BA341 8th Edition Lecture 8 Outline of Last LectureI. Process StrategyII. Harley Davidson exampleIII. Process FocusIV. Repetitive FocusV. Product FocusVI. Mass Customization Outline of Current LectureVII. Layout Strategies VIII. Fixed-Position (project) LayoutIX. Process-oriented (Job Shop) LayoutX. Cellular Layout (Work Cell)XI. Repetitive and Product-oriented layoutXII. Continuous Process LayoutXIII. Product-Process MatrixCurrent LectureLAYOUT STRATEGIESObjective 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 workflowClassification of LayoutsFixed-Position (Project) Layout - Product is in fixed locationThese 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 projectsProcess-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 introductionAmong 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 anotherCellular Layout (Work cell)- Dedicated area containing various equipment needed to produce only a limited range ofproducts 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 StarbucksSome 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 costsRepetitive 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 stepso Parts move at a controlled rate, usually by a mechanized conveyor systemo Characteristic of high volume, standardized operationso Equipment is mostly special purposeo All steps through the assembly line have to spend the same amount of time on the product or it will be imbalancedMain 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 satisfactionContinuous 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 basisto produce a few standardized productsUse the Product-Process Matrix to choose the type of layout