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Understanding Facility Layout: Its Importance and How to Do it Right

by Manufacture Nevada

Ever walked into an organized space and thought, "This just works?" That's the impact of a smart layout design. Whether it's a factory, warehouse, or office, how a space is arranged directly affects efficiency.

In this blog, we'll explore what facility layout is, the main types, and how to design a setup that enhances productivity and keeps operations running smoothly.

What is Facility Layout?

Facility layout refers to the arrangement of equipment, workstations, and employees within a space, all designed to maximize efficiency, safety, and cost-effectiveness.

A thoughtful layout minimizes wasted time and movement, ensures smooth material flow, and supports a safe, comfortable work environment. It’s like setting up your kitchen—when tools and ingredients are right where you need them, everything runs more smoothly. The same logic applies in manufacturing, logistics, and beyond.

The Different Types of Facility Layouts

Layouts aren't one-size-fits-all, the ideal setup depends on what a company makes and how its processes are organized. Here's a quick overview:

Process Layout (Job Shop)

This layout clusters similar machines or activities in designated areas. Think of a bakery with seperate zones for mixing, baking, and packaging.

  • Pros:
    • Super flexible and great for custom orders
    • Easy to adapt when demand shifts
  • Cons:
    • Moving materials between processes can be inefficient
    • Takes longer to complete products

Product Layout (Assembly Line)

This layout follows a traditional assembly line, where products pass through a set sequence of steps, similar to how cars are built in a manufacturing plant.

  • Pros:
    • Highly efficient and streamlined
    • Cuts down material handling time
  • Cons:
    • Not flexible, changes in product design may require a complete overhaul
    • Higher costs due to specialized equipment

Cellular Layout

In this layout, the facility is organized into small "cells," each focused on a specific product family, like a mini assembly line tailored to similar items.

  • Pros:
    • Reduces unnecessary movement of materials
    • More flexible than a strict assembly line
  • Cons:
    • Requires careful planning to group products correctly
    • Can be costly to set up

Fixed Position Layout

For large or complex products, such as airplanes or ships, the product remains stationary while workers, equipment, and materials move around it.

  • Pros:
    • Ideal for big, hard-to-move projects
    • Reduces risk of product damage
  • Cons:
    • Can be inefficient since everything has to be transported to the product
    • Less flexibility for changes

Combination Layout

As the name implies, this layout combines two or more types. For instance, a factory might use a product layout for high-volume production and a process layout for specialized or custom tasks.

  • Pros:
    • Customizable based on business needs
    • Combines the best of different layouts

Why Facility Layout Matters

Facility layout goes beyond placing machines and people, it's about ensuring everything runs efficiently and effectively. Here's why it matters:

  • Improves Workflow: 
    • A streamlined layout reduces unnecessary movement, delays, and downtime.
  • Lowers Costs:
    • Efficient layouts minimize waste, energy use, and extra handling, cutting operational expenses
  • Enhances Quality:
    • Well-arranged workspaces support precision and consistency, leading to fewer mistakes and defects.
  • Promotes Safety:
    • Thoughtful design reduces risks, with clear walkways and ergonomic setups that protect workers.'
  • Supports Adaptability:
    • A flexible layout makes it easier to adjust to new products, processes, or demand changes.

How to Design an Effective Facility Layout

So, what's the best way to design an effective layout? Here's a straightforward step-by-step guide:

  • Set Clear Objectives:
    • Define what you want to achieve, faster production, lower costs, improved safety, or something else. Your layout should support these goals.
  • Evaluate Workflow:
    • Map out how materials, products, and people move through the facility. Spot inefficiencies and bottlenecks.
  • Select the Best Layout:
    • Choose a layout type, or combination, that aligns with your workflow and operational needs.
  • Design for Flexibility:
    • Build in adaptability to accommodate future changes in products, processes, or scale.
  • Test Before Launch:
    • Use simulations or prototypes to assess how the layout performs before full implementation.
  • Implement and Refine:
    • Once in place, monitor performance, gather feedback, and make adjustments to optimize results.

How Manufacture Nevada Can Help

Manufacture Nevada offers expert guidance to help manufacturers design and implement efficient facility layouts tailored to their specific needs. By working closely with small and medium-sized manufacturers, Manufacture Nevada provides hands-on support in evaluating workflows, identifying bottlenecks, and choosing the most effective layout strategy. Click HERE to learn more and to schedule a consultation with our Business Advisors.

Content from this blog was sourced from IMEC.

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