The Bottom Line on Plant Layout: Efficient flow of goods can save you money

Posted by Amy Fitzgerald on Mar 19, 2018 12:45:18 PM

Imagine this scenario: Altimax Manufacturer, founded 20 years ago, operates out of rented warehouse space in a large industrial complex.  The warehouse is a metal building and has had three additions, all of different size, shape and roof height over the past 15 years.  Business is good and Altimax expands, hiring more people, renting additional space, adding new products, and using new technologies.  Rather than reorganizing space to incorporate each new operational segment, however, the plant layout has evolved irrationally as the company has grown.  Top management realizes it's got a problem, but the cost of removing walls, cleaning up old stock and moving equipment inhibits the adoption of a more rational plant layout.  Sound familiar?

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