The objective of layout strategy is to:
A. minimize space used.
B. maximize worker satisfaction.
C. maximize flexibility.
D. develop an effective and efficient layout that will meet the firm’s competitive requirements.
E. minimize cost.
The Correct Answer and Explanation is:
Correct Answer: D. develop an effective and efficient layout that will meet the firm’s competitive requirements.
Explanation:
Layout strategy is a fundamental aspect of operations management that involves designing the physical arrangement of facilities, equipment, and workspaces. The main objective of layout strategy is not merely to reduce cost, save space, or increase flexibility in isolation, but rather to develop a layout that is both effective and efficient in helping the firm meet its overall strategic goals, especially those that offer competitive advantages. This is why Option D is the best and most comprehensive choice.
An effective layout supports a firm’s competitive requirements, such as:
- Cost leadership: by minimizing waste, reducing material handling, and increasing productivity.
- Differentiation: by allowing the production of high-quality, customized, or specialized products.
- Flexibility and speed: through designs that accommodate changes in product design, production volume, or process.
Let’s evaluate the other options:
- A. Minimize space used: While efficient use of space is important, focusing solely on space can compromise workflow, safety, or flexibility.
- B. Maximize worker satisfaction: This is important for productivity and morale, but it is just one of many goals within a comprehensive layout strategy.
- C. Maximize flexibility: Flexibility is a benefit in some environments (e.g., job shops), but it might not be the priority in mass production settings.
- E. Minimize cost: While cost reduction is crucial, it should not come at the expense of meeting customer demand, quality, or delivery speed.
In conclusion, layout strategy must align with the broader strategic goals of the firm—whether it’s responding to customer demand quickly, producing at low cost, or offering customization. This alignment ensures that operations support the firm’s position in the marketplace, making Option D the most accurate and comprehensive answer.
