A model for Assessing Cost Effectiveness of Facility Layouts : A case study

Abstract: The purpose of this master thesis is to develop a model for assessing cost effectiveness of facility layouts. A critical literature review of the available relevant models as well as theories was performed in accordance to this purpose. After this a model was developed in order to cover lacks in existing theories. The aim of the model is to evaluate different facility layouts, from both economical and working environmental aspects. The model as a whole is about evaluating, creating and selecting the most preferable facility layout. In this thesis a case study has been performed for testing the developed model. The case company for this testing was the Mail Terminal in Alvesta, which is a part of Posten Sweden AB. The mail terminal receives, sorts and distributes the mail further. The result of this thesis is that, by following the model the authors were able to evaluate all the layouts and also to create the most preferable one. This thesis provides a general model in a structured way, primary aimed to be used for manufacturing companies. Further researches could be to test the model on service producing companies and to define to what extent the model can be generalised.