Shop Layout Management IM 1 PDF

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Foreword
Welcome to the module in “Shop Layout Management”. This module contains

training materials and activities for you to complete.
The unit of competency " Shop Layout Management" deals with the skills, knowledge
and attitude required to create space-saver, eco-friendly and effective shop or plant layout
that takes into considerations the provisions of the National Building Code of the Philippines.
This module will lead you through different learning activities in order to complete
each learning outcome of the module. Each learning outcomes is provided with Learning
Contents (Reference Materials for further reading to help you better understand the required
activities). Follow these activities and answer the self-check at the end of each learning
outcome. You may remove a blank answer sheet at the end of each module (or get one from
your facilitator/trainer) to write your answers for each self-check. If you have questions,
don’t hesitate to ask your facilitator for assistance.
Recognition of Prior Learning (RPL)

You may already have some or most of the knowledge and skills covered in this learner's
guide because you have:
• been working for some time

• already completed training in this area.
If you can demonstrate to your trainer that you are competent in a particular skill or
skills, talk to him/her about having them formally recognized so you don't have to do the
same training again. If you have a qualification or Certificate of Competency from previous
trainings, show it to your trainer.
If the skills you acquired are still current and relevant to the unit/s of competency they
may become part of the evidence you can present for RPL. If you are not sure about the
currency of your skills, discuss this with your trainer.
At the end of this module is a Learner’s Diary. Use this diary to record important dates,
jobs undertaken and other workplace events that will assist you in providing further details
to your trainer or assessor. A Record of Achievement is also provided for your trainer to
complete once you complete the module.
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This module was prepared to help you achieve the required competency, in Operating
Camera and Composing a Subject. This will be the source of information for you to acquire
knowledge and skills in this particular trade independently and at your own pace, with
minimum supervision or help from your instructor.
▪ Talk to your instructor and agree on how you will both organize the Training of this
unit. Read through the module carefully. It is divided into sections, which cover all the
skills, and knowledge you need to successfully complete this module.
▪ Work through all the information and complete the activities in each section. Read
information sheets and complete the self-check. Suggested references are included to
supplement the materials provided in this module.
▪ Use the self-check questions at the end of each section to test your own progress.
▪ When you are ready, ask your trainer to watch you perform the activities outlined in
this module.
▪ As you work through the activities, ask for written feedback on your progress. Your
trainer keeps feedback/ pre-assessment reports for this reason. When you have
successfully completed each element, ask your trainer to mark on the reports that you
are ready for assessment.
▪ When you have completed this module (or several modules), and feel confident that you
have had sufficient practice, your trainer will arrange an appointment with registered
assessor to assess you. The results of your assessment will be recorded in your
competency Achievement Record.
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Table of Contents
Chapter 1: Principles of Management 6
Introduction to Management 7
What are Managers 7
Functions of Management 8
Role of Managers 11
Management Levels and Organizational Hierarchy 14
6 m’s of management 15
Planning as a Function of Management 16
Importance of Planning 17
Features of Planning 18
Planning Process 19
Types of Planning 20
Chapter 2: Introduction to Shop Layout 23
Overview of Shop layout 24
Fundamentals of Shop layout 25
Types of Shop Layout 26
Chapter 3: Plant Layout and Plant Location 34
Overview of Plant layout 35
Manufacturing Considerations 37
Basic Plant Buildings 40
Introduction to Plant Location 41
Trends in Plant Location 43
Location analysis 44
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Chapter 4: Materials Management and Material Handling 48
Introduction to Materials Management 49
Classification of Materials 50
Scope of materials management 52
Material Handling 54
Factors in Selecting Machines and Equipment 55
Material Handling Equipment 56
Chapter 5: Warehousing 68
Introduction to Warehousing 69
Warehousing Management 70
Warehousing Process 70
Warehousing Elements and Strategies 73
Chapter 6: Philippine National Building Code 81
National Building Code General Provisions 82
General Building Requirement and Site Requirement 83
Classification of general requirements of all buildings by use of occupancy. 85
Sizes and Dimensions 92
Ceiling Heights 97
Air Space Requirements and Sizes of rooms for human habitation. 98
Guidelines of easements. 100
Law of Enhanced Mobility of PWD 102
Guidelines on sidewalks, parking, signages 113
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Learning Outcome 1:
UNIT OF COMPETENCY: Principles of Management
MODULE TITLE: Principles of Management
MODULE DESCRIPTOR:
This module covers the knowledge, skills and attitudes required to discuss the
overview of management principles, its concepts, role of managers in a corporate setting
and management functions to the industrial companies.
NOMINAL DURATION: 68-hours
Objectives:
At the end of this module you MUST be able to:
Discuss management concepts and principles
Learn who managers are and about the nature of their work
Understand the role of management in an industrial setting
Identify management levels and their responsibilities
Appreciate management process
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Learning Content 1:
Chapter 1 – Principles of Management
Introduction
We’re betting that you already heard management and even already took up other
management subjects on your previous academic years. We also bet that you have a lot of
experience already in working with organizations and teams. You’ve participated in social or
religious groups, competed in sports or games, or taken on full- or part-time jobs. Some of
your experience was probably pretty positive, but you were also likely wondering sometimes,
“Isn’t there a better way to do this?”
After this course, you will find a way to do it better and management will help you
achieve it.
Management is an art and science of getting things done through the effort of people.
This definition is drawn from a biography of Mary Parker Follett (1868–1933) written by P.
Graham, Mary Parker Follett: Prophet of Management (Boston: Harvard Business School
Press, 1995).
The principles of management are the means by which you actually manage, that is,
get things done through others individually, in groups, or in organizations. It is the activities
that plan, organize, and control the operations of the basic elements of people, materials,
machines, methods, money and markets, providing direction and coordination, and giving
leadership to human efforts, so as to achieve the sought objectives of the enterprise.
All of these are company assets. Assets give and support the existence of the business.
What are Managers?
A manager is a person responsible for the planning, organizing, leading and controlling
an organization. Managers do not spend all their time managing. When choreographers are
dancing a part, they are not managing, nor are office managers managing when they
personally check out a customer’s credit.
Some employees perform only part of the functions described as managerial and to
that extent, they are mostly managers in limited areas.
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Managers also empowers their employees to certain task or duties in the organization.
This gives the employees remuneration and motivation to work therefore they may increase
the productivity of their work and give good results.
Empowerment is the process of enabling or authorizing an individual to think,

behave, take action, and control work and decision making in autonomous ways. In this
case, managers can authorize and give power to their employees, letting them decide what is
best for the organization based on its goals and objectives.
An organization have different manager types. One is the general manager. A general
manager is someone who is responsible for managing a clearly identifiable revenue-
producing unit, such as a store, business unit, or product line. General managers typically
must make decisions across different functions and have rewards tied to the performance of
the entire unit example of these are store operations, stock unit, product line marketing, etc.
General managers take direction from their top executives. They must first
understand the executives’ overall plan for the company. Then they set specific goals for their
own departments to fit in with the plan.
The general manager of production, for example, might have to increase certain
product lines and phase out others. General managers must describe their goals clearly to
their support staff. The supervisory managers see that the goals are met.
Functions of Management
Management has been described as a social process involving responsibility for

economical and effective planning & regulation of operation of an enterprise in the fulfillment
of given purposes.
It is a dynamic process consisting of various elements and activities. These activities

are different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manager irrespective of his level or status.
According to George and Jerry, there are four (4) functions of management namely;
planning, organizing and the actual controlling.
According to Henry Fayol, to manage is to forecast and plan, to command and control.
Whereas Luther Gullick has given the keyword POSDICON where P stands for Planning, O
for Organizing, S for Staffing, DI for Directing and CON for Controlling.
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Planning, Organizing, Staffing, Directing and Controlling is the most commonly used
and accepted functions of management given by Koontz and O’donnel. For theoretical
purposes, it may be convenient to separate the function of management but practically these
functions are overlapping in nature. The functions of management are highly inseparable,
each function blends into the other and each affects the performance of others.
The figure below shows the process of management:
1. Planning – is a basic function of management where it gives future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-
determined goals.
According to Koontz, planning is deciding in advance it tells us what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be. Planning is necessary
to ensure proper utilization of human & non-human resources. It is all pervasive, it is an
intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages
etc.
2. Organizing - It is the process of bringing together all the assets of the business. Either
physical assets, financial and human resources and developing productive relationship
amongst them for achievement of organizational goals.
According to Henry Fayol, to organize a business is to provide it with everything useful or

its functioning. Organizing as a process involves:
• Identification of activities
• Classification of grouping activities
• Assignment of duties
• Delegation of authority and creation of responsibility
• Coordinating authority and responsibility relationships
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3. Staffing – this function of management gives importance to the human capital of the
organization. Its purpose is to man the organizations structure and keep it manned.
Staffing involves:
• Man power planning
• Recruitment, Selection and Placement of man power
• Training and Development
• Remuneration
• Performance Appraisal
• Promotions and Transfer
4. Directing – it is the function of management which actuates the organizational methods

to work efficiently for achievement of organizational purposes.
It is also considered life-spark of the enterprise which sets it in motion the action of people
because planning, organizing and staffing are the mere preparations for doing the work.
Directing has the following elements:
a. Supervision - it is the act of watching & directing work & workers.

b. Motivation - means inspiring, stimulating or encouraging the sub-ordinates
with zeal to work. Positive, negative, monetary, non-monetary incentives may
be used for this purpose.
c. Leadership – the process by which manager guides and influences the work of
subordinates in desired direction.
d. Communication - is the process of passing information, experience, opinion
from one person to another. It is a bridge of understanding
5. Controlling – this is the function of management that evaluates the performances of the
organization.
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of controlling
is to ensure that everything occurs in conformities with the standards.
Controlling and measuring an organizations performance has the following steps:
1. Establishment of standard performance.

2. Measurement of actual performance.
3. Comparison of actual performance with the standards and finding out deviation if any.
4. Corrective action.
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Role of Managers
Managers assume multiple roles in an organization. According to Mintzberg there are

ten roles common to the work of all managers. As summarized in the following figure, the
ten roles are divided into three groups: interpersonal, informational, and decisional. The
informational roles link all managerial work together.
The interpersonal roles ensure that information is provided. The decisional roles make
significant use of the information. The performance of managerial roles and the requirements
of these roles can be played at different times by the same manager and to different degrees,
depending on the level and function of management. The ten roles are described individually,
but they form an integrated whole.
The three interpersonal roles are primarily concerned with interpersonal relationships.
In the figurehead role, the manager represents the organization in all matters of formality.
The top-level manager represents the company legally and socially to those outside of
the organization. The supervisor represents the work group to higher
management and higher management to the work group. In the liaison role, the
manager interacts with peers and people outside the organization.
The top-level manager uses the liaison role to gain favors and information, while the
supervisor uses it to maintain the routine flow of work. The leader role defines the
relationships between the manager and employees.
The figure below shows the ten managerial roles:
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Let's look at each of the ten managerial roles in greater detail:
Interpersonal Category
The managerial roles in this category involve providing information and ideas:
1. Figurehead – As a manager, you have responsibilities. A manager is expected to be a

source of inspiration. People look up to you as a person with authority, and as a
figurehead.
2. Leader – This is where a manager provide leadership for your team, your department or
perhaps your entire organization and it's where you manage the performance and
responsibilities of everyone in the group.
3. Liaison – Managers must communicate with internal and external contacts. You need to
be able to network effectively on behalf of your organization.
Informational Category
The managerial roles in this category involve processing information:
4. Monitor – In this role, managers regularly seek out information related to your
organization and industry, looking for relevant changes in the environment. You also
monitor your team, in terms of both their productivity, and their well-being.
5. Disseminator – This is where a manager communicates with a potentially useful

information to your colleagues and your team.
6. Spokesperson – Managers represent and speak for their organization. In this role, you're
responsible for transmitting information about your organization and its goals to the
people outside it.
Decisional Category
The managerial roles in this category involve using information:
7. Entrepreneur – As a manager, you create and control change within the organization.
This means solving problems, generating new ideas, and implementing them.
8. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's

the manager who must take charge.
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9. Resource Allocator – it involves allocating funding, as well as assigning staff and other
organizational resources.
10. Negotiator – You may be needed to take part in, and direct, important negotiations
within your team, department, or organization.
To summarize the role of a manager. A manager is the lifeblood of most organizations

because it serves to choreograph and motivate individuals to do amazing things. Managerial
work is exciting, and it is hard to imagine that there will ever be a shortage of demand for
capable, energetic managers.
On the other hand, managerial work is necessarily fast-paced and fragmented, where
managers at all levels express the opinion that they must process much more information
and make more decisions than they could have ever possibly imagined. So, just as the most
successful organizations seem to have well-formed and well-executed strategies, there is also
a strong need for managers to have good strategies about the way they will approach their
work. This is exactly what you will learn through principles of management.
A good manager should possess various skills for them to properly implement and
initiate planned activities for the organization.
There are three (3) types of managerial skills:
1. Technical skills - managers must have the ability to use the tools, procedures, and
techniques of their special areas. An accountant must have expertise in accounting
principles, whereas a production manager must know operations management.
2. Human relations skills - involve the ability to work with people and understand
employee motivation and group processes. These skills allow the manager to become
involved with and lead his group.
3. Conceptual skills - these skills represent a manager’s ability to organize and analyze
information in order to improve organizational performance. They include the ability
to see the organization as a whole and to understand how various parts fit together to
work as an integrated unit.
These skills are required to coordinate the departments and divisions successfully so
that the entire organization can pull together.
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Management Levels and the Organizational hierarchy
Although each manager may have a diverse set of responsibilities, the amount of time
spent on each activity or process in an organization will vary considerably. The two most
salient perceptions of a manager are (1) the manager’s level in the organizational hierarchy
and (2) the type of department or function for which he is responsible.
In the management level, we can distinguish three general levels of management

namely the top level management or the executives, middle management, and first-line
management and the rank and file management.
The figure below shows the management levels:
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1. Executive managers – are at the top of the hierarchy and are responsible for the entire
organization, especially its strategic direction.
2. Middle managers – they below at the middle of the hierarchy, are responsible for major
departments and may supervise other lower level managers.
3. First-line managers – they supervise rank-and-file employees and carry out day-to-
day activities within departments.
6 M’s of Management
Management has different elements to consider to reach the goals and objectives of an
organization. The 6M’s of management namely: Manpower, Method, Machine, Material,
Market and Measurement, is always intertwined with the 6M’s of production which has the
same concept.
The figure below shows the 6 M’s of management:
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1. Manpower – refers to the functional labor of people engaged in the delivery of products
and service.
2. Method – refers to the systematic process a business is making to reach organizational

goals and objective.
3. Machine – refers to the physical assets of the business such as their physical facilities,
tools, equipment employed for managing such operations and processes.
4. Material – refers to the raw materials, consumables and components used to satisfy
product and service delivery.
5. Market – refers to the target market, customers or consumers where the product and
service is given to.
6. Measurement – this refers to the inspection, quality and quantity checking of products
and service. It also refers to the evaluation of performance of the assets of the business.
Planning as a function of management
All business firms would like to be successful, increase their sales and earn profits. All
managers dream of these and strive and strive to achieve their goals. But to turn these
dreams into reality managers needs to work hard in thinking about the future, in making
business predictions and achieving targets.
Dreams can be turned into reality only if business managers think in advance on what
to do and how to do it. This is the essence of planning. Planning is deciding in advance what
to do and how to do as mentioned at the previous topic.
Planning, thus, involves setting objectives and developing appropriate courses of action
to achieve these objectives. Objectives provide direction for all managerial decisions and
actions. Planning provides a rational approach for achieving predetermined objectives.
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Importance of Planning
Planning is certainly important as it tells us where to go, it provides direction and
reduces the risk of uncertainty by preparing forecasts. The major benefits of planning are
given below:
1. Planning provides directions - by stating in advance how work is to be done planning

provides direction for action. Planning ensures that the goals or objectives are clearly
stated so that they act as a guide for deciding what action should be taken and in
which direction.
2. Planning reduces the risks of uncertainty - planning is an activity which enables a

manager to look ahead and anticipate changes. By deciding in advanced the tasks to
be performed, planning shows the way to deal with changes and uncertain events.
3. Planning reduces overlapping and wasteful activities – planning serves as the basis
of coordinating the activities and efforts of different divisions, departments and
individuals. It helps in avoiding confusion and misunderstanding.
4. Planning promotes innovative ideas - since planning is the first function of

management, new ideas can take the shape of concrete plans. It is the most
challenging activity for the management as it guides all future actions leading to
growth and prosperity of the business.
5. Planning facilitates decision making – planning helps the manager to look into the
future and make a choice from amongst various alternative courses of action.
6. Planning establishes standards for controlling - planning involves setting of goals.

The entire managerial process is concerned with accomplishing predetermined goals
through planning, organizing, staffing, directing and controlling.
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Features of Planning
Since planning is the primary function of management they have set their objectives
first. Thus, all businesses follow a set pattern of planning. You will be able to find some
similarities in the features of planning and what you see in real life.
The planning function of the management has certain special features. These features
throw light on its nature and scope.
1. Planning focuses on achieving objectives - organizations are set up with a general

purpose in view. Specific goals are set out in the plans along with the activities to be
undertaken to achieve the goals.
2. Planning is a primary function of management - planning lays down the base for
other functions of management. All other managerial functions are performed within
the framework of the plans drawn.
3. Planning is pervasive - planning is required at all levels of management as well as in

all departments of the organization. It is not an exclusive function of top management
nor of any t. But the scope of planning differs at different levels and among different
departments.
4. Planning is continuous - plans are prepared for a specific period of time, may be for
a month, a quarter, or a year. At the end of that period there is need for a new plan to
be drawn on the basis of new requirements and future conditions.
5. Planning is futuristic - planning essentially involves looking ahead and preparing for
the future. The purpose of planning is to meet future events effectively to the best
advantage of an organization.
6. Planning involves decision making - Planning essentially involves choice from

among various alternatives and activities. If there is only one possible goal or a possible
course of action, there is no need for planning because there is no choice.
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Planning Process
Planning, as we all know is deciding in advance what to do and how to do. It is a process
of decision making. How do we go about making a plan? Since planning is an activity there are
certain logical steps for every manager to follow.
1. Setting objectives - the first and foremost step is setting objectives. Objectives may be
set for the entire organization and each department or unit within the organization. It
should be stated clearly for all departments, units and employees.
They give direction to all departments. Departments then need to set their own
objectives within the broad framework of the organization’s philosophy.
2. Developing premises - planning is concerned with the future which is uncertain and
every planner is using conjecture about what might happen in future, with this, a
manager should make assumptions and develop it aligned to the company’s goals and
objectives.
3. Identifying alternative courses – once objectives are set, assumptions are made.
Then the next step would be to act upon them. There may be many ways to act and
achieve objectives.
4. Evaluating alternative courses - the next step is to weigh the pros and cons of each
alternative. Each course will have many variables which have to be weighed against
each other.
The positive and negative aspects of each proposal need to be evaluated in the light of
the objective to be achieved.
5. Selecting an alternative - this is the real point of decision making. The best plan has
to be adopted and implemented. The ideal plan, of course, would be the most feasible,
profitable and with least negative consequences.
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Types of Plans
Plans can be classified into several types depending on the use and the length of the
planning period. Certain plans have a short term horizon and help to achieve operational
goals. These plans can be classified into single-use plans and standing plans.
1. Single-use plan - is developed for a one-time event or project. Such a course of

action is not likely to be repeated in future.
The duration of this plan may depend upon the type of the project. It may span a
week or a month. A project may sometimes be of only one day, such as, organizing
an event or a seminar or conference. These plans include budgets, programs and
projects.
2. Standing plan - is used for activities that occur regularly over a period of time. It
is designed to ensure that internal operations of an organization run smoothly.
Such a plan greatly enhances efficiency in routine decision-making.
It is usually developed once but is modified from time to time to meet business
needs as required. Standing plans include policies, procedures, methods and rules.
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Assessment
Self Check 1
Identification
Directions: Identify what is being asked, write your answer on the space provided before each
number.
______________ 1. It refers to the functional labor of people engaged in the delivery of products
and service.
______________ 2. A function of management where it gives future course of action & deciding
in advance the most appropriate course of actions for achievement of pre-determined goals.
______________ 3. A management level that is responsible for the entire organization,
especially its strategic directions.
______________ 4. It refers to the physical assets of the business such as their physical
facilities, tools, equipment employed for managing such operations and processes.
______________ 5. A managerial skill that involves the ability to work with people and
understand employee motivation and group processes.
______________ 6. A managerial skill that organizes and analyze information in order to
improve organizational performance.
______________ 7. It is the process of bringing together all the assets of the business.
______________ 8. It refers to the inspection, quality and quantity checking of products and
service. It also refers to the evaluation of performance of the assets of the business.
______________ 9. A person responsible for the planning, organizing, leading and controlling
an organization.
______________10. It is an art and science of getting things done through the effort of people.
Self Check 1.2
Directions: Read the statement carefully. In 2-3 sentences, explain what is being asked.
1. Explain how management can affect the goals and objectives of the organization.
2. Why do organizations need managers?
3. What are some different types of managers and how do they differ?
4. Describe and explain the different levels of management.
5. Describe and explain the 6’Ms of management and how are they related to each other.
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Assessment Criteria
Criteria:
• Learning materials and references are checked and validated for instructional use.
Condition:
The participants should have access to:
• Internet and other references materials.
Assessment Method:
• Written or oral examination
Principles of Management
Learning Activities Special Instructions

Read and Understand Information Sheet
(Learning Content 1) You must get 75% on the Self Check
Answer Self Check 1 and 1.2
Principles of Management, role of For evaluation of answers in essay,
managers, management levels and the consultation will be scheduled depending
6M’s of management and the planning on the availability of time if the learner
function of management and the instructor.
Answer Key:
1. Man power 9. Manager

2. Planning 10. Management
3. Executive Manager
4. Machine
5. Huma Relation skills
6. Conceptual skills
7. Organizing
8. Measurement
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Learning Outcome 2:
UNIT OF COMPETENCY Shop Layout Management
MODULE TITLE Shop Layout Management
MODULE DESCRIPTOR:
This module covers the knowledge, skills and attitudes required to discuss Shop
Layout management, different types of shop layout, compare and contrast various shop
layout designs and determine each function of the types of shop layout.
Objectives:
1. Discuss Shop layout and its purpose to industrial businesses
2. Identify the different types of shop layout.
3. Appreciate the importance of having a strategic shop layout design.
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Learning Content – 2
Chapter 2 – Shop Layout Management
Introduction
It is very essential for a business to give importance to the floor plan and design of
their physical assets because it gives impact to certain factors such as store attributes,
machine and equipment placement, and material distribution. It also gives business with
retail stores satisfaction to their consumers on the design of their store. Successful and
profitable retailers use effectively each and every square meter of the retail space, both in the
store and in the warehouse. Since retail space is costly, space management is gaining
strategic importance in retailing.
Appropriate store floor plans, location of certain merchandise categories, levels of

inventory and visual displays are crucial factors of proper use of retail space. Misuse of retail
space can be vital to retailer’s as it can result in difficulties in orientation of customers in
the store, their shorter stay in the store, consequentially lower sales and possible loss of
customers.
It is hypothesized that effects of poor space management are even more pronounced
in retail formats that incorporate self-service as a selling method with food retailers being
especially at risk because in a setting where consumers can find identical merchandise in
more than one store, layout and presentation become key differentiating factors. Managing
the store or shop layout will be a great use to minimize cost of the business.
What is Shop Layout?
Shop Layout is the strategic use of space to influence the customer experience. It is
also concern with the strategic design and space management, including furniture, displays,
fixtures, lighting and signage.
Management to shop layout on the other hand gives the planning the design of the
shop, organizing all the resources needed for it, staffing or manning the organization for
proper utilization of the area of the laborers, directing man power for further improvements
or expansion of the shop and controlling the core areas that affects the product and service
of the organization.
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Fundamentals of Shop layout
The purpose of lay outing your shop is to maximize the assets of the company, it
lessens the cost of operations and gives productivity to by utilizing all the available space of
the floor plan you have designed.
The following are the fundamentals of lay outing your shop:
1. Integration - is a collection processes required to ensure that the various element of

the project are properly coordinated. It involves making trades off among competing
objectives and alternatives to meet or exceed stakeholder’s needs and expectation.
2. Utilization – one of the importance of having a good shop layout is to utilize space,
making it practical and effective in the operations of the business. It gives maximum
use of resources to provide efficient services to clients.
3. Expansion – a good shop layout design may give opportunities such as expansion on
spaces, it gives more room for improvement to the company. It enables the
company to expand its space and to be use for other operations and
services to the company.
4. Flexibility – it is the ability of the company to adopt on the changes of trends in the
industrial setting, it enables the operation to change if it is demanded by the current
market making the operation smooth and without delay.
5. Versatility - is about being able to move freely and confidently from work to work,
from task to task, from role to role. It is also the ability of the shop or workplace to
adapt to new task or working requirements with sacrificing its integrity and workers
safety.
6. Regularity - A term used to describe how a system is capable of meeting demand for
deliveries or performance. It provides efficiency in output and minimizes delays in
services.
7. Closeness - closeness in layout means the proper placement of every part or area in
the workplace according to their functions and relationship.
8. Convenience - It is the arrangement of every part or items in the workplace that

corresponds to the needs of every workers, administrators, and clienteles that saves
or simplifies work, easy access and provides ease or comfort to everyone.
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9. Orderliness - Is associated with other qualities such as cleanliness and diligence, and
the desire for order and symmetry, and is generally considered to be a desirable quality.
Types/ Kinds of Shop Layout
The different types of shop layout helped the companies utilized and adopt to the needs
and demands of the consumers, it enables their operations to be efficient and effective.
1. Product or Line Layout

2. Process or Functional Layout
3. Combination Type Layout
4. Fixed Position Layout
Product or Line layout

An arrangement based on the sequence of operations that are performed during the
manufacturing of a good or delivery of service. Continuous-flow, mass-production, and flow
shop processes are usually physically organized by a product layout.
The illustration below shows product layout process:
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Process or Functional Layout
Is a design for a floor plan of a plant which aims to prove efficiency by arranging
equipment according to its function. Process layout is usually used for products that are in
average size and with an average production process.
The illustration below shows the Process Layout design:
27
Combination Layout
It refers to the combination of two or more layout, usually large scale of production. It is
also called Hybrid Layout.
The illustration below is an example of a Combination type layout:
In this example, the process of manufacturing is divided based on its operation and
the finished product is made in sequence. In this manner of layout design, confusion of the
process of manufacturing will be lessened and it is flexible to goods that can be mass
produced or it can be by batch manufacturing because of the ability of the design to adopt
to changes in operations.
28
Fixed Position Layout
It Addresses the layout requirements of large, bulky projects such as ships, buildings,
real estate, etc.
The illustration below is an example of a Fixed position type of layout:
In this example, all assets of the company such as the human resources or the labor
capital, energy, supplies such as electricity, water supply, communication resources and
material resources such as raw materials, equipment and or tools are organized to be placed
on one plant location.
29
Activity
Self Check – 2.1
Identification
number.
_____________ 1. It is the collection processes required to ensure that the various element of
the projects are properly coordinated.
_____________ 2. The strategic use of space to influence the customer experience.
_____________ 3. It is associated with other qualities such as cleanliness and diligence, and
the desire for order and symmetry, and is generally considered to be a desirable quality.
_____________ 4. A design for a floor plan of a plant which aims to prove efficiency by arranging
equipment according to its function.
_____________ 5. It refers to the combination of two or more layout, usually large scale of
production.
_____________ 6. It is the arrangement of every part or items in the workplace that
corresponds to the needs of every workers, administrators, and clienteles that saves or
simplifies work, easy access and provides ease or comfort to everyone.
_____________ 7. It enables the company to expand its space and to be used for other
operations and services to the company.
_____________ 8. A type of layout that have arrangement based on the sequence of operations
that are performed during the manufacturing of a good or delivery of service.
_____________ 9. It is the ability of the company to adopt on the changes of trends in the
industrial setting.
_____________ 10. It is also the ability of the shop or workplace to adapt to new task or working
requirements with sacrificing its integrity and workers safety.
30
Activity
Self Check 2.2
TASK SHEET
Title:
DRAWING OF THE DIFFERENT TYPES OF SHOP LAYOUT
Performance Objective:
Given the necessary tool and materials, you should be able provide and
create a specific layout for a manufacturing company of your choice.
Supplies/Materials:
Pencil number 2
Any drafting paper/ or bond paper size 8.5 x 11’
Direction:
1. Using the prescribed paper, draw a margin with a size of:
Top: 1’
Right: 1’
Left: 1’
Bottom: 1.5’
2. At the bottom of the paper write from left to right:

Name:
Section/ year and major:
Score:
Shop layout type:
3. Provide a minimum of 3 design of a manufacturing process of any

company of your choice in relation to the learning content provided of
the topic: Types of shop layout.
4. For guidance, students may research and use other sources as long
as it is related to the topic.
5. Submit output to instructor whenever finished for evaluation.
Assessment Method:
1. Output is graded based on the criteria provided.
31
Assessment Criteria
Criteria:
Condition:
Assessment Method:
Shop Layout Management

Read Learning Content 2

You must get at least 75% on the Self
Answer Self Check 2.1: Check 2.1
Overview of Shop layout Management,
Fundamentals of Shop layout and types of Consult your instructor for evaluation
shop layout
Read and Comprehend Learning Content

2
Consult your instructor for discussion
Types of Shop Layout.
and evaluation of the output.
Answer Self Check 2.2
32
Activity/ Performance Criteria
2-4 5-6 7-8 9-10

Knowledge and Understanding
The student showed The student showed The student showed The student showed
limited knowledge, satisfactory good knowledge, excellent
understanding, knowledge, understanding, knowledge,
concept and understanding, concept evident in understanding,
support to their concept and their design concept evident in
current work. support to their process. their design
current work. process.
Answer Key: (Self Check)

1. Integration.
2. Shop layout
3. Orderliness
4. Process layout
5. Combination type layout
6. Convenience
7. Expansion
8. Product Layout
9. Flexibility
10.Versatility
33
Learning Outcome 3
UNIT OF COMPETENCY Plant layout and Plant location
MODULE TITLE Plant layout and Plant location
MODULE DESCRIPTOR:
This module covers the knowledge, skills and attitudes required to discuss the overview of
plant layout, plant building types and the different considerations comparing the
different layout designs on specific type of operations.
LEARNING OUTCOMES:
• Discuss the concept of plant location and plant layout
• Discuss and explain the different types of shop/plant buildings
• Discuss and explain the different types of shop/plant layout
• Enumerate and explain the advantages and disadvantages of the different plant
layouts
• Value the importance of following a good plant layout to maximize space and
production process
34
Learning Content – 3
Chapter 3 – Plant Layout and Plant Location
Introduction
In the previous topic, you have learnt about how basic shop layout is designed and
what are the basic factors to consider in designing such floor plan. This lesson deals with
various aspects of plant location and layout. Investment in analyzing the aspects of plant
location and the appropriate plant layout can help a business achieve economic efficiencies
in business operations. These decisions lay the foundation of the business of small business
and maybe big business.
Every entrepreneur is faced with the problem of deciding the best site for location of his plant
or factory.
What is a Plant Layout?
It is a plan for effective utilization of facilities for the manufacture of products; involving
a most efficient and economical arrangement of machines, materials, personnel, storage
space and all supporting services, within available floor space.
According to James Lundy a layout involves the allocation of space and the
arrangement of equipment in such a manner that overall operating costs are minimized. It
means that it all falls down into one specific goal of the organization, minimizing costs. These
costs are usually used in the operation of the business.
The following are examples of costs used in operations:
• Rent – rent cost are usually fixed.

• Machines and Equipment – Some machines and equipment require electricity or
other resources for it to work and maintain.
• Utilities – cost in using utilities such as electricity, water, waste disposals, heating,
sewage, etc
• Materials – Material costs are used to produce a product.
• Parts – Parts are also materials to produce a product, it is also used for after sales
such as repair and maintenance of machines and equipment.
• Maintenance and Repair – costs to maintain the service of a machine and equipment.
• Freight and Delivery – cost of transportation delivery from the point of the warehouse
to the last end consumer.
• Man power – Cost for the salary of man power and for their training.
35
Objectives of Plant Layout:
• Minimize material handling.

• Facilitate manufacturing progress by maintaining balance in the processes.
• Maintain flexibility of arrangements and of operation.
• Maintaining high turnover of in-process inventory.
• Effective utilization of men, equipment and space
• Increase employee morale
• Minimize interference from machines
• Reduce hazards affecting employees
Importance of Plant Layout
The layout of a plant is quite important in view of the above definition but the
importance of a layout may greatly vary from the industry to industry.
To attain the best possible lay out it should be proportional to the following factors:
1. Weight, volume and mobility - the weight, volume and mobility of the product is
considered a factor since it may require industrial machines and equipment to handle,
move, such heavy and large amounts of goods, it may also require large amount of
laborers to ensure productivity.
2. Length of the process in relation to handling time – This is important since the goal
of a good plant layout is to minimize handling time. In manufacturing goods, less handling
of materials is good because it improves productivity.
3. The extent to which the process tends towards mass production – adopting mass
production will always depend on the products function, if it is a basic need that has high
demand such as canned goods, noodles etc. With the use of automatic machines in
industries for adopting mass production system of manufacturing the volume of
production will increase.
Problems in plant lay out management may arise when:
1. There are design changes in the product.

2. There is an expansion of the enterprise.
3. There is a proposed variation in the size of the departments.
4. Some new product is to be added to the existing line.
5. Some new department is to be added to enterprise and there is reallocation of the
existing department.
6. A new plant is to be set up.
36
Manufacturing Considerations
To obtain an overall view of manufacturing considerations in plant design, production

processes can be grouped into three general classifications:
1. Layout by Product (for Serialized or Production-Line Manufacture)

2. Layout by Operation (for Job-Layout Manufacture)
3. Layout by Stationary Material Primarily (for Manufacture of Large Parts and
Assemblies)
Layout by Product
The equipment is laid out according to sequence of operations; the materials start at
head of the line and is moved progressively to adjacent machines until completion of the item
at the end of the line.
Advantages:
• It minimizes material handling

• reduces the length and time of the manufacturing cycle
• tends to cut inventories of in-process work
• saves floor space
• makes production control virtually automatic
• facilitates administration over operators, output, and quality
37
Disadvantages:
• it lacks flexibility to meet substantial changes in product design or in production

requirements
• its maintenance and down-time problems
• its tendency to yield a low utilization of equipment
Layout by Operation (for Job-Layout Manufacture)
There is intermittent flow of materials thus machines are grouped according to the
type of operations they perform.
The illustration below shows the Layout by Operation:
Advantages:
• offering some flexibility to accommodate product variety and demand fluctuations

• permits maximum machine utilization
• provides for less duplication of tools, jigs, and fixtures
• makes for lower set up and servicing cost
38
• better control of high-precision or complicated products can be achieved because
better specialization of skills is permitted
Disadvantages:
• backtracking is the rule rather than exception, and substantially higher inventories
are necessary
• materials must be moved in and out of store rooms, production center
• delays occur between operations
• considerable paper work is involved since separate production orders are required for
each article fabricated
• the reporting, tracing and following up of material in process are usually laborious and
expensive
• the handling of material between operations is slow and costly.
Layout by Stationary Material Primarily or Fixed position Layout
It retains the flexibility for the basic product while capturing the flow and handling
advantages of production lines wherever possible.
The illustration below shows the Layout by Stationary:
39
Advantages:
• the possibility of assigning one or more skilled workers to a project from start to finish
• maximum flexibility for all sorts of changes in product and processes
• the opportunity to take won a number of quite different projects with the same layout
Disadvantages:
• difficulties in applying proper machine tools and specialized employee skills due to
immobile materials
Plant Buildings
There are two main types of buildings.
1. Single-Story Building
it has fewer columns and servicing equipment can be installed in overhead trusses that
permits greater flexibility in terms of plant layout
• Provides more illumination
• Easier to expand by simply moving a wall
• Gives greater floor-loading capacity with less vibration and requires lighter foundation
• Permits easier handling and routing of materials
• Facilitates supervision
2. Multistory Building
it has more levels that permits greater flexibility in terms of plant layout
• Efficient use of land space - results in lower cost of construction
• Lower heating cost
• Possibility of vertically arranged production areas (compact layout)
40
Plant Location
What is Plant Location?
Is the choice of region or place where people, money, materials, machinery and
equipment are brought together in setting up a business. It is a place where the cost of the
product is kept to low in order to maximize gains.
Identifying an ideal location is very crucial, it should always maximize its assets,
minimize its cost, especially for the unit cost of production and distribution. Plant location
decision is important because once a plant is located at a particular site then the business
must face the advantages and disadvantages of that initial decision.
What is an ideal location?
An ideal location is one where the cost of the product is kept to minimum, with a large market
share, the least risk and the maximum social gain. It is the place of maximum net advantage
or which gives lowest unit cost of production and distribution. For achieving this objective,
small-scale entrepreneur can make use of locational analysis for this purpose.
Factors Affecting Plant Location:
1. Selection of Region.
2. Selection of a Particular Community.
3. Selection of the Exact Plant Site.
1. Selecting a Region
1.1. Proximity to the Market – is the practice of marketing goods or services based on
a customer's actual physical location. In selecting a region, nearness to the market
is very important.
One of the clearest and best examples is when firms use proximity marketing to
target advertisements to customers who are physically close to a product.
Imagine walking up to a large and prominent store display, and having a coupon
for those items pop up on a smartphone screen. This is one of the most straightforward
uses of proximity marketing and business.
41
1.2. Proximity to the Necessary Materials – In the selection of region, nearness to the
raw materials, supplies, spare parts and other basic materials your products and
service needs is essential to the business. It lessens the cost of transportation and
increase productivity.
1.3. Availability of Transportation Facilities – Transportation plays a vital role in the

selection of region. If a business does not have a abundant transportation facilities
or any distribution equipment assets, they can always rely on the available facilities
proximately near from their plant site.
1.4. Adequacy of Public and Private Services – It is very important to mind the
adequate supply of resources in the area such as electricity, communication, water
supply, fuel and gas of your plant site.
1.5. Climate Condition – Climate changes affects the products quality so the plant site
should be located in a favorable climate especially if the business have perishable
goods or products that require certain amount of temperature and humidity.
2. Selection of a Particular Community.
2.1. Labor supply – in selecting a particular community, the business should take note
of the community that is labor abundant. The community should also have abundant
labor capital that is skilled and knowledgeable to have a competitive advantage to its
competitors.
2.2. Wage Scales – Wage scales is one of the most important factors that affects plant
site because compensation and salary drives and give motivation to the labor force. A
competitive salary and low cost to the working capital of the business will give
reasonable profit to the business.
2.3. Other enterprises in the community – this factor gives an advantage to your plant
site since the trend in business operations nowadays requires business to business
partnership and businesses that are near the community where your plant site is
located will give you that partnership with this partnership, some cost will be cut out
such as production, transportation etc.
2.4. Favorable living conditions – this refers to the living condition within the
community where your plant is located. This is an advantage to all businesses since
it gives convenience to your business while in operation.
42
3. Selection of the Exact Plant site.
3.1. Land – is the primary consideration for future expansion, parking area, appropriate
for the type of building.
3.2. Transportation – Accessibility of transportation facilities either public and private.
3.3. Zoning restrictions – These are restrictions of the location of the plant site, it will
always depend on government regulations and products of the business.
3.4. Fire protection – is one of the important factors in locating the plant site, fire
equipment, tools and facilities in the area is monitored for fire safety.
3.5. Waste Disposal – Businesses with perishable products and dangerous products
should have proper waste disposal. The management are also in charge to
implement standard procedures in disposing such waste with cooperation with the
government.
Trends in Plant location
The location trends have changed substantially due to the development of substitute
raw materials, network of electrification and transportation by roads and railway, mobility of
the labor and persuasive and compulsive policies of the government for balanced regional
development.
1. Tendency to locate away from city – Plant sites are usually located away from the
cities because of the reason of government policies and the less opportunity of
expansion of lot areas. Businesses usually locate it at suburban areas because of low
assessment and tax rates, larger land areas and travel time is less because city traffic
may cause delay.
2. Decentralization of Industries - Under the conscious industrial policy of the

Government, concentration of industrial units is prevented through licensing policy.
New units are not permitted to be started in certain industrially congested areas.
Similarly, existing units either establish their additional plants in a less developed area
or sometimes relocate the whole unit in such areas.
If a manufacturing industry is decentralized the top management of an extremely

large plant is often unable to comprehend clearly the vastness of the plant under its
control, it has difficulty of providing the tremendous supply of personnel and the
internal transportation, servicing, and maintenance problems will be lessened.
43
3. Swing toward planned industrial centers – Business tend to locate plant site in
industrial centers or parks because it encourages investors control the site preparation
and land use for the manufacturing industries/ investors, it also provides orderly and
attractive community of manufacturing.
4. Growing Competition for industry – For this trend in plant location, communities
tend to give free-plant areas to encourage manufacturing industries to invest to them.
Communities even innovate and create quality infrastructures, they also offer
the construction of the plant site itself and assume its taxes and insurance, this is not
only for the residents but also to persuade more investors to locate their plant sites on
that certain community.
Locational Analysis
Locational analysis is a dynamic process where entrepreneur analyses and compares

the appropriateness or otherwise of alternative sites with the aim of selecting the best site
for a given enterprise. It consists the following:
1. Demographic Analysis – it involves study of population in the area in terms of total

population (in no.), age composition, per capita income, educational level, occupational
structure etc.
2. Trade Area Analysis - it is an analysis of the geographic area that provides continued
clientele to the firm. He would also see the feasibility of accessing the trade area from
alternative sites.
3. Competitive Analysis - it helps to judge the nature, location, size and quality of
competition in a given trade area.
4. Traffic analysis - to have a rough idea about the number of potential customers
passing by the proposed site during the working hours of the shop, the traffic analysis
aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing
a site.
5. Site economics - alternative sites are evaluated in terms of establishment costs and
operational costs under this. Costs of establishment is basically cost incurred for
permanent physical facilities but operational costs are incurred for running business
on day to day basis, they are also called as running costs.
44
Activity
Self Check 3.1
Identification
number.
_____________ 1. A plant building that has more levels that permits greater flexibility in terms
of plant layout.
_____________ 2. A plant building that has fewer columns and servicing equipment can be
installed in overhead trusses that permits greater flexibility in terms of plant layout
_____________ 3. A layout that retains the flexibility for the basic product while capturing the
flow and handling advantages of production lines wherever possible.
_____________ 4. A layout where it has an intermittent flow of materials thus machines are
grouped according to the type of operations they perform.
_____________ 5. A layout where equipment is laid out according to sequence of operations.
_____________ 6. It is the practice of marketing goods or services based on a customer's actual
physical location.
____________ 7. It is the primary consideration for future expansion, parking area,
appropriate for the type of building.
____________ 8. It refers to the living condition within the community where your plant is
located.
____________ 9. It refers to the compensation of the workers on the area when the business
is locating its plant site.
____________ 10. It refers to the factor where the area is labor abundant.
Enumeration
Direction: Enumerate what is being asked. (5pts)
Five (5) Objectives of having a good plant layout.
45
Activity
Self Check 3.2

Directions:
Talk to two (2) business owners (can be a friend or a family member that owns a
business) one in food manufacturing (creates, builds, innovates a product) and one in service
industry (gives services such as delivery, consultations, etc.) Discuss with them to find out:
1. The factors considered by them in the location decisions of their business.
2. How have the availability of transportation and labor affected their location decision?
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
46
Assessment Criteria
Criteria:
Condition:

Assessment Method:
Read and Comprehend:

Learning Content 3 You must get at least 75% on the Self
Check 3
Answer Self Check: Consult your instructor for evaluation of

Plant Layout, Plant building and the activity self check 3.2
factors affecting Plant Location
ANSWER KEY:
Identification: For Enumeration Review page 39
1. Multi-story building. of your Learning Content:
2. Single-story building
3. Layout by Stationary Objectives of Plant Layout
4. Layout by Operation
5. Layout by Product
6. Proximity to the Market
7. Land
8. Favorable living condition
9. Wages scale
10.Labor supply
47
Learning Outcome 4
UNIT OF COMPETENCY Materials Management
MODULE TITLE Materials Management
MODULE DESCRIPTOR:
overview of materials management, basic material handling and storage process in an
industry as well as the basic tools and equipment used during the operations in handling
and storage of goods of a business and its other processes.
It also discusses the factors how to select machines and equipment to be purchased
for the benefit of the business.
Objectives:
Discuss the basic material handling and storage of goods
Identify the different material handling and storage equipment
Appreciate the importance of having a good materials management process.
48
Learning Content - 4
Chapter 4 – Materials Management
Introduction
All business that has a manufacturing operation typically manages inbound and
outbound of all of the physical assets of the organization as well as the services a business
offers. These goods and services are the wealth of the business, the wealth is measured by
the amount of goods and services produced by the business and it is also based on the
country where the business is located at. Some countries are rich with resources such as
mineral deposits, farmlands, forests, etc. these are only potential sources of wealth of the
country which will give benefits to the business to their assets, especially also if the country
is labor abundant.
Manufacturing businesses are engaged in converting raw materials to a form that is of

far more value and use to the consumer than the original raw materials. This conversion
process is called manufacturing or production, it makes the society wealthier and creates a
better standard of living. In the manufacturing process, it is important that a business focus
on the its operations and one of the most important factor of giving a wealthy goods and
services, the business should manage its materials as smooth as possible for them to reach
their goals and objectives.
What is Materials Management?
It is the is the planning, directing, controlling and coordinating those activities which
are concerned with materials and inventory requirements, from the point of their inception
to their introduction into the manufacturing process.
It is also an important function of an organization covering various aspects of input

process, it deals with raw materials, procurement of machines and other equipment’s
necessary for the production
n process and spare parts for the maintenance of the plant but in a production process
materials management can be considered as an preliminary to transformation process.
Material cost is probably the most important element of cost. In the case of certain
industries like cement, sugar, chemicals, iron and steel, etc., the materials cost forms a very
significant portion of the overall cost of production.
49
Objectives of Materials Management
• Material Selection - correct specification of material and components is determined

and also the material requirement in agreement with sales program are assessed.
• Low operating costs - it should endeavor to keep the operating costs low and increase
the profits without making any concessions in quality.
• Safety of materials – with a thorough management of materials, inbound, outbound

and on stock product will always be safe and secured to theft, damages and expiration.
• Identification – with materials management, confusion of orders and procurement

will be lessened.
Classification of Materials
The term material refers to all commodities which are consumed in the production
process. The materials which can be consumed in the production process can be basically
classified as:
• Direct Materials
• Indirect Materials
Material is generally called raw material. Inventory is a name collectively given to raw
material, work in process and finished goods. Even though Material and Inventory are used
as synonyms, material usually means raw material and inventory means raw material along
with work in process plus finished goods.
Work in
Raw Materials Finished Goods
Progress
Inventory Classifications
50
Raw Material is first subjected to a manufacturing process before it becomes finished
goods. Raw material is also present with work in process and finished goods. It is a
continuous process.
Inventory classification includes resources that have future economic value. It

indicates that it may be available in different forms depending upon the production cycle
stage it is in. Classification of inventory is done on this basis and thus, the different
classifications of inventory are as follows:
• Raw materials - are input goods intended for combination and/or conversion through
the manufacturing process into semi-finished or finished goods. They change their
form and become part of the finished product.
• Components and parts - just as raw materials are converted to finished goods in a
manufacturing operation, components and parts are assembled into finished goods in
an assembly operation.
• Maintenance, repair and operating inventories (MRO) - these include parts,

supplies and materials used in or consumed by routine maintenance and repair of
operating equipment, or in support of operations.
• Work-in-process goods - these include goods in the process of manufacturing and

only partially completed. They are usually measured for accounting purposes in
between significant conversion phases. In-process inventories provide the flexibility
necessary to deal with variations in demand between different phases of
manufacturing.
• Finished goods - these represent the completed conversion of raw materials into the
final product. They are goods ready for sale and shipment.
• Resale goods - these are goods acquired for resale. Such goods may be purchased by
a wholesaler for resale to distributors, or by distributors for resale to consumers, etc.
• Capital goods - these are items (such as, equipment) that are not used or consumed
during a single operating period, but have extended useful lives and must be utilized
over multiple operating periods. Tax laws require that such an item be capitalized, and
a predetermined percentage of its cost be recognized as an expense, each operating
period, over a predetermined time frame, according to equipment classes.
• Construction materials - these are raw materials and components for construction
projects such as a building, bridge, etc.
51
• Hard goods/soft goods - hard goods and soft goods will vary depending on the
industry involved. For example, in data processing, hard goods include apparatus such
as, computers and terminals, while soft goods include software, data storage media
and the like.
• Fuel and lubricants - fuel and lubricants are used for the oiling purpose for the
equipment used in the process which again varies with the type of industry.
• Stationery goods - it includes writing material like, paper, pen, ink, etc., which are
used by the people involved in the process.
• Primary packing material – packing material like, plastic, paper, etc. are used to pack
the finished goods for sale.
Scopes of Materials Management

The scope of materials management includes the following aspects:
1. Material Planning.
2. Standardization.
3. Procurement and Purchasing.
4. Quality Control.
5. Packaging
6. Storage.
7. Distribution
Material Planning
Material planning is derived from overall organizational planning and it is always a

subplan of the broad organizational plan. What it does is forecast and initiate the
procurement of materials.
The factors affecting material planning are:
1. Macro factors - global factors such as price trends, business cycles, government’s
import and export policies etc., are called macro factors. Credit policy of the
government is a critical factor as banks follow these guidelines only while extending
financial support to a business entity.
2. Micro factors - these are essentially the factors existing within the organization such
as corporate policy on inventory holding, production plan, investments etc., For any
organization, factors such as lead time of procurement, acceptable inventory levels,
working capital, seasonality, delegation of power are micro factors.
52
Standardization
Standardization means formulation, publication and implementation of guidelines,

rules and specifications for common and repeated use, aimed at achieving optimum degree
of order or uniformity in a given context, discipline, or field.
Publication means communication of a message, statement, or text through any means

such as audio, video, print, electronically as an e-book or on the web.
Specification means exact statement of the particular needs to be satisfied or essential

characteristics that a customer requires in goods, material, method, process, service, system,
or work and which a vendor must deliver. Specifications are written usually in a manner that
enables both parties to measure the degree of conformity.
Specifications are divided generally into two main categories:
1. Performance specifications – Conform to known customer requirements such as

keeping a room’s temperature within a specified range.
2. Technical specifications – it expresses the level of performance of the goods, service
or any process of the business.
Procurement and Purchasing
Procurement means acquisition. It includes the complete process of obtaining goods

and services from preparation and processing of a requisition to receipt and approval of the
invoice for payment. It is also called sourcing while purchasing is the actual buying of goods
of the seller and the buyer.
Quality Control
Quality control comprises activities employed in detection and measurement of the

variability in the characteristics of output attributable to the production system, and
includes corrective responses. In quality control the role of inspection is to verify and validate
the variance data.
It also involves critical appraisal involving examination, measurement, testing,

gauging, and comparison of materials or items. An inspection determines if the material or
item is in proper quantity and condition, and if it conforms to the applicable or specified
requirements.
53
Packaging
Packaging includes processes such as cleaning, drying, and preserving materials such
as glass, metal, paper or paperboard, plastic employed to contain, handle, protect, and
transport an article. The role of packaging is expanding and may include functions such as
to attract attention, assist in promotion, provide machine identification barcodes, impart
essential or additional information, and help in utilization. Packaging will also be discussed
on this module on the later part. Later on this module, some packaging processes will be
discussed.
Storage
Storage means non-transitory, semi-permanent containment, holding or placement of

goods or materials, usually with the intention of retrieving them at a later time. It does not
include the interim accumulation of a limited amount during processing, maintenance, or
repair.
Distribution
Distribution means movement of goods and services from the source through the
distribution channel, right up to the final customer, consumer, or user.
Material Handling
What is Material Handling?
It is the efficient short-distance movement of goods that usually takes place within the
confines of a building such as a plant or a warehouse or between a building and a
transportation agency.
Types of Material Handling
1. Manual Handling - refers to the use of a worker’s hands to move individual containers
by lifting, lowering, filling, emptying, or carrying them.
To properly lift any items, a worker should observe the following:
• Plan your lift.
• Position the feet.
• Adopt a good posture.
• Get a firm grip on the item and keep it close to you.
• Lift the load up by using only your leg.
• Put down and adjust.
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2. Automated – is any form of handling of material that uses automated machines and
robotics.
Material Handling Equipment
Material handling equipment (MHE) is used for the movement, storage, protection,
consumption and disposal of materials within a facility or at a site.
To properly utilize the performance and the assets of the company, there are things to
consider first in purchasing such physical facilities especially in the material handling and
storage equipment.
The factors below are the things to consider in selecting a machine and other physical
facilities for the company;
1. Simple if operation – Before purchasing any machines or equipment, purchasing

officers should always mind the ease of operation of what to be purchased, it should
be easy to operate and it should always lessen the fatigue to the operators to have good
results.
2. Flexibility - The machine must have flexibility to adopt for multiple purposes, when
the cost of the machine is high. The machine or the equipment should have the ability
of a system to respond to potential internal or external changes affecting its value
delivery, in a timely and cost-effective manner.
3. Durability - the machines must be strong and durable. Breakdown of the machine
means investment is waste.
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4. Portability - the size of the machine is reduced into portable size. When the machines
are small it is convenient to handle and easy to move from one place to another.
5. Benefit - manual labor is replaced by machine, greater accuracy and better result
must be produced. There must be a qualitative change in the office when a machine is
introduced.
6. Service – in purchasing a machine and equipment, the company should always check
if the item has after sales service, quick repairs and proper maintenance are essential
for continuous performance of the machines. Service facility is an essential to be looked
upon.
7. Operating cost – the working capital is one of the most essential asset of the company
to continue its operation, machines and equipment that has a low operating cost will
save the company’s working capital. Minimum operating cost of machines and
equipment is always practical.
8. Style – the design of the machine and equipment should be attractive since it also
creates market and credibility to the business.
9. Suppliers – when purchasing such machines and equipment, the business should
always give priority to the supplier. Supplier is the heart of a business stocks since
they give most of the company’s profit. The supplier should provide low cost of
materials, and should be guaranteed complete, quality, without damage and should
be on time on demand.
10.Cost - generally when the cost increases, the performance will better. Cost of the
machine is comparable in term of savings in labor, low cast of repair and maintenance etc.
Material Handling Equipment
Material handling equipment (MHE) is used for the movement, storage, protection,
consumption and disposal of materials within a facility or at a site.
Material Handling Equipment is classified into four these are the transport equipment,
positioning equipment, unit load formation equipment, storage equipment and the
identification and control equipment.
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Understanding the use of each equipment will give a manager a competitive advantage to
their competitors especially considering the factors given above:
Transport Equipment
This equipment is used to move materials from one location to another location.
• Conveyors - An equipment used to move materials over a fixed path between specific
points. Conveyors can move materials within the facility and also for loading of goods to
its transportation docks.
Sample photos of Conveyors.
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• Cranes - Equipment used to move materials over variable paths within a restricted
area. It is mainly used for lifting heavy things and transporting them to other places. The
device uses one or more simple machines to create mechanical advantage and thus move
loads beyond the normal capability of a human.
Cranes are commonly employed in the transport industry for the loading and unloading
of freight, in the construction industry for the movement of materials, and in the
manufacturing industry for the assembling of heavy equipment.
Sample photos of cranes and an industrial truck.
• Industrial trucks - Used to move materials over variable (horizontal) paths without
restrictions on the area covered.
Most industrial trucks permit mechanized pickup and deposit of the loads, eliminating
manual work in lifting as well as transporting. Depending on their means of locomotion,
industrial trucks may be classified as hand trucks or power trucks.
It also provides vertical movement if the truck has lifting capabilities. Also known as
Forklifts.
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Types of Forklift:
1. Reach Truck
• Are usually electric powered industrial trucks
• It is used for tall racks for loading and unloading
pallets.
• Reach Trucks are usually placed on strategic locations
inside the warehouse.
• Capacity: 2,500lbs – 5,500lbs
2. 3 Wheel Fork Lift

• Mainly used indoors, warehouse or smooth
surfaces.
• Use for maneuverability and space.
• Electric powered.
3. 4 Wheel Fork Lift

• 4 Wheel Fork Lifts can be electric powered and
gasoline.
• More stable than the 3 Wheel Fork Lift.
• Usually used on outdoors.
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Unit Load Formation Equipment - Unit load formation equipment is used to restrict
materials so that they maintain their integrity when handled during transport and for
storage. Examples of the are Pallets and Pallet boxes.
• Pallets - is a flat transport structure that supports goods in a stable fashion while being
lifted by a forklift. Pallets have entry numbers, some pallets have 2-way and the most
common is the 4-way pallets, that has 4 entry point for the forklift for lifting purposes.
4 – way Pallet
2 – way Pallet
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• Pallet Boxes - Reusable container used to unitize and protect loose items for
fork/platform truck handling.
Storage Equipment - is used for holding or buffering materials over a period of time. It
represents a trade-off between minimizing handling costs, by making material easily
accessible, and maximizing the utilization of space.
One of the best examples of storage equipment is the Racking system or the racks. A
Rack is a frame or shelf, usually with bars or hooks, it is used for holding the goods or
products to be stored.
Types of Racking Systems:
1. Drive Through Rack

2. Drive-In Rack
3. Flow Through Rack
4. Push-Back Rack
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Drive Through Rack – is designed for First-in, First-out (FIFO) type of inventory
management, this racking system is used for products that are fast moving and labelled with
mass productions. Forklifts have the opportunity to stack items on one side while
simultaneously being retrieved from the other side. Below is an example of a Drive through
racking system:
Drive-In Rack – is designed for Last-in, First-out (LIFO) type of inventory. Loads and retrieve
from the same side, creating Last-In-First-Out (LIFO) inventory retrieval organization.
Forklifts have the opportunity to drive inside the racking system, though the service is only
one side. Below is an example Drive-in racking system:
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Flow-Through Rack - Flow Storage consists of two elements: a static rack
structure and dynamic flow rails.
The flow rails are a track/roller system set at a decline along the length of the rack.
Flow rails allow loads to move by gravity from the loading end to the unloading end. Flow-
Through Rack is designed First-in, First-out in inventory control. Below is an example of a
Flow-through racking system:
Push-back Rack - As a pallet is loaded from the front, it pushes the pallet behind it back
one position. The front pallet is removed when unloading and the rear pallets automatically
come forward to the front picking position. This allows for easily accessible Last-In-First-Out
(LIFO) inventory management.
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Identification and Control Equipment
Identification and control equipment are used to collect and communicate the
information that is used to coordinate the flow of materials within a facility and between a
facility and its suppliers and customers.
An example of this are:

• Handheld, arm-mounted, or vehicle-mounted data storage and communication device.
• Communicates with a host computer via a radio frequency or infrared link.
• Variety of input devices available: Keyboard, bar code scanner, voice headset.
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Activity
Self Check – 4
Multiple choice
Direction: Read the questions carefully. Write the correct answer on the space provided.
______________ 1. A material handling equipment that is used to collect and communicate
the information that is used to coordinate the flow of materials within a facility and between
a facility and its suppliers and customers.
a. Identification and Control Equipment c. Storage Equipment
b. Positioning Equipment d. Transport Equipment
______________ 2. A material handling equipment that represents a trade-off between

minimizing handling costs, by making material easily accessible, and maximizing the
utilization of space is called _________________.
______________ 3. A material handling equipment that is used to move materials from one
location to another location.
______________ 4. A material handling equipment that is used to restrict materials so that
they maintain their integrity when handled during transport and for storage.
a. Identification and Control Equipment c. Transport Equipment
b. Storage Equipment d. Unit Load Formation
_____________ 5. A racking system that is designed to load and retrieve goods from the same
side, creating Last-In-First-Out (LIFO) inventory.
a. Drive-in rack c. Flow-through rack
b. Drive-through rack d. Push-back rack
_____________ 6. A racking system that pushes the pallet behind it back one position in
loading and unloading operations.
_____________ 7. A racking system that is designed to allow loads to move by gravity from the
loading end to the unloading end.
____________ 8. A racking system that is designed to allow goods to be loaded from a single
side and to be unloaded also on the same side creating First-in, First out inventory.
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____________ 9. A transport equipment that is mainly used for lifting heavy things and
transporting them to other places.
a. Conveyor c. 3-wheel forklift
b. Cranes d. 4-wheel forklift
____________ 10. A transport equipment used to move materials over a fixed path between
specific points.
a. Conveyor c. 3-wheel forklift
b. Cranes d. 4-wheel forklift
Application (ESSAY)
Aside from the given factors we have been considering. What new factor/s can you contribute
in selecting machines and equipment of your business. Give at least 10 more factors.
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Assessment Criteria
Criteria:
Condition:

Assessment Method:

Check 5
Learning Content 5
Identify minimum of five (5) factors in
selecting machines and equipment.
Answer Self Check:
Materials Management, Material
Consult your instructor for evaluation of
Handling and Storage
the answers.
Answer Key:
1. A For the Self check 5.2 (ESSAY)
2. C
3. D Consult your instructor for discussion and
4. D evaluation of the answers.
5. A
6. D
7. C
8. B
9. B
10.A
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Learning Outcome 5
UNIT OF COMPETENCY Warehousing
MODULE TITLE Warehousing
MODULE DESCRIPTOR:
This module covers the knowledge, skills and attitudes required to discuss the basics
of warehousing, the strategies and techniques in warehousing and the basic processes
and operations in warehousing.
Objectives:
• Discuss what is warehousing
• Understand the process of warehousing
• Identify and formulate strategies and techniques in warehousing
• Identify different types of warehouse
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Learning Content 5
Chapter 5 – Warehousing
Introduction
In the previous topics, you have learnt that planning your shop layout in terms of the
design, location, and its physical assets such as the different machine and equipment is
very important. In this lesson, another process is discussed, it is the foundation of every
success of any business specially in a manufacturing business. It’s an area that could
either destroy your business or propel it into something customers trust, time and time
again.
Getting it right is not a simple task. That’s why we put together this guide to basic
warehouse processes and management. We cover the basics needed to run a warehouse,
from how to arrange it, the basic receiving, picking and to shipping.
What is the different between a warehouse and warehousing?
A warehouse is a place used for the storage of accumulation of goods while

warehousing is the act of storing goods that will be sold or distributed later, it is the process
of the physical storing, monitoring and safe keeping of goods.
A warehouse is used interchangeably to distribution centers, but technically, a

warehouse provides nothing more than a storage. A distribution center, on the other hand,
stores product but also fulfills orders.
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The photo shows a typical warehouse with storage equipment such as the racking
system, and the loading and unloading area is called the docks, at the right of the docks,
special doors are placed for the employees since docks are not intended for human entry
point for the warehouse.
Warehouse Management
It is the act of organizing and controlling everything within your warehouse and making
sure it all runs in the most optimal way possible. This includes:
• Arrange the warehouse and its inventory.

• Having and maintaining the appropriate equipment.
• Managing new stock coming into the facility.
• Picking, packing and shipping orders.
• Tracking and improving overall warehouse performance.
• Most high growth retailers would use automation tools such as (Warehouse
management systems, and other software such as Oracle and SAP)
Warehousing Process
Warehousing has six (6) common steps to follow. These steps may only vary if the
company or the organization is using a different style of warehousing process. Thus, the
following steps is generally used by most of the industrial companies nowadays.
1. Receiving of Goods – the first step in the warehousing process is basically the
receiving of goods at the docks, the process of receiving involves the unloading of goods
from the transport equipment and the inspection of received goods.
2. Put-away – the second step of the warehousing process is the put-away, this is the
process that first involves the quality checking of all goods received and moving it away
for storage.
3. Storage – this is the process of storing and safe keeping the goods. Goods are
monitored by its quality, quantity and its life span to the market.
4. Order picking – this step only occurs whenever there is an order. This is the actual
picking of goods from storage.
5. Shipping Preparation - after the picking process, warehouse men prepare the goods
at the shipping docks. Goods are then inspected, packed, labelled, scheduled and
stacked on a pallet ready for shipping.
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6. Shipping – this step is the last step of warehousing where goods are loaded on a
transport equipment to be shipped on the customers location.
The figure above shows the warehousing process.
Arranging the Warehouse
Probably the most important step in optimizing your warehouse operation is making
sure you have everything in there arranged in the most efficient way. Planning your
warehouse arrangement is centered on balancing two (2) things:
1. Providing enough storage space for your inventory while;

2. Still having enough working space for staff to move around and complete their tasks.
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With this, it is very important to design your warehouse with the following requirements:
Receiving
Unpacking Packing Shipping
new stock
area area station
area
Excess/ Main
Warehouse
Obsolete Storage
Office
stock area area
These areas will only be changed depending on the goods to be stocked inside the
warehouse. It’s a tricky process to manage especially when dealing with a limited space so
its best to sketch out your warehouse layout to scale before setting it up or changing what
you already have.
Shipping Pickup dock Receiving docks

Shipping Pickup Receiving area
Office
Pallet Receiving and Stock

Unpacking
Shipping Station
Racks/ Shelves Racks/ Shelves
Racks/ Shelves Racks/ Shelves
Packing Station Materials
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Space and maneuverability is the key thing to remember. The pickers or the warehouse
men needs to be able to walk up and down aisles without getting in each other’s way. And
should also have enough room to actually pick items. The layout of the warehouse can be
patterned based on product, operation or combination type.
Warehousing elements and strategies
Warehousing strategies changes based on the demand of the existing market of the
product a company is storing. This strategies changes also because of the season and most
importantly it changes because of the marketing powers and capacities of the business. There
are no perfect strategies in warehousing and there are no fixed strategies.
The following strategies are for the whole warehousing process:
1. Color coding – this strategy helps the warehousemen identify the condition and the
where abouts of the goods in stocks. It helps by reducing confusion on orders and it
gives an orderly manner when loading and unloading and even picking the goods.
2. Use of software and latest logistics technologies – if a business owns the best
quality of machines, equipment and the best warehouse site, they have the competitive
advantage. Software such as Warehouse management systems or even bar code
increases productivity.
3. Replenishment – this is a common strategy in all warehousing. This strategy basically

monitors all the stocks of the warehouse and treat it with a periodic inventory
approach. A periodic approach is when all goods in the warehouse are checked time to
time.
4. ABC classification – this strategy basically classifies products into three (3). Goods A
for goods that have high value, Goods B for goods that have average value and lastly
Good C for goods that are usually obsolete or have the lowest value.
5. Managing of Order Release Process – the goal here is to maximize the volume of
orders you can ship accurately in a day. To gain efficiency – try and group processes.
Try to do pick runs in the warehouse and coordinate the staff and equipment resources
to get the job than more efficiently.
6. Outsourcing – this strategy is commonly used by businesses to increase their

productivity. Instead of minding the transportation facilities for your goods, it is always
better to outsource it and focus more on the warehousing of your business especially
if your business involves hazardous goods and or perishable goods.
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7. Cross Docking – businesses tend to use cross docking to increase the productivity of
the operations.
Cross docking process.
The process shows that without cross-docking, goods are loaded to the transportation
equipment and will go straight to the delivery address of the customer without thoroughly
inspecting the product while if used with cross-docking, transportation facilities will delivery
goods and sort it first at the distribution centers then to retail stores or customers.
8. Basic labelling – the best way to label goods in a warehouse is by using simple alpha
numeric combinations. This is important because it lessens the time of the pickers or
warehouse men to locate and decipher stocks. Start by simply including labels for
specific rows, shelves and then exact bin locations.
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The illustration 1 below shows a simple labelling strategy:
Row Shelf Bin

A A 1
A A 2
A B 1
B A 1
B A 2
B B 1
Assuming that the illustration one tackles about your clothing. All your blue t-shirts size
Medium will be in Row A – Shelf B – Bin 1. The pattern can be continued like this.
Bigger warehouses with more rows may need to add a little more detail:
Row Shelf Bin
A1 A 1
A1 B 2
A2 A 1
A2 B 2
B1 A 1
B1 B 2
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9. Picking systems – we all know the process of picking inside the warehouse, but
different picking strategies are applied to most of the medium to large retailers or
wholesalers since it increases productivity.
These are the four main picking systems or methods used by medium to large retailers:
• Single order - best picking method. It is where a picker will pick one order at a time
in its entirety before moving on to the next. It is best for retailers just starting out that
aren’t yet big enough to gain the benefits of a more complex picking methods. Not
applicable to business that reaches minimum of 20 customer orders.
• Batch picking – it is when a picker is assigned a batch consisting of a number of

orders, picks them all in one go and then returns to a packing desk. The picker will
then get assigned a new batch to pick. The number of orders allocated to each is batch
is generally between 10 and 30 and will also greatly depends on the physical size of
the product.
This picking method is best for high number of orders with single or low number of
products per order. Avoid this method if you have a high number of products per order.
• Zone picking – it is when pickers are assigned on specific area. Areas where they’re
assigned will be the only area where can they pick the stock. An order is passed
through all areas to have any required items added to it by pickers in that zone before
being returned to a packing desk.
This method is great to prevent confusion to the pickers, it prevents multiple pickers
on one area but it can create a slight delay in shipping as each other needs to be
passed around the warehouse.
• Wave picking – it is somewhat the same with zone picking, the difference is all zones
pick at the same time. Various items are picked in the according zone and are given to
a packer who will consolidate all the separate picks for each other.
Wave picking is faster the zone picking but labor costs increase due to the packer
needing to spend more time combining orders at the end before needing to be shipped.
This method is best for retailers that typically ships a high volume of multiple item
orders and still wanting to maintain a super-fast process. Avoid if single or low item
orders, have very few pickers or cost is more important than speed of dispatch.
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Summarized table of picking method:
Picking Method Order Volume Items per Order Best for

Single order Low Med - High Start up
Batch Low – High Low – Med High volume of
single item orders
Zone High Low – Med How volume with a
lot of products per
order
Wave Med – High Med – High High volume with
multiple items per
order
10.Packing – you have learnt on the previous topic about packing or packaging that it is an
opportunity to make completely sure that you’re sending the right products to the right
customers and in the most efficient way.
Thins to consider in the packing process:

1. Box size – besides from the weight of the package, the size of the box contributes to
the cost of the business.
2. Packing materials – choosing the most appropriate packaging material to a product
is an essential element in the packing process because it keeps the product protected
during transit, minimizing the damage and weight to the package.
Common packing materials:
• Air pillow – plastic bag filled with air, very lightweight

and good protection, but require work to inflate.
• Shredded wool – a loose fill wool which is lightweight but

limited shock protection.
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• Packing peanuts – a biodegradable or recycle foam peanuts.
• Bubble wrap – two layers wrapped around products using

sellotape to hold.
• Shredded paper – cheap and lightweight, but limited protection.
• Crunched paper – from paper dispenser and crunched by packer.
11.Shipping orders – shipping is the final process of warehousing, and it is done with a
detailed attention to maintain productivity and quality of the product as well.
The following steps can help you achieve a smooth flow of shipping your product:
1. Weigh the package – weighing your package is important since it determines the cost
of the package in shipping and also determining what transportation facility to use as
well especially if the products or items are huge and weights too much.
2. Print out relevant shipping labels – documents such as way bills, sales invoice,
delivery receipt, etc., are important since it provides the initial information about the
package you’re shipping.
3. Marking order – some business use computer software to maintain the record of their
products especially those that are to be shipped and on the process of shipping. Upon
shipping such orders, the ordered product should be marked on the software for
monitoring purposes.
4. Send out shipping confirmation – this is usually than by logistics personnel to notify
people in charge that an item will be shipped, this is essential since it gives a go signal,
when to ship, where to ship, when to receive the item or product.
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Activity
Self Check 5
Identification
number.
____________ 1. A warehousing strategy that classifies products into three (3). Goods A for
goods that have high value, Goods B for goods that have average value and lastly Good C for
goods that are usually obsolete or have the lowest value.
____________ 2. A warehousing strategy that helps the warehousemen identify the condition
and the where abouts of the goods in stocks.
____________ 3. It is the process of warehousing where goods are loaded on a transport

equipment to be shipped on the customers location.
____________ 4. A process of warehousing where the actual picking of goods takes place.
____________ 5. A warehousing strategy where the business uses distribution centers in their
operations.
____________ 6. A warehousing process that involves the quality checking of all goods received
and moving it away for storage.
____________ 7. It is the process of storing and safe keeping the goods.
____________ 8. A warehousing strategy where business owns the best quality of machines,
equipment and the best warehouse site to have a competitive advantage.
____________ 9. A warehousing strategy where the stocks are monitoring in the warehouse
and treat it with a periodic inventory approach.
____________ 10. It is the act of storing goods that will be sold or distributed later, it is the
process of the physical storing, monitoring and safe keeping of goods.
Self Check 5.2
Directions:
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Assessment Criteria
Criteria:
• learning materials and references are checked and validated for instructional use.
Condition:
Assessment Method:

Learning Content 6 Check 5
Answer Self Check:

Warehousing, warehousing strategies,
the answers.
warehousing process.
Answer Key:
Identification:
1. ABC classification
2. Color coding and labelling
3. Shipping
4. Order picking
5. Cross docking
6. Put away
7. Storage
8. Use of software and logistics technologies
9. Replenishment
10.Warehousing
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Learning Outcome 6
UNIT OF COMPETENCY Philippine National Building Code
MODULE TITLE Philippine National Building Code
MODULE DESCRIPTOR:
Philippine National building code, its provisions, the general building requirement, site
requirements and all the basics in putting up an infrastructure.
Objectives:
1. Enumerate the different provisions of Phil NBC on RROW, sidewalks, roads, property line,
setbacks, etc.;
2. Define the PWD law;
3. Identify the provisions that was made to help
and better the mobility of PWDs; and
4. Value the importance of the Philippine National
Building Code in the lay outing/planning
processes in order to have an efficient shop.
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Learning Content - 6
Chapter 6 – The Philippine National Building Code
Introduction
The Philippines national building code or the RA 6541 is an act to ordain the institute
of national building code of the Philippines, it does not conform with the developmental goals
and infrastructure program of the government and it does not adequately provide for all the
technological requirements of building structures in terms of up to date design and
construction standards and criteria.
In the formulation of a new national building code it is the desire and policy of the
Government to avail of and harness the technical expertise, professional know how of men
and public and private sectors.
General Provisions
General provisions on the building requirement and site requirements are as follow:
General Building Requirements;
1. All buildings or structures as well as accessory facilities thereto shall conform in all
respect to the principles of safe construction and must be suited to the purpose for
which they are designed.
2. Buildings or structures intended to be used for the manufacture and/or production of
any kind of article or product shall observe adequate environmental safeguards.
3. Buildings or structures and all parts thereof as well as all facilities found therein shall
be maintained in safe, sanitary and good working condition.
Site Requirements;
1. The land or site upon which be constructed and building or structure, or any ancillary
or auxiliary facility thereto, shall be sanitary, hygienic or safe.
2. Sites or buildings intended for human habitation or abode, the same shall be at a safe
distance, as determined by competent authorities, from streams or body of water
and/or sources of air considered to be polluted from volcano or volcanic site and/or
any other building considered to be potential source of fire or explosion.
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Types of Construction
There are five (5) types of constructions. This will help the learners understand what
type of construction of building they see in public, it will also help them identify materials to
be used in making such infrastructures.
Type I – shall be made of pure wood construction.
Type II - shall be of wood construction with protective fire-resistant materials and one-
hour fire resistive throughout, except, that permanent, non-bearing partitions may use fire-
retardant treated wood.
Type III - shall be of masonry & wood construction. Structural elements may be any of the
materials permitted. Exterior walls shall be of incombustible fire-resistive construction.
Type IV - shall be of steel, iron, concrete, or masonry construction and walls, ceiling and
permanent partitions shall be of incombustible fire-resistive construction.
Type V - shall be four-hour fire-resistive throughout and the structural elements shall be of
steel, iron, concrete, masonry construction.
Fire Resistive Requirements in Construction
Knowing the fire resistance of the different types of building construction will help
managers determine what type of building is good for their businesses this help by lessening
the risk of loss to the business and prevent it as well.
Materials used to construct a building have different Fire-Resistive Ratings, this is

the degree to which a material can withstand fire as determined by generally recognized and
accepted testing methods.
It is also important to understand the Fire-Resistive Time period rating, this is to

prevent another loss to the business since it measures the length of time a material can
withstand being burned which may be one-hour, two-hours, four-hours, etc.
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Fire Resistive Standards
All materials of construction, and type of materials and assemblies or combinations

thereof shall conform to the fire-resistive ratings.
1. Floor Construction - Solid RC slab

2. Solid Pre-Stressed - Concrete slab
3. Partitions
4. Protection for Metal Structural Members
5. Exterior Wall
6. Column
All existing openings on all firewalls shall be sealed completely to maintain the fire
integrity of adjoining buildings/structures. There are exemptions depending on the usage of
the building specially if it is used for ventilation.
Below are samples of sub-standard buildings that have not followed minimum requirements
on fire walls:
Photo by ebv
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Photo by ebv
Maximum Building Height
The maximum height and number of storeys of proposed building shall be dependent
upon the character of use or occupancy and the type of construction considering the
following factors:
• end-user population density

• light and ventilation
• width of RROW / streets particularly of its roadway carriageway component
• building bulk
• off-street cum off-site parking requirements
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The maximum height and number of storeys of proposed building in relation to:
• local land use plan and zoning regulations

• environmental considerations (geological, hydrological, meteorological, topographical)
• prevailing traffic conditions
• availability and capacity of public utility/service system
Determination of Building Height:
• BUILDING HEIGHT LIMIT (BHL) - generally measured from the established grade line
to the topmost portion of the proposed building/structure the BHL of any proposed
building/structure shall only be as allowed under the NBC RULE
• For sloping grade, perpendicular to RROW with a difference in elevation of less than
3.00 m, the highest adjoining natural grade (ground surface) of finished grade
(sidewalk surface) shall be established grade elevation.
Photo from the Philippine National Building Code 2005
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• for sloping grade, perpendicular to RROW with a
difference in elevation of more than 3.00 m, the
average grade level established grade elevation.
• that towers, spires, steeples, not for habitation or

storage limited as to the height only by structural
design, if completely of incombustible materials.
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• that towers, spires, steeples, not for habitation
or storage may extend but not exceed 6.00 m
above the prescribed building height limit if
made of combustible materials.
• The height of proposed buildings/structures shall also be governed by the following

RROW-based limitations:
a. If only one (1) RROW services a lot and such is only 6.00 to 7.00meters wide, a BHL
of three (3) storeys (or 9.00 meters maximum) shall be observed regardless of use
or occupancy, lot size/dimensions, etc.
b. If only one (1) RROW services a lot and such is only 4.00 to 5.00 meters wide, a
BHL equivalent to 2 ½ storeys (or 7.50 meters maximum) shall be observed.
c. If only one (1) RROW services a lot and such is only 3.00 meters wide or less, a
BHL equivalent to two (2) storeys (or 6.00 meters maximum) shall be observed.
d. Taller buildings are allowed for duly approved high-density developments such as
Planned Unit Development (PUD) areas.
88
• The following factors shall also be considered in the determination of the building
height:
a. Soil characteristics, lot location in relation to fault lines and earthquake belts or
proximity to volcanoes and other geological conditions.
b. Hydrological conditions such as the water table at the site and distance to waterways
and shorelines.
c. Meteorological conditions such as the frequency and intensity of destructive

typhoons/monsoon winds/rains, prevailing wind speed and direction, relative
humidity.
d. Effects of environmental conditions on the building/structure and vice-versa coupled

with the effective control of air, noise and thermal pollution, radiant heat, lights and
shadows, etc. and the optimization of natural light.
e. Effects of traffic conditions on the building/structure and vice-versa and the

satisfaction of parking/loading requirements in accordance with this Rule.
f. Availability and capacity of public utility/service system considering he availability and

adequacy of electric power, potable and non-potable water supply, drainage and
sewerage, transportation.
g. Need for applicable building safety and maintenance system, e.g., lightning arresters,
beacons, protective railings and barriers, gondolas, window washing system.
89
Parking Slot, Parking area and Loading/ Unloading space requirements:
The size of an average automobile (car) parking slot must be computed at 2.50 meters by
5.00 meters for perpendicular parking or diagonal parking. (For additional reference please
check Philippine National Building 2005 - RULE VII SECTION 707, 4-b)
a. The size of an average automobile (car) parking slot must be computed at 2.50 meters
by 5.00 meters for perpendicular parking or diagonal parking.
b. 2.15 meters by 6.00 meters for parallel parking or diagonal parking.
c. A standard truck or bus parking/loading slot must be computed at a minimum of 3.60

meters by 12.00 meters.
d. An articulated truck slot must be computed at a minimum of 3.60 meters by 18.00

meters which should be sufficient to accommodate a 12.00 meters container van or
bulk carrier and a long/hooded prime mover.
e. A jeepney or shuttle parking/loading/unloading slot must be computed at a minimum

of 3.00 meters by 9.00 meters. The parking slot shall be drawn to scale and the total
number of which shall be indicated on the plans.
f. The parking space ratings listed on the NBCP Table VII.4. are minimum off-street /
off-RROW cum on-site requirements for specific uses/occupancies for
buildings/structures, i.e., all to be located outside of the road-right-of-way (RROW).
Minimum Required Off-Street (Off-RROW) cum On-Site Parking Slot, Parking Area &
Loading/Unloading Space Requirements by Allowed Use or Occupancy.
Industrial buildings, factories, manufacturing establishments, mercantile buildings,

warehouses, storage bins, power and water generations/distribution facilities.
For every 1,000 sq. meters of gross floor area:

• Provide one (1) car slot, and
• One (1) bus slot for every one hundred (100) workers.
If number of workers exceed two hundred (200):

• One (1) off-RROW (or off-street) passenger loading space that can accommodate two
(2) queued jeepney/shuttle slots.
90
For every 5,000 sq. meters of gross floor area:
• Provide at least one (1) loading slot for articulated truck or vehicle (a 12.00 m long
container van plus 6.00 m length for a long/hooded prime mover), and
• One (1) loading slot for a standard truck
• Provide truck maneuvering area outside of the RROW (within property or lot lines only)
Traffic Generating Buildings
Commercial buildings that have very high volumes of pedestrian & vehicular traffic
may be located at major intersections or 100 meters of such intersections.
The distance between the street curb of the ingress/egress of such commercial
lot/property (nearest the intersection) and the straight curb of the intersection shall not be
less than 50.00 meters.
Photo sample is from The Philippine National Building Code 2005
91
Light and Ventilation
Every building shall be designed, constructed, and equipped to provide adequate

light and ventilation and all building shall face a street or public alley or a private street
which has been duly approved.
a. No building shall be altered nor arranged so as to reduce the size of any room or the
relative area of windows to less than that provided for buildings under this Rule or to
create an additional room, unless such additional room conforms to the requirements
of this Rule.
b. No building shall be enlarged so that the dimensions of the required court or yard
would be less than what is prescribed for such building lot.
Sizes and Dimensions
Minimum sizes of courts and yards and their least dimensions shall be governed by
the use, type of construction, and height of the building as provided here under, provided
that the minimum horizontal dimension of said courts and yards shall be not less than 2.00
meters.
All inner courts shall be connected to a street or yards, either by a passageway with a
minimum width of 1.20 meters by a door through a room or rooms.
The required open space shall be located totally or distributed anywhere within the lot
in such a manner as to provide maximum light and ventilation into the building.
92
The figures below shows the different setbacks of a building:
a. In this illustration, Setback is

located in front and at the back of
the commercial building. In this
sample of setback, it can also be
used in household buildings. For
alternative locations (b), it can be
used as a back parking for the
commercial building.
b. In this illustration, the setback is

interconnected, so the natural air
for ventilation will always be from
open space located in front of the
building. This sample setback
can also be used in household
buildings and small commercial
buildings.
93
c. In this illustration, setback
is located in front of the
commercial building and at
the back.
d. The illustration shows that

the setback is located inside
the commercial building
itself providing ventilation
only to wear it is located.
This is usually made to give
style on the building.
94
The photo below shows an example of (D) setback :
Photo taken at the Gateway Mall Cubao.
95
Setbacks for Commercial, Industrial, Institutional and Recreational buildings.
Road right of way

(RROW) width in Front (meters) Side (meters) Rear (meters)
meters
30.00 and above 8.00 5.00 5.00
25.00 – 29.00 6.00 3.00 3.00
20.00 – 24.00 5.00 3.00 3.00
10.00 – 19.00 5.00 2.00 2.00
Below 10.00 5.00 2.00 2.00
Sizes and Dimensions of Courts

Every court shall have a width of not less than 2.00 meters for one (1) or two (2) storey
buildings. However, if the court is treated as a yard or vice versa, this may be reduced to not
less than 1.50 meters in cluster units.
The Philippine national building code
For buildings of more than two (2) storeys in height, the minimum width of the rear or
side court shall be increased at the rate of 300 mm for each additional storey up to the
fourteenth (14th) storey
96
Firewall with a minimum of two-hour fire-resistive rating constructed with minimum
height clearance of 400 millimeters above the roof.
Ceiling Heights
All habitable rooms provided with artificial ventilation shall have ceiling heights not
less than 2.40 meters from the ceiling.
Ceiling heights for more than one (1) storey:

• 1st storey - minimum of 2.70 meters
• 2nd storey - minimum of 2.40 meters
• Succeeding stories - unobstructed head-room clearance of not less than 2.10 meters
Mezzanine floors shall have a clear ceiling height not less than 1.80 meters above and
below it.
97
Size and Dimensions of Rooms
The minimum sizes of rooms and their least horizontal dimensions shall be as follows:
a. Rooms for Human Habitations – 6.00 sq. meters with a least dimensions of 2.00
meters.
b. Kitchen – 3.00 sq. meters with a least dimensions of 1.50 meters
c. Bath and toilet -1.20 sq. meters with a least dimensions of 900 millimeters.
Air space requirements in determining the sizes of the rooms
The minimum air space shall be provided as follows:

a. School Rooms – 3.00 cu. m with 1.00 sq. meter of floor area per person
b. Workshops, factories, and Offices – 12.00 cu, meters of air space per person; and
c. Habitable Rooms – 14.00 cu. Meters of air space per person.
98
Window Openings
Rooms intended for any use, not provided with artificial ventilation system, shall be
provided with a window or windows with a total free area of openings equal to at least 10%
of the floor area of the room, provided that such opening shall be not less than 1.00 sq.
meter.
However, toilet and bath rooms, laundry rooms and similar rooms shall be provided
with window or windows with an area not less than 1/20 of the floor area of such rooms,
provided that such opening shall not be less than 240 sq. mm.
Such window or windows shall open directly to a court, yard, public street or alley, or
open watercourse.
Required windows may open into a roofed porch* where the porch:
a. Abuts a court, yard, public street or alley, or open watercourse and other public open
spaces.
b. Has a ceiling height of not less than 2.70 meters.
c. Has one of the longer sides at least 65% open and unobstructed.
Eaves, canopies, awnings (or media agua) over required windows shall not be less than
750 mm from the side and rear property lines.
There shall absolutely be no openings on/at/within/through all types of abutments

(such as firewalls) erected along property lines except for permitted vent wells. This Rule
strictly applies to all new and existing developments.
In locating window openings, it should be borne in mind that in cases of extreme

emergencies windows must serve as emergency egress to vacate the premises or access for
rescue operations. Such windows shall meet the following requirements:
a. They can be opened from the inside without the use of any tools;
b. The minimum clear opening shall have a width not less than 820 mm and a height of
1 meter;
c. The bottom of the opening should not be more than 820 mm from the floor.
d. Where storm shutters, screens or iron grilles are used, these shall be provided with
quick opening mechanism so that they can be readily opened from the inside for
emergency egress and shall be so designed that when opened they will not drop to the
ground;
e. All areas immediately outside a fire exit window/grille must be free of obstacles and
must lead to a direct access down into the ground or street level.
99
GUIDELINES on EASEMENTS
EASEMENTS
As it is situated outside of private property limits, the easements is public land, i.e.,
public domain, that should be equally enjoyed by all members of the community.
The easement is not to be used for any form of building/structure that may go against
its public recreational character and as such, the following uses and others similar thereto
are absolutely prohibited:
Photo taken at Montalban, Rizal
a. Residential and like uses whether temporary or permanent
b. Long-term or overnight vehicle parking, i.e., unless duly designated as day/or night
pay-parking zones
c. As a depository of stalled, wrecked or abandoned vehicles, mechanical devices and the

like;
d. The conduct of specific commercial, institutional/or industrial activities not
compatible with its stated character.
e. Unauthorized recreational or entertainment usage and the like which will only benefit
certain entities and which will ultimately result in inconvenience/nuisance/safety
problems to the general public;
100
f. Any other form of private use, gain, enjoyment or profit at the expense of the motoring
or walking public.
Allowed or Encouraged Structures/Developments Within Easements
If wider than 9.00 meters, the easement may include a roadway/carriageway

component on which vehicles can pass or on which the same may temporarily park,
e.g., an esplanade and the like.
Philippine national building code
Allowed or Encouraged Structures/Developments Within Easements
Pedestrian access-ways and the like and to be located at/above/below the easement may
also be developed for public use, e.g., a promenade and the like.
101
The Law to Enhance Mobility of Disabled Persons
“PWD LAW”
BATAS PAMBANSA BLG. 344
An act to enhance the mobility of disabled persons by requiring certain buildings;
institutions, establishments, and public utilities to install facilities and other devices
RULE II
Minimum Requirements for Accessbility
1. Categories of Disabled Person

a. Impairments requiring confinement to wheelchairs; or
b. Impairments causing difficulty or insecurity in walking or climbing stairs or

requiring the use of braces, crutches or other artificial supports; or impairments
caused by amputation, arthritis, spastic conditions or pulmonary, or
c. Total or partial impairments of hearing or sight causing insecurity or likelihood of

exposure to danger in public places; or
d. Mental whether acquired or congenital in nature.
2. Basic Planning Requirements.
a. Accessibility
The built environment shall be designed so that it shall be accessible to all people.
b. Reachability
Provisions shall be adapted and introduce to the physical environment...
c. Usability
The built environment shall be designed to allow the disabled citizens to participate
and contribute to developmental goals.
d. Orientation
Finding a person’s way inside and outside of a building or open space shall be made
easy for everyone.
e. Safety
Designing for safety insures that people shall be able to move about with less
hazards to life and health.
f. Workability and Efficiency
The built environment shall be designed to allow the disabled citizens to participate
and contribute to developmental goals.
102
Outside and Around Buildings
DROPPED CURBS
a. Changes in level at walkways should be affected by slight ramps and dropped

curbs;
b. Dropped curbs should be provided at pedestrian crossings and at the end of
footpaths of a private street or access road;
Philippine National Building Code
103
c. Dropped curbs shall be slopped towards the road with a maximum cross
gradient of 1:20 to prevent water from collecting at the walkway.
d. The lowest point of a dropped curb should not exceed 5mm height above the
road or gutter;
Curb cut-outs
a. Curb cut-outs should only be allowed when it will not obstruct a walkway or in any
way lessen the width of a walkway.
b. The minimum width of a curb cutout should be 0.90 m;
104
Walkways
a. Walkways should be kept as level as possible and provided with slip-resistant

material;
b. Walkways should have a minimum width of 1.20 meters;
c. Walkway headroom should not be less than 2.00 m and should preferably be
higher;
d. Passageways for the disabled should not be obstructed by street furniture,
bollards, sign posts or columns along the defined route, as they can be hazardous;
105
Handrails
a. Handrails shall be installed at 0.90 m and 0.70 m above steps or ramps;
Open Spaces
a. Where open spaces are provided, the blind can become particularly disoriented.
Therefore, it is extremely helpful if any walkway or paths can be given defined
edges either by the use of planters.
106
Signages
a. Where open spaces are provided, the blind can become particularly disoriented.
Therefore, it is extremely helpful if any walkway or paths can be given defined
edges either by the use of planters;
b. Signs should be:

• kept simple and easy to understand;
• made of contrasting colors and gray values to make detection and reading
easy
c. Signs on walls and doors should be located at a maximum height of 1.60 m and
a minimum height of 1.40 m.
107
a. Signages labeling public rooms and places should have raised symbols, letters or
numbers with a minimum height of 1 mm;.
Braille symbols should be included in signs indicating public places and safety routes;
108
Parking
Parking Areas
a. Parking spaces for the disabled should allow enough space fora person to
transfer to a wheelchair from a vehicle.
Accessible parking spaces should be located as close as possible to building entrances

or to accessible entrances.
Photo taken at Sta. Elena Marikina
b. A walkway from accessible spaces of 1.20 m. clear width shall be provided

between the front ends of parked cars;
c. Provide dropped curbs or curb cut-outs to the parking level where access
walkways are raised;
109
Inside Buildings and Structures
Entrances:
a. At least one entrance to every building should be accessible from arrival and
departure
b. In case entrances are not on the same level of the site arrival grade, ramps
should be provided as access to the entrance level;
110
c. Entrances with vestibules* shall be provided a level area with at least a 1.80 m.
depth and a 1.50 m. width;
Ramps
Changes in level require a ramp except when served by a dropped curb, an elevator or other
mechanical device;
a. Ramps shall have a minimum clear width of 1.20 m.;

b. Handrails will be provided on both sides of the ramp at 0.70m. and 0.90m from
the ramp level;
c. Ramps shall be equipped with curbs on both sides with a minimum height of
0.10m.;
111
d. Any ramp with a rise greater than 0.20 m. and leads than towards an area
here vehicular traffic is possible have a railing across the full width of its lower
and, not less than 1.50m. From the foot of the ramp;
Washroom and Toilets
a. In order to aid visually impaired persons to readily determine whether a washroom is

for men or for women, the signage on men’s washroom door shall be an equilateral
triangle with a vertex pointing upward.
b. those for women shall be a circle.
NOTE: The totally blind could touch the edge of signs and easily determine whether it is
straight or curved
112
Guidelines and Sidewalks
Subject to existing laws and regulations, the local planning authority shall determine
which street shall have an open sidewalk or an arcaded (covered) sidewalk, or a combination
of both.
The minimum width of the sidewalk for a RROW width of 9.00 meters or more shall be
1.20 meters on each side of RROW or a total of 2.40 meters on both sides of the RROW.
113
Sidewalks shall be based on the following considerations:
a. Volume of pedestrians
c. Type, intensity or level of operation
d. The types and volume of street furniture (street lighting, signs, etc.)
e. The width of the planting strips
f. The spatial needs for servicing utility/service lines under
g. Compliance with accessibility requirements (BP 344)
h. Provisions for commuters (waiting sheds, loading/unloading areas, etc.)
i. Provisions for vehicle crossings/driveways (loading/unloading platforms if allowed)
j. Need for introduction of allowed uses/elements within the sidewalk area (bicycle lanes,
jogging lanes, etc.)
k. Climate, light, ventilation, safety, security and overall maintenance of the sidewalk and
all its surface areas.
114
Sidewalks shall be of uniform width throughout the entire length of the street. The
sidewalk width grade and finish of the dominant use/occupancy along the RROW shall be
generally observed.
The width of the sidewalks are as follows:
Road right of way (RROW) Range of Required sidewalk widths

(Total of both sides of rrow
30.00 meters and above From 1/6 up to ¼ of rrow width
25.00 – 29.00 meters From 1/6 up to 1/3 of rrow width
Below 10 meters From 1/4 up to 1/3 of rrow width
The width of the sidewalk shall include both the paved and unpaved (planted) portions be as
follows:
Road right of way (RROW) TOTAL MINIMUM WIDTHS of PLANTING

STRIP WITHIN RROW (width per sides of
RROW) in meters
30.00 meters and above 1.20 (0.60)
25.00 – 29.00 meters 0.60 (0.30)
20.00 – 24.00 meters 0.60 (0.30)
10.00 – 19.00 meters 1.40 (0.20)
Below 10 meters Optional
115
Minimum width of planting strip (for grass & shrubs) is 200 mm for each side of the
RROW. The minimum width of planting strip (for trees) is 300 mm for each side of the
RROW.
The sidewalk pavement shall have a non-slip surface and shall slope down from the
building line towards the curb line at not more than 1/50 and shall level of with the curb.
Sidewalks of 2.00 meters or more in width shall include on its outer side a planting
strip of not less than 800 mm in width up to a maximum of 1/3 of the allowed sidewalk
width, separating the curb from the sidewalk.
116
The sample photo below shows an ideal planting strip location in side walks.
Photo taken at Marikina sta. elena
Combined open and arcaded sidewalks shall be provided with a planting strip of not
less than 800 mm in width up to a maximum of 1/3 of the allowed sidewalk width, separating
strip between the arcaded portion and the open portion of the sidewalk.
117
Sidewalks shall, as much as possible, be level and of uniform grade throughout the
entire length of the street. The photos below shows example of this;
Photo taken at Rizal
Obstruction of sidewalks.
Under no circumstances shall obstruction of any kind be allowed on sidewalks,

whether open or arcaded. This specifically refers to all forms of commercial signs and
commercial structures that impede sight lines or pedestrian traffic along the sidewalk.
118
Activity
Self Check 6.1
Application (5pts each)

Directions: The illustration below shows an office floor plan, determine what are the lacking
specifications.
The Floor plan above will serve as reference for your answer:
1. Identify what are the lacking specifications of the floor plan.

2. Interpret and Explain each specification you have identified in #1 and why is it
considered important.
3. Does is follow the basic national building code minimum requirements?
4. On a food establishment, what is the most important area that a manager should
monitor. Give at least two (2) and explain each.
119
Activity
Self Check 6.2
TASK SHEET 2
Title:
Layout Design
Performance Objective:
Given the necessary tool and materials, you should be able provide and
create a specific layout for a manufacturing company of your choice.
Supplies/Materials:
Pencil number 2
Any drafting paper/ or bond paper size 8.5 x 11’
Directions:
1. Research how to actually draw a basic floor plan.
2. Create a scaled drawing/ Layout of your business’s floor plan.
3. Follow minimum requirements based on what you have read on the
learning content 6: Philippine National Building Code.
Steps:
1. Using the prescribed paper, draw a margin with a size of:

Top: 1’
Right: 1’
Left: 1’
Bottom: 1.5’
2. At the bottom of the paper write from left to right:

Name:
Section/ year and major:
Score:
Shop layout type:
3. Draft a floor plan following the prescribed specifications.
4. For guidance, students may research and use other sources as long
as it is related to the topic.
5. Submit output to instructor whenever finished for evaluation.
120
Specifications:
Show the:
• Type of Layout: See Learning content 2

• Road right of way (RROW) – or the road
• Sidewalks
• Setbacks
• Minimum measurements of all the areas specified on the guide.
• Building structure with the following specifications;
Please show the following areas:

a. Entrance and Exit
b. Service Door/s
c. Fire Exit/s
d. PWS ramps
e. PWD CR/s
f. Office/s and Counters
g. Mesh Halls/ Cafeteria/ Pantry
h. Male and Female CR/s
i. Working Areas
j. Stock room
k. Receiving area
l. Customers Area
m. Others.
Guidance for setbacks and parking lot:
• The company already exceeded 200 employees.

• RROW is 10 meters
LABEL ALL THE AREAS ALSO WITH MINIMUM MEASUREMENTS
Assessment Method:
2. Output is graded based on the criteria provided.
121
Sample Floor plan
The floor plan illustrated below shows a typical design for a repair and service, use this as
a guide to your floor plan.
As you can see, the areas are all labelled with its corresponding function, no
measurements are seen in this example.
122
Assessment Criteria
Criteria:
Condition:
Assessment Method:
Read, understand and study further: You must get at least 75% on the Self
Learning Content 6 Check 6.1 and 6.2
the output and checking of your floor
Answer Self Check 6.1 and 6.2 plan.
(Application): Page 116 will serve as a guide floor plan
The Philippine National Building Code. then follow the task sheet on page.
123
Activity/ Performance Criteria
2-4 5-6 7-8 9-10 Total

Knowledge and Understanding
The student The student The student The student
showed limited showed showed good showed excellent
knowledge, satisfactory knowledge, knowledge,
understanding, knowledge, understanding, understanding,
concept and understanding, concept evident concept evident
support to their concept and in their design in their design
current work. support to their process. process.
current work.
Presentation
layout drawn layout drawn Very well drawn Very well drawn
with 80% of the with 85% of the layout complete layout complete
details such as details such as with more than with details such
measurements, measurements, 90% of the as
distinguishing distinguishing details such as measurements,
features to features to measurements, distinguishing
differentiate one differentiate one distinguishing features to
room from the room from the features to differentiate one
other are other are differentiate one room from the
included. included. room from the other are
other are included.
included.
124
Definition of Terms:
1. Road right of way (RROW) – refers to the road of a certain area, location shown on a
floor plan. It is the general term denoting a public or private way for purposes of
vehicular travel to two or more lots, including the entire area within the right-of-way.
2. Setback – refers minimum required distance, measured at the shortest distance

perpendicular or radial from, a lot line, waterway, street or road, between a building
and the lot line, waterway, street or road.
3. Person with Disability (PWD) – it refers to the person that has a long term, physical,
mental, intellectual or sensory impairments which in interaction with various barriers
may hinder their full and effective participation in society on an equal basis with
others.
4. Service Door – a door intended for other use to give service such as delivery goods
employee entrance and exit, etc.
5. First in First out (FIFO) – First in first out is always used in business distribution of
goods, in which goods or any assets purchased first shall also be disposed first.
6. Last in First out (LIFO) – Last in first out is a method in which last items are disposed
first or must be sold first, it allows business owner to value inventory at the less
expensive cost of the older inventory.
7. Logistics – refers to the process of the movement of goods from the point of material
sourcing up to the last end consumer.
8. Bottleneck – any activity, process, systems that causes delay in the operation of the
organization.
9. Easement – refers to the interest in land owned by another that entitles its holder to
a specific limited use or enjoyment.
10.Ingress – an action of entering a certain place or going in a specific location.
11.Egress - an action of going out a certain place or exiting a specific location.
12.Fixed cost – costs that are constant whatever the quantity of goods or a service is
produced.
125

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1

Welcome to the module in “Shop Layout Management”. This module contains

Recognition of Prior Learning (RPL)

• been working for some time

What are Managers 7

Management Levels and Organizational Hierarchy 14

Planning as a Function of Management 16

Chapter 2: Introduction to Shop Layout 23

Overview of Shop layout 24

Fundamentals of Shop layout 25

Types of Shop Layout 26

Chapter 3: Plant Layout and Plant Location 34

Overview of Plant layout 35

Basic Plant Buildings 40

Introduction to Plant Location 41

Trends in Plant Location 43

Introduction to Materials Management 49

Scope of materials management 52

Factors in Selecting Machines and Equipment 55

Material Handling Equipment 56

Warehousing Elements and Strategies 73

Chapter 6: Philippine National Building Code 81

National Building Code General Provisions 82

General Building Requirement and Site Requirement 83

Classification of general requirements of all buildings by use of occupancy. 85

Sizes and Dimensions 92

Air Space Requirements and Sizes of rooms for human habitation. 98

Guidelines of easements. 100

Law of Enhanced Mobility of PWD 102

Guidelines on sidewalks, parking, signages 113

UNIT OF COMPETENCY: Principles of Management

MODULE TITLE: Principles of Management

NOMINAL DURATION: 68-hours

Chapter 1 – Principles of Management

What are Managers?

Empowerment is the process of enabling or authorizing an individual to think,

Management has been described as a social process involving responsibility for

It is a dynamic process consisting of various elements and activities. These activities

The figure below shows the process of management:

According to Henry Fayol, to organize a business is to provide it with everything useful or

4. Directing – it is the function of management which actuates the organizational methods

Directing has the following elements:

a. Supervision - it is the act of watching & directing work & workers.

Controlling and measuring an organizations performance has the following steps:

1. Establishment of standard performance.

Managers assume multiple roles in an organization. According to Mintzberg there are

The figure below shows the ten managerial roles:

1. Figurehead – As a manager, you have responsibilities. A manager is expected to be a

The managerial roles in this category involve processing information:

5. Disseminator – This is where a manager communicates with a potentially useful

The managerial roles in this category involve using information:

8. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's

To summarize the role of a manager. A manager is the lifeblood of most organizations

There are three (3) types of managerial skills:

In the management level, we can distinguish three general levels of management

The figure below shows the management levels:

The figure below shows the 6 M’s of management:

2. Method – refers to the systematic process a business is making to reach organizational

Planning as a function of management

1. Planning provides directions - by stating in advance how work is to be done planning

2. Planning reduces the risks of uncertainty - planning is an activity which enables a

4. Planning promotes innovative ideas - since planning is the first function of

6. Planning establishes standards for controlling - planning involves setting of goals.