9–1OperationsManagementOperationsManagementChapter9–LayoutStrategyChapter9–LayoutStrategyPowerPointpresentationtoaccompanyPowerPointpresentationtoaccompanyHeizer/RenderHeizer/RenderPrinciplesofOperationsManagement,6ePrinciplesofOperationsManagement,6eOperationsManagement,8eOperationsManagement,8e9–2OutlineOutlineGlobalCompanyProfile:GlobalCompanyProfile:McDonaldMcDonald’’ssTheStrategicImportanceTheStrategicImportanceOfLayoutDecisionsOfLayoutDecisionsTypesofLayoutTypesofLayoutOfficeLayoutOfficeLayout9–3OutlineOutline––ContinuedContinuedRetailLayoutRetailLayoutServicescapesServicescapesWarehousingandStorageLayoutsWarehousingandStorageLayoutsCrossCross--DockingDockingRandomDockingRandomDockingCustomizingCustomizingFixedFixed--PositionLayoutPositionLayout9–4OutlineOutline––ContinuedContinuedProcessProcess--OrientedLayoutOrientedLayoutComputerSoftwareforProcessComputerSoftwareforProcess--OrientedLayoutsOrientedLayoutsWorkCellsWorkCellsRequirementsofWorkCellsRequirementsofWorkCellsStaffingandBalancingWorkCellsStaffingandBalancingWorkCellsTheFocusedWorkCenterandtheTheFocusedWorkCenterandtheFocusedFactoryFocusedFactory9–5OutlineOutline––ContinuedContinuedRepetitiveandProductRepetitiveandProduct--OrientedOrientedLayoutLayoutAssemblyAssembly--LineBalancingLineBalancing9–6LearningObjectivesLearningObjectivesWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:IdentifyorDefine:IdentifyorDefine:FixedFixed--positionlayoutpositionlayoutProcessProcess--orientedlayoutorientedlayoutWorkcellsWorkcellsFocusedworkcenterFocusedworkcenterOfficelayoutOfficelayout9–7LearningObjectivesLearningObjectivesWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:IdentifyorDefine:IdentifyorDefine:RetaillayoutRetaillayoutWarehouselayoutWarehouselayoutProductProduct--orientedlayoutorientedlayoutAssemblyAssembly--lineline9–8LearningObjectivesLearningObjectivesWhenyoucompletethischapter,youWhenyoucompletethischapter,youshouldbeableto:shouldbeableto:DescribeorExplain:DescribeorExplain:HowtoachieveagoodlayoutfortheHowtoachieveagoodlayoutfortheprocessfacilityprocessfacilityHowtobalanceproductionflowinaHowtobalanceproductionflowinarepetitiveorproductrepetitiveorproduct--orientedfacilityorientedfacility9–9InnovationsatMcDonaldInnovationsatMcDonald’’ssIndoorseating(1950s)Indoorseating(1950s)DriveDrive--throughwindow(1970s)throughwindow(1970s)AddingbreakfasttothemenuAddingbreakfasttothemenu(1980s)(1980s)Addingplayareas(1990s)Addingplayareas(1990s)ThreeoutofthefourarelayoutThreeoutofthefourarelayoutdecisions!decisions!9–10McDonaldMcDonald’’sNewKitchensNewKitchenLayoutLayoutFifthmajorinnovationFifthmajorinnovationSandwichesassembledinorderSandwichesassembledinorderEliminationofsomesteps,shorteningofEliminationofsomesteps,shorteningofothersothersNofoodpreparedaheadexceptpattyNofoodpreparedaheadexceptpattyNewbuntoastingmachineandnewbunNewbuntoastingmachineandnewbunformulationformulationRepositioningcondimentcontainersRepositioningcondimentcontainersSavingsof$100,000,000peryearinfoodSavingsof$100,000,000peryearinfoodcostscosts9–11McDonaldMcDonald’’ssNewKitchenNewKitchenLayoutLayout9–12StrategicImportanceofStrategicImportanceofLayoutDecisionsLayoutDecisionsTheobjectiveoflayoutstrategyTheobjectiveoflayoutstrategyistodevelopaneconomiclayoutistodevelopaneconomiclayoutthatwillmeetthefirmthatwillmeetthefirm’’sscompetitiverequirementscompetitiverequirements9–13LayoutDesignLayoutDesignConsiderationsConsiderationsHigherutilizationofspace,equipment,Higherutilizationofspace,equipment,andpeopleandpeopleImprovedflowofinformation,materials,Improvedflowofinformation,materials,orpeopleorpeopleImprovedemployeemoraleandsaferImprovedemployeemoraleandsaferworkingconditionsworkingconditionsImprovedcustomer/clientinteractionImprovedcustomer/clientinteractionFlexibilityFlexibility9–14TypesofLayoutTypesofLayout1.1.OfficelayoutOfficelayout2.2.RetaillayoutRetaillayout3.3.WarehouselayoutWarehouselayout4.4.FixedFixed--positionlayoutpositionlayout5.5.ProcessProcess--orientedlayoutorientedlayout6.6.WorkcelllayoutWorkcelllayout7.7.ProductProduct--orientedlayoutorientedlayout9–15TypesofLayoutTypesofLayout1.1.OfficelayoutOfficelayout--positionsworkers,positionsworkers,theirequipment,andspaces/officestheirequipment,andspaces/officestoprovideformovementoftoprovideformovementofinformationinformation2.2.RetaillayoutRetaillayout--allocatesshelfspaceallocatesshelfspaceandrespondstocustomerbehaviorandrespondstocustomerbehavior3.3.WarehouselayoutWarehouselayout--addressesaddressestradetrade--offsbetweenspaceandoffsbetweenspaceandmaterialhandlingmaterialhandling9–16TypesofLayoutTypesofLayout4.4.FixedFixed--positionlayoutpositionlayout--addressesaddressesthelayoutrequirementsoflarge,thelayoutrequirementsoflarge,bulkyprojectssuchasshipsandbulkyprojectssuchasshipsandbuildingsbuildings5.5.ProcessProcess--orientedlayoutorientedlayout--deals