Objective- Least material handling cost. Workers effectiveness. Group technology
PROCESS LAYOUT In this layout similar process ,machine or equipment of the same function are group together in a separate department. Advantage-Flexibility and finished goods inventory is low. Finished goods inventory is low. Limitation-Time consuming process. Cost of material handling is high.
PRODUCT LAYOUT In a product (or line) layout, various facilities, such as machine, equipment, work force, etc., are located as per the sequence of operation on parts. Advantage- Less work in process (WIP) inventory The through-put time (or product cycle time) is less control and better coordination of different activities Limitation- Change in product design is difficult to accommodate. Product variety is very much limited.
FIXED POSITION LAYOUT In fixed position layout, the main product being produced is fixed at a particular location. Advantage- Easy for products which are difficult to move. Large project type of jobs such as construction are suited in this layout. Limitation- High capital investment. Space requirement for storage of material.
COMBINATION LAYOUT It is a combination of process layout and product layout.