What Is Product Layout ?
Product layout is an sequential arrangement of various machines and devices in the workplace which are required for the production of a certain kind of product. All machines, and plants are installed either in linear shape or U shape.
Benefits Or Advantages Of Product Layout
The main advantages of product layout can be explained as follows:
1. It Saves Cost And Time
In product layout, machines and equipment are arranged in the sequential manner (in linear shape or in U shape) which ensures smooth flow of operation and continuous production. Because of sequential layout and integrated process, it avoids backtracking of materials which helps to minimize material handling cost. It also lowers the cost of work-in-progress because of continuous production. It promotes automation by using modern machines and equipment that helps to decrease production time. So, it helps to save cost and time in the workplace.
2. Large Volume Of Output
Installation of automatic machines and equipment helps to perform production activities smoothly and continuously without making mistakes. It helps to produce large quantity of products in less time.
3. Less Cost Of Production
Because of the optimum utilization of resources and large volume of output, it minimizes the cost of production. Decreased cost of production helps to increase the profit of the firm.
4. Optimum Utilization Of Resources
It promotes proper utilization of resources such as floor space, equipment, human resources in the organization. Better utilization of resources helps to obtain better result because it increases the efficiency and performance.
5. Less Supervision And Inspection
Because of integrated process and repetitive nature of work, it requires less supervision and inspection in the production unit. Automated machine and sequential arrangement of work makes easy to regulate the production process.
Drawbacks Or Disadvantages Of Product Layout
The main disadvantages of product layout can be explained as follows:
1. Lack Of Flexibility
Major changes or adjustments are impossible it is designed to accomplish certain operation. So, product layout lacks flexibility.
Also Read:
Advantages And Disadvantages Of Process Layout
Difference Between Product And Process Layout
2. Requires Huge Investment
Product layout requires huge capital to acquire fixed assets such as machines, plants, equipment, space etc.
3. Difficult To Expand
Because of less flexibility and requirement of large investment there is less scope for expansion of operation.
4. Boring And Monotonous
Employees may feel boredom and monotonous because of repetitive job and working on the same machine regularly for long time.
5. Chance Of Interruption
There is a risk of interruption in production process due to machine breakdown, fluctuation in power supply, system maintenance etc.
Pros
- It ensures smooth flow of operation because of automation and no backtracking of materials
- It helps in producing large volume of output which lowers the cost of production
- It consumes less cost and time for material handling
- It requires less supervision, inspection and controlling
Cons
- There is no flexibility in this layout
- Huge initial investment is required to obtain machines and equipment
- There is less scope for expansion because of the lack of flexibility
- There is a high possibility of equipment breakdown and stoppage of the operational process
