In the words of Morris E " plant layout involves the development of physical relationship among building, equipments and production operations, which will enable the manufacturing process to be carried on effectively". Hence plant layout is proper and orderly arrangement of machines, equipments and operations so that they use the available resources like material, money etc is efficient and minimize the costs. The main of plant layout is to judiciously utilize the limited space of working.
Following are the main factors that an entrepreneur must consider while designing plant layout are :
- Site of working - site of working is the foremost thing that an entrepreneur must consider while designing plant layout. As it is the space of site that should be utilized well keeping in mind the size of factory, storage etc.
- Machines - machines are essential for producing the product. So space, location and size of machines to be used need to be considered.
- Safety of workers - life of workers working in the factory doing heavy and dangerous tasks just for the company is precious. So while designing plant layout entrepreneur should give importance to ensure safety of workers in factory. They should provide proper and safe working conditions for them.