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What Is/are The Type/s of Layout Present in The Given Case?

McDonald's uses a hybrid layout that incorporates both process-oriented and product-oriented layouts. This supports productivity by having needed items in designated areas and arranging the production line from start to finish. McDonald's can improve its layout strategies by taking different approaches like office, warehouse, and workcell layouts. Maintaining work cells allows McDonald's to reduce inventory, floor space, labor costs, and equipment investments - giving it a competitive advantage through efficient layout design.

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Marnelli Perez
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2K views

What Is/are The Type/s of Layout Present in The Given Case?

McDonald's uses a hybrid layout that incorporates both process-oriented and product-oriented layouts. This supports productivity by having needed items in designated areas and arranging the production line from start to finish. McDonald's can improve its layout strategies by taking different approaches like office, warehouse, and workcell layouts. Maintaining work cells allows McDonald's to reduce inventory, floor space, labor costs, and equipment investments - giving it a competitive advantage through efficient layout design.

Uploaded by

Marnelli Perez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Perez, Marnelli P.

BM701a
Facilities Management

ACTIVITY: Layout Design

McDonald’s Competitive Advantage Through Layout Design

Answer the following questions:

1. What is/are the type/s of layout present in the given case?

The layout of a typical fast food franchise such as McDonald’s has both Process-Oriented
Layout and Product-Oriented Layout. It basically follows hybrid layout. McDonald’s layout
supports productivity bu having needed items in designated areas. The line is equipped in order
from start of a product to end.
•Process-Oriented Layout- This deals with low volume but high variety of production.
•Product-Oriented Layout- This seeks the best personnel and machine utilization in repetitive or
continuous production.

2. How can McDonald’s improve their layout strategies using the different approach in layout
design?

Innovation. Innovate and innovate. McDonald’s uses practicality for this decision areas of
operations management. The strategy involves maximizing space utilization in restaurants and
kiosks, rather than focusing on comfort and spaciousness.
The different approaches in layout design as follows:
a.) Office layout- This position workers, equipment and spaces to encourage efficient movement
of information.
b. Ware house layout- this addresses tradeoffs between space and material handling.
c.) Workcell layout- Cellular work arrangement warrants a special arrangement of machinery
and equipment. These work cells are reconfigured as designs of the products change and volume
production fluctuates
Using the different approach in layout design, McDonald’s can improve their layout strategy in
Process-Oriented Layout:
• Flexibility- It can handle a variety of processing requirements which facilitate efficient
operation.
• Lower Cost- Machines are less costly to purchase and easier to maintain than specialized
equipment.
•System Protection- Machines are not particularly vulnerable to equipment failures because a
wide variety of machines are available in this type of layout.
Using the approach of Product-Oriented Layout, McDonald’s can improve their layout strategies
when:
• Volume is adequate for high equipment utilization.
• Product demand is stable enough to justify high investment in specialized equipment.
• Product is standardized or approaching a phase of its life cycle that justifies investment in
specialized equipment.
• Supplies of raw materials and components are adequate and of uniform quality to ensure
that they will work with the specialized equipment.

3. How can McDonald’s maintain their competitive advantage through layout design based on
the advantages of work cells?

The following are the advantages of work cells:

• Reduced work-in-process inventory since it provides a single flow from one machine to
another;

• Less floor space required since fewer provisions are needed between machines to
accommodate work-in-process inventory;

• Reduced raw materials and finished goods inventories since less work-in-process allows rapid
movement of materials through work cells;

• Reduced direct labor cost since work cells encourages improvement in communication among
employees, better material flow, and improved scheduling; and

• Reduced investment in machinery and equipment since efficient utilization reduces the
required number of machines in the production.

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