Facility Location and Layout
"...these are our best machines, no wonder the drop is off..."

Facility Layout:  Does layout effect efficiency?  Expenses?  Profits?

 

 Click here if the clip does not play.

Background:

Layout decisions entail determining the placement of work stations, machines, part stocking points, even slot machines in a casino.  In general the inputs to a layout decision include:

  *  Objectives to be used to evaluate the layout (e.g., $/square foot for slots in the casino).

  *  Estimates of product or service demand on the system (e.g., # of customers/hour).

  *  Space and processing requirements for the elements in the layout
      (e.g., how much space do different slot machines take up on the floor).

Formats for arranging elements in a facility are defined by the general pattern of work flow.  Three basic types exist:  workcenter, assembly line, and project layout.

Questions for Thought:

1. What type of layout is the layout of the slot machines defined as (i.e., workcenter or assembly line or project layout)?

2. How could a bad layout effect efficiency, expenses, or profits?  You can relate this back to the casino example and Frank Rosenthal's (casino manager) discussion in the movie clip.

3. What would be some of the demand estimates that would need to be made to calulate the inputs for the layout decision for slots in the casino?  Think about what Frank Rosenthal is saying about the different type of slot machines and what they do to the bottom line (i.e., the "drop").

Father of the Bride
©1991