 Layout identically involves the allocation of

space and the arrangement of equipment in

such a manner that overall operating costs
are minimized.
 Economic Considerations
 The process Requirements
 Convenience of operations
 Convenience of Maintenance
 Future Expansion
 Materials
 Nature of product
 Production process
 Type of machinery
 Repairs and maintenance
 Human needs
 Plant environment
 Optimal utilization of available floor
space
 To ensure that work proceeds from one
point to another point without any
delay.
 Provide enough production capacity
 Reduce material handling costs
 Reduce hazards to personnel
 Reduce accidents
 Provide ease of supervision and
control
 Provides for employee safety and
health
 Allow ease of maintenance
 Improve productivity
 Product or line layout
 Process or functional layout
 Location or fixed position layout
 Combined or group layout
 Layout that uses standardized processing
operations to achieve smooth, rapid, high-
volume flow
 High rate of output
 Low unit cost
 Labor specialization
 Low material handling cost
 High utilization of labor and equipment
 Established routing and scheduling
 Creates dull, repetitive jobs
 Poorly skilled workers may not maintain
equipment or quality of output
 Fairly inflexible to changes in volume
 Highly susceptible to shutdowns
 Needs preventive maintenance
 Expensive layout
 Layout that can handle varied processing
requirements
 Can handle a variety of processing
requirements
 Not particularly vulnerable to
equipment failures
 Equipments are less costly
 Possible to use individual incentive plans
 In-process inventory costs can be high
 Challenging routing and scheduling
 Equipment utilization rates are low
 Material handling slow and inefficient
 Special attention for each product or
customer
 Accounting and purchasing are more involved
Product Layout: Process Layout:

Needs high Comparatively low

investment in investment needed
machine /
equipment
Product Layout Process Layout

Needs less Production time can

manufacturing not be economized
times as the due to frequent
economy in time movement of men
can be planned and material.
in the beginning
Product Layout Process Layout

Break down of Breakdown of any

any unit/ machine does not
component immobilize the
immobilises the whole system
whole system
Product Layout Process Layout

Inflexible as each Flexible as different

machine can section can adjust
perform pre- the operation
designed according to
operation only operation
 Product Layout Process Layout

Lesser amount of Involves greater

material handling handling of material
and comparatively requiring more time,
lesser time, money money and efforts.
and efforts
 Product Layout Process Layout

Specialized and Comparatively

expertise control is lesser efforts on
required thus control are needed.
increasing
supervision costs
 Layout in which the product or project
remains stationary, and workers, materials,
and equipment are moved as needed
 Raw Material Finished Product
Aircraft
Machine & equipments
Assembly
(Air Craft)
Labour
 Helps in job enlargement and upgrades the
skills of the operators.
 The workers identify themselves with a
product in which they take interest and pride
in doing the job.
 Greater flexibility with this type of layout.
 Layout capital investment is lower.