Following are the basic principle to be followed to develop a good plant layout.
1. Overall integration: A good layout is one that integrates men, materials, machine and supporting services, and others in order to get the optimum utilization of resources and maximum effectiveness.
2. Smooth flow of product: A good layout is one that makes the material to move in forward direction towards the completion stage, i.e., there should not be back tracking.
3. Minimum distance travelled: This means minimum movement of men and materials. The facilities should be arranged such that, the total distance travelled by the men and material should be minimum and as far as possible straight line movement should be preferred.
4. Space utilization: The good layout is one that utilized both horizontal and vertical space. It is not only enough if only the floor area is utilized optimally but the third dimension, i.e., the height is also utilized effectively.
5. Flexibility: The good layout is that can be altered without much cost and time, i.e., future requirements should be taken into account while designing the present layout.
6. Minimum handling: A good layout is that which reduced the material handling to minimum.
7. Maximum visibility: The plant should be planned in such a way that, there should not be any difficulty in supervision, co-ordination and control. There should not be no ‘hiding space’ into which goods can be mislaid.
8. Employee satisfaction and safety: A good layout is one that gives due consideration to workers safety and satisfaction and safeguard the plant and machinery against fire, theft etc.