techniques and layouts.Hallmark ‘s office layouts , where many professionals operate in work cells, support rapid development of greeting card,U OF G HUIWANG7Objectives of Facility Layout:In all cases, Layout design must consider how to achieve the following:ßHigher utilization of space, equipment , and peopleßImproved flow of information, materials, or peopleßImproved employee morale and safer working conditionsßImproved customer/client interactionßFlexibility U OF G HUIWANG8A good process Layout requires the following inputs:ÞSpecification of objectives of the system in terms of output and flexibility.ÞEstimation of product or service demand on the system.ÞProcessing requirements in terms of number of operations and amount of flow between departments and work centers.ÞSpace requirements for the elements in the layout.ÞSpace availability within the facility itself.ÞCost of moving between various work areasU OF G HUIWANG9Types of Layout To achieve these objectives, a variety of approaches has been developed. We will discuss 4 of them following:ØProcess-oriented LayoutØProduct-oriented LayoutØGroup Technology (Cellular) LayoutØFixed-Position Layout U OF G HUIWANG10Process-Oriented Layout:ßJob-shop Layout / Functional LayoutßA layout that deals with low-volume, high-variety production; like machines and equipment are grouped together. A product or small order is produced by moving it from one department to another in the sequence required for that product.ßBe common in manufacturing, colleges, banks, auto-repair shops, airlines, and libraries.U OF G HUIWANG11Example: Manufacturing Process LayoutU OF G HUIWANG12Lathe departmentLLLLLLLLLLMMMMDDDDDDDDGGGGGGAAAPPMilling DepartmentDrilling DepartmentGrinding DepartmentPainting DepartmentReceiving and ShippingAssemblyProcess Layout: Interdepartmental FlowßGivenÞThe flow (number of moves) to and from all departmentsÞThe cost of moving from one department to anotherÞThe existing or planned physical layout of the plantßDetermineÞThe “best” locations for each department, where best means interdepartmental transportation, or flow, costs U OF G HUIWANG13Designing Process LayoutsßTry to minimize material handling costs or trips, times distance-related costsßThe process procedure that they follow involves six steps:Step 1.Construct a load summary chart to show interdepartmental flow.Step 2.Determine the space requirements for each department (building dimensions and departments)U OF G HUIWANG14Step 3.Develop an initial schematic diagram showing the sequence of departments through which parts 。