Consistent bedtime routines (as well as an early-enough bedtime) are really important for babies and children; if they do it consistently night after night, it will help them know that it's night time, and ultimately help them to sleep better. The earlier you start the better (baby's age), it will get reinforced more and more. The bedtime routine also shouldn't be too long, about half-hour maximum, or it becomes hard for them to realize/notice that this is part of a bedtime routine, rather than a different kind of 'playing'.
Our son is almost 18 months and we still follow the same routine each night (my husband and I together):
- give a 5-minute warning (I tell him that he can play for 5 more minutes, before it's time for night-night
- when it's time to start, I ask him what toys he wants to say goodbye to, for the night; this really helps to prevent crying fits if he is just taken away from toys/playing by force, maybe because he might feel a little more in control?... anyway he'll think about it for a few seconds, then usually point to some toys to say goodbye to, then I pick him up and we go around to say it to a few others, and then go into his room
- undress him, and give a bath for about 5-10 minutes (now he will actually walk all by himself to the bathroom, pointing all the way, as he knows what's coming next; it's so cute.)
- dress him for night, and read some baby books (3-5 books, depending on their length)
- say 'night-night' a couple of times, turn off the lights, and breast feed (but it's important that he doesn't fall asleep on the breast, instead be put down a bit drowsy but still not totally asleep). Breast feeding can vary in time however, some nights shorter (just 5-10 minutes), some longer (20-30 minutes)... I usually cap it at 25 minutes, as it's no longer really feeding but just sucking for comfort.
It works for us.