Layout and flow are important in operations management.

This is because
the way facilities are positioned relative to each other has an important
effect on so many aspects of operations.
1. Minimises the total distance travel by materials, manpower, and
information.
2. Affects quality. If materials or information or customers are continually
being passed from one part of the operation to another there will be
many points at which damage (or annoyance) can occur
3. Affects the total space required and thus affects cost.
4. Minimises throughput time.
Basic layout types
1. Fixed Position layout: A Layout in which the product or project
remains stationary, and workers, materials, and equipment are moved
as needed.
2. Process layout: A Layout in which the transforming resources with
the same, or similar, function are grouped together
3. Product/Service layout. A layout that uses standardized processing
operations to achieve smooth, rapid, high-volume flow
4. Hybrid/Combination. A Layout that makes use of the combination of
Product, Process or Fixed Position Layout.

Fixed position layout

The resources travel to the product.

A fixed-position layout is appropriate for a product that is too large or
too heavy to move.
For example, battleships are not produced on an assembly line. For
services, other reasons may dictate the fixed position (e.g., a hospital
operating room where doctors, nurses, and medical equipment are
brought to the patient). Other fixed-position layout examples include
construction (e.g., buildings, dams, and electric or nuclear power
plants), shipbuilding, aircraft, aerospace, farming, drilling for oil, home
repair, and automated car washes.
In order to make this work, required resources must be portable so that
they can be taken to the job for "on the spot" performance.

Due to the nature of the product, the user has little choice in the use of a
fixed-position layout. Disadvantages include:

Space. For many fixed-position layouts, the work area may be crowded
so that little storage space is available. This also can cause material
handling problems.

Administration. Oftentimes, the administrative burden is higher for

fixed-position layouts. The span of control can be narrow, and
coordination difficult.

Process layout (functional layouts)

Operations of a similar nature or function are grouped together. Products with

different requirements move between the clusters of transforming resources
in different ways.

Process layouts are found primarily in job shops, or firms that produce
customized, low-volume products that may require different processing
requirements and sequences of operations.

Their purpose is to process goods or provide services that involve a variety of

processing requirements. A manufacturing example would be a machine
shop. A machine shop generally has separate departments where generalpurpose machines are grouped together by function (e.g., milling, grinding,
drilling, hydraulic presses, and lathes). Therefore, facilities that are
configured according to individual functions or processes have a process
layout. This type of layout gives the firm the flexibility needed to handle a
variety of routes and process requirements.
Improving process layouts involves the minimization of transportation cost,
distance, or time. To accomplish this some firms use what is known as a
Muther grid, where subjective information is summarized on a grid displaying
various combinations of department, work group, or machine pairs. Each
combination (pair), represented by an intersection on the grid, is assigned a
letter indicating the importance of the closeness of the two (A = absolutely
necessary; E = very important; I = important; O = ordinary importance; U =
unimportant; X = undesirable). Importance generally is based on the shared
use of facilities, equipment, workers or records, work flow, communication
requirements, or safety requirements. The departments and other elements
are then assigned to clusters in order of importance.
Advantages of process layouts include:
Flexibility. The firm has the ability to handle a variety of processing
requirements.

Cost. Sometimes, the general-purpose equipment utilized may be less

costly to purchase and less costly and easier to maintain than
specialized equipment.
Motivation. Employees in this type of layout will probably be able to
perform a variety of tasks on multiple machines, as opposed to the
boredom of performing a repetitive task on an assembly line. A process
layout also allows the employer to use some type of individual
incentive system.
System protection. Since there are multiple machines available,
process layouts are not particularly vulnerable to equipment failures.
Disadvantages of process layouts include:
Utilization. Equipment utilization rates in process layout are frequently
very low, because machine usage is dependent upon a variety of
output requirements.
Cost. If batch processing is used, in-process inventory costs could be
high. Lower volume means higher per-unit costs. More specialized
attention is necessary for both products and customers. Setups are
more frequent, hence higher setup costs. Material handling is slower
and more inefficient. The span of supervision is small due to job
complexities (routing, setups, etc.), so supervisory costs are higher.
Additionally, in this type of layout accounting, inventory control, and
purchasing usually are highly involved.
Confusion. Constantly changing schedules and routings make the
process requirements more difficult. It is complex to manage with
flows crossing each other and moving on irregular and intermittent
paths
PRODUCT LAYOUT
Product layout

Here the transforming resources are arranged for the convenience of product
flow. It is the processing requirements of a particular product or service
which dictates exactly where and in what order facilities are located. The
classic image of the assembly line is typical of how we think of product
layouts. In fact this type of layout is also common in many service industries,
especially the back office of services such as banks and insurance
companies.

Product layouts are found in flow shops (repetitive assembly and process or
continuous flow industries). Flow shops produce high-volume, highly
standardized products that require highly standardized, repetitive processes.

In a product layout, resources are arranged sequentially, based on the

routing of the products. In theory, this sequential layout allows the entire
process to be laid out in a straight line, which at times may be totally
dedicated to the production of only one product or product version. The flow
of the line can then be subdivided so that labor and equipment are utilized
smoothly throughout the operation.
Two types of lines are used in product layouts: paced and unpaced. Paced
lines can use some sort of conveyor that moves output along at a continuous
rate so that workers can perform operations on the product as it goes by. For
longer operating times, the worker may have to walk alongside the work as it
moves until he or she is finished and can walk back to the workstation to
begin working on another part (this essentially is how automobile
manufacturing works).
On an unpaced line, workers build up queues between workstations to allow
a variable work pace. However, this type of line does not work well with
large, bulky products because too much storage space may be required.
Also, it is difficult to balance an extreme variety of output rates without
significant idle time. A technique known as assembly-line balancing can be
used to group the individual tasks performed into workstations so that there
will be a reasonable balance of work among the workstations.
Product layout efficiency is often enhanced through the use of line balancing.
Line balancing is the assignment of tasks to workstations in such a way that
workstations have approximately equal time requirements. This minimizes
the amount of time that some workstations are idle, due to waiting on parts
from an upstream process or to avoid building up an inventory queue in front
of a downstream process.
Advantages of product layouts include:
Output. Product layouts can generate a large volume of products in a
short time.
Cost. Unit cost is low as a result of the high volume. Labor
specialization results in reduced training time and cost. A wider span of
supervision also reduces labor costs. Accounting, purchasing, and
inventory control are routine. Because routing is fixed, less attention is
required.
Utilization. There is a high degree of labor and equipment utilization.
Disadvantages of product layouts include:
Motivation. The system's inherent division of labor can result in dull,
repetitive jobs that can prove to be quite stressful. Also, assembly-line
layouts make it very hard to administer individual incentive plans.
Flexibility. Product layouts are inflexible and cannot easily respond to
required system changesespecially changes in product or process
design.
System protection. The system is at risk from equipment breakdown,
absenteeism, and downtime due to preventive maintenance.
CELLULAR LAYOUT

Cell layout

Primarily this type of layout is an attempt to reduce the complexity of

process layouts. It divides transforming resource up into small clusters which
can be used to act upon different products or product groups. Within each
cell layout can be almost identical to product layou
Cellular manufacturing is a type of layout where machines are grouped
according to the process requirements for a set of similar items (part
families) that require similar processing. These groups are called cells.
Therefore, a cellular layout is an equipment layout configured to support
cellular manufacturing.
Processes are grouped into cells using a technique known as group
technology (GT). Group technology involves identifying parts with similar
design characteristics (size, shape, and function) and similar process
characteristics (type of processing required, available machinery that
performs this type of process, and processing sequence).
Workers in cellular layouts are cross-trained so that they can operate all the
equipment within the cell and take responsibility for its output. Sometimes
the cells feed into an assembly line that produces the final product. In some
cases a cell is formed by dedicating certain equipment to the production of a
family of parts without actually moving the equipment into a physical cell
(these are called virtual or nominal cells). In this way, the firm avoids the
burden of rearranging its current layout. However, physical cells are more
common.
An automated version of cellular manufacturing is the flexible manufacturing
system (FMS). With an FMS, a computer controls the transfer of parts to the
various processes, enabling manufacturers to achieve some of the benefits
of product layouts while maintaining the flexibility of small batch production.
Some of the advantages of cellular manufacturing include:
Cost. Cellular manufacturing provides for faster processing time, less
material handling, less work-in-process inventory, and reduced setup
time, all of which reduce costs.
Flexibility. Cellular manufacturing allows for the production of small
batches, which provides some degree of increased flexibility. This
aspect is greatly enhanced with FMSs.
Motivation. Since workers are cross-trained to run every machine in the
cell, boredom is less of a factor. Also, since workers are responsible for
their cells' output, more autonomy and job ownership is present.
COMBINATION LAYOUTS
Many situations call for a mixture of the three main layout types. These
mixtures are commonly called combination or hybrid layouts. For example,
one firm may utilize a process layout for the majority of its process along

with an assembly in one area. Alternatively, a firm may utilize a fixedposition layout for the assembly of its final product, but use assembly lines to
produce the components and subassemblies that make up the final product
(e.g., aircraft).
OTHER LAYOUTS
In addition to the aforementioned layouts, there are others that are more
appropriate for use in service organizations. These include
warehouse/storage layouts, retail layouts, and office layouts.
With warehouse/storage layouts, order frequency is a key factor. Items that
are ordered frequently should be placed close together near the entrance of
the facility, while those ordered less frequently remain in the rear of the
facility. Pareto analysis is an excellent method for determining which items to
place near the entrance. Since 20 percent of the items typically represent 80
percent of the items ordered, it is not difficult to determine which 20 percent
to place in the most convenient location. In this way, order picking is made
more efficient.
While layout design is much simpler for small retail establishments (shoe
repair, dry cleaner, etc.), retail stores, unlike manufacturers, must take into
consideration the presence of customers and the accompanying
opportunities to influence sales and customer attitudes. For example,
supermarkets place dairy products near the rear of the store so that
customers who run into the store for a quick gallon of milk must travel
through other sections of the store. This increases the chance of the
customer seeing an item of interest and making an impulse buy. Additionally,
expensive items such as meat are often placed so that the customer will see
them frequently (e.g., pass them at the end of each aisle). Retail chains are
able to take advantage of standardized layouts, which give the customer
more familiarity with the store when shopping in a new location.
Office layouts must be configured so that the physical transfer of information
(paperwork) is optimized. Communication also can be enhanced through the
use of low-rise partitions and glass walls.
A number of changes taking in place in manufacturing have had a direct
effect on facility layout. One apparent manufacturing trend is to build smaller
and more compact facilities with more automation and robotics. In these
situations, machines need to be placed closer to each other in order to
reduce material handling. Another trend is an increase in automated material
handling systems, including automated storage and retrieval systems
(AS/AR) and automated guided vehicles (AGVs). There also is movement
toward the use of U-shaped lines, which allow workers, material handlers,
and supervisors to see the entire line easily and travel efficiently between
workstations. So that the view is not obstructed, fewer walls and partitions
are incorporated into the layout. Finally, thanks to lean manufacturing and
just-in-time production, less space is needed for inventory storage
throughout the layout.