Suitability:

In a factory manufacturing drills, taps, reamers and cutters mentioned above, there are five departments viz. lathe heat treatment, milling machine, grinder, and fine grinder each for a specific operation. All of the products manufactured in the company ought to pass through any of these five machines. Figure shows the arrangement of departments for process layout.

L : Lathe, M : Milling Machine, HT : Heat and Treatment, G : Grinding, FG : Finished Goods

Suitability

Such type of layout is suitable for the firms where low volume of production is required because in such type of layout similar equipments and similar machines are grouped together.