This article will help you to differentiate between product layout and process layout.
Difference # Product Layout:
1. Product layout needs high investment machines/equipment.
2. Product layout needs less manufacturing time as the economy in time can be planned in the beginning.
3. Breakdown of any Unit/component lises the whole system.
4. Inflexible as each machine can perform pre-designed operation only.
5. Product layout requires less space.
6. Not to full capacity
7. Lesser amount of material handling and comparatively lesser time, money and efforts.
8. Proper co-ordination between demand and as these are made to stock.
9. Specialised and expertise control is required thus increasing supervision costs.
Difference # Process Layout:
1. Comparatively low investment in needed.
2. Production time can not be economised due to frequent movement of men and material.
3. Breakdown of any machine does not immobilise the whole system.
4. Flexible as different sections can adjust the operations according to changes in operations.
5. Process layout requires more space.
6. Comparatively better utilization.
7. Process layout involves greater handling of material requiring more time, money and efforts.
8. Co-ordination between demand and supply is likely to be difficult as these are made to order.
9. Comparatively lesser efforts on control are needed.