Product Layout:

Imagine a factory manufactures taps, drills, reamers and cutters. The production of each of these items needs different machines which may be placed in different departments. It is to be noted down that in each department the machines are to be laid in the sequence of operation to be performed on job. For instance in the taps department there will be groups of lathe (L) followed by milling (M) machines. Next to these there shall the furnace for heat treating (HT) the job and at last there shall be grinding and fine grinding (FG) machines for finishing. Figure illustrates the product layout for above example. The product layout is appropriate for continuous process industries such like the manufacturers of television, car or automobile viz.