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Facility Layout - Process Design
In addition to the sequence of the processes, consideration must also be given to their physical layout in relation to each other. This is an important issue because operational efficiency and effectiveness will be affected by the chosen layout's effects on the following: ? amount of inter-process movement of materials and/or customers ?
1. Health and safety of staff and customers
2. Levels of congestion and numbers of bottlenecks
3. Utilisation of space, labour and equipment
4. Levels of work-in-progress inventory required.
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An industrial machine tools manufacturer supplies replacement parts from its inventory. For a particular part, the annual demand is expected to be 750 units. Machine setup costs ar
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