7/30/2019 OM Lecture 08

1/41

By: Arun Mishraarunjimishra@gmail.com9893686820

7/30/2019 OM Lecture 08

2/41

A factory is a place where all the industrialactivities are housed.

Plant layout refers to the arrangement ofmachinery, equipment and other industrialfacilities for achieving quickest and smoothproduction.Ideal Plant Layout

It is a master blueprint for co-ordinating alloperations performed inside the factory.

Objectives of a Good Layout Improving productivity is the overall objective of

good layout.

2

7/30/2019 OM Lecture 08

3/41

1. Materials2. Types of Product

3. Worker

4. Type of Industry

5. Production Systems

6. Scale of Production

7. Type of Machines

8. Type of Building Facilities

9. Availability of total floor area

10.Possibility of Future Expansion

11.Arrangement of Material Handling Equipment

3

7/30/2019 OM Lecture 08

4/41

The Principle of Minimum Travel

Principle of Sequence

Principle of Usage

Principle of Compactness

Principle of Safety and Satisfaction

Principle of Flexibility

Principle of Minimum Investment

4

7/30/2019 OM Lecture 08

5/41

i. Process layout or functional layout or job shoplayout;

ii. Product layout or line processing layout or flow-linelayout;

iii. Fixed position layout or static layout;iv. Cellular manufacturing (CM) layout or Group

Technology layout;v. Combination layout or Hybrid layout.

5

7/30/2019 OM Lecture 08

6/41

6

7/30/2019 OM Lecture 08

7/417

7/30/2019 OM Lecture 08

8/418

7/30/2019 OM Lecture 08

9/419

7/30/2019 OM Lecture 08

10/4110

7/30/2019 OM Lecture 08

11/41

7/30/2019 OM Lecture 08

12/41

Store layout is the way merchandise is laidout for inspection and accessed byconsumers

It has two significant effects on theconsumer behavior & buying activity:It determines the appearance of the store

It limits the way in which customers maynegotiate their way round the store, whichaffects customer traffic flow/circulation.

7/30/2019 OM Lecture 08

13/41

The Grid

Free flow

Boutique

Loop

Spine

7/30/2019 OM Lecture 08

14/41

The grid/gridiron pattern usually has main,secondary & tertiary aisles & consumers areexposed to all products.

Grid Layout is a type of store layout inwhich counters and fixtures are placed inlong rows or runs, usually at right angles,throughout the store.

Widely used in supermarkets, variety &discount stores

7/30/2019 OM Lecture 08

15/41

7/30/2019 OM Lecture 08

16/41

Uses space efficiently Low cost

Customer familiarity & allows more customers

Merchandise exposure

Ease of cleaning

Simplified security Possibility of self-service

7/30/2019 OM Lecture 08

17/41

Plain & un interesting

Limited browsing

Stimulation of rushed shopping behavior

Increases security risks

Makes displays rigid

Customers feels isolated

7/30/2019 OM Lecture 08

18/41

Free-Flow Layout is a type of store layout inwhich fixtures and merchandise are groupedinto free-flowing patterns on the sales floor.

Designed more unstructured flows of storetraffic &allows relaxed customer shopping

Widely used in department & specialty stores

7/30/2019 OM Lecture 08

19/41

7/30/2019 OM Lecture 08

20/41

Flexibility in layout Allowance for browsing and wandering freely Increased impulse purchases Visual appeal Cross aisles makes shopping easier

7/30/2019 OM Lecture 08

21/41

Expensive on space requirements Cost of fixtures is higher

Waste of floor space

Possibility of confusion Difficulty of cleaning

7/30/2019 OM Lecture 08

22/41

7/30/2019 OM Lecture 08

23/41

Also known as concept pattern It effectively adapt free flow system by

creating departments to sell relatedmerchandise. This is also known asassociated sales.

Widely used in small specialist shop &specialty areas in department stores.

7/30/2019 OM Lecture 08

24/41

Storage, Receiving, Marketing

Underwear Dressing Rooms

Checkout counter

Clearance Items

Feature Feature

Jeans

CasualWear

Stockings A

cce

ssories

Pants

Tops

Tops

SkirtsandDresses

HatsandHandbags

Open Display Window Open Display Window

7/30/2019 OM Lecture 08

25/41

Create a sense of space within a small area Customer can easily see complete range of

merchandise Customer can link items in different categories

Appears most appealing to customers

Disadvantages Cost of using space as center space is left

empty Boundaries b/w different categories may

distract customer from their planned purchase

7/30/2019 OM Lecture 08

26/41

Also known as Race Track. Loop Layout is a type of store layout in which

a major customer aisle begins at theentrance, loops through the store, usually inthe shape of a circle, square, arc rectangle,and then returns the customer to the front ofthe store.

It is useful for large stores

7/30/2019 OM Lecture 08

27/41

7/30/2019 OM Lecture 08

28/41

It guides customer round a large area It exposes large amounts of merchandise

Disadvantages Customers cannot focus on intended

purchase

Need for internal walls/island screens

7/30/2019 OM Lecture 08

29/41

Spine Layout is a type of store layout which issimilar to that of loop layout except thatcustomer returns by same path .

It uses a central path way to access various

sections of the store with branch lines

Spine layout can be used as the basis for Sshaped & Y shaped layout.

7/30/2019 OM Lecture 08

30/41

7/30/2019 OM Lecture 08

31/41

Retailer can utilize the benefits of free flow,grid and loop systems.

Disadvantage Retailer may need to vary the shape of

central walk way & increase expenditure onfixtures & fittings

7/30/2019 OM Lecture 08

32/41

32

7/30/2019 OM Lecture 08

33/41

Grouping of workers, their equipment, andspaces to provide comfort, safety, andmovement of information

Movement of information is main distinction Typically in state of

flux due to frequenttechnological

changes

7/30/2019 OM Lecture 08

34/41

Accounting

Manager Brand X

FinanceFin. Acct.

7/30/2019 OM Lecture 08

35/41

7/30/2019 OM Lecture 08

36/41

A Cellular officeconsists of a numberof rooms in which an

employee works onhis own or with a fewother employees.

Employees can lock

their doors and canhave privacy whenrequired

36

7/30/2019 OM Lecture 08

37/41

Advantages Make it homely

adding pictures

Private Quiet and less

distractions Concentrate on task

Lock doors to stoppeople using yourequipment

Disadvantages May work with

someone you dont

like Miss out on decisions Harder to manage

staff

Isolated Poorer

communication(possibly)

37

7/30/2019 OM Lecture 08

38/41

An Open Plan officeis a large area whereemployees work

together Room dividers,

soundproof screensmay be used to

provide some privacy

38

7/30/2019 OM Lecture 08

39/41

Advantages Wont be lonely Better

communication Easier to manage Wont miss out on

decisions

Disadvantages Possibly messy Noisy with lots of

distractions Always being

watched pressured Cant lock items away

theft Cant set the office up

the way you like it lighting etc

39

7/30/2019 OM Lecture 08

40/41

40

Any

Questions

7/30/2019 OM Lecture 08

41/41