Case Study

Business Layout and Operation Strategy

Most Western countries demonstrate a trend in both public and private sectors away from traditional manufacturing operations. Many operations involve operational activities which are separated from the primary customer-organisation interaction. This is the case for conventional manufacturing businesses where the goods for sale are made by production people who rarely if ever, come into contact with the customer. Customer contact and interaction is with marketing and sales. The same kind of separation of front office and back room will apply in many types of service operation, and especially those who are organised as traditional manufacturing operations. This led to the critical need to understand an appropriate planning and layout decision to stay competitive and maintain customer satisfaction. Preparation of the layout is the arrangement of industry facilities like machine tools, service departments, tool room or other objects required for the smooth production process. The cost of the product depends on the design of the product as well as the arrangement of the machines. A proper decision should be taken in plant location so it can incorporate changes in the production. This also helps in enhancing productivity. In addition to machine arrangements essential utilities, labour, electrical connections, ventilation needs to be considered. Below is the diagram of the site of the existing operation for a printing firm. As a newly appointed operation manager, you need to critically analyse the current state of the company operation system.

a.) Based on your critical analysis of the current layout, describe the best strategies that can be adopted by the operation manager in this company in order to reduce the operation cost. Suggest the best layout plan for a one floor operation site for the business.

b.) Beside layout, understanding the critical component of the operating system is also vital in todays economy since it enables production and consumption to take place at locations far away from each other. Using the same business in the case, explain the critical components of the operating system that marks a successful business operation.

4th floor (pre-processing) 3rd floor (post-processing 5 2nd floor office) 1st floor printing) Dispatch of finished product Ground floor (sizing and triming of paper -4 sub level 2 (storage) paper Ink and plates sub level 1 (store) 1