In Product Layout, the equipment or assembly work stations are arranged according to the progressive steps of sequence or operations by which the product is made. Product Layout is used advantageously in the continuous - production system where :
1. The number of end products is small.
2. The parts are highly standardized and interchangeable.
3. The volume of production for any item is high or large.
4. The demand of the product is fairly steady.
5. The continuity of material flow can be maintained.
This type of layout is exemplified in automobile assembly, food processing, and furniture manufacture.
Advantages of this type of layout generally include :
1. Reduced handling of material by transfer machines or conveyors.
2. Reduced amount of material in process, allowing reduced production time , and lower investment in materials.
3. More effective use of the labour through :
i) Greater Job specialization.
ii) Ease of Training.
iii) Wider labour supply.
4. Easier control.
5. Less inspection, less work - in - process, less floor area, and smaller aisles.
Disadvantages Of product Layout includes :
1. Higher initial equipment investment.
2. Greater vulnerability.
3. Greater inflexibility due to changes in design, making it more costly.
4. Greater boredom due to highly repetitive nature of work.
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