Operation Management: Chapter 7 – Capacity and Facilities Design

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Operation Management: CHAPTER 7 – Capacity and Facilities Design Question 7-8:
Facility layout refers to the arrangement of activities, processes, departments, workstations, storage areas, aisles, and common areas within an existing or proposed facility. The basic objective of the layout decision is to ensure a smooth flow of work, material, people and information through the system. We can list five goals of facility layout such as the following: 1. Eliminate wasted or redundant movement

We can take Wal-mart as an example. Wal-mart is one company who has a great successful by using process layout. They group similar activities together in departments according to the process or function they perform. Each Wal-mart’s store is divided into different areas: health and beauty, clothing, shoes, auto cares…. Based on it, customer will be easier to find what they need, eliminate the moving time and also give to them more conveniences. 2. Utilize space efficiently

This one is another goal of facility layout that Wal-mart expects. By using the recent arrangement, the space will be used more efficiently by saving surfaces, maximum the quantity in each position while ensure the convenience for customers. 3. Increase capacity

We can take Nike as on example. The flow of work is orderly and efficient, moving from one workstation to another down the assembly line until a finish product comes off the end of the line. By using product layout, Nike can increase their capacity of production and also the uniformity in the product quality. 4. Utilize labor efficiently

The efficiencies of labor are also objective of using facility layout. Labor in the assembly lines of Nike is more professional. Each position focuses on the specific work. Based on it, labor productivity will be higher. 5. Facilitate communication and interaction

Question 7-11:
Facility layout probably is one of the most crucial elements affecting efficiency and can take many different forms. Five common types of layout include: Process layout, Produce layout, Fixed position layout, Cellular layout and Combination layout. Process layout: Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together. As such, they occasionally are referred to as functional layouts. Their purpose is to process goods or provide services that involve a variety of processing requirements. A manufacturing example would be a machine shop. A machine shop generally has separate departments where general-purpose machines are grouped together by function (e.g., milling, grinding, drilling, hydraulic presses, and lathes). Therefore, facilities that are configured according to individual functions or processes have a process layout. This type of layout gives the firm the flexibility needed to handle a variety of routes and process requirements. Services that utilize process layouts include hospitals, banks, auto repair, libraries, and universities. The most advantage of this layout is greater flexibility in the production and also reduction investment on machines as they are general purpose machines. However, the disadvantage if inefficiency. There is a difficulty in production control, in movement of materials and this type of layout requires more floor space… Product layout: Product layouts are found in flow shops (repetitive assembly and process or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. In a product layout, resources are arranged sequentially, based on the routing of the products. In theory, this sequential layout allows the entire process to be laid out in a straight line, which at times may be totally...
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