Management Notes

Reference Notes for Management

Which of the following is not true regarding layout​ decisions?

Which of the following is not true regarding layout​ decisions?

A) Layout is one of the key decisions that determines the long-run efficiency of operations.
B) To obtain flexibility in layout, operations managers could keep investments high.
C) Layout designs need to be viewed as dynamic because of our increasingly short-life-cycle and mass-customized world.
D) An effective layout can help an organization achieve a strategy that supports differentiation, low cost, or response.

The Correct Answer is option B) To obtain flexibility in​ layout, operations managers could keep investments high.

Layout is one of the key decisions that determine long-term efficiency of operations. Layout plays a strategic role in determining an organization’s competitive priorities regarding capacity, processes, flexibility, and cost, as well as quality of work life, customer contact, and image. In order to achieve differentiation, low cost, and response, an organization can achieve an effective layout.

It is important to view layout designs as dynamic. Mobile, flexible, and small equipment are important considerations. Modular office desks and partitions, as well as prefabricated storage racks, are needed for store displays. Layouts must be flexible so operations managers can make quick changes in product models and production rates. Managers who want flexibility in layout cross-train their workers, maintain equipment, keep investments low, and place workstations close together. When a product, process, or volume is going to change, equipment on wheels may be appropriate.

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