LAYOUT PLANNING

STRATEGY
 Layout Planning

• Layout is the physical arrangement of the

economic activity taking into account the
nature of the product, its volume, type and
size of the machinery used etc; etc.
• An Economic activity is anything that is
involved in the production process and
requires space, people to work, machinery,
stairs and path etc.
 Layout Planning
• However for the purpose of layout or physical
arrangements, the following questions need to be
addressed.
1. Which economic centers should the layout include?
2. How much space and capacity does each center need?
3. How should each center’s space be configured?
4. Where should each center be located?
 Layout Planning
• In other words we can say that the Operation’s
Manager must determine the following before the
layout decisions are finalized.

1. What material handling equipment is to be used?

2. Capacity and space requirement for all activities.
3. Environment and aesthetics.
4. Flow of information.
5. Cost of movement between various workstations.
 Layout Planning
• If we take care of all the parameters as mentioned above, our
layout will ensure:

–Higher utilization of space, equipment and manpower.

–Improved flow of information, material or people.
–Improved employees morale and safer working conditions by keeping
appropriate space for the Economic activity or the machines.
–Improved customer/ client interaction (if required).
–Flexibility of the layout so as to make alterations whenever essential.
Layout not only covers the above points but if executed with a
good aesthetic sense, it creates a very good impression on
the visitors as well.
A Layout Example
 Types Of Layout
• There are basically SIX types of layout, however their
selection depends upon the nature and type of production
to be handled. The types are:
1. Fixed Position Layout.
This type of layout is normally used in case of large/ bulky projects
such as ships, a building, a highway, a bridge etc.
2. Process Oriented Layout.
In this type, we make a layout particularly to minimize the cost of
shifting (handling), however while doing so we do take care that
the process itself is not hindered. (Example to be explained)
“work cell idea”, & “Focused work center and the focus
factory”.
 Types Of Layout
3. Office Layout.
In a production unit or a factory, the basis of layout is the flow of
materials, whereas in case of layout, the basis is the flow of
information. (explain the diagram as in notes)
4. Retail Layout.
While making decisions about the Retail Layout, we should ensure that
the layout is such that provides customers the exposure to
products, because the sales and profitability vary directly with
customer’s exposure to products. Therefore arrangement of
products or allotment of space to the product within the facility is
important. The following points must be addressed while making a
layout of a retail shop.
(Continued……)
 Types Of Layout
– Locate the high draw items around the periphery of the store.
– Use prominent locations for high impulse and high margin items
such as house- wares, beauty aids etc.
– Distribute what are known in trade as, “Power Items” (items
that may dominate a purchase trip) to both sides of the aisle and
disperse them to increase the viewing of other items.
– Use the end aisle locations because they have a very high
exposure rate.
– Convey the mission of the store by careful selection in the
positioning of the lead off department, i.e; if prepared foods are
part of the mission, position the bakery and deli up front to
appeal the convenience oriented customer.
(Continued….)
 Types Of Layout
• Services capes: It is a well known and experienced fact that
the physical surroundings in which service is delivered have a
humanistic effect on not only customers but also the
employees, such as:
– Ambient Conditions: Appropriate lightening, sound, smell ,
cleanliness, comfortable temperature, in the dinning hall with linen
table cloths and candle light atmosphere definitely attracts customers
and keeps the employees in their high spirits.
– Spatial Layout & Functionality: Ample place for the customers to
walk through the displays comfortably, aisle characteristics such as
width, direction, angle, shelf spacing and their height etc and product
grouping while displaying matter a lot.
– Signs, Symbols and Artifacts: This is to create such conditions in the
store that the customers are attracted to it, such as carpeting a part of
the store in a different way that encourages the customers to slow
down and look around.
 Types of Layout
5. Warehouse & Storage Layout:
– While planning the layout of a ware house the objective kept in
mind should be that the maximum utilization of the available
space is made with minimum handling cost and ensuring
minimum damage and spoilage of stored materials.
• An important component of the warehouse layout is the receiving/
unloading area and the shipping/ loading area and also the
handling equipment to be used.
• There are four types of warehouse layouts
1. Cross Docking :
2. Planned Stocking:
3. Random Stocking:
4. Customizing Ware house:
 Types of layout
6. Product Oriented Layout:
• This type of layout is used where the variety of items
to be stored is low and the volume is high and the
product is produced on repetitive basis. This type of
layout is made when: 
• Volume of production is adequate for high equipment
utilization.
• Product demand is stable enough to justify high
investment in specialized machinery.
• Supplies of raw materials and components are
adequate and of uniform quality (standardized), to
ensure that they will work with specialized machinery.