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The two main types of layouts are process and product. Process groups things together according to the products they work on and improve efficiency. Product layout groups stations together according to the activities being performed and tries to eliminate waste in material flows, regardless of which product they are working on.

Product advantages are having workstations quickly transfer small batches of semifinished goods directly to the next station in a production line which is high output/utilization. Disadvantages of product are increased risk in which equipment can be faulty requiring work or absenteeism.

Process advantage is flexibility and reduced costs in using generalized equipment opposed to specialized for specific things. Disadvantages for process layout are low utilization rates as the machine is dependent on various output parameters.

I believe Product layout has a better lean system because it minimizes production time. It also has a more excellent utilization of labor and equipment.

For me doing per diem work at a hospital as a therapist I would say Process is most relevant due to the efficiency by arranging equipment according to its function.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93122425

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