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CMA Intermediate · Operations Management and Strategic Management · Production Planning and Control

A plant manufactures a wide variety of low-volume, customised products, with each product following a different sequence of operations through general-purpose machines. Which plant layout is most suitable for this situation?

Process (functional) layout is most suitable, because it groups similar general-purpose machines together and lets many different low-volume, customised products follow different routings. Product layout needs standardised, high-volume output with a common sequence, so it would be inefficient for this varied production mix.

  1. AProduct (line) layout
  2. BProcess (functional) layoutCorrect
  3. CFixed-position layout
  4. DCellular layout dedicated to a single product

Explanation

Process layout groups similar machines or functions together, so varied products with different routings can flow through them flexibly. Product layout suits high-volume standardised output with a fixed sequence. Fixed-position layout suits bulky items that cannot be moved, like ships.

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