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Lecture Production operations management: Lecture 12 - Osman Bin Saif

In this chapter, the following content will be discussed: Innovation at macdonald’s – case, strategic importance of layout decision, objectives in layout design, higher utilization, improved flow, improved employee, improved customer / client, flexibility. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 12 1 Global Company Profile: FedEx The Strategic Importance of Location Summary of last Session 2 2 Factors That Affect Location Decisions Labor Productivity Exchange Rates and Currency Risks Costs Political Risk, Values, and Culture Proximity to Markets Proximity to Suppliers Proximity to Competitors (Clustering) Summary of last Session (Contd.) 3 3 Methods of Evaluating Location Alternatives The Factor-Rating Method Locational Break-Even Analysis Center-of-Gravity Method Transportation Model Summary of last Session (Contd.) 4 4 Service Location Strategy How Hotel Chains Select Sites The Call Center Industry Geographic Information Systems Summary of last Session Contd.) 5 5 Agenda for this Session Innovation at Macdonald’s – Case Strategic Importance of Layout Decision Objectives in Layout design Higher Utilization Improved Flow Improved Employee Improved Customer / Client Flexibility 6 Agenda for this Session . | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 12 1 Global Company Profile: FedEx The Strategic Importance of Location Summary of last Session 2 2 Factors That Affect Location Decisions Labor Productivity Exchange Rates and Currency Risks Costs Political Risk, Values, and Culture Proximity to Markets Proximity to Suppliers Proximity to Competitors (Clustering) Summary of last Session (Contd.) 3 3 Methods of Evaluating Location Alternatives The Factor-Rating Method Locational Break-Even Analysis Center-of-Gravity Method Transportation Model Summary of last Session (Contd.) 4 4 Service Location Strategy How Hotel Chains Select Sites The Call Center Industry Geographic Information Systems Summary of last Session Contd.) 5 5 Agenda for this Session Innovation at Macdonald’s – Case Strategic Importance of Layout Decision Objectives in Layout design Higher Utilization Improved Flow Improved Employee Improved Customer / Client Flexibility 6 Agenda for this Session (Contd.) Types of Layout Office layout Retail layout Warehouse layout Fixed-position layout Process-oriented layout Work-cell layout 7 Chapter : Layout Decision 8 Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Adding breakfast to the menu (1980s) Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections 9 9 Innovations at McDonald’s Indoor seating (1950s) Drive-through window (1970s) Adding breakfast to the menu (1980s) Adding play areas (late 1980s) Redesign of the kitchens (1990s) Self-service kiosk (2004) Now three separate dining sections Six out of the seven are layout decisions! 10 10 30,000 McDonald’s outlets around the world are redesigned to have three separate dining areas: The "linger" zone with comfortable armchairs and Wi-Fi connections for young adults who want to socialize and hang out. The "grab and go" zone with tall counters and bar stools for customers who eat alone with .