Factory Layout: Introduction, comprehensive overview and practical tips
Thanks to far-sighted design, an organised structure and end-to-end digitalisation, the modern factory layout ensures efficient workflows and optimised production processes.
The factory layout is the design arrangement of machines, work areas, storage rooms, and other facilities in a production facility. Careful design of the factory layout is crucial for an efficient and smooth workflow and optimised production processes.
Introduction – Factory layout
Layout design is crucial in the construction of factories. This is because the arrangement of the machines and workstations is determined here, which enormously influences production. Errors in the factory layout can only be corrected retrospectively with great effort. Digitalisation opens up completely new possibilities with intelligent software solutions for designing the factory layout.
The factory layout is a design in which the spatial arrangement of machines and systems in a production facility is determined. It is not only about the optimal use of space but also about taking into account the respective production processes and the local conditions that affect labour and material commission. This is particularly important when introducing new technologies or expanding production capacities.
An efficient factory layout is very important because the decisions made here often have to last for many years. Due to the high investment costs involved, attention should be paid to layout design at a very early stage. Design errors that only become apparent after commissioning can often only be corrected at great expense in terms of time and money – or possibly not at all. Efficient layout design is essential for day-to-day operations because the more efficiently the systems are planned, the higher the productivity of machines and operating personnel.
Simply listing the required production equipment and its procurement is no longer enough. Instead, modern layout design must map production in as much detail as possible. In addition to the technical requirements, the opinions of the employees concerned and their experiences with previous solutions should also be considered. It often turns out that a factory layout that looks attractive on paper is not as efficient in practice as intended.
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Fundamentals of modern factory design
Important steps in the layout design process:
- Analyse the production requirements as precisely as possible
- Definition of clear production targets for the new systems
- Identification of available resources and constraints that may affect the factory layout
By analysing the requirements, the factory layout can focus on the essential aspects. Right from the start of layout design for production, a dialogue should be conducted with all decision-making levels and colleagues involved in the company. It is often necessary to seek compromises here, as the ideal ideas of all those involved cannot usually be fully realised. Rather, the layout design should ultimately contain a viable concept that fulfils all the important points and offers the best possible efficiency for the production and work processes. This is made more difficult by the increasing complexity of the problems arising from the requirements of Industry 4.0.
Clear objectives are often underestimated in holistic layout design. Yet, they are the basis for designing the factory layout. Depending on how the objectives are defined, the approaches can differ considerably. For example, if costs and production times are to be reduced, other factors need to be considered when reorganising or expanding systems to improve flexibility. Downtimes due to necessary maintenance times are also strongly influenced by the layout.
Which factors have a significant influence on the factory layout?
Even if the previous layout has proved successful, changing processes and production sequences may require redesign. In particular, introducing new technologies and replacing old machines is a good opportunity to rethink the factory layout in general. Streamlining processes is almost always an important aspect of this. Progressive automation is usually associated with a reduction in operating personnel. In return, the processes become simpler and more efficient for the remaining staff. Careful layout design in production is essential for this to succeed.
Reducing costs and increasing efficiency are important reasons for redesigning the factory layout. However, improving adaptability through greater flexibility also plays an important role. Rapid adaptation to changing market conditions is often crucial for survival in the market. Particularly, short-term changes in demand (e.g., due to certain events such as pandemics, bottlenecks in the supply of raw materials, etc.) can have an impact on the entire production process. Thanks to intelligent factory design, peaks and troughs in business can be better cushioned and scaled in line with demand.
Good layout design should always improve ergonomics and occupational safety in the company. This ultimately benefits the company’s productivity and efficiency. Especially when design layouts in production, ergonomic requirements and occupational safety regulations are sometimes not considered at all or only inadequately. Here, too, the better the layout is planned, the fewer changes need to be made afterwards.
Design the factory layout
The layout design of a factory takes place in several phases, so-called project phases. These can be roughly divided into
- Project management for the development of production targets and other requirements
- Preparation for the design process
- Definition of the structural design
- Layout design of the production
The actual layout design process is subdivided into the following areas:
- Rough planning
- Ideal planning
- Real planning
- Detailed layout planning
A rough plan is used to determine the ideal layout design. In this step, for example, the space requirements and the ideal arrangement in the subsequent layout are determined. As this ideal design is usually restricted by certain factors (e.g. health and safety regulations, fire protection, building characteristics, etc.), it is revised accordingly as part of the actual design. Several real design variants are often created to run through different priorities and recognise conflicting objectives. The final stage is the detailed design, combining the most important requirements with the feasible compromises.
Typical requirements that can lead to conflicting objectives are, for example,
- Modular structure of layout design for production
- Simplification of material transport (reduction of transport times)
- Future-proofing for future requirements
- Connection to the company’s infrastructure
- Communication channels
- Exclusion of opposing material transports
- Short distances for employees
- Better ergonomics
- Occupational safety
- Environmental aspects
All of these (and other) specifications are optimised as part of the detailed design of the layout and incorporated into the final design (or deleted), depending on priority. A transparent decision-making process with corresponding communication between the respective stakeholders in the company is strongly recommended.
Factory layout software solutions
Many companies still use 2D sketches and drafts to create a factory layout. However, 3D models are recommended for better visualisation, particularly with regard to design errors and later everyday requirements. Depending on the software used, the layouts can not only be viewed in three dimensions but can also be checked realistically in virtual reality using the appropriate technology. This means that requirements can be finalised more quickly and efficiently. The inclusion of interactive and interdisciplinary factors, in particular, is all too often neglected in small and medium-sized companies. The lack of this valuable input from the workforce reduces the potential for optimisation and inhibits the willingness to accept changes to processes in the company.
M4 PLANT from CAD Schroer for high-performance creation of high-quality 2D and 3D models for factory layouts of any size. The software also offers interfaces to VR viewers.
Good layout design software should not only include the creation of 2D and 3D models and the conversion of existing 2D plans into three-dimensional layout designs with virtual models.
Factory layout: A starter package allows projects to be started and implemented quickly.
- Intuitive operating elements
- Video tutorials and online support with optional training courses
- Good scalability of the factory layout thanks to optimised software performance
- Support throughout the entire project design process (e.g. proposal preparation, presentation options, detailed design and documentation)
The basic functions for creating 2D and 3D models are similar to those of standard CAD software. However, additional elements are required to create an optimised factory layout. This starts with an application-specific object library that contains common elements for factory design. This means that far fewer objects need to be created. It should also be possible to optimise layout design for production on an industry-specific and individual basis. In addition, the automation of certain functions represents an important added value when using specialised software for factory layouts compared to conventional CAD software.
Factory layout with machine layout, conveyor technology, building planning and much more in one software package. Benefit from the many advantages, functions and great service.
Proven procedures for creating efficient factory layouts
The main reason for creating digital layouts lies in the various advantages that this approach brings:
- Shorter cycle and cycle times in the manufacture of products
- Higher speed of overall production
- Optimum utilisation of space
- Visualisation of the production processes
- Cost reduction and profit maximisation
Cycle time is the production time for a specific product. It includes all process steps for the completion of an end product. The optimisation of all processes results in an overall increase in production speed. This is achieved, for example, by shortening the distances for employees by setting up a plant closer to the warehouse or optimising material transport. Space utilisation should generally always be optimised, as the cost of land and building space is a major factor in cost calculations. The more efficient the layout, the better. The design software not only makes it easy to place machines and systems but can also (depending on the software) help to utilise the available space efficiently. Understandably, visualisation on the screen is easier and more cost-effective than repositioning real machines in the factory hall. Combining all these advantages, a good factory layout almost always automatically reduces costs and, therefore, helps maximise profits.
If a company wants to set up a new production line, creating a factory layout, including a comprehensive simulation, is advisable. This can be carried out using software specially designed for simulation. The simulation considers the actual performance parameters and correct dimensions of the future production facilities. Different versions of the layout are usually created to determine the optimum arrangement of the production equipment. In the end, errors can be reduced, production capacity increased (while at the same time reducing the space required), and the commissioning of the subsequent plant significantly accelerated. In the short term, project costs can be reduced; in the long term, labour and manufacturing costs are reduced by increasing efficiency.
Throughout the entire project, the factory layout can be adapted and optimised in line with new findings and requirements. However, the plant layout is primarily based on carefully recording the company’s requirements. Before designing the layout, an inventory must be made to understand the company’s special features. It is essential to engage in a dialogue with company employees on issues such as the space required (and available), the acquisition of the desired machines and the associated work processes.
Special challenges in the layout design of factories
Determining the right capacities is a major challenge in every area of a company. In production, design is particularly complex, as not only previous growth but also future forecasts must be considered. Design capacities are not an exact science, as many factors cannot be predicted. Experience is helpful but can obscure the view of necessary changes. Maximum flexibility and foresight are essential for correctly dimensioning the factory layout.
What is state of the art today may be hopelessly outdated tomorrow. The extent of technological uncertainty depends largely on the specific industry activity. While in some companies, hardly anything has changed in production for decades, in other sectors, technological progress can lead to revolutionary upheavals that render previous plans and certainties completely obsolete.
When it comes to factory design, the available budget sets natural limits. However, whether and how quickly these upper limits are reached depends largely on the efficiency of cost management. Efficient use of resources when designing the factory layout can help to avoid mistakes. After all, if a plant is already in place, rectifying design errors can be very expensive and complicated. This is why a simulation of the factory layout in a 3D model, which at first glance appears complex, is often the most sensible approach.
The best layout design in production can become obsolete overnight if a shortage of skilled labour strikes. A high level of sickness, a high volume of orders or the departure of experienced employees can present companies with the problem of acute staff shortages. Reacting flexibly to this is crucial right from the design phase. Some costs can be absorbed by adjusting production capacities or increasing automation. If such flexibility is not provided for in the layout design, a shortage of skilled labour can, in the worst-case scenario, result in a complete production stop, damaging the company accordingly.
Common mistakes when designing factory layouts
The factors already mentioned regarding the flexible and modern orientation of production facilities are among the most common mistakes in layout design. Those unable to react flexibly to new challenges leave the field to the competition. In extreme cases, this can even jeopardise a company’s continued existence.
Both occupational safety and the safety of production facilities regarding environmental hazards are very important aspects nowadays, and neglecting them can have expensive and unpleasant consequences. For example, failure to comply with existing regulations when drawing up a factory layout not only jeopardises the safety of staff and the environment but can also impact the success of the business.
Careful analysis of the production processes is a basic prerequisite for success in layout design. Moreover, if the processes are not or only incompletely recorded, no matter how good the simulation of the subsequent factory plant is, it is not really meaningful. A lack of care when analysing production processes almost always pays off in practice.
Future trends in layout design for production and manufacturing
There are always new trends and developments, but they are not always stable. Distinguishing short-term fads from genuine future trends will also be decisive for the success of future production facilities in factory design. The buzzword of Industry 4.0 is of great importance here. Some of the most exciting trends with the greatest potential impact on layout design will likely be the following.
In Industry 4.0, the real and virtual worlds are merging. Thanks to 3D printing, many products can already be produced virtually on demand without the need for large inventories. The integration of the IT world into the practical world of production facilities should also not be neglected concerning layout design, as all areas of industry will be digitalised and communicatively networked in the future.
The use of artificial intelligence (AI) is an exciting topic. New opportunities are constantly emerging in which AI can help to optimise production or logistics. The fact is that AI is already being used in many areas where human interaction is no longer absolutely necessary or inefficient. There are also new possibilities for designing a factory layout. It is conceivable, for example, that artificial intelligence will find the optimum result more quickly, creating the perfect balance between space utilisation and company-specific requirements. AI will probably also soon be able to carry out standardised design steps independently during the design process itself, allowing planners to concentrate on the key challenges. AI should be seen as a further design tool in the same way that the introduction of CAD programs or the Internet functions as an extension of existing structures.
Aspects of climate protection, sustainability, and environmental protection already play a decisive role for many consumers when choosing their products. Companies that neglect this will sooner or later have an image problem. Many companies are still not aware of the importance of sustainability. However, when designing new factories and production facilities, there is an opportunity to pay more attention to these factors from the outset. This is because the requirements and legal regulations in these areas are also likely to increase. It is, therefore, advisable to focus on sustainability and environmental protection from the very first draft of a factory layout.
Summary and a look into the future
The layout design of factories today is based on completely different aspects than 20 years ago. Traditional design with technical drawings on paper has long since given way to modern CAD systems for creating two- and three-dimensional factory layouts. The advantages are apparent: virtual design makes changing parameters that affect the overall design easy. This makes it easy to implement innovations or conceptual changes and try them out without additional costs before installing the first machine on site. The simulation of complex production processes is also possible, provided a realistic and sufficient database is available.
- Digital factory layouts can be created relatively quickly in the rough designing stage
- Adjustments are possible at any time
- Many different opinions and requirements can be taken into account
- the optimum layout can be simulated in every detail
- Good layout design leads to cost reduction through increased efficiency
- A digital factory layout helps to maximise profits
- More flexibility for current and future developments
The step from the two-dimensional drawing board to the digital world has already been taken thanks to powerful CAD systems. Even today, good factory layouts can be created with relatively little effort, which previously could not be easily visualised on paper due to their complexity. Advances in virtual reality, in particular, are making 3D visualisation increasingly important. In addition, there are further developments in the networking of the real and digital production world as part of Industry 4.0. Alongside changes such as the reduction of large factories to smaller on-demand production facilities, the further development of artificial intelligence will likely have a major impact on this area.
When redesigning or reorganising production facilities, no company should forego the creation of an optimal factory layout. This is especially true for small and medium-sized companies, for whom design errors can be synonymous with devastatingly high costs. Powerful software with corresponding professional expertise and excellent online support is particularly important for inexperienced entrepreneurs. Internal communication with those who are directly affected by changes to the factory layout is also essential for the success of modern factory design.
Conclusion
An efficient factory layout is a key success factor for companies in production. Intelligent design, organisation and digitalisation not only optimise work processes but also sustainably increase competitiveness. With modern software solutions, layout design is becoming a key tool for successful factory design in the age of Industry 4.0.
A factory layout is a 2D or 3D floor plan of a factory. It refers to the spatial arrangement of machines, work areas, storage rooms and other facilities in a production facility. The aim is to ensure an efficient workflow and optimised production processes right from the design stage.
Traditional factory layouts are often rigid and tailored to specific production processes. Modern layouts are more flexible to adapt to changing requirements and often integrate digital technologies.
Digital technologies such as 3D models, collision checking and Industry 4.0 concepts play a decisive role in modern factory layouts. They enable precise design, visualisation and optimisation of production processes.
Yes, there are specialised software solutions for layout design, such as M4 PLANT. These range from CAD software with 3D functionalities to dedicated tools that are customised to the requirements of factory design.
3D software for factory layouts offers special functions for displaying production environments and enables realistic visualisation of work processes. Normal CAD software is often more generalised.