Benefit of Product Oriented Layout

Why Product Oriented Layout is more efficient than Process Oriented?

Though going for a Product or Process oriented layout depends upon the manufacturing process characteristics as well as product characteristics but if looked holistically there are some certain and obvious advantages associated with Product Oriented Layout. We discuss some of them below:

1. Minimal WIP: Since all machines are placed next to each other aligned in same way as the production process defines it, it reduces wait time for wip materials and also travelling time for material from one place to other machine and hence leads to minimal WIP possible.

2. Minimum Manufacturing Time: As discussed above the layout is designed in a way that output from one product is inputted to machine next in line of production process and it is ensured that the travelling time is minimum possible and hence leads ultimately to minimum manufacturing time.

3. Simplification of Tasks, Production Planning & Control: Since the production process flow defines the layout requirements' it eliminates any complex layouts and structures and involved simulations to achieve perfectness and speed. It also leads to clear role definitions and associated timings due to very less no. of product category. Due to this attribute it also provide indirect incentive to this group to improve the timings and reduced wastage and WIP and earn rewards.