Difference between Process Layout and Product Layout
Functional or Process Layout:
- In this type of layout, similar kind of machines are arranged at one place to perform the operation.
- Less capital investment is required.
- Skilled workers are required.
- Quality of manufactured product is better.
- This type of arrangement is preferred for job order production.
- Better machine utilization is there in process layout.
- This layout is suitable for moderate production with more job variety.
- Work flow is not smooth and job movement is comparatively more.
- Automation in material handling won’t be much effective in this layout.
- Comparatively more inventory is required in this layout.
- Breakdown of one machine does not affect so much in this type of layout.
- More work flexibility in process layout.
- Comparatively more space is required for same amount of production.
- More time is required to complete the product.
- Less monotony in working as jobs are non-repetitive in nature in this layout.
- Product, planning and control is comparatively difficult.
Line or Product Layout:
- In product layout, similar kind of machines are arranged according to sequence of operations to manufacture a product.
- More capital investment is required in product layout.
- Comparatively less skilled workers are required.
- Quality of manufactured product is not so good.
- This type of arrangement is preferred for mass production or assembly work.
- Poor machine utilization is there in this type of layout.
- This layout is suitable for mass production with less variety of jobs.
- Work flow is smooth and job movement is comparatively less.
- Automation in material handling will be much effective in this layout.
- Comparatively less inventory is required in this layout.
- Breakdown of one machine affect greatly in this type of layout.
- Very less work flexibility in product layout as compared to process layout.
- Comparatively less space is required for same amount of production.
- Less time is required to complete the product.
- More monotony in working as jobs are repetitive in nature in this layout.
- Product, planning and control is comparatively easy.
In an effort to make your production line more efficient, look at the different ways to lay out the production line or overall manufacturing plant. Two of the most common layouts are the process layout and the product layout. Each layout provides a systematic approach to production, with each serving a different type of product assembly. Consider your business needs before you choose the best manufacturing layout for your company.
The process layout, also called the functional layout, is designed to keep everything organized in a manner so that everything has its place. Think about an auto mechanic's shop. New tires are stored in one section, whereas wrenches and other tools are stored in another section. The cans of oil are stored together, as are other groupings of supplies or power tools.
Although this is an organized layout in which everyone always knows where all supplies and tools are located, it isn't the most efficient for production lines, where the same job is performed every single time. The process layout is effective when each job is a custom situation. The mechanic's shop illustrates this well. One customer may come in needing only an oil change, but another may come in needing the entire transmission overhauled.
The product layout is the opposite of the process layout. Rather than have a specific section for each group of tools and supplies, the product layout is an assembly line. The required tools and supplies are located at each section of the assembly line, based on where the product is in production. This is common in auto manufacturing where the car being made is moved down the line and stops at stations where different things are assembled. One section might be where doors are attached, whereas another section inserts the engine.
This is an efficient system when the same product is being made without variation. Workers don't need to search or collect tools or supplies to perform their job. Giving workers one job to perform repeatedly reduces potential mistakes in the product assembly.
The manufacturing layout will depend on business leaders determining the best process. Even though the functional layout requires more professional skill, automation can counter unskilled workers in the product layout. Because the process layout requires one worker or a small team to complete the entire task, the workflow is generally not as fast nor as smooth as it is with the product layout. However, the quality of the final product in a process layout is usually better than with the product layout.
As you can see, there are advantages and disadvantages to both systems. Evaluate your production space, your workforce and your ability to automate, before deciding on which layout will be the best solution for your business.
With the initiation of a production unit comes the need to plan and organize the production process thoroughly, based on its suitability to our project, and its costs.
With the initiation of a production unit comes the need to plan and organize the production process thoroughly, based on its suitability to our project, and its costs.
There are two major ways to lay off the layout, the Product Layout, and Process Layout. It is crucial to understand these concepts and to draw a clear line of distinction between them.
Product Layout vs Process Layout
The main difference between product layout and process layout is that Product Layout is one in which the machines are set up systematically such that the output of one machine is the input of another machine while Process Layout is one in which machines are set up at different locations, a variety of products can be produced by altering the order of these processes
| Definition | Product Layout is one in which machines are set up in order of procedures required to produce a particular kind of product. | Process Layout is one in which machines are set up at different locations to produce a wider variety of goods. |
| Suitability | This layout is suitable when continuous and large scale production of similar goods is to be carried out. | This layout is suitable when small scale and altered goods are to be produced, in accordance with the customer’s choice and order. |
| Material Handling | Material Handling Costs are negligible because the output of one machine is the input of another machine and no transportation is required. | Material Handling Costs are very high because the material has to be transported to various departments. |
| Inventory | No inventory is required to continue production. | High Inventories are required because of discontinuous production. |
| Space Required | Small space is required and that is fully utilized because machines are kept one after another in order. | Either a large space or different locations are required to set up different departments. |
| Skills Required | Workers don’t require any specific skill set. They can work on any machine in the entire space. | Workers need specialized skills to operate specific machines. |
| Flexibility | The process is rigid, it can’t be expanded or shortened. If one machine breaks down, the entire process is disrupted. | This layout is more flexible and allows easy altering of processes whether it be skipping or expanding |
| Advantages | o Efficient Supervisiono Large Scale Productiono Simple and less Paperwork o Low Skills required | o Flexibilityo Consumer-based production o Specialization o Effective even during the breakdown |
Product Layout is a method of operations management, that is, a method of organizing and setting up machines and layout of the steps to produce a particular product or a group of very similar products.
This type of layout is recommended when production has to be a continuous process because it helps us avoid material handling costs and ensures a smooth flow of production.
The system is suitable for industries like cement, steel, sugar, metal extraction, etc. However, the system is very rigid and the layout breaks down even if one machine breaks down because the chain gets disrupted.
Process Layout is also a type of operation management tool. In process layout, different machines that perform different functions or tasks are set up at different locations.
In process layout, specialized machines are set up at one place to perform certain tasks and similarly, other machines are set up at other places.
It is suitable when small scale altered goods are to be produced on consumers’ individual preferences. The process is discontinuous and involves very high material handling and inventory maintenance costs.
It helps in the specialization of equipment and the labor and allows them to function to their full potential. This system is very beneficial because of flexibility, any of the processes can be easily skipped or expanded.
- Product Layout ensures efficient utilization of even a very small space while Process Layout requires large space or many different places.
- Product layout is more rigid and expansion isn’t possible while the process layout is very flexible, it can skip or expand processes and can also survive a breakdown of machinery.
When we start production of any good, the procedures’ layout and organization are a must. While managing operations, we are faced with a choice between Product Layout and Process Layout.
Product Layout is a type of layout that sets up a chain of machines based on the procedure to produce a particular good while Process Layout is one in which specialized machines are set up under various departments and production takes place by undertaking those processes in various and altered orders.
Product layout is suitable when continuous production, a higher degree of supervision, and less variety of goods is required.
Key Differences Between Product Layout and Process Layout (PDF Format)
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