Changing your shop layout is a big deal. It takes time, money, and can interrupt production. Done right, it brings big benefits. Done wrong, it causes more headaches than it solves.
So, before you start moving machines or walls, take a step back. Make sure a layout change is really the smartest move.
Here are 10 questions to ask before making a layout change - plus 10 more things often forgotten, but just as important.
1. Is your layout serving your business goals - or are you building around the layout?
Your layout should be shaped by your business strategy - not the other way around. Think about your long-term goals. Do you want shorter lead times? Smaller batch sizes? Lower costs? Your layout should help you get there. Don’t let the physical plant limit your thinking.
Tip: Use value stream mapping or a simple spaghetti diagram to visualize where time and motion are being lost.
2. Are your sales and marketing efforts aligned with your operations?
No matter how great your layout is, it won’t fix a weak order book. If your marketing isn’t attracting the right customers - or if you’re expecting big changes in product mix or volumes - sort that out first. Operations should follow sales, not lead them.
Tip: It helps to share sales forecasts and product plans with your production team early.
Before making a decision, it’s crucial to ensure that your layout aligns with your overall business strategy and goals. This means analyzing your sales and marketing efforts to ensure they are driving the operations, rather than the other way around. Once you have a clear understanding of your objectives and market demands, you can then proceed to evaluate other aspects that might hinder a successful layout change.
3. Do you have the right management team in place?
The best layout in the world won’t help if the leadership isn’t strong. Make sure your managers understand the goals, have the skills to deliver them, and are motivated to improve. If you’re stretched thin, focus on building the right team first.
Tip: In small shops, investing in leadership training or hiring a strong floor supervisor can pay off more than new racking.
4. Are your procurement and supply strategies efficient?
Do you have the right materials arriving at the right time? Are you outsourcing the right parts? Procurement is more than just cutting costs—it affects flow, inventory, and lead times. An efficient supply chain makes a huge difference.
Tip: Use a simple ABC inventory analysis to identify high-impact materials.
5. Are your products designed with manufacturing in mind?
If engineering adds complexity without understanding shop capabilities, it hurts efficiency. Too many variants, materials, or finishes can cause confusion. Design for flow, not just for sales brochures.
Tip: It’s worth holding regular meetings between marketing, sales, engineering and production to spot design issues early.
6. Are you bringing the right information to the floor, fast and clean?
If jobs are stuck in engineering or missing BOM details, the layout isn’t the issue. Fix the front-end processes first - order entry, technical reviews, bill of materials. You want complete, clean jobs hitting the floor.
Tip: Even a simple checklist for order release can remove delays.
7. Are you using the right manufacturing model?
Are you building in large batches because that’s how we’ve always done it? Big batches cause delays and WIP pileups. A pull system and/or smaller batch logic serves you better, most of the time. Layout can help - but only if your process logic is right.
Tip: Try tracking lead time from raw materials to finished product. If it’s mostly waiting time, your model may need rethinking.
8. Are you missing a simple machine or technology that would solve the real problem?
Before ripping up your layout, ask: is there a machine or automation tool that would fix the bottleneck? Sometimes adding a basic tool, a lift table, or a labeling machine does more than moving walls.
Tip: Visit a tradeshow or ask your machine supplier for ideas - they often have low-cost solutions.
9. Is machine uptime acceptable - or do breakdowns kill flow?
If machines are down often, your flow will suffer no matter the layout. Start with preventive maintenance and machine care. You’ll get more out of the same footprint.
Tip: A basic downtime log is a good start. From there, build toward a simple TPM (Total Productive Maintenance) system.
10. Are individual workstations efficient and safe?
Sometimes the problem isn’t the whole plant - it’s a few inefficient workbenches. Check ergonomics, access to tools, lighting, and safety. Fixing one area might unlock more speed than a full redesign.
Tip: Walk the shop floor with your team.Ask where they lose time or struggle with movement.
Ten more things that often get missed (but matter just as much)
11. Do you have real data to guide your decision?
It’s easy to go with gut feeling, but layout decisions should be based on facts. Look at your Kips - cycle time, WIP, material handling cost. Try simulating layout options or mapping flow. Let the numbers speak.
Tip: Use simple software or even sticky notes on a whiteboard to model changes before committing.
12. Is your layout aligned with changing customer needs?
Customers want faster delivery, more options, and higher quality. Can your layout support those needs? If demand is shifting to smaller runs or more customization, your plant should keep up.
Tip: Talk to your sales team about customer trends and expectations.
13. Is your team ready for change?
Change fails when people resist it. Involve your team early. Start with the objective, not with the solution. Explain the why. Let them share ideas and concerns. You’ll get better buy-in and smarter plans.
Tip: Start with a simple toolbox talk or Kaizen event to open the discussion.
14. Have you looked at your logistics—outside the building?
A beautiful layout that jams up at the dock isn’t much help. Think about how trucks arrive, how materials flow in, and how finished goods leave. The best plant layouts think beyond the walls.
Tip: Walk your yard and shipping areas - look for delays, double handling, or tight spots.
15. Have you done a cost-benefit analysis?
What will the layout cost? What will it save? Put numbers to it—labour, throughput, space use. Then compare it to other improvement options. Sometimes a software fix or process change gives more bang for the buck.
Tip: As the saying goes: “If the juice isn’t worth the squeeze, don’t squeeze it.”
16. Are you meeting safety, lighting, air, and noise standards?
Don’t forget the environment inside your plant. Layout changes can hurt (or help) safety and comfort. Don’t block fire exits or crowd people into noisy corners. Better airflow, lighting, or noise control can improve both morale and productivity.
Tip: Add a quick EHS walk to your layout planning checklist.
17. Will the new layout grow with your business?
Think ahead. Will the new layout still work if production doubles? Can it handle new products? Don’t paint yourself into a corner.
18. Did you involve the right people in planning?
Layout changes affect everyone—operators, maintenance, engineers, logistics. Bring them in early. They’ll spot issues you won’t. And they’ll be more invested in the success.
Tip: Involve cross-functional teams with a simple layout planning meeting or feedback loop.
19. Have you tried layout tools or simulations?
You don’t need a fancy 3D model all the time. If you’re investing big, layout software or a digital twin or simulations will be justified. These tools let you test before you build.
A simple scale model with paper cutouts can work for you. From there you then develop a proper 2-D drawing.
20. Can you learn from others?
Nothing beats real-world examples. Ask peers in the industry. What worked for them? What didn’t? Learn from their mistakes before making your own.
Tip: Learning from a peer shop: At the end of April the CKCA toured four manufacturing plants in the Ottawa area. You can pick up ideas from every plant and translate them to your situation.
Final Word: Change the layout only if it’s the right tool
Layout change isn’t a magic fix. Sometimes it’s the right move. But other times, it’s just rearranging problems. Start with strategy, get your processes straight, and ask the right questions. Then - and only then - get out the tape measure.
