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Operations Management ch. 8
Key terms for the chapter
34
Business
Undergraduate 4
07/06/2010

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Term
Layout planning
Definition
is planning that involves decisions about the physical arrangement of economic activity centers needed by a facility’s various processes.
Layout plans translate the broader decisions about the competitive priorities, process strategy, quality, and capacity of its processes into actual physical arrangements.
Term
Economic activity center
Definition
Anything that consumes space -- a person or a group of people, a customer reception area, a teller window, a machine, a workstation, a department, an aisle, or a storage room.
Term
Layout Planning Questions
Definition
Before a manager can make decisions regarding physical arrangement, four questions must be addressed.
What centers should the layout include?
How much space and capacity does each center need?
How should each center’s space be configured?
Where should each center be located?
Term
Relative location
Definition
The placement of a center relative to other centers
Term
Absolute location
Definition
The particular space that the center occupies within the facility.
Term
Strategic Issues
Definition
Layout choices can help communicate an organization’s product plans and competitive priorities.
Altering a layout can affect an organization and how well it meets its competitive priorities in the following ways:
Increasing customer satisfaction and sales at a retail store.
Facilitating the flow of materials and information.
Increasing the efficient utilization of labor and equipment.
Reducing hazards to workers.
Improving employee morale.
Improving communication.
Term
Performance Criteria
Definition
Customer satisfaction
Level of capital investment
Requirements for materials handling
Ease of stockpicking
Work environment and “atmosphere”
Ease of equipment maintenance
Employee and internal customer attitudes
Amount of flexibility needed
Customer convenience and levels of sales
Term
Flexible-flow layout
Definition
A layout that organizes resources (employees) and equipment by function rather than by service or product.
Term
Line-flow layout
Definition
A layout in which workstations or departments are arranged in a linear path.
Term
Hybrid layout
Definition
An arrangement in which some portions of the facility have a flexible-flow and others have a line-flow layout.
Term
Fixed-position layout
Definition
An arrangement in which service or manufacturing site is fixed in place; employees along with their equipment, come to the site to do their work.
Term
Layout flexibility
Definition
is the property of a facility to remain desirable after significant changes occur or to be easily and inexpensively adopted in response to changes.
Term
One-worker, multiple-machines (OWMM) cell
Definition
is a one-person cell in which a worker operates several different machines simultaneously to achieve a line flow.
Term
Cell
Definition
is two or more dissimilar workstations located close together through which a limited number of parts or models are processed with line flows.
Term
Group Technology (GT)
Definition
is an option for achieving line-flow layouts with low-volume processes; this technique creates cells not limited to just one worker and has a unique way of selecting work to be done by the cell.

The GT method groups parts or products with similar characteristics into families and sets aside groups of machines for their production.
Term
Closeness matrix
Definition
A table that gives a measure of the relative importance of each pair of centers being located close together
Term
Designing Flexible-Flow Layouts
Definition
Step 1: Gather information
Space requirements by center
Available space
Closeness factors: which centers need to be located close to one another.

Step 2: Develop a Block plan: A plan that allocates space and indicates placement of each department.

Step 3: Design a detailed layout.
Term
Weighted-distance method
Definition
A mathematical model used to evaluate flexible-flow layouts based on proximity factors.
Term
Euclidean distance
Definition
is the straight-line distance, or shortest possible path, between two points.
Term
Rectilinear distance
Definition
The distance between two points with a series of 90 degree turns, as along city blocks.
Term
Automated layout design program (ALDEP):
Definition
A computer software package that constructs a good layout from scratch, adding one department at a time.
Term
Computerized relative allocation of facilities technique (CRAFT):
Definition
A heuristic method that begins with the closeness matrix and an initial block layout, and makes a series of paired exchanges of departments to find a better block plan.
Term
Four common office layouts
Definition
Traditional layouts
Office landscaping (cubicles/movable partitions)
Activity settings
Electronic cottages (Telecommuting)
Term
Line balancing
Definition
is the assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations.
Term
Work elements
Definition
are the smallest units of work that can be performed independently.
Term
Immediate predecessors
Definition
are work elements that must be done before the next element can begin.
Term
Precedence diagram
Definition
allows one to visualize immediate predecessors better; work elements are denoted by circles, with the time required to perform the work shown below each circle.
Term
Theoretical minimum (TM )
Definition
is a benchmark or goal for the smallest number of stations possible, where total time required to assemble each unit (the sum of all work-element standard times) is divided by the cycle time. It must be rounded up
sum of all work-element standard times divided by the cycle time.
Term
Idle time
Definition
is the total unproductive time for all stations in the assembly of each unit.
Term
Efficiency (%)
Definition
is the ratio of productive time to total time.
Term
Balance Delay
Definition
is the amount by which efficiency falls short of 100%.
Term
Pacing
Definition
The movement of product from one station to the next as soon as the cycle time has elapsed.
Term
mixed-model line
Definition
produces several items belonging to the same family.
Term
Cycle times
Definition
depend on the desired output rate, and efficiency varies considerably with the cycle time selected. Thus exploring a range of cycle times makes sense.
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