In a manufacturing setting, layout involves the configuration of plant sites. The configuration of the manufacturing site with buildings, facilities, and working stations among others is essential. It influences the overall manufacturing process and operation cost as well as the value. With this, there are two basic types of the layout which include product layout and process layout ( Ratnayake and Dinosha, 2018).
The process layout applies a configuration technique whereby the operations of a similar nature and with the same functions are categorized in a common group. Some of the advantages of the process layout are: (i) high flexibility-this is because the firm can meet different processing requirements. (ii) reduced costs-this is due to the fact that general purposes equipment is utilized maximally and efficiently. On the other hand, the disadvantages include (i) low rate of utilization-with this, the utilization of machines depends on a variety of parameters and thus, it tends to be low.
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The product layout applies a configuration where resources available are arranged sequentially. This becomes common while dealing with high volume and standardized products. Some of the advantages of product layout include: high output level-the layout may facilitate manufacture of goods in large volume within a short period of time. (ii) high utilization-it is a fact that product and output in high volume result into the higher utilization of equipment including resources such as labor. The disadvantages include: (i) high risk-the most common risk to the system is the maintenance or breakdown of equipment.
The product layout goes well with a lean system. The basic reason is that in this layout the level of work-in-progress is lower. Similarly, the equipment and labor utilization in this layout is better and efficient ( Heizer et al. 2017). With this, the firm’s requirement is optimized. Last but not least, this layout is not time-consuming and thus, it minimizes the production time. It is all these factors that makes product layout compatible with a lean system.
In my view, process layout is more essential. For instance, I always come across this type of layout whenever I visit a hospital or a bank. As a regular attendant, I would prefer a process layout.
References
Heizer, J., Render, B., Munson, C., & Sachan, A. (2017). Operations management: sustainability and supply chain management, 12/e.
Ratnayake, R. M. D. K., & Dinosha, V. (2018). The effectiveness of lean manufacturing layout of a firm within the apparel industry of Sri Lanka: a case study .
