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Operation Management: Chapter 7 – Capacity and Facilities Design

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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

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