The main advantages of a good plant layout involve effectively and economical utilization of entire floor space of the plant, increased rate of production, reduced men and machine hours per unit of production, reduced material handling, minimal production delays, effective utilization of men, machinery, material and other factory support services, reduced overall production time, elimination of large amount of paper work, significant reduction in the indirect expenses, considerable reduction in inventory work for material, promote effective supervision, facilitate easy flow of men, tools and material, promote flexibility in arrangement to suit the future changes, promotes better planning and effective control, facilitates better and easier maintenance of plant and machinery, provides safer and healthier working conditions thereby improving the morale of the workmen, provides the material as well as psychological satisfaction to the workers and enhance overall efficiency of the plant.
The major merits of a good plant layout are given as under:
1. Reduced men and machine hours per unit of production,
2. Effectively and economical utilization of entire floor space of the plant,
3. Work flow is smooth and continuous
4. Work in process inventory is less
5. Production control is better
6. Manufacturing time is less
7. Relatively less floor area is required
8. Material handling is less.