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Chapter 7 Layout and flow 187
What type of layout should an operation choose?
The volume and variety
characteristics of an
operation will influence
its layout
The importance of flow to an operation will depend on its volume and variety characteristics.
When volume is very low and variety is relatively high, ‘flow’ is not a major issue. For example,
in telecommunications satellite manufacture, a fixed-position layout is likely to be appropriate
because each product is different and because products ‘flow’ through the operation very
infrequently, so it is just not worth arranging facilities to minimize the flow of parts through
the operation. With higher volume and lower variety, flow becomes an issue. If the variety is
still high, however, an entirely flow-dominated arrangement is difficult because there will
be different flow patterns. For example, the library in Figure 7.4 will arrange its different
categories of books and its other services partly to minimize the average distance its customers
have to ‘flow’ through the operation. But, because its customers’ needs vary, it will arrange
its layout to satisfy the majority of its customers (but perhaps inconvenience a minority).
When the variety of products or services reduces to the point where a distinct ‘category’ with
similar requirements becomes evident but variety is still not small, cell layout could become
appropriate, as in the sports goods cell in Figure 7.5. When variety is relatively small and
volume is high, flow can become regularized and a product-based layout is likely to be appropriate,
as in an assembly plant (see Figure 7.8).
Selecting a layout type
The volume–variety characteristics of the operation will, to a large extent, narrow the choice
down to one or two layout options. The decision as to which layout type to adopt will be
influenced by an understanding of their relative advantages and disadvantages. Table 7.2
shows some of the more significant advantages and disadvantages associated with each layout
Figure 7.8 The volume–variety process position of an operation influences its layout and,
in turn, the flow of transformed resources