PRODUCT LAYOUTS

WHAT ARE PRODUCT LAYOUTS?•ARRANGE IN A STRAIGHT-LINE FASHION TO PROMOTE EFFICIENT

PRODUCTION•USED BY COMPANIES THAT HAVE REPETITIVE PROCESSING

SYSTEMS AND PRODUCE ONE OR A FEW STANDARDIZED PRODUCTS IN LARGE VOLUME•RESOURCES ARE ARRANGED SEQUENTIALLY, BASED ON THE

ROUTING OF THE PRODUCTS

CAFETERIA LINE

EACH WORKER ALONG AN ASSEMBLY LINE HAS SPECIFIC TASKS HE MUST COMPLETE IN A LIMITED AMOUNT OF TIME.

IN A TOY FACTORY

TOYOTA MOTOR CORPORATION

PRODUCT LAYOUTS• IN PRODUCT LAYOUTS THE MATERIAL MOVES CONTINUOUSLY AND

UNIFORMLY THROUGH A SERIES OF WORKSTATIONS UNTIL THE PRODUCT IS COMPLETED. *EFFICIENCY

•OPERATIONS MANAGER MUST DECIDE EXACTLY WHAT TASKS WILL BE PERFORMED BY EVERY WORKSTATION IN THE SEQUENCE. *LOGICAL ORDER

• PHASE OF PRODUCTION: FAST OR EVEN FASTER MORE UNITS TO PRODUCED

CHARACTERISTICS OF PRODUCT LAYOUTSRESOURCES ARE SPECIALIZEDFACILITIES ARE CAPITAL INTENSIVEPROCESSING RATES ARE FASTERMATERIAL HANDLING COSTS ARE LOWERSPACE REQUIREMENTS FOR INVENTORY STORAGE ARE LOWERFLEXIBILITY IS LOW RELATIVE TO THE MARKET

A COMPARISON.PROCESS LAYOUT• PRODUCE LARGE NUMBER OF

DIFFERENT PRODUCTS•GENERAL PURPOSE

RESOURCES• LABOR INTENSIVE FACILITIES•GREATER FLEXIBILITY

RELATIVE TO THE MARKET

PRODUCT LAYOUT• PRODUCE SMALL NUMBER OF

PRODUCTS EFFICIENTLY•SPECIALIZED RESOURCES•CAPITAL INTENSIVE

RESOURCES• LOW FLEXIBILITY RELATIVE TO

THE MARKET

A COMPARISON.PROCESS LAYOUT• SLOW PROCESSING RATES•HIGH MATERIAL HANDLING

COSTS•HIGHER SPACE REQUIREMENTS

PRODUCT LAYOUT• PROCESSING RATES ARE FASTER• LOWER MATERIAL HANDLING

COSTS• LOWER SPACE REQUIREMENTS