Long-Range Capacity Planning and Facility Location

Example: AG Advertising

• Unassigned Rooms of Office Suite

Example: AG Advertising

• Layout Satisfying All Pairings of
• Departments with 1 Closeness Ratings
• CR = 1
• B – D
• B – F
• C – G

• B

• D

• F

• C

• G

Example: AG Advertising

• Trying to satisfying all pairings of departments with
• 6 closeness ratings, we see that Dept. C needs to be
• moved.
• CR = 1 CR = 6
• B – D A – D
• B – F B – C
• C – G

• B

• D

• F

• G

• C

Example: AG Advertising

• Layout Satisfying All Pairings of Departments with 6 Closeness Ratings (note that we swapped Dept. D and Dept. F)
• CR = 1 CR = 6
• B – D A – D
• B – F B – C
• C – G

• B

• F

• A

• D

• E

• G

• C

Wrap-Up: World-Class Practice

• Strive for flexibility in layouts
• Multi-job training of workers
• Sophisticated preventive-maintenance programs
• Flexible machines
• Empowered workers trained in problem solving
• Layouts small and compact
• Services follow the above practices plus incorporate customer needs in design

• End of Chapter 5, Part B