Introduction Operation management deals with all the processes and activities that are involved in the transformation of an idea to finished product (Florence, 1984, p. 45). Its also involves the systems that are used in controlling the activities used to produce goods and services. The operations management process basically entails the transformation process involving inputs, transformation processes and the outputs. Inputs in the transformation process that is made possible through operations management include capital, human resources, natural resources, materials, information and customers of goods and services. Operations managers facilitate in value addition of the inputs through the transformation process enabling the production of goods and services. After value addition, outputs are produced that include products and services e.g., automobiles, furniture and aircraft. One of the important points in operations management is process selection. Process selection involves making decisions how production of goods and services will be organized. When making the above decisions, managers are confronted with major implications that they have to deal with. They include capacity planning, layout facilities, equipment and work systems design. Smooth production of goods and services can only be ensured when the above have been optimally met. In this paper, focus will be given to layout selection that will be discussed in detail in subsequent sections. Another bit of operations management that is critical to its success is the process selection and system design. This is a component of the transformation process discussed above that ensures the system runs smoothly. It involves forecasting, product and service design and technological change on one hand and facilities and equipment, work design and layout on the other. The two parts are made possible through capacity planning and process selection in industrial processes. In the free market setting, manufacturing and services comprise the biggest chunk of economic activities. The layout selection talked about earlier will concentrate on the services sector. However, for purposes of understanding, it’s imperative that a somewhat detailed discussion of both sectors is carried out to distinguish how elements of the transformation process apply. Additionally, there will be a lot of comparison n between the two in the analysis of layout selection in the services sector. Manufacturing and service sectors Since the advent of the industrial revolution, manufacturing has been the backbone of most economies. It still continues to support large sections of many global economies. McCluskey says that though both economic operations (manufacturing and services) have a common target of satisfying client needs, they do as well have stark differences that make that are clearly highlighted in their transformation processes and that serve to dictate differentiation of capacity planning, layout facilities, equipment and work systems design (2004, p. 43). The differences include tangibility of products from operations, customization and contact with customers. According to Stevenson manufacturers produce and deal in tan