BA341 8th Edition Lecture 8 Outline of Last Lecture I Process Strategy II Harley Davidson example III Process Focus IV Repetitive Focus V Product Focus VI Mass Customization Outline of Current Lecture VII Layout Strategies VIII Fixed Position project Layout IX Process oriented Job Shop Layout X Cellular Layout Work Cell XI Repetitive and Product oriented layout XII Continuous Process Layout XIII Product Process Matrix Current Lecture LAYOUT STRATEGIES Objective of a layout strategy How do you select a process layout that best supports your organization s strategy and the characteristics of your products and services Determined by product characteristics production volume pattern of workflow Classification of Layouts Fixed Position Project Layout Product is in fixed location These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Equipment and workers are moved close to product Specific to unique large scale products projects Faces the challenge of tight spaces and dynamic needs Have to change the workforce during projects Process oriented Job Shop Layout Similar equipment is grouped together Products move from department to department according to custom characteristics Equipment is usually general purpose but flexible and capable of extensive customization Employees are highly skilled and can operate a variety of machines Job shops compete on quality customization speed of new production introduction Among the challenges associated with the process layout we include Complex environment different machines tools unique product requirements raw materials and diverse employee skill sets etc how to arrange departments to minimize material handling costs Operations are generally slow and inefficient and require frequent setups Work in process levels are usually high A lot of set up times from one product to another Cellular Layout Work cell Dedicated area containing various equipment needed to produce only a limited range of products from start to finish Basically a self contained mini production line serving a group of similar products Well suited for just in time production systems Not a lot of set up time products can move through the cell fast An example is Starbucks Some advantages of Work cells Lower inventory levels Lower space requirements Improved employee morale o more cross training opportunities o higher sense of employee ownership and participation Higher equipment utilization reduced investment in equipment Higher employee productivity lower labor costs Repetitive and Product oriented layout Fabrication line builds components on series of machines e g automobile refrigerator parts etc Assembly line puts the fabricated parts together Some characteristics o Linear layout whereby production follows a fixed sequence of steps o Parts move at a controlled rate usually by a mechanized conveyor system o Characteristic of high volume standardized operations o Equipment is mostly special purpose o All steps through the assembly line have to spend the same amount of time on the product or it will be imbalanced Main advantages of repetitive layouts Economies of scale low unit costs for high volume operations High machine utilization and efficiency levels Easier training and supervision Low throughput times and WIP levels Main disadvantages of repetitive layouts Equipment is mostly special purpose lack of flexibility in accommodating a variety of products Repetitive standardized tasks lead to employee specialization and low levels of job satisfaction Continuous Process Layout Similar to an assembly line but the product flow is continuous e g chemicals petroleum drugs etc rather than discrete e g cars toys etc Highly automated large volume high fixed cost facilities operated on a continuous basis to produce a few standardized products Use the Product Process Matrix to choose the type of layout needed