Entrepreneurship CHAPTER 9 SECTION 2

 Once you have a site now you are ready to plan the layout.  Layout – floor plan or map that shows the arrangement of a business.  Proper layout planning is important to the success of the business.

 In layout planning, there are six steps: 1.Define the objectives of the facility. 2.Identify the primary and supporting activities that will take place in the facility. 3.Define the interrelationships between the activities. 4.Determine the space requirements for all activities. 5.Design alternative layouts for the facility. 6.Evaluate and choose the best layout for your business.

 Business owners must follow regulations when planning a layout.  Americans with Disabilities Act – must provide access for people with physical, hearing, or visual impairments

 Manufacturing businesses: 1.Main concern will be layout of machinery. 2.Answer the following questions when considering your layout:  What are your production processes?  What is your production sequence?  What is the most efficient flow of materials?  How can you have the most control?  What are your environmental needs?  What are your space requirements?

3. Types of layouts:  Product layout – all machines and supporting activities are arranged along a product flow line (assembly line)  Fixed-product layout – when the product is too heavy or bulky to be moved around the plant  Process layout – involves the grouping of machines and equipment by function

 Retail businesses: 1.Arrangement of a retail store has a major impact on sales. 2.What to consider:  Products to be sold.  Projected clientele.  Sales per square foot of selling space.  Sales value of area within the store.  Product coordination.  Aisle exposure.

 Wholesale businesses: 1.Two primary goals when planning a warehouse layout:  Provide cost effective storage.  Allow efficient movement of products in and out of the facility.  Most of the time these are housed in single-story buildings.

 Service businesses:  Physical layout depends largely on the specific service it provides.  Extraction businesses:  Must adapt to the particular environment in which the extraction operation takes place.

 E-Commerce Businesses:  Layout depends on how computers, phones, equipment, and storage are adapted in the workplace.  Is a storage area going to be needed?