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A Model for Assessing Cost Effectiveness of Facility Layouts – A Case Study
Växjö University, Faculty of Mathematics/Science/Technology, School of Technology and Design.
2007 (English)In: The 2nd International Conference on Operations and Supply Chain Management (OSCM), 18 – 20 May, 2007, Bangkok THAILAND: Regional and Global Logistics and Supply Chain Management, New UM Ad. Co. Ltd. , 2007Conference paper, Published paper (Refereed)
Abstract [en]

The paper presents a model for assessing cost effectiveness of facility layout alternatives. The model is a five-phase procedure including evaluating current layout in phase 1. In phase 2, feasible layout alternatives are generated. Phase 3 and phase 4 provide evaluation based on tangible and intangible factors. Phase 5 prefers a layout alternative based on multiple criteria decision making tools. Economical and working environmental aspects are considered in the evaluation process utilizing tools such as Life Cycle Cost Analyses (LCCA) and Multi Criteria Decision Making (MCDM). Factors reflecting life-cycle consideration include development, investment, usage, and scrapping. Non-economic evaluation elements are also considered in the MCDM. To test the proposed model, a case study is performed at the Swedish Mail Terminal in the town of Alvesta, a part of Posten Sweden AB. The terminal has several space, machine, and operational constraints. The three layout alternatives investigated are suggested by the authors, by the branch management, and by the Posten Sweden AB management personal. Result obtained from the study show that the layout alternative with the most implementation cost yields a nine percent better total LCC than the closest alternative based on ten years life cycle length. The paper provides a generalized layout evaluation procedure for manufacturing companies. Further research is required to customize the proposed procedure for evaluating alternative service facilities.

Place, publisher, year, edition, pages
New UM Ad. Co. Ltd. , 2007.
Keyword [en]
Facility planning, Layout Evaluation, Life Cycle Cost Analysis (LCCA), Multi Criteria Decision Making (MCDM), Sweden
Research subject
Technology (byts ev till Engineering), Terotechnology
Identifiers
URN: urn:nbn:se:vxu:diva-2988ISBN: 974677637-1 (print)OAI: oai:DiVA.org:vxu-2988DiVA, id: diva2:202944
Available from: 2007-12-31 Created: 2007-12-31 Last updated: 2010-03-09Bibliographically approved

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http://utcc2.utcc.ac.th/oscm2007/

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Ciganovic, RenatoAlsyouf, Imad

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf