10.5 Manufacturing Layouts

A product layout is most suitable for operations that involve mass production of standardized goods. In this layout, equipment and workstations are arranged in a linear sequence that mirrors the steps of the production process. Each unit follows the same path from start to finish, with minimal variation.

This layout is commonly used in industries such as:

• Automotive manufacturing
• Electronics assembly
• Appliance production
• Service operations with repetitive tasks (e.g., automated car washes)

The defining feature of a product layout is its focus on efficiency through repetition. Because the same product is produced continuously, the layout is optimized for speed, consistency, and minimal handling.

Characteristics of Product Layout

• High-volume, low-variety production: The layout is ideal for producing large quantities of identical or similar products.
• Specialized equipment: Machines are designed to perform specific tasks at high speed and are arranged in the exact order of operations.
  • Example: In a car wash, Machine 1 performs the washing, Machine 2 handles the rinsing, and Machine 3 completes the drying. Each machine is dedicated to a single function.
• Streamlined material flow: The movement of materials is linear and uninterrupted, resulting in reduced confusion and delays.
• Minimal changeover time: Since the product remains the same, there is no need to reconfigure machines between production runs.
• Low work-in-progress (WIP) inventory: Materials move continuously from one station to the next, minimizing storage needs and reducing material handling costs.

Limitations of Product Layout

Despite its advantages, the product layout also presents several challenges, particularly in environments where flexibility is required:

• Lack of adaptability: The layout is rigid and cannot easily accommodate changes in product design or production volume. Any modification may require significant reconfiguration.
• Low equipment utilization during demand fluctuations: Specialized machines are efficient only when demand is stable. If demand drops, the equipment may remain idle, leading to inefficiencies.
• High capital investment: The machinery used in product layouts is often expensive and designed for specific tasks. To justify the investment, the equipment must operate at high capacity.
• System vulnerability: A breakdown in one machine can halt the entire production line.
  • Example: If the rinsing machine in a car wash fails, the drying station cannot function, disrupting the entire process.

A product layout is best suited for environments where efficiency, consistency, and high output are the primary goals. However, it requires a stable demand and a standardized product line to be truly effective. Organizations must weigh these benefits and limitations carefully when designing their manufacturing systems.

A process-oriented layout is best suited for environments where a wide variety of products or services are offered in relatively low volumes. Unlike product layouts, which are designed for efficiency and repetition, process layouts prioritize flexibility and customization. This layout groups similar functions or processes together, allowing for a more adaptable workflow that can accommodate diverse customer needs or product specifications.

Organizations typically adopt a process layout when the demand for individual products or services is low, but the range of offerings is broad. This is common in many service industries and custom manufacturing settings. For example, in a retail store, all grocery items are grouped in one section, while apparel, electronics, and books are located in separate areas. Similarly, banks, apparel stores, event venues, and hospitals often utilize process layouts to manage a range of services that require distinct resources and workflows.

Characteristics of Process Layouts

• Functional grouping: Workstations or departments are organized by function rather than by product flow. For instance, all billing counters in a bank may be grouped together, separate from customer service or loan processing areas.
• High flexibility: The layout can accommodate a wide range of products or services, making it ideal for customized or client-specific operations.
• Low equipment and labour specialization: Since demand for each service or product type is relatively low, it is not cost-effective to dedicate specialized equipment or personnel to each task.
• Variable flow paths: The movement of materials, people, or information is not linear. Each customer or product may follow a different path through the system.

Example: Retail Store Layout

In a retail environment, the process layout results in a non-linear flow of customer traffic. Each shopper may navigate the store differently, depending on their individual needs. For example:

• Customer A might follow the path: Kids → Grocery → Books → Checkout (as shown by red arrows in Figure 5s.2).
• Customer B might follow a different route: Apparel → Vegetables → Books → Checkout (as shown by blue arrows).

This variability in movement can lead to congestion, inefficient material handling, and difficulty in supervision, especially during peak hours.

Design Considerations for Process Layouts

To address the challenges associated with process layouts—such as jumbled flow and longer travel distances—certain design principles should be followed:

• Minimize travel distances: Departments that frequently interact should be located close to each other to reduce material handling time and cost.
• Sequence departments logically: Whenever possible, arrange departments in the order of operations to streamline flow.
• Ensure visibility and accessibility: Layouts should allow for easy supervision, inspection, and customer navigation.
• Provide adequate space for movement: Aisles and pathways should be wide enough to accommodate both customers and material handling equipment without causing obstructions.

A process layout offers the flexibility needed in environments where variety is high and volume is low. While it may not be as efficient as a product layout in terms of speed and throughput, it excels in adaptability, customization, and resource sharing, making it a preferred choice for many service organizations and custom manufacturers.

In both process and product layouts, the product typically moves from one machine or workstation to another, while resources such as labour, tools, and machinery remain fixed. However, in the case of large, heavy, or immobile products—such as aircraft, ships, or buildings, the opposite approach is required.

In a fixed-position layout, the product remains stationary, and all necessary resources are brought to the product. This layout is often the only practical option for manufacturing or assembling large-scale items that are difficult or impossible to move during the production process.

Examples of Fixed-Position Layouts

• Shipbuilding
• Aircraft assembly
• Construction sites

The following video reviews some common forms of Fixed-position layouts

Video: “Industries that use fixed position layout part 2 3” by Maryanne Ross [1:53] is licensed under the Standard YouTube License.Transcript and closed captions available on YouTube.

Some production environments require a combination of both product and process layouts. In such cases, certain activities follow a sequential, standardized flow (as in product layouts), while others require functional flexibility (as in process layouts). This combination is known as a hybrid layout.

A common example is found in automobile manufacturing. During the assembly stage, cars move along a fixed sequence of operations. This reflects a product layout. However, when it comes to painting, cars are grouped by colour and processed in batches, which aligns with a process layout. Thus, the facility utilizes a hybrid layout to efficiently accommodate both types of operations.

Another example can be seen in the food service industry.

• In a dine-in restaurant, customers often order a wide variety of meals in small quantities. This requires flexibility and customization, making a process layout more suitable.
• In contrast, a fast-food restaurant typically serves a limited menu in high volumes, benefiting from a product layout.

With increasing competition, some restaurants now offer both types of services. In such cases, a hybrid layout is adopted:

• High-variety, low-volume items are prepared using a process layout.
• High-volume, low-variety items are produced using a product layout.