Differentiate between product layout and process layout on the basis of 1) Initial investment cost. 2) Cycle Time. 3) Types of machines used. 4) Skill of labour required. 5) Inventory level. 6) Arrangement of machine.

Differentiate between product layout and process layout on the basis of 1) Initial investment cost. 2) Cycle Time. 3) Types of machines used. 4) Skill of labour required. 5) Inventory level. 6) Arrangement of machine. 
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1 Answer

Answer :

Parameter
Product layout
Process layout
1) Initial investment cost.
It requires higher initial investment.
Less initial investment
2) Cycle Time.
Less cycle time for manufacturing a product.
More cycle time for manufacturing a product
3) Types of machines used. 
Special purpose machines are used.
General purpose machines are used. 
4) Skill of labour required.
Comparatively less skill labours are required.
Comparatively High skill labours are required to operate number of general purpose machines.
5) Inventory level.
Less
More
6) Arrangement of machine.
Machines are arranged in a sequence in which the operations are performed on the product. 
All the machines of similar operation are grouped together to make a section, like lathe section, milling section etc.
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