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I call it flexible manufacturing :)
Each building is specialized in producing a specific end product and all the necessary intermediate parts are produced inside that building if
a) they are easy to produce on-site (1-2 production steps at the most) or
b) are difficult to ship in from outside (like screws - the quantity is just too high)
In cases where production on site is impractical, I ship them in from the building that produces the parts and adjust production accordingly.
I also tend to put storage containers before and after every production line step as buffer and easy access to stuff.
Things get messy, real messy, and most of the buildings are pretty big.
This was the side where I wanted to make a neat smelting array for the two normal copper/iron nodes, feeding into a series of constructors for basic materials.
https://steamcommunity.com/sharedfiles/filedetails/?id=2133317138
A lovely colour coordinated two-story factory, walkways for access, storage at the back with yellow fencing, panel windowed rear, reinforced sides, glass/frame ceiling.
This is what the rest of my factory looks like, accounting for the complex recipe's of the higher tier materials.
https://steamcommunity.com/sharedfiles/filedetails/?id=2133317317
Note the old section for the impure iron nodes that I haven't torn down since my last redesign, in the middle of my belt forest.
As for using height, its not that hard, if you just leave space for lifts between floors.
That's the thing. To what benefit?
Maybe its different on some of the more enclosed starting locations, but building it further along is no different to building it above, it's also a lot easier to see where things are going. I can maybe see it working if you used something like main bus on a stacked conveyor system and tried to build everything vertically, but vertical construction is far more awkward than horizontal construction.
Not to mention the foundations really spoil the view ><
Here are some pictures of this insanity:
https://steamcommunity.com/sharedfiles/filedetails/?id=2133354722
https://steamcommunity.com/sharedfiles/filedetails/?id=2133355243
https://steamcommunity.com/sharedfiles/filedetails/?id=2130897634
https://steamcommunity.com/sharedfiles/filedetails/?id=2133356018
https://steamcommunity.com/sharedfiles/filedetails/?id=2133355548
https://steamcommunity.com/sharedfiles/filedetails/?id=2133354989
https://steamcommunity.com/sharedfiles/filedetails/?id=2133354853
https://steamcommunity.com/sharedfiles/filedetails/?id=2133373705
https://steamcommunity.com/sharedfiles/filedetails/?id=2133373866
https://steamcommunity.com/sharedfiles/filedetails/?id=2132860611
This is only my latest game, but I have been doing it in rows for this, ore -> ingots -> plates/rods -> screws -> reinforced plates/rotors, with 2 input loops, one for the ore and one for the ingots(shown in the first screenshot).
It then outputs everything into storages that can be routed out the front:
https://steamcommunity.com/sharedfiles/filedetails/?id=2133381903
Then I have the copper factory(which was actually built before the iron one), which was built before I unlocked the sheets(ended up building a different factory for that somewhere else):
https://steamcommunity.com/sharedfiles/filedetails/?id=2133382867
So I tend to make products on site, I do have a steel factory going too, that makes beams/pipes, which I have expanded into a separated factory with nearby sources of limestone/copper to make encased steel beams and stators.