Layout Decisions: Operations and Supply Chain Management
Layout decisions are of significance for every company and business. It is so because they are “associated with the arrangement of facilities in a manufacturing shop floor, which impacts the performance and cost of the system” (Tayal et al., 2017, p. 621). Consequently, these decisions determine how a company is organized to perform its functions adequately, which is necessary to improve production processes and achieve strategic goals. Thus, one should mention that there are four main layout formats, and each of them has the potential to determine what objectives are the most significant for a company.
Thus, Jacobs and Chase (2014) indicate that these types are a workcenter, assembly line, manufacturing cell, and project layout. A workcenter stipulates that similar services or pieces of equipment are grouped in separate departments. This layout kind is typical in hospitals, and it means that the leading goal of a business is to contribute to the active transportation of products among its departments (Tubaileh & Siam, 2017).
An assembly line means that equipment is arranged so as products are made by passing it progressively. This format is utilized, for example, by a shoe factory and aims at achieving a specific production rate. Manufacturing cells make it possible to produce similar products at the same time. This approach is utilized at clothing facilities, and its strategic goal is to increase the quality of goods. Finally, a project layout implies that a product remains at one location, and equipment is brought to it. It is valid for construction sites, where the principal strategic goal is to create a large object at low-fixed costs.
In conclusion, it is impossible to overestimate the significance of layout decisions for a company. It is so because they imply a direct connection to the effectiveness of a production process. There are four main layout formats, and each of them has a particular impact on a company. Thus, firms should draw specific attention to choosing a suitable layout because this choice can affect their strategic goals.
Jacobs, F. R., & Chase, R. (2014). Operations and supply chain management (14th ed.). McGraw-Hill Education.
Tayal, A., Gunasekaran, A., Singh, S. P., Dubey, R., & Papadopoulos, T. (2017). Formulating and solving sustainable stochastic dynamic facility layout problem: A key to sustainable operations. Annals of Operations Research, 253, 621-655.
Tubaileh, A., & Siam, J. (2017). Single and multi-row layout design for flexible manufacturing systems. International Journal of Computer Integrated Manufacturing, 30(12), 1316-1330.