Difference Between Product Layout and Process Layout

With the initiation of a production unit comes the need to plan and organize the production process thoroughly, based on its suitability to our project, and its costs.


Business Quiz

Test your knowledge about topics related to business

1 / 5

A person who risks both time and money to start and manage a business is called ___________.

2 / 5

Productivity means how much was done compared to what it took to do it.

3 / 5

Wages and taxes that a company pays are examples of:

4 / 5

The six Ps are collectively known as the Marketing Mix. They are ways in which organisations differentiate themselves. They include

5 / 5

In business, stakeholders are defined as:

Your score is


There are two major ways to lay off the layout, the Product Layout, and Process Layout. It is crucial to understand these concepts and to draw a clear line of distinction between them.

Product Layout vs Process Layout

The difference between product layout and process layout is that Product Layout is one in which the machines are set up systematically such that the output of one machine is the input of another machine while Process Layout is one in which machines are set up at different locations, a variety of products can be produced by altering the order of these processes

Product layout vs Process layout


Comparison Table

Parameter of ComparisonProduct LayoutProcess Layout
DefinitionProduct Layout is one in which machines are set up in order of procedures required to produce a particular kind of product.Process Layout is one in which machines are set up at different locations to produce a wider variety of goods.
SuitabilityThis layout is suitable when continuous and large scale production of similar goods is to be carried out.This layout is suitable when small scale and altered goods are to be produced, in accordance with the customer’s choice and order.
Material HandlingMaterial Handling Costs are negligible because the output of one machine is the input of another machine and no transportation is required.Material Handling Costs are very high because the material has to be transported to various departments.
InventoryNo inventory is required to continue production.High Inventories are required because of discontinuous production.
Space RequiredSmall space is required and that is fully utilized because machines are kept one after another in order.Either a large space or different locations are required to set up different departments.
Skills RequiredWorkers don’t require any specific skill set. They can work on any machine in the entire space.Workers need specialized skills to operate specific machines.
FlexibilityThe process is rigid, it can’t be expanded or shortened. If one machine breaks down, the entire process is disrupted.This layout is more flexible and allows easy altering of processes whether it be skipping or expanding
Advantageso   Efficient Supervision
o   Large Scale Production
o   Simple and less Paperwork
o   Low Skills required
o   Flexibility
o   Consumer-based production
o   Specialization
o   Effective even during the breakdown


What is Product Layout?

Product Layout is a method of operations management, that is, a method of organizing and setting up machines and layout of the steps to produce a particular product or a group of very similar products.

This type of layout is recommended when production has to be a continuous process because it helps us avoid material handling costs and ensures a smooth flow of production.

The system is suitable for industries like cement, steel, sugar, metal extraction, etc. However, the system is very rigid and the layout breaks down even if one machine breaks down because the chain gets disrupted.

Collection of natural soaps placed on marble table

What is Process Layout?

Process Layout is also a type of operation management tool. In process layout, different machines that perform different functions or tasks are set up at different locations.

In process layout, specialized machines are set up at one place to perform certain tasks and similarly, other machines are set up at other places.

It is suitable when small scale altered goods are to be produced on consumers’ individual preferences. The process is discontinuous and involves very high material handling and inventory maintenance costs.

It helps in the specialization of equipment and the labor and allows them to function to their full potential. This system is very beneficial because of flexibility, any of the processes can be easily skipped or expanded.

Main Differences Between Product Layout and Process Layout

  1. Product Layout ensures efficient utilization of even a very small space while Process Layout requires large space or many different places.
  2. Product layout is more rigid and expansion isn’t possible while the process layout is very flexible, it can skip or expand processes and can also survive a breakdown of machinery.


  1. https://dl.acm.org/citation.cfm?id=935090
  2. https://www.spiedigitallibrary.org/conference-proceedings-of-spie/9424/94241C/Predictability-and-impact-of-product-layout-induced-topology-on-across/10.1117/12.2085283.short
One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️