Question from last lesson
Explain how productivity improvements can increase the
business competitiveness of an organisation.
Explanation should refer to productivity improvements decreasing
the costs of inputs and waste [1 mark],
which should lead to an organisation's producing goods and services
cheaper, which will increase its competitiveness [1 mark].
Outcomes (What you need to know and be able to do)
• Explain in your own words what is meant by the term
‘facilities design and layout’.
• Identify the key factors that an operations manager needs
to consider when determining optimal layout.
• Outline the operations needs that inﬂuence: (a) ﬁxed
position layout, (b) product layout, (c) process layout, (d)
retail layout, (e) ofﬁce layout.
• Explain how the facilities design and layout can inﬂuence
How could the facilities design and layout impact on the
efﬁciency of an LSO
In a ﬁxed-position layout, the workers and equipment come to the product. A
ﬁxed-position layout is used when it is not feasible to move the product (for
example, because of its size, shape or dangerous composition). Examples include
aircraft manufacturing and household electrical repairs.
In a product-oriented layout, the facility is arranged so that
equipment and workstations are in line to provide a sequence of
specialised tasks.A product layout is best when one standardised
product is being produced in large volumes. Examples include
motor vehicle manufacturing and automatic car washes.
In a process-oriented layout, the facility is arranged so that
equipment and workstations are grouped together according to
their function (the task they carry out). A process layout is best
when there are a variety of products or variations on a single
product. Examples include warehouses and hospitals.
Discuss how a service organisation may use a facilities
operations management strategy to produce effective
Discussion of strategy should include explanation of how facility
layout and design strategy allows efﬁcient ﬂow of service.
Award 1 mark for valid description of strategy and 1 mark for
linking it to effective outcomes.