MGT 214 OPERATIONS MANAGEMENT
CHAPTER 06
Layout Decisions
Prepared by: Ms. Dalal Bamufleh
YANBU UNIVERSITY COLLEGE
Management Science Department
© Yanbu University College
© Yanbu University College
1
MCDONALD’S LOOK FOR COMPETITIVE ADVANTAGE THROUGH LAYOUT
Slide 2
© Yanbu University College
MCDONALD’S LOOK FOR COMPETITIVE ADVANTAGE THROUGH LAYOUT
Indoor seating (1950s)
Drive-through window (1970s)
Adding breakfast to the menu (1980s)
Adding play areas (late 1980s)
Redesign of the kitchens (1990s)
Self-service kiosk (2004)
21st Century look: 3 dining sections
Slide 3
© Yanbu University College
MCDONALD’S LOOK FOR COMPETITIVE ADVANTAGE THROUGH LAYOUT
Three separate dining areas
Linger zone with comfortable chairs and Wi-Fi connections
Grab and go zone with tall counters and with bar stools.
Flexible zone for kids and families with colorful and movable furniture
Facility layout is a source of competitive advantage (CSF)
Slide 4
© Yanbu University College
Strategic Importance of Layout Decisions
The objective of layout strategy is to develop an effective and efficient layout that will meet the firm’s competitive needs and requirements.
An effective layout can help an organization achieve a strategy that support differentiation, low cost or response.
Slide 5
© Yanbu University College
Strategic Importance of Layout Decisions
Layout Design Considerations:
Higher utilization of space, equipment, and people
Improved flow of information, materials, or people
Improved employee morale and safer working conditions
Improved customer/client interaction
Flexibility
Layout designs needs to be viewed as dynamic
Slide 6
© Yanbu University College
Types of Layout
Office layout
Retail layout
Warehouse layout
Fixed-position layout
Process-oriented layout
Work-cell layout
Product-oriented layout
Slide 7
© Yanbu University College
Good layouts requires determining the following:
Material handling equipment
Capacity and space requirements
Environment and aesthetics
Flows of information
Cost of moving between various work areas
Slide 8
Types of Layout
© Yanbu University College
Office Layout
Requires the grouping of workers, their equipment, and spaces to provide comfort, safety, and movement of information
Movement of information is main distinction
Typically in state of flux due to frequent technological changes
Electronic data and paper work
Relationship chart
Slide 9
© Yanbu University College
Office Layout
Some of the universal layout considerations: working conditions, teamwork, authority …etc
Private or open cubicles?
Slide 10
Open Cubicles
Private Cubicles
© Yanbu University College
Office Layout
Private office
Low or high file cabinets
Slide 11
© Yanbu University College
Office Layout
Same entrance, rest room, lockers and cafeteria for all employees?
Two major trends:
Technology such as cell phone, iPods, faxes, Internet, and laptop computers increase layout flexibility.
Modern firms create dynamic needs for space and services.
Slide 12
© Yanbu University College
Retail Layout
Objective is to maximize profitability per square foot of floor space
Sales and profitability vary directly with customer exposure
OM try to expose customers to as many products as possible
rate of exposure, sales and return on investment
How to change exposure?
Slide 13
© Yanbu University College
Retail Layout
Five Helpful Ideas for Supermarket Layout:
Locate high-draw items around the periphery of the store
Use prominent locations for high-impulse and high-margin items
Distribute power items to both sides of an aisle and disperse them to increase viewing of other items
Use end-aisle locations
Convey mission of store through careful positioning of lead-off department
Slide 14
© Yanbu University College
Retail Layout
Category Management
Slotting fees: Manufacturers pay fees to retailers to get the retailers to display (slot) their product
Contributing factors:
Limited shelf space
Massive new products
Limit small firms ability to expand
Slide 15
© Yanbu University College
Retail Layout
Servicescapes:
Ambient conditions - background characteristics such as lighting, sound, smell, and temperature
Spatial layout and functionality - which involve, aisle characteristics (width, direction, shelf spacing...etc.) , and product grouping
Signs, symbols, and artifacts - characteristics of building design that carry social significance e.g.: Wal-Mart greeter at the door, Disneyland's entrance
Slide 16
© Yanbu University College
Slide 17
© Yanbu University College
Warehousing and Storage Layouts
Objective is to optimize trade-offs between handling costs and costs associated with warehouse space
Maximize the utilization of the total “cube” of the warehouse – utilize its full volume while maintaining low material handling costs
Slide 18
© Yanbu University College
Warehousing and Storage Layouts
Material Handling Costs:
All costs associated with the transaction
Incoming transport
Storage
Finding and moving material
Outgoing transport of the materials to be warehoused
Equipment, people, material, supervision, insurance, and depreciation
Minimize damage and spoilage
Slide 19
© Yanbu University College
Warehousing and Storage Layouts
Automated Storage and Retrieval Systems (ASRSs) can significantly improve warehouse productivity
Slide 20
© Yanbu University College
Warehousing and Storage Layouts
An important component of warehouse layout is the relationship between the receiving/ unloading area and the shipping/ loading area.
Slide 21
© Yanbu University College
Warehousing and Storage Layouts
1. Cross-Docking
Materials are moved directly from receiving to shipping and are not placed in storage in the warehouse
Reduces distribution, inventory and facility costs
Requires tight scheduling and accurate product identification e.g. bar code
Slide 22
© Yanbu University College
Warehousing and Storage Layouts
2. Random Stocking
Typically requires automatic identification systems (AISs) and effective information systems
Random assignment of stocking locations allows more efficient use of space
Key tasks:
Maintain list of open locations
Maintain accurate records of existing inventory and its locations
Sequence items to minimize travel, and pick time
Combine picking orders to reduce picking time
Assign classes of items to particular areas
facility utilization, labor cost, but requires very accurate records
Slide 23
© Yanbu University College
Warehousing and Storage Layouts
3. Customizing
Value-added activities performed at the warehouse
Assembly of components
Loading software
Repairs
Customized labeling and packaging
Slide 24
© Yanbu University College
Fixed-Position Layout
Project remains in one place and workers and equipment come to site
E.g.: ship, highway, bridge, house, operation room
Complicating factors
Limited space at site
Different materials required at different stages of the project
Volume of materials needed is dynamic
Slide 25
© Yanbu University College
Fixed-Position Layout
Alternative Strategy
As much of the project as possible is completed off-site in a product-oriented facility
This can significantly improve efficiency but is only possible when multiple similar units need to be created
Slide 26
© Yanbu University College
Work Cells
Reorganizes people and machines into groups to focus on single products or product groups
Volume must justify cells
Group technology identifies products that have similar characteristics for particular cells
Cells can be reconfigured as designs or volume changes
Slide 27
© Yanbu University College
Work Cells
Improving Layouts Using Work Cells
Slide 28
Current layout - workers in small closed areas. Cannot increase output without a third worker and third set of equipment.
Improved layout - cross-trained workers can assist each other. May be able to add a third worker as additional output is needed.
U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection
+
© Yanbu University College
Work Cells
Improving Layouts Using Work Cells
Slide 29
Current layout - straight lines make it hard to balance tasks because work may not be divided evenly
Improved layout - in U shape, workers have better access. Four cross-trained workers were reduced.
U-shaped line may reduce employee movement and space requirements while enhancing communication, reducing the number of workers, and facilitating inspection
© Yanbu University College
Process-Oriented Layout
Low volume, high variety
Like machines and equipment are grouped together
Efficient when making products with different requirements, or when handling different needs of customers
Each product requires different sequence of operations
E.g.: ER Process
Slide 30
© Yanbu University College
Process-Oriented Layout
Slide 31
Surgery
Radiology
ER triage room
ER Beds
Pharmacy
Emergency room admissions
Billing/exit
Laboratories
Patient A - broken leg
Patient B - erratic heart pacemaker
© Yanbu University College
Process-Oriented Layout
Advantages:
Flexibility
Capability of handling a wide variety of products or services
Disadvantages:
General-purpose use of equipment labor skills and cost, required level of training and experience
Orders take more time to move through the system because of difficult scheduling, changing setup, and unique material handling
Slide 32
© Yanbu University College
Process-Oriented Layout
Arrange departments/ work centers so as to minimize the costs of material handling
Material handling cost in this approach depend on:
Number of loads (or people) moving between centers
Distance-related cost of moving loads (or people) between centers
Slide 33
© Yanbu University College
Process-Oriented Layout
Designing process- oriented layout steps:
Construct a “from-to matrix”
Determine the space requirements
Develop an initial schematic diagram
Determine the cost of this layout
Try to improve the layout
Prepare a detailed plan
Slide 34
© Yanbu University College
Process-Oriented Layout
Slide 35
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1)
Painting (2)
Machine Shop (3)
Receiving (4)
Shipping (5)
Testing (6)
Department Assembly Painting Machine Receiving Shipping Testing
(1) (2) Shop (3) (4) (5) (6)
Assembly (1) 50 100 0 0 20
Painting (2) 30 50 10 0
Machine Shop (3) 20 0 100
Receiving (4) 50 0
Shipping (5) 0
Testing (6)
Number of loads per week
Example 1:
Page: 385
1. Construct a “from-to matrix”
© Yanbu University College
Process-Oriented Layout
2. Determine the space requirements
Slide 36
Area 1 Area 2 Area 3
Area 4 Area 5 Area 6
60’
40’
Receiving Shipping Testing
Department Department Department
(4) (5) (6)
Assembly Painting Machine Shop
Department Department Department
(1) (2) (3)
© Yanbu University College
Process-Oriented Layout
Slide 37
3. Develop an initial schematic diagram
100
50
20
50
50
20
10
100
30
Machine Shop (3)
Testing
(6)
Shipping
(5)
Receiving
(4)
Assembly
(1)
Painting
(2)
© Yanbu University College
Process-Oriented Layout
Slide 38
4. Determine the cost of this layout
X= Number of loads
C= Cost for moving load
The cost of moving adjacent department is estimated to be $1, and 2$ for nonadjacent departments.
Cost = ∑ ∑ Xij Cij
n
i = 1
n
j = 1
Cost = $50 + $200 + $40
(1 and 2) (1 and 3) (1 and 6)
+ $30 + $50 + $10
(2 and 3) (2 and 4) (2 and 5)
+ $40 + $100 + $50
(3 and 4) (3 and 6) (4 and 5)
= $570
© Yanbu University College
Process-Oriented Layout
Slide 39
5. Try to improve the layout
30
50
20
50
10
20
50
100
100
Machine Shop (3)
Testing
(6)
Shipping
(5)
Receiving
(4)
Painting
(2)
Assembly
(1)
Cost = 50 + (30X2) + 10 + 50 + 100 + 20 + 100 + (20X2) +50
= $ 480
© Yanbu University College
Process-Oriented Layout
Slide 40
6. Prepare a detailed plan
Area 1 Area 2 Area 3
Area 4 Area 5 Area 6
60’
40’
Receiving Shipping Testing
Department Department Department
(4) (5) (6)
Painting Assembly Machine Shop
Department Department Department
(1) (2) (3)
© Yanbu University College
Repetitive and Product-Oriented Layout
High volume, low variety products
Repetitive production and continuous production use product layout.
Two types of layout: Fabrication line and Assembly line.
Fabrication line
Builds components on a series of machines
Machine-paced
Require mechanical or engineering changes to balance
Slide 41
© Yanbu University College
Repetitive and Product-Oriented Layout
Assembly line
Puts fabricated parts together at a series of workstations
Paced by work tasks
Balanced by moving tasks
Both types of lines must be balanced so that the time to perform the work at each station is the same
Slide 42
© Yanbu University College
Slide 43
END OF LECTURE
© Yanbu University College
SP15
Project #2
Hangman Game
Uploads: Due by 9:00am
Paperwork: Due by 9:00 am – Drop off at Burke 154 or the School of Engineering office, Burke 242
Objective: Write an interactive program that plays the game Hangman. Use the random integer function to randomly select the word to guess out of the file provided. The player must guess the letters belonging to the word. The program should terminate when either all letters have been guessed correctly (player wins) or a specified number of incorrect guesses have been made (computer wins). Use a solution array to keep track of the solution so far. Initialize the array to a string of ‘*’. Each time a letter in the word is guessed, replace the corresponding ‘*’ with that letter.
1. Each part of the program should be its own function. Such as recording the guess, keeping track of the solution, etc. (Hint: A menu might be a good way to do this.)
2. Also – display on the screen what letters of the alphabet you have used so far and where you are in the solution.
3. 6 incorrect guesses will be allowed.
4. Use the data file of 80 words on Angel to randomly select a word to solve.
5. The data file name and location MUST BE: P:\Private\wordlist.txt. If you change this or do not go to this location, your program will be graded as not running.
6. No global variables.
What are you turning in?
1. A printout of your original source code.
2. A printout of you playing the game at least twice. Once with a win and one time with a lost.
3. All project files should have your Penn State ID in the name. For example, P2mrf11.cpp.
4. Upload all of your files to the drop box on Angel BEFORE the deadline.
5. If you neglect to either upload your file or turn in your paperwork, you will get a zero for the assignment .
6. At this time, this project will be worth 10% of the project grade. Project 1 will be recorded as 15%. Class grades will be evaluated after these projects are graded. The instructor will post any changes on Angel for the class.
Graded on:
·
· Good programming
· Neat & readable code
· Comments
· Logic
· Calculations
· Meaningful variables
· Output – results & format
· Input – prompting & use
· Functions
· Arrays
· Data files
· Does it work?
· Other
Reference: Problem Solving, Abstract and Design Using C++ by Friedman & Koffman.
|
Assignment II Cover Sheet MANAGEMENT SCIENCE DEPARTMENT |
STUDENTS DETAILS
Student Name |
1. Sithy Zubaidah Habib |
Student ID |
12129009 |
|
2. Arwa Abdulkareem Alalwni |
|
INSTRUCTION FOR SUBMISSION OF HARD COPY (PRINT) ASSIGNMENTS
1. Read and sign your cover sheet.
2. Attach this sheet to the front of your assignment.
3. Your assignment should be submitted to the relevant lecturer.
ASSIGNMENET DETAILS
Program Name |
BS in Management Information Systems BS in Business Management BS in Accounting |
||
Course Code |
MGT 214 |
Course Name |
Operations Management |
Assignment/Project |
Assignment 2 |
Lecturer’s Name |
Ms. Dalal Bamufleh |
Due Date |
December 11, 2014 |
Date submitted |
|
REQUEST FOR EXTENSION
All work must be submitted by the due date. An application to extend the due date on the basis of special consideration must be authorized by the course lecturer.
Extension granted until (date) |
N/A |
Lecturer’s Signature |
|
Remarks: |
Cheating and assisting to cheat are offences under the Yanbu University College’s policy.
STUDENTS’ STATEMENT
We have read and understood the information provided on this assignment cover sheet and in the college’s policy relating to cheating and assisting to cheat, collaboration and plagiarism. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the lecturer, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work.
Students’ Signatures |
|
Date |
|
Mark/Grade |
|
Assessed by & Date |
|
Nike is a well known successful manufacturer of sport wear. They have implemented many strategies in order to make themselves successful. One of these strategies is through their store layout. Nike, Tokyo store is a good example that shows how their store layout helps in achieving the success as will be explained below.
First, we will focus on the architecture of the building. Shown below is a picture of Nike’s store in Tokyo.
By having full glass windows, it shows people the inside of the store which attracts and enhances customers to enter the store. They even take advantage of manipulating the lighting and turned it into a piece of art as it adds visual effects to the building. They put their logo on the side of the building to no affect the overall look of the front of the building. In this way, the building looks professional from the side and attractive from the front.
As we enter the building, you feel an immediate sense of comfort and coziness due to inside lightings which is neither too bright nor too dark. In addition, they use extra light to focus on exposing their products to customers.
Nike understands that attracting customers will generate more investment or sales for them. Therefore, they designed their stores in order to make it as attractive as possible.
Lines attached on the floor gives an athletic feeling to the customers.
The aisles are wide enough to make the customers feel comfortable to walk and browse.
The customer service desk is in the centre of the store, making them near customers whenever help is needed.
Benches are available to help customers try on different shoes easily. These benches are also located in front of customer service desk so customers can get help easily whenever it is needed.
They have wide stairs making it suitable for customers to walk up and down the stairs without bumping into each other. They also painted white lines on both ends of the stairs making it appear wider. They designed their stairs with side glass so that customers are exposed to all products available in all shelves as they walk up the stairs. The side glass also matches up with the architecture of the whole building. They also hung up shoes above the stairs in order to complete the whole design.
They designed their shelves in different ways as shown below.
Some shelves are designed/made in a circle shape. They are even made with different materials such as glass, wood, etc. There are even shelves attached to windows attracting customers from the inside as well as from the outside.
As it is known, they follow mass customization process; they have a section named “Customize Your Own” with different colors and models of shoes. Here customers are able to modify their shoes according to their preference or likes.
In a part of their store, Nike has a mysterious entrance named “BOOTROOM” that attracts customers to see what it leads to. As they enter, they face a spiral staircase that opens up to a whole new category of their store. Nike not only sell shoes, but they also sell sportswear limited to famous teams.
As the customers reach the top of the stairs, they are surrounded with mannequins of famous players exposed with excessive lighting from the top and bottom focused on these mannequins.
As shown in the picture below, they designed a whole wall by using famous athletes to promote their products. Every player is used in promoting a certain type or model of product. This is done by having sections devoted to each player with products surrounding them.
As mentioned before, they add sports spirit everywhere. As a result, they attached a green carpet on the borders of the floor that looks like grass from the sports field. This brings out the sports spirit even more as customers feel like they are actually in the field.
As we mentioned in this floor, Nike also sells sportswear, so they placed little cabinets to show these folded T-shirts from different teams. These folded T-shirts are shown from the side of the cupboard and from the top. This is so that the customers can view it from different places of the store. Just like other products, they define themselves in these T-shirts by attaching their logo.
They designed these cabinets in front of a wide attractive paint that’s surronded by a wooden wall and exposed by extra light. That attrcative paint is NIKE’s Flag Ship that are shown in a bright color that can’t be easily forgetten in customer’s memories.
Finally, Nike conveys their mission using their layout in a very unique and artistic design as shown below.
By now, we learnt that Nike puts their value in each and every product as well as their building. They also use shoes as a main part of their design such as, background of their mission, the centerpiece of the stairs, background of their computer’s screens, and as a showpiece on windows for outside customers.
References: All photos are taken from the website below, and analyzed by the students.
http://retaildesignblog.net/2011/06/13/nike-harajuku-by-wonderwall-tokyo/
Page 2 of 15
|
Assignment Cover Sheet MANAGEMENT SCIENCE DEPARTMENT |
STUDENT DETAILS
Student Name
|
1. |
Student ID |
|
|
2. |
|
|
|
3. |
|
|
INSTRUCTION FOR SUBMISSION OF HARD COPY (PRINT) ASSIGNMENTS
1. Read and sign your cover sheet.
2. Attach this sheet to the front of your assignment.
3. Your assignment should be submitted to the relevant lecturer.
ASSIGNMENET DETAILS
Program Name |
BS in Management Information Systems BS in Business Management BS in Accounting |
||
Course Code |
MGT 214 |
Course Name |
Operations Management |
Assignment/Project |
Assignment 2 |
Lecturer’s Name |
Ms. Dalal Bamufleh |
Due Date |
30/ April / 2014 |
Date submitted |
|
REQUEST FOR EXTENSION
All work must be submitted by the due date. An application to extend the due date on the basis of special consideration must be authorized by the course lecturer.
Cheating and assisting to cheat are offences under the Yanbu University College’s policy.
STUDENT’S STATEMENT
I have read and understood the information provided on this assignment cover sheet and in the college’s policy relating to cheating and assisting to cheat, collaboration and plagiarism. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the lecturer, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work.
Students Signature |
|
Date |
|
Mark/Grade |
|
Assessed by & Date |
|
THE COVER PAGE SHOULD CARRY THE FOLLOWING:
· Name and logo of the University College
· Program title
· Subject code and title
· Name of lecturer
· Name and ID of every member of your group (maximum THREE students in a group)
· Date of submission
THE ASSIGNMENT MUST BE:
· Submitted as a hard copy on time (late assignments will be rejected)
· Type written
· Include all Headings
· Edited for typo and grammatical errors
· Left and right alignment of 2 cm
· 1.5 spacing
· Font size - 11
· Lettering – Times New Roman
· Paragraphing – 2 spaces
OBJECTIVES:
CLO |
PLO |
Total marks |
Marks awarded |
6 |
AS6 |
30 |
|
6 |
IT3 (Formatting) |
05 |
|
TOTAL MARK AWARDED |
35 |
|
ASSIGNMENT DESCRIPTION:
Step 1. Select a company/organization to analyze its layout decisions. (E.g.: Hospital, Polyclinic, Shop, Hypermarket, Supermarket, University, Beauty salon, charitable organization …etc.) We have analyzed Hyper Panda and McDonald’s layout during layout lectures, so DON’T choose them.
Step 3. Analyze the layout of the selected company’s photographs in details and recommend changes that can improve the performance as an operation manager.
Step 4. Submit the assignment (hardcopy).
NOTES:
1- You need to include and analyze at least 10 photos.
2- You must write all references if any. Absence of references will be considered plagiarism. Assignment suspected of plagiarism, copying or cheating will be awarded 0 marks. No chance to re-do the assignment will be given.
RUBRICS:
Categories |
90-100% (Level 4) |
80 -89% (Level 3) |
70-79% (Level 2) |
60 - 69% (Level 1) |
Analytical Skills (AS6) |
Demonstrates a sophisticated understanding of the topic(s) and issue(s). Presents an insightful and thorough analysis of all issues identified and demonstrates complete command of the strategic concepts and tools studied. |
Demonstrates an accomplished understanding of the topic(s) and issue(s) Presents a thorough analysis of most issues identified and demonstrates good command of the strategic concepts and tools studied. |
Demonstrates an acceptable understanding of the topic(s) and issue(s) Presents a superficial analysis of some of the issues identified and demonstrates limited command of the strategic concepts and tools studied. |
Demonstrates an inadequate understanding of the topic(s) and issue(s) Presents an incomplete analysis of the issues identified and makes little or no connection between the issues identified and the strategic concepts studied in the reading. |
Information Technology (IT 3) |
Systematic and orderly |
Fairly systematic and orderly |
Satisfactory in organizing
|
Messy and disorganized
|
Kingdom of Saudi Arabia |
|
المملكة العربية السعودية |
Royal Commission at Yanbu |
|
الهيئة الملكية ينبع |
University College (Women's Campus) |
|
الكلية الجامعية-ينبع )حرم البنات( |
Yanbu Al-Sinaiyah |
|
ينبع الصناعية |
Dear Sir,
With due respect, I am writing to request your permission to allow my students, whose names are listed below, to take photographs of <Write the company name here> layout. Taking photographs is for the purpose of educating students in which they will apply the concepts that they learn in real life example. It will help them to analyze the layout and recommend what can be done to improve the performance.
I would appreciate your cooperation.
Sincerely,
Ms. Dalal Bamufleh
Signature: ________________
Instructor - Department of Management Science
Yanbu University College
Tel: 04-321-0000 ext.: 1883
Student Name |
ID |
1. |
|
2. |
|
3. |
|
Page 3 of 4

Get help from top-rated tutors in any subject.
Efficiently complete your homework and academic assignments by getting help from the experts at homeworkarchive.com