Layout
Layout
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The arrangement of equipment, machinery and staff to most efficiently produce the desired output. The position of a firm’s output on the volume / variety continuum will influence the layout of the operations process. Office layout and design is important for administrative efficiency in corporate offices.
Fixed Position Layout
Fixed Position Layout
Materials and equipment are brought to the product, rather than the product moving through the production line. Usually for large items (planes), for high-end customised manufactures (cars) or for high-end services (visit to customer).
Very high levels of customisation; high cost and inefficient (usually higher price, higher positioning)
Process Layout
Process Layout
Equipment allocated into functional areas, with flexibility in movement between areas (task or process-oriented).
Higher levels of customisation possible, slower pace of production (volume-variety continuum).
Eg: Restaurant kitchen (salad, hot meals, desserts…)
Product Layout
Product Layout
Linear, single-line movement of materials along a mass-production line to produce standardised output at a rapid pace (product-oriented)
Heavy capital expenditure on fixed, highly-automated technology. Simple tasks to support machinery.
Eg: Coke factory
Also to consider here is the layout of:
office spaces for maximum efficiency and workplace culture
retail spaces to maximise consumer incentives to spend to maximise sales
service firms must consider the Physical Evidence of quality to reduce resistance to purchase
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