Factory layoutrefers to the arrangement of physicalfacilities suchas machinery, equipment, furniture etc. with inthe factory building in such a manner so as to have quickestflow of material at the lowest cost and withthe leastamount of the finished product.
Factory layout is an important decision as it represents long-term commitment.
An ideal factory layout should provide the optimum relationship among output, floor area and manufacturing process.
It is also important because it affects the flow of material and processes, labour efficiency,supervision and control, use of space and expansion possibilities etc.