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Disadvantages of Product Layout - Heavy capital Expenditure
This layout requires heavy capital investment in machines and equipment and for providing specialized facilities to support the sequentially arranged operation.Even at the initial level sufficient capital has to be raised to launch a new plant. Some kinds or machines, tools etc, are found at different centres and in different stages of the manufacturing line. Thus the whole enterprise becomes a highly capital intensive venture. Such heavy capital investment implies risks of uncertain return.
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