Skip to content
  • Backlink Indexing Service
  • DM Services
  • Write for us – Study Material
  • Privacy Policy
  • Terms & Conditions
  • Account
Website logo

Study Notes Expert

Start Digital Learning Here

  • Accounting
    • Management Accounting
    • Financial Accounting
  • Economics
    • Managerial Economics
  • Business
    • Business Research
    • Entrepreneurship
    • Capital Market
    • Business Communication
  • Management
    • Marketing Management
    • HRM
    • Strategic Management
    • Supply Chain Management
  • Maths
  • Science
    • Environmental Studies
    • General Science
  • Booster
    • Edu. Trends
    • Exam Helpdesk
    • Skill Enhancement
    • Language Learning
    • Tech Use for Students
  • Updates
  • Digital Products
  • Toggle search form
Advantages of product layout

Disadvantages | Premium 5+ Advantages of Product Layout

Posted on 03/12/202320/11/2023 By Study Notes Expert No Comments on Disadvantages | Premium 5+ Advantages of Product Layout

Table of Contents

Toggle
  • Designing Product Layout
    • Advantages of Product Layout
      • 1) Regulation of Production
      • 2) Scientific Materials Handling
      • 3) No Bottleneck in Production
      • 4) Speedier Production
      • 5) Lesser Supervision
      • 6) Greater Possibility of Space Utilization
    • Disadvantages of Product Layout
      • 1) Heavy Capital Expenditure
      • 2) High Overhead Charges
      • 3) Breakdown
      • 4) Inflexibility
      • 5) Additional Output not Possible
      • 6) Lack of Specialized Supervisors

Designing Product Layout

Product Layout, additionally called ‘Straight Line Layout,’ ‘Line Processing Layout,’ ‘Flow Line Layout,’ or ‘Layout for Serialized Manufacture’. It organizes equipment in a selected order that suggests their sequential roles in the production technique. In the following article, you will know the disadvantages and advantages of product layout. In this association, one end serves as the entry point for raw materials, while the opposite gives up and acts as the exit for finished items. Between those endpoints, various manufacturing cycle steps occur in a predetermined collection.

This type of format is most appropriate for manufacturers of standardized products with great demand. The manufacturing method itself is characterized by way of routine, repetitive, and monotonous tasks. However, each manufacturing step demands a specialized workforce and equipment.

The abundance of completed items in one of these gadgets makes it an attractive investment choice, prompting potential investors to make big investments right away. Given the constrained variety of objects, the complete layout can be tailor-made to meet the technological processing requirements precise to the services or products.

Advantages of Product Layout

Product layout is considered beneficial in view of the following:

1) Regulation of Production

Regulation of the production process is an inherent feature of the product layout. The entire exercise of production is carried out according to a planned sequence, and each stage involved therein may be monitored and controlled wherever required.

2) Scientific Materials Handling

Under the product layout, materials are handled cost-effectively through the use of modern scientific devices like rollers, conveyors, monorails, chutes, etc. Installation of such low-cost movement devices leads to not only substantial savings on account of labor but also ensures prompt and hassle-free movement of materials from one point to the next.

3) No Bottleneck in Production

No scope is left for any bottleneck in a well-thought sequential plant line. Phenomena like back-tracking, interruption in product flow and other forms of obstacles in workflow can be totally wiped out through techniques like balancing equipment, operations handling and workers’ assignments.

4) Speedier Production

As the entire process of production – right from the receipt of raw materials to the shipment of finished goods- takes place through a system of shortened built-in sequence of the plant complex, the total time taken is very short. The level of working capital (in the form of raw materials, work in process and finished goods) is kept at the lowest one. It is the advantages of product layout.

5) Lesser Supervision

A pre-decided sequence of various stages of product requires less supervision or inspection. A limited inspection is undertaken at the points of critical situations. 

6) Greater Possibility of Space Utilization

Under the production layout, due to an advanced material handling system in place, floor area may be utilized more creatively in an optimal manner. Space for the temporary storage of materials is not required at all.

Disadvantages of Product Layout

Product layout suffers from the following shortcomings:

1) Heavy Capital Expenditure

Under the product layout, capital investment for acquiring machines and equipment is of a rather high order. Further, the provision to have special facilities and sustain the serially ordered operations in place also needs huge investment. The entire process entails heavy capital outgo at the initial stage itself without any certainty with regard to the returns. An organization not only needs to have deep pockets but also a high-risk risk appetite if it decides to go for the product layout.

2) High Overhead Charges

The overhead charges under the product layout are also high, in proportion to the heavy investment. If, for any reason, there is a reduction in the demand for the product, the fixed overhead cost becomes a burden in the face of overcapitalized equipment and underutilized capacity. It is, therefore, of paramount importance that the demand for a product (present as well as future) be determined carefully in a realistic manner. It is one of the disadvantages of product layout.

3) Breakdown

A breakdown in any of the machines (or processes) arranged in a sequential order may bring the entire process to a standstill; all the machines and workforce in the queue subsequent to broken machinery would be compelled to stay inactive till the time the broken machine is brought to normal working condition

4) Inflexibility

Under the product layout, all the machines and men have specialization for performing certain kinds of jobs. The performance of both the machines and the men is interchangeable (lack of flexibility). Any changeover or machine replacement necessitated for betterment purposes is not only a costly affair, but it is also likely to result in the entire production process going out of control.

5) Additional Output not Possible

Under the product layout, the manufacturing capacity of the entire setup is limited. Reduction in such capacity is possible only at a cost, but to enhance the capacity with a view to meet an increase in demand for the product is just not possible.

6) Lack of Specialized Supervisors

In a product layout, a number of specialized machines operate in a sequential order. Supervision of the entire production process requires special knowledge of various machines in a wholesome manner. Such supervisors are not easy to find out; their search poses a major challenge.

Production & Operations Management Tags:Advantages of Product Layout, Disadvantages of Product Layout

Post navigation

Previous Post: Exclusive 2 Types of Consumers
Next Post: Most Important 3 Factors to Influencing Employee Retention

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Jan    
  • January 2025
  • September 2024
  • March 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • October 2021
  • September 2021
Join Telegram
May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Jan    

Recent Posts

  • Best 3 Tools to Overcome Your Assignment Writing Problems – 2025
  • Advantages & Disadvantages of Facility Layout – Expertise Guide
  • Top 4 Layout Decision Models For Organization
  • 5 Steps | Factors Affecting Capacity Planning [Operation Management]
  • Essential 4 Factors Influencing Buying Motives
  • 5 Capacity Expansion Strategies with Brainstorm Ideas [2024]
  • 2 Important Types of Buying Motives
  • 2 Main Types of Capacity Planning and How it Executes [Facts]
  • Ultimate Evolution | 7 Significance of Consumerism | Rights of Consumers
  • Latest Types of Intermittent Production System

Categories

  • Accounting (26)
    • Financial Accounting (18)
    • Management Accounting (7)
  • Blogs (2)
  • Business (65)
    • Business Communication (8)
    • Business Research (13)
    • Capital Market (36)
    • Entrepreneurship (8)
  • Digital Products (1)
  • Economics (27)
    • Managerial Economics (27)
  • Educational Trends (18)
  • Management (203)
    • Consumer Protection (9)
    • HRM (24)
    • Marketing Management (73)
    • Principles of Management (5)
    • Production & Operations Management (36)
    • Strategic management (57)
    • Supply Chain Management (1)
  • Mathematics (6)
  • Science (25)
    • Environmental Studies (19)
    • General Science (6)
  • Student Skills Booster (40)
    • Exam Helpdesk (6)
    • Language Learning (3)
    • Skill Enhancement (9)
    • Technology Use for Students (22)
  • Uncategorized (4)
  • Updates (1)

Contact Me

Founder & CEO: Ravinder Ahlawat

Address: Jind, Haryana – India
studynotesexpert@gmail.com
+91 – 8168659774

Services

  • Syllabus PDF
  • Designing Services
  • Services

Quick Link

  • About us
  • Courses
  • Services
  • Blogs
  • Contact us

Copyright © 2025 Study Notes Expert.

Powered by PressBook WordPress theme