Facility Location and Layout: Design and Factors

Facility layout is the arrangement of various aspects of manufacturing in a suitable order to produce desired results in production. The layout of facilities considers space as well as the final product, safety of the user, and ease of operation. To ensure that an organization has an efficient and efficient manufacturing unit. It’s essential that attention be paid to the layout of the facility.

A well-planned layout will ensure you have a steady and smooth flow of production materials personnel, equipment and material with the least amount of expense. The layout of the facility is based on the physical distribution of space to support production and economic activities in the organization. Thus, the primary objective of facility layout planning is to develop a productive workflow in order to make equipment and workers more efficient.

Facility Layout Goal

A good layout should be able to create the best possible relationship between raw materials equipment, manpower, and the final product with the lowest cost in a safe and comfortable conditions. A well-organized and efficient layout of a facility can meet the some of the following goals:

  • To give the best space to store equipment and to facilitate the movement of items as well as to provide a secure and comfortable working environments.
  • To encourage order in production to achieve a common goal
  • To limit the moving of raw materials, workers and equipment
  • To ensure safety of the plants and employees
  • To allow for expansion or changes of the layout to accommodate new lines of product or technology upgrades
  • To boost the capacity of production of the company

An organization can attain the stated goal by following these steps:

  • Training of workers and supervisors.
  • Inducing awareness, the dangers to health and safety standards
  • Maximum utilization of staff and equipment
  • Empowering people and the reduction of the amount of administrative and indirect work
A facility Layout

The design and implementation of facility layouts is influenced by many aspects. These elements differ from industry to industry but they influence the layout of facilities. The following are some of the factors: The layout of the layout of the facility should take into account the overall objectives of the company. The best space should be allocated to processes and technologies. An appropriate safety precaution to reduce the risk of mishaps. General management policies and the future direction of the company.

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Layout Design of Facilities

The principles that guide the designing the layout of facilities should take into focus the purpose of facility layout as well as the influences on layout and limitations of layout. These are the following principles:

Flexibility: Facility layouts should allow for expansion or change.

Space Utilization: A good space utilization decreases duration of material and human movement, and improves security.

Capital: Capital expenditure is not required when deciding on various layout models for facilities.

Design Layout Techniques

There are three ways to layout design, and they are according to:

Three-Dimensional Templates: This technique makes use of the creation of a model. That is scale down from drawings approve by the designer.

Sequence Analysis method makes use of computer technology to design the layout of the facility. By sequencing all the tasks and then arranging them in circular fashion or in straight lines.

Line Balancing: The type of process is utilize for assembly line.

The different types of facility layout

There are six different types of layouts for facilities, and they are in the following order:

  • Line Layout
  • Functional Layout
  • Fixed Layout Position
  • Cellular Technology Layout
  • Layout Combined and
  • The Computerized Relative Allocation Technique for Facility
Location of the Facility – Factors that Influence the location

Facilities Location can be the best site for the manufacturing facility. It has accessibility to workers, customers transport, workers, etc. To ensure commercial success and competitive edge, here are the most important factors to consider:

The main goal of any business is to satisfy and please customers by providing excellent products and services. So, for an organization, it is essential to develop a the right strategy for its manufacturing unit. Manufacturing units are the point where all the ingredients. Like raw materials and equipment, skill workers and so on. are combine to create products for clients. Thus one of the key aspects that determine the performance of a manufacturing facility is the place of the manufacturing unit.

Location of facilities is a crucial strategic decision. There are many factors that determine the location of a facility, among them cost, competition and the impacts. So, location of facilities is a research-based procedure that employs a variety of techniques.

Location Selection Factors

If a business is operating in a global market costs, infrastructure, human resource skills as well as the policies of government and the environment are crucial factors. The right location will provide access to clients, skilled workers transport, etc. Thus a well-placed location will ensure the your company’s success in the today’s competitive global market.


A geographical area is an important focal point for different facilities based on a variety of variables, parameters and concerns. Thus these elements could be classified into primary and secondary ones. One of the primary factors that lead to the industrialization of a specific area to manufacture specific items. Hence which is labor, material and availability existing manufacturing plants similar in nature. Additional factors are credit infrastructure, finance and insurance.

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Errors with Location Selection

Location of facilities is essential for survival of the business and for the growth of the company. Therefore, it is essential to be aware of any mistakes when making a choices for the place. Selection errors are classified in two categories:: behavioral and non-behavioral. The behavioral errors are take by senior managers of the company in which personal factors are considered prior to the success of a location for instance. The move of a personal establishment from the home to the new location. The non-behavioral mistakes include the absence of proper investigation practices and analysis. Also ignoring important aspects and the characteristics of the business.

Location Strategy

The objective of an company is to provide customer satisfaction which means it has to have access to customers at the lowest cost. This can be achieve through the development of a strategies for location. The location strategy assists the business in determining its product offerings as well as market demand forecasts in various markets, the most effective place to reach customers, and the most efficient location for manufacturing and service.

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Factors that affect the location of facilities

If an organization is able to set up the ideal location for its factory, the facility will be able to have adequate access to its employees, customers, transportation etc. For success in business and competitive advantage, the following are the most important factors to consider:

Proximity to Customer: Facility locations are chosen close to the customer in order to cut down on transportation costs and speed up the time. It takes to get to the customer.

Business Area: The presence of similar manufacturing units in the location a good place to establish a facility.

Skills of the labor force: The education, experience, and the ability of labor are the other factors that determines the location of the facility.

Free Trade Zone/Agreement zones encourage the creation of manufacturing facilities through incentives for custom taxes and levies. In addition, the free trade agreement includes countries that offer incentives to create business, in particular, the country.

Supply Chain: Constant and high-quality supply of raw materials is an additional element in determining where to locate of the manufacturing facility.

The Environmental Policies: With today’s world, globalized pollution, controlling is vital, and knowing the environmental policies regarding facility location is a further crucial aspect.


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