CMA Intermediate · Operations Management and Strategic Management · Operations Planning
In a product (line) layout, work stations are arranged in the sequence of operations. Which of the following is a recognised characteristic of this layout compared with a process layout?
A product layout typically gives lower work-in-process inventory and simpler production control because work moves in a fixed sequence. It needs heavier investment, is less flexible, and has lower handling cost per unit than a process layout.
- ALower investment in specialised equipment
- BGreater flexibility for changes in product design
- CLower work-in-process inventory and simpler production controlCorrect
- DHigher material handling cost per unit
Explanation
Because work flows in a fixed sequence, a product layout gives smoother flow, less work-in-process and simpler control. It needs higher investment and is less flexible, and handling cost per unit is lower, not higher.
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