Advantages of Process Layout

• Lower Capital Investment: Less capital is needed for this layout because production apparatus is applied to maximum capacity with minimum duplication. The designed volume of production can be turned out without the need for duplication of machines. Since the equipment is not passed on to any set sequence of operations, variety of product in required quantities can be produced with the same general machines and tools arranged department wise. With comparatively less investment more output can be turned out.
• Greater Flexibility: Each machine can perform a wide range of similar kinds of operations. The same layout can be adopted for enlarged or revised operations without disturbing the departmental set up. There is flexibility in planning production with job scheduling for each department. Furthermore, it is possible to operate additional work on short notice undue dislocation of normal schedule and routine.
• Specialization: Since the principle of specialization is followed in department allocation of work there will be fuller utilization of the kill of the employees.
• Effective Supervision: More effective use of specialized abilities of supervision in one of the main merits of this type of layout. Each foreman supervises only a limited range of machine operations in the respective department( foreman welding department foreman machine department etc,) obviously his supervisory efforts or skill tend to more intensive. He becomes highly proficient in time and with practice". In planning direction, control, maintenance of the operations assigned to his department.
• No Disruption in Work Schedules: Since each department has a back of machines and tools; breakdown of one machine does not necessarily upset the production schedule. It can be transferred to another machine in the department.
• Lower Overhead costs: since the initial capital investment is relatively low risks of investment are reduced. Production equipment is more flexible and hence less subject to obsolescence and losses resulting from shifts in market demand. Hence overhead costs per unit will tend to be lower.