Layout involves arranging equipment and work areas to minimize costs while meeting production needs. A good layout considers space requirements, material flow, and costs of movement. It also aims to improve productivity, worker safety, and utilization of equipment and space. Layout decisions are important because they significantly impact costs and efficiency over the long-term.

6. The Need for Layout Decisions Inefficient operations For Example: High Cost Bottlenecks Changes in the design of products or services The introduction of new products or services Accidents Safety hazards

7. The Need for Layout Designs (Cont’d) Changes in environmental or other legal requirements Changes in volume of output or mix of products Changes in methods and equipment Morale problems