Which layout would most likely produce high volume?

In an effort to make your production line more efficient, look at the different ways to lay out the production line or overall manufacturing plant. Two of the most common layouts are the process layout and the product layout. Each layout provides a systematic approach to production, with each serving a different type of product assembly. Consider your business needs before you choose the best manufacturing layout for your company.

What is Process Layout?

The process layout, also called the functional layout, is designed to keep everything organized in a manner so that everything has its place. Think about an auto mechanic's shop. New tires are stored in one section, whereas wrenches and other tools are stored in another section. The cans of oil are stored together, as are other groupings of supplies or power tools.

Although this is an organized layout in which everyone always knows where all supplies and tools are located, it isn't the most efficient for production lines, where the same job is performed every single time. The process layout is effective when each job is a custom situation. The mechanic's shop illustrates this well. One customer may come in needing only an oil change, but another may come in needing the entire transmission overhauled.

What is Product Layout?

The product layout is the opposite of the process layout. Rather than have a specific section for each group of tools and supplies, the product layout is an assembly line. The required tools and supplies are located at each section of the assembly line, based on where the product is in production. This is common in auto manufacturing where the car being made is moved down the line and stops at stations where different things are assembled. One section might be where doors are attached, whereas another section inserts the engine.

This is an efficient system when the same product is being made without variation. Workers don't need to search or collect tools or supplies to perform their job. Giving workers one job to perform repeatedly reduces potential mistakes in the product assembly.

How Do You Choose a Layout?

The manufacturing layout will depend on business leaders determining the best process. Even though the functional layout requires more professional skill, automation can counter unskilled workers in the product layout. Because the process layout requires one worker or a small team to complete the entire task, the workflow is generally not as fast nor as smooth as it is with the product layout. However, the quality of the final product in a process layout is usually better than with the product layout.

As you can see, there are advantages and disadvantages to both systems. Evaluate your production space, your workforce and your ability to automate, before deciding on which layout will be the best solution for your business.

Why is the Product Process Matrix Important to Product Management?

Product leaders can use the matrix to educate teams, stakeholders, and departments within the organization on the product-process lifecycle of a project.

Using the matrix as a framework enables product leaders and managers to identify and estimate a company’s distinctive competence. (i.e., the assets and characteristics that give an organization a comparative advantage over competitors.) To better inform decisions on processes, opportunities, and investments. Distinctive competencies include cost/price, quality, flexibility, and service/time.

Here are a few of the pros and cons of using the matrix:

Advantages

• Invites broader thinking about organizational competence and competitive advantage.
• Enables greater involvement during planning, leading to better alignment among departments and the organization as a whole.
• Provides a pathway to more informed predictions and strategic responses to industry shifts and changes.
• Used to identify business opportunities and guide investment decisions.

Disadvantages

• Is static with limited product variety.
• Dimensions are too simple.
• Based on current products.
  
  

4 Process Stages of the Product Process Matrix

The Hayes-Wheelwright matrix is comprised of four distinct stages. In the first stage, the production process tends to be more flexible with higher associated costs. But by stage four, the production process becomes more standardized, mechanized, automated, far less flexible, and most-effective.

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In “Getting to Know the Product-Process Matrix,” Kyle Holland writes:

“The product-process matrix can provide an understanding of the strategic options available, especially when it comes to production efforts. If you fall into a particular part of the quadrant but are using a process that doesn’t align with your placing in the matrix, then it might be time to rethink your process.” 

Here are the 4 process stages of the matrix:

1. Job Shop

Tends to be more reactive, focusing on day-to-day issues. Low volume, one-of-a-kind products are the hallmark.

“If you are an organization that falls into the job shop process, it is more than likely that you produce a variety of goods in relatively low production volumes.” (Holland)

2. Batch

The focus here tends to be on productivity enhancement and economies of scale meet standard practice. Competitive differentiation plays a central role. Organizations likely produce multiple products with a low volume.

“A batch process is one that is capable of producing more goods than a job shop, but the volume per good is still not enough to justify dedicated equipment.” (Holland)

3. Assembly Line

At this stage, there are fewer major products but higher volume.

“An assembly line process consists of highly similar goods produced in a repetitive manner. Workstations are set up so that products can pass through them in a sequential order that allows the goods to be produced in the most efficient manner.” (Holland)

4. Continuous Flow

Process and product improvements advance past industry standards and result in a sustainable competitive advantage. At this stage, there’s a high product volume along with high standardization.

“Continuous flow processes require specialized equipment in order to work continuously. This can only be possible when your range of products is extremely limited and you’re required to produce them in an extremely high volume.” (Holland)

Organizations that find the best fit between a chosen product positioning and its related processes achieve the product process matrix’s greatest success.

Related terms: Prioritization, Opportunity Scoring, Weighted Scoring, Action Priority Matrix, Product Development Process.

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