Product layout (also known as straight line layout) refers to the arrangement of production facilities such as machines, equipment, devices and materials in the sequential order. On the other hand, process layout ( also known as functional layout) is a type of floor arrangement where machinery, equipment and devices of similar processes or functions are grouped together. Product layout is suitable for producing standardized commodities in large volume and process layout is suitable to produce diversified good is less quantity.
Difference Between Product And Process Layout
The main dissimilarities or differences between product layout and process layout can be described as follows:
1. Introduction
Product Layout: It is a type of floor arrangement where machines and equipment are installed in sequential order.
Process Layout: It is a type of layout where machinery and devices of similar functions are grouped together.
2. Used For
Product Layout: This layout is used for the production of standardized products in large quantity.
Process Layout: It is used to produce diversified products in small quantity.
3. Space Required
Product Layout: It requires less space than process layout because all the production facilities are installed in the single floor.
Process Layout: This type of layout requires more floor space because separate workstation is required for different process or function.
4. Investment Required
Product Layout: This floor arrangement requires high investment to acquire plant and machinery. But it requires less working capital.
Process layout: It requires less capital than product layout because it avoids duplication of machines. But it requires more working capital.
5. Cost Of Production
Product Layout: Because of continuous production, large volume of output and less material handling costs it lowers the cost of production.
Process Layout: Because of long processing time, small volume of output and more wastage, cost of production will be higher in this layout.
6. Flexibility
Product Layout: It lacks flexibility. So, it is difficult to make changes and adjustments.
Process Layout: It is more flexible than product layout. So, changes and adjustments can be made easily.
7. Scope For Expansion
Product Layout: Because of inflexibility, there is less scope for expansion.
Process Layout: There is high scope of expansion because this layout more flexible.
8. Production Time
Product Layout: Because of smooth workflow, sequence of operation and less movement of materials, it requires less production time.
Process Layout: Because of variable workflow, more movement of materials from one process to another it takes more production time.
Also Read:
Advantages and disadvantages of product layout
Advantages and disadvantages of process layout
9. Risk Of Interruption
Product Layout: There is high chance of interruption in production process. It may be seriously affected due to breakdown of machinery, fluctuation in power supply etc.
Process Layout: Machine breakdown or system maintenance do not interrupt the whole production process.
Product Layout Vs Process Layout ( Comparison Table)
|
Basis |
Product Layout |
Process layout |
|
Space Needed |
Less |
More |
|
Flexibility |
No |
Yes |
|
Production Cost |
Less |
High |
|
Investment |
High |
Less |
|
Production Time |
Less |
More |
|
Scope For Expansion |
No |
Yes |
Distinction Between Product Layout And Process Layout In Short:
- Product layout is useful for the production of standardized products. But process layout is used for diversified products.
- Product layout needs huge initial investment. Process layout requires less capital investment.
- Product layout is less flexible than process layout.
- Product layout can be set up in small floor space. But process layout require more space.
- There is a high possibility of interruption in production process in product layout. On the other side, there is less chance of interruption in process layout.
