Some good advice already. Here’s a simple rule.
You have a roundhouse to compress. Obviously, you wouldn’t want to make it half as tall. That wouldn’t solve the problem of it taking up too much floorspace, your locos wouldn’t fit, and it would look, well, weird. Instead, you cut the number of stalls, but preserve other elements of the structure that are needed to give you the look of a big roundhouse, without its size.
So there’s a pretty simple rule – Will it look right when it’s done?
A way to help with this is to make cardboard or foam-board mockups. They’re easy and cheap and you won’t have a great deal committed if things don’t look right, then you bash it until it does look right.
Here are several tricks I’ve used recently on my layout.
Modeled a large mill (Gold Prince at Animas Forks, CO), but left out several levels and jogs in the walls, but inlcuded enough of both for it to look right. I did use similar window arrangements and preserved the tram house that stuck up in the center at the top. It’s probably a tenth the size of the actual mill, but still looks huge on my layout.
Modeled another mill (Sunnyside at Eureka, CO), similar issues, but with a twist. The railroad wove its way through the facility in a big S-curve, but I didn’t have room for that. Instead, I angled the sidings off my straight-through main. And I didn’t have as much depth here, either. So the mill isn’t very deep, but I did include multiple steps in the roof/walls so it looks right, along with the various spurs angling off.
There will be a short tramway that goes over the mountain ridge from the Sunnyside (buckets and towers coming in HO from Anvil Mountain Models this spring). In this case, it will have only one tower visible as it goes over the ridge and out of sight. On the other side of the mountain, the tramway continues, but looks like it’s going up the mountain to the very same tram tower! So, two tramways modeled with a single tower. That’s darn serious compression,