Plant layout refers to the physical arrangement of equipment, machines, tools, and furniture in a manufacturing facility. The goal is to optimize material flow from raw materials to finished goods with the lowest costs and least amount of handling. There are four main types of layouts: product layout arranges machines in a straight line based on production steps; process layout groups similar machines together; combined layout uses aspects of both; and fixed position layout keeps products stationary while workers and machines move between positions. The optimal layout depends on factors like production volume and product standardization.