Operations Management: An Integrated Approach, 5th Edition

FACILITY LAYOUT ACROSS THE ORGANIZATION

We have seen in this chapter why layout planning is important for operations management. The production process could not run efficiently, and there would be much waste, if we did not design a proper layout for a facility. Layout planning is also important for other functions in the organization.

Marketing is highly affected by layout planning, particularly in environments where customers and clients come to the site. This is especially true in retail environments. The location and placement of goods in the facility, their visibility, and ease of access can greatly influence sales. In these types of environments the marketing of the product takes place, in part, through the layout of a facility. For example, attractive displays and product positioning in a grocery store can promote advertising and sales. Thus, it is very important for marketing to work with operations in designing the layout.

Human resources knows how the management of people can be affected by layout planning. Studies have shown that people who work and interact together on a regular basis have better working relationships. Managers need to give much thought to which groups ...