Layout Strategies

• Layout of a business

  Ensure a smooth flow of work, material and information throughout the building
• Indicators of an effective factory layout

  • Efficient space and labour usage
  • Minimum stock/material handling costs
  • Identify bottlenecks to slow down production
  • Incorporate safety and security measures
  • Promote product and service quality
  • Provide flexibility to adapt to changing conditions
• Factors influencing the decision to organize a facility

  • Available space within the facility
  • Possible level of demand on each piece of machinery
  • Distance that must be travelled between each piece of machinery
  • Space that each machine or equipment will occupy
  • Sequence of operations on the product being produced
• Process layout


  Machinery and equipment that are similar or have the same function are grouped together in specified areas of the facility and the product being produced is transported to the different areas
• Process layout


  • Hospital facility
• Process layout (also known as functional layouts)


  A layout that groups similar activities together in departments according to the process or function that they perform
• Process layout


  • Furniture factory - all cutting machinery in one department, all planning equipment in another
• Advantages of process layout

  • Low start-up cost
  • If one machine breaks down, it does not halt the entire production process
  • Specialized supervision
  • Relatively low overhead costs
  • Easier to expand the facility
• Disadvantages of process layout

  • Increased material handling costs due to backtracking
  • Requires skilled labour which adds to production costs
  • Can result in production delays
  • Greater need for storage due to work in progress
• Production layout (also known as assembly lines)


  Activities arranged in a line according to the sequence of operations needed to complete the assembly of a particular product
• Advantages of production layout

  • Very high level of efficiency, helps keep unit production costs low
• Limitations of production layout

  • Each different product must have its own production line
  • Assembly line must be carefully balanced to avoid bottlenecks
• Fixed position layout


  Used for projects where the product is too fragile, bulky or heavy to move position. Equipment, machines, materials and workers are brought to the fixed production site.
• Fixed position layout


  • Ships, large aircraft, construction projects like houses and office buildings
• Cellular or group layout


  Dissimilar machines and equipment are grouped into a single work centre known as a "cell". Each cell produces parts of the product with similar shape and processing requirements.
• Cellular layout


  • Combination of process and product layout
  • Often used for large variety of products in small batches