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In industrial engineering, a process layout is when you group similar activities together according to the process or function they perform. An example would be a machine shop where all the drills are located in one area of the shop, all the saws in another, etc. Another example would be a department store, where there is a shoe department, a jewelry department, etc.

A product layout arranges activities in a line according to the sequence of operations for a particular product or service. This would be an assembly line, such as an auto assembly line.

Process layouts are flexible, as the equipment is general purpose and workers are skilled at working the equipment in their particular department. Custom jobs can come into the shop, as the work flow is not set to flow through in an orderly manner.

Product layouts are efficient, but lack the ability to change product designs easily. An example would be when demand shifted to smaller cars, then US automakers could not adapt their old equipment to build the smaller engines.

(Source:S.N. Chary (2006). Production and Operations Management. McGraw Hill. ISBN 9780070583559)

At my work we use both concepts "product and process layouts". We updated our equipments to be more automated however we kept one of our plants simi-automated to give us the flexibility to produce special products that we will not be able to produce using the updated equipments

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Jason Sky

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Product design and process design are integral components of the product development and manufacturing process, each serving a distinct purpose.

Product design focuses on creating the product's physical appearance, features, functionality, and user experience. Designers and engineers work on aesthetics, ergonomics, materials, and user interfaces to meet customer needs and market demands. The output of product design is a detailed product specification.

Process design, conversely, centers on establishing the manufacturing or service delivery processes for the product. It entails optimizing these processes for efficiency, cost-effectiveness, and quality assurance. Manufacturing engineers and operations managers design workflows, select equipment, and create quality control procedures. The output of process design comprises procedures, workflows, instructions, and layouts.

Product design occurs early in product development and is iterative, while process design follows, ensuring the product can be produced efficiently and consistently. Changes to product design post-production can be costly, whereas process design allows for flexibility and continuous improvement.

Ultimately, effective coordination between product and process design is critical. Product design aims to satisfy customer needs and differentiate the product, while process design ensures cost-effective, high-quality production. Together, they shape the successful development and delivery of products that meet market demands while being efficiently manufacturable or deliverable.

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Answer is in the question :)

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