Layout on Sainsburys
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Discuss the importance of layout for operations management, when considering ways of improving productivity within an organisation of your choice.
“Operations management is about the way organisations produce goods and services” (Slack, 1998:3). Operations management also focuses on the layout of organisation which has an impact on the decision making in areas to do with operations management. “The Layout or an operation is concerned with the physical location of its transforming resources.” (Slack, 1998:215) the layout is deciding where to put all the facilities, machines, equipment and staff in the operation. Layout is one of the most obvious characteristics of an operation. It is the first thing noticed when a customer walks into an operation for the first time, as it determines the shape and appearance. (Slack, 1998:215). The layout also determines the way in which the resources, such as the materials, information and customers flow through the system. Changes that are made within an operation, for example, goods within a supermarket, changing rooms with a gym can affect the flow or materials or people through the operation. The layout of any operation should support the strategy of any organisation. When deciding in an effective layout, the following should be considered:
It should improved employee morale & safer working conditions.
It should improved customer/client interaction.
Improved flow of information, materials or people
Flexibility (responsive)
According to Chambers, there are some practical reasons why the layout decision is an important one in most operations. (1998:216). Here are some of the reasons:
Layout is often a lengthy and difficult task because of the physical size of the transforming resources being moved.
The re-layout of an existing operation can disrupt its smooth running, leading to customer dissatisfaction or lost production.
If the layout (with hindsight) is wrong, it can lead to over-long or confused flow pattern, inventory of materials, customer queues building up in the operations, unpredictable flow and high cost.
Chambers (1998:217)
When making layout decisions, an organisation would need to find out which layout is effective, will it promotes the achievement of the strategy choices such as the differentiation in layout and cost implications. The decision made in the layout of the organisation should support the strategy of the organisation.
There are different types if layouts, for different types of organisation.
Fixed- position layout is usually used when the product of project remains in one place and workers, materials and equipment are moved when needed. Example of fixed- position layouts are, motorway construction, as this is too large and cannot be moved. Another example would be an open- heart surgery, as patients are too delicate to move. (Slacks, 1998:218)
Process layout is the type of layout that the needs and convenience of the transforming resources which constitute the processes in the operation dominate the layout decision. In this layout, similar processes (or processes with similar needs) are located together. (Slacks, 1998:219)
Cellular layout is where the transformed resources enter the operation are preselected to move to one part of the operation in which all the transforming resources, to meet their immediate processing needs are located. (Johnston, 2008: 345)
Product layout involves locating the transforming resources entirely for the convenience of the transformed resources. Each product, piece of information or customer follows a prearranged route in which the sequence of activities which are required matches the sequence in which the processes have been located. (Heizer, 2008)
Typical strategies for a retail store:
Locate the high drawn items around the periphery of the store
Use prominent locations for high -impulse and high – margin items.
Distribute what is known is the trade as “power items” to both sides of an aisle and disperse them to increase the viewing of other items.
Use end aisle location for high exposure rate.
Covey the mission of the store by careful selection in the positioning of the lead of department.
(Agahazadeh 2005, pg 1)
These strategies can be used be use when making a decision in an effective layout of a retail store in order to improve productivity and also enhances the customers experience.
Sainsburys in Ladbroke Grove uses a process layout. This store is quite a big store with the entrance located at the beginning of the checkout so it is easier for customers to come in and out of the store, but on the other hand, as there is only one entrance it is difficult for customer with buggies and trolleys as they will be banging into each. Maybe, this particular Sainsburys could have an entrance which leads to the car park, as this could make it easier.
The layout in this store offers a variety of products which customers can buy from, from bakery to entertainment. The layout in this store is mostly the same in every sort of supermarket, the frozen food is located at the far end of the store, items such as flowers and gift wrapping and cards are located near the entrance, this could be that customers coming into the store may not intend on buy these such items but could consider buying it if they may need it later on week or probably month for someone birthday.
Also the customer service department is located in the front of entrance for customers that may have an enquiry and it is also useful