Facilities Layout

The efficiency of a firm has got a lot to do with the layout of physical facilities. Layout of a manufacturing plant, for example, should follow a logical sequence so that materials can flow smoothly through the process with minimal handling. For service organization, equipment and materials should be arranged to provide easy access and minimal delay. Service functions should be arranged in sequence according to the flow of customers through the process e.g. hotel and restaurant.


However, many organizations have not laid out their operations efficiently. Chances are that they were never carefully laid out in the beginning. But it is more likely that the layout has grown inefficient yet it is difficult to determine when a layout is bad enough to justify the costs of halting production to move equipment and rearrange facilities.