Module 8 • Operations management


Facility layout Facility layout is concerned with the physical placement of equipment (machinery) and service facilities on the premises. The benefits of a sound layout include: • smooth flow of products and materials • effective space utilisation • fewer production bottlenecks • reduced material handling costs


New trends in facility layout include • open plans so that everyone can see what is going on • machines and equipment placed together • paintings on floors to designate areas where materials can be placed • more smaller machines rather than few large ones


A variety of basic layout formats is used within businesses. The decision of a specific format depends on the nature of the operations. This, however, will not be discussed. Examples of such formats are: • A process layout: Similar equipment is put together in one area.


• A product layout: Equipment and work processes are arranged according to the different processes of the product.


• A fixed position layout: It is where the product is bulky and remains at one place. The equipment is moved to the product.


• A group technology layout:


Different machines and equipment are grouped together to work on products that have similar shapes, etc.


Activity 2 1. Complete the layout (design) for your own business or; 2. Evaluate the layout of any other business. You can even visit your local supermarket and take note of the layout.


2.4 Technology


Technology can be defined as a set of tools, techniques and actions used to convert an organisation’s input into outputs. Technology can therefore be one of the small business’s major weapons to gain a competitive advantage. This and the small business’s ability to adapt and to use new technology are partly the reason for the growth of small businesses. It is important to refer to the discussion of the technological environment in module 2.


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