Layout design concerns the physical placement of resources - such as equipment and storage facilities.
There are four basic layout types of:
- Process layout
- Product layout
- Hybrid layout
- Fixed-position layout
A process layout is one in which resources (equipment and people) are grouped together based upon the process in which they are used or their functions.
This is necessary when an organization produces a large variety of products or services.
A product layout, also known as “line layout”, arranges production resources around the product or service produced by that resource. That is, the resources are arranged and dedicated to a particular product or service.
For service businesses, the resources are arranged around a specific group of customers.
Hybrid layouts place together resources which service a subset of the total range of products or services. The grouping of products/services is known as a “family”.
Groups have the following characteristics:
- Grouping parts into families to reduce the changeover time between batches, allowing smaller batch sizes and improving flexibility.
- Group physical facilities into “cells” to reduce transportation time between processes and reducing material or customer movements. A cell includes the facilities required to manufacture a family of components or delivery a service.
- Multi-skilled workers allow for increased autonomy and flexibility on the part of operators and interchangeability of group members.
This design speeds the production process and opens the possibility of automation.
The Fixed-Position layout is used when the product or service cannot be moved and the production process must happen at the delivery location.
All resources for producing the product, such as equipment and labor must move to the site of the product or service. There is a specific focus on scheduling and coordination of resources. The space available at the site is a major constraint.
