One of the preconditions for a successful business is considered a suitable arrangement of elements in the space.

Layout planning makes decisions about the best physical layout of all the resources that take up space in a particular facility.

There are six types of Layouts, as follows:

• Fixed positioned layout
• Process-oriented layout
• Office layout
• Layout retail
• Warehouse layout
• Production-oriented layout

Decisions about the company’s allocation of resources are not made only when a new facility is designed. They are made every time there is a specific change in resource allocation, such as the arrival of a new employee, relocation, or procedure change. Also, Layout planning is done every time there is an expansion or reduction of space.

Some of the basic Layout requirements are:

• Understanding the needs of capacity and space
• Selection of appropriate material handling equipment
• Identification of movement costs between jobs
• Identification and understanding of information flow needs
• Decisions related to the environment and aesthetics

Layout planning is vital because it can significantly affect productivity and service quality. Some consequences of a lousy schedule are: 

• increased costs 
• insufficient flows of communication and information 
• confused and frustrated customers

The challenge with Layout planning is the organization of resources to increase efficiency and minimize loss of movement. The resource distribution in a company can significantly affect a company’s productivity.

There are other reasons why Layout planning is essential. Some of them can be crucial for building good working relationships, increasing the flow of information, and improving communication.

When it comes to strategy, it represents a framework for decision-making in the company, and the goals of the Layout strategy are:

• Production strategy
• Process strategy
• Human resources strategy
• Location strategy