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Facility Layout

ZONING OF AREAS WITHIN THE STORE

INSPIRE EXPLORE PURCHASE

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Main Entrance

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Inspire

Push Corner/Best

Sellers/New ArrivalsSection in first 3m of store

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Explore / Engage

Touch buttonsforlight switches

Simple but clearstore communications

Explore lighting optionsin various settings.

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Consultancy / Purchase

Lets Plan Station for

CustomerEngagement

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Entrance Exit

On-line andCD-ROM accessroom

Loan books in subject order

Enquiries

Storeroom

Counter staffCopying area

Company

rep

orts

Tojournalsack

Currentjournals

Reservecollection

Referencesection

Study desks

Process Layout in a Library Showing the Path of Just 1 Customer

Process Layout (Job Shop/Functional Layout)Transformed resource moves according to established sequenceLayout of transforming resources optimised. The arrangement of a facility so thatwork centres or departments are grouped together according to their functional type.

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Philips Type of Layout

Process Layout (Job shop/functional layout) Transformed resource moves according to established

sequence

Layout of transforming resources optimised

Transforming resources are fixed and the transformed resources take an appropriate pathway through them

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Impact of Store Layout Optimal utilisation of space, equipment and people

Effective flows of materials, information and people

High employee morale (employees look cosy)

Safe working conditions (from field observation)

Good customer / client interaction (direct experience)

Flexibility (ample space for re-layout)

Nice ambience and aesthetics; exude comfort

Shopper traffic flow - logical sequence from Inspire toExplore and finally Purchase all within 150 sqm

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Process Flow

10

Inspire ExplorePurchase(Consultancy)

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Linking Process Flow to Layout

SERVICEPROCESS

TYPESERVICESHOPS

ADVANTAGES

DISADVANTAGES

High product and mixflexibility

Relatively robust incase of disruptionsEase to supervise

Low utilizationCan have very high

inventory 500skus

PROCESSLAYOUT

LOW VOLUMEHIGH VARIETY

PROFESSIONALSERVICES

PHILIPS

PHILIPS BRAND STORE PROVIDES TOTAL

LIGHTING SOLUTIONS WHICH INCLUDEINTERIOR DESIGN CONSULTANCY, HOMELIGHTING DESIGNER SERVICES AND STYLEORIENTATION /COMPATIBILITY TO HOME

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Copyright 2006 John Wiley &Sons, Inc. 2-12

Operations Strategy at Philips RetailPhilips

Transformative power oflighting

Branded Retail Philips Way

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Our Retail Operating Strategy

13

Philips Home Lighting Proposition:

Retail Implications

Easy to explore& learn

Context, learningFun, enjoyable,

Easy to understand,Intuitive, Editorial

Experience whatlight can do

Transformative effect oflight on spaces and

moods

LightingPlaygroundClean, Bright,Uncluttered,

Highly InteractiveBeing a Protagonist

For your Home

Home, hot HouseRelevant

Achievable butaspirationalHow to

Get the Look

Philips Home Lighting Retail Proposition:

A Lighting Playground where its easy to explore, learn and experience what light can do for your Home

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Implications on Operations