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    Oscm Case Study Unit 2

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    Sujeet Tambe
    Plant layout refers to the arrangement of facilities including personnel, equipment, storage, and supporting services. The goal is to design the optimal structure to contain these facilities. There are different types of layouts depending on the product or process, including product layout, process layout, and combination layout. Taco, a pump manufacturer, improved its factory layout which reduced work-in-progress inventories by 30% and throughput times by 50% while increasing output by 50% without additional space. Apple's unique retail layouts featuring minimalist open spaces with Genius Bars have contributed significantly to its retail success.

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    Oscm Case Study Unit 2

    Uploaded by

    Sujeet Tambe
    44 views17 pages
    Plant layout refers to the arrangement of facilities including personnel, equipment, storage, and supporting services. The goal is to design the optimal structure to contain these facilities. There are different types of layouts depending on the product or process, including product layout, process layout, and combination layout. Taco, a pump manufacturer, improved its factory layout which reduced work-in-progress inventories by 30% and throughput times by 50% while increasing output by 50% without additional space. Apple's unique retail layouts featuring minimalist open spaces with Genius Bars have contributed significantly to its retail success.

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    Plant layout refers to the arrangement of facilities including personnel, equipment, storage, and supporting services. The goal is to design the optimal structure to contain these facilities. There are different types of layouts depending on the product or process, including product layout, process layout, and combination layout. Taco, a pump manufacturer, improved its factory layout which reduced work-in-progress inventories by 30% and throughput times by 50% while increasing output by 50% without additional space. Apple's unique retail layouts featuring minimalist open spaces with Genius Bars have contributed significantly to its retail success.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    44 views17 pages

    Oscm Case Study Unit 2

    Uploaded by

    Sujeet Tambe
    Plant layout refers to the arrangement of facilities including personnel, equipment, storage, and supporting services. The goal is to design the optimal structure to contain these facilities. There are different types of layouts depending on the product or process, including product layout, process layout, and combination layout. Taco, a pump manufacturer, improved its factory layout which reduced work-in-progress inventories by 30% and throughput times by 50% while increasing output by 50% without additional space. Apple's unique retail layouts featuring minimalist open spaces with Genius Bars have contributed significantly to its retail success.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Plant Layout

    Understanding Through Case Studies


    What is Plant Layout ?
    “Plant layout is a plan of an optimum
    arrangement
    Physical Organisatio
    of facilities including: Arrangement n
    s Structure
     Personnel,
     operating
     equipment,
    storage space,
    Customers Qualit
     material handling equipment y

     and
    all other Supporting services along with the
    design of best structure to contain all these
    facilities”.
    Types of Plant Layout
    Principles of Plant
    Layout
    Product
     Integration

     Minimum Distance
    Combi
    Proces  Cubic Space Utilisation
    s nation
    Plant  Flow
    Layou
    t
     Maximum Flexibility

     Safety, Security &


    Group-
    Fixed Satisfaction
    Techno
    l ogy Positio
    n  Minimum Material Handling
    TACO’S NEW FACTORY LAYOUT REDUCES
    INVENTORIES AND THROUGHPUT
    TIMES
    •TACO a brief Introduction:

     Circular Pumps manufacturer located in Cranston, Rhode Island.

     Circulator pumps are used in forced hot water heating systems to move
    the water through the pipes.

     Makes both residential and industrial circulator pumps


     Old Factory Layout
    Impact:
    Factory Proc ess Lot of Travelling Long Waiting
    Layout Time Period
    Layout
    Factory C rammed Inventory
    with
    Floor
    Delivery In Weeks &
    months
    Time

     For Improvement: Product


    Proces Layout
    Analysis: On the basis of various products being s
    produced Layout
    3 main Bays in Factory ==== >>> 3 Major Product Lines
     Reduced Work-in-Progress
    Inventories by more than
    30%

     Reduced Throughput Time


    by more than 50%

     Products manufactured within


    a day or an hour

     Increased Output by more


    than 50% without any
    additional space

     Currently has major


    market share

    @Source:
    Taco
    Layout Considerations in Services

    1. Cost per Square Foot for retail locations usually is very expensive (than Manufacturing Space
    Cost).

    2. Service Retail Operations : Designed to maximise Sales per Square Foot.

    3. Reduced the area devoted to Back Office (Ex. Restaurants – Reduced space for Kitchen).

    4. Customer presence in the Transformation Process.

    5. Use of Servicescape The The Spatial The Signs,


    : Ambient Layout and Symbols, and
    Conditions Functionality Artifacts

    @Source: 4Mary Jo Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” The Journal of Marketing, April 1992, pp. 57–
    71.
    McDonald and The Strategic Impact of
    Layout

    Indoor Drive-Through Adding Redesigning Self-


    Seating Window Playing of Kitchens Service
    (1950) (1970) Areas (1980) (1990) Kiosks

    ==============================Now major Layout


    Redesign==============================
     Redesigning of 32,000 outlets in 118 countries.
     Three Separate Dinning Areas:
    (a) Linger Zone with comfortable Chairs and Wi-Fi connections
    (b) Grab and Go Zone with tall counters
    (c) Flexible Zone for Kids and Families
     Facility Layout is Source of Competitive Advantage

    @Source: Heizer/Render Principles of Operations Management,


    7e
    McDonald’s Assembly
    Line
    Savings of
    $100,000,000 per
    year in food costs

    @Source: Heizer/Render Principles of Operations Management,


    7e
    KFC and Process
    Layout
    Customer Place
     Old Order
    Layout:

    Raw Finishe
    Cook Assemble Delive
    Materia d
    l Goods r

     New
    Layout: Customer Place
    Order

    Raw
    Cook WI Assemble Delive
    Materia
    l P r
    Result of KFC’s New Layout

    1. Reduces Bottlenecks
    2. Reduced Material Handling
    Cost
    3. Effective Space Utilisation
    4. Ease of Supervision
    5. Appropriate Communication
    6. Increase Morale
    The Secrets of Apple’s Retail Success : Retail
    Layout
    1. Apple never sold their Products directly.
    2. Selling Products with Retails like Sears, CompUSA (Huge Failures).
    3. 1st Retail Store: In a Mall in Tyson Corner, Virginia. (19th May, 2001)
    ===================================================================================
    "GOOD ARTISTS BORROW, GREAT ARTISTS STEAL"
    ===================================================================================
     More than 1 Million Visitors. (in 481 stores, in 18 Countries)
     $ 7000 Earning per square foot, in Fifth Avenue Store : $ 35000 Earnings per square foot.
     Fastest Growing retailer to reach $ 1 Billion.
     Trade Marked Retail Layout
     Unspoken Apple Mantra “This Place is Special”
    @Source: Steve M. C hazin, www.marketingapple.com
    Apple’s Retail
    Layout
    1. Minimalistic Layout (free of clutter, cables, and
    adverts),
    2. Bright Lights, high ceilings, and white spaces,
    @Source: Kristen Gramigna,
    retailc ustomerexperience.c om

     Apple Store Receives for Distinctive


    Design and Layout
     Glass Fronted, Rectangular –patterned
     Cantilevered Shelving
     Rectangular Tables arranged in a line in
    the middle of the store parallel to the
    walls
     Multi-Tiered shelving along with rear
    walls
    @Sourc e: www.wired.com , Apple Store
    Trademark
    Apple Retail Store Layout Design
    Recent Trends in Layout

     Benihana’s of Tokyo, a chain of Japanese steak


    houses. The kitchen moved to the front of the
    house Customers participate in the food
    preparation process.

     Office layout: Open Office System (80% Open


    and 20% Private)-Spontaneous
    Communication.

     Modern Warehouses: Automated Storage and


    Retrieval ( occupies on 20% of Traditionally
    designed Garage) Ex: Parking Garage in
    Wolfsburg, Germany.

    @Source: Heizer/Render Principles of Operations Management,


    7e
    Conclusion

     Determines Log Run Efficiency.

     Strategic Implications regarding Competitive Priorities (regarding capacity, process, flexibility,


    cost, quality, customer, image.

     Effective and Efficient Layout will meet Firm’s competitive requirements.

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