The document defines different types of production layout formats including process layout, product layout, group technology (cellular) layout, and fixed-position layout. It then provides examples of using systematic layout planning techniques and computerized layout programs like CRAFT to develop optimized process layouts that minimize material handling costs based on interdepartmental flow data. The examples show how simple exchanges aimed at cost reduction can actually increase costs due to unintended impacts on other department relationships. Overall layout optimization requires consideration of both quantitative factors like costs as well as qualitative factors such as safety and workflow.