Within the general term "process layout", which some texts replace with the words “plant layout”, there are three styles of layout that students should know: (examples consider a clothing manufacture that makes a range of garments)

Product Layout

a process layout where equipment, processes and people are arranged according to the product being produced

Equipment and people would be clustered (arranged) according to product, so all tasks relating to dresses would be together (cutting, sewing, ironing, packaging) and all tasks related to shirts would be together for each style of shirt (cutting, sewing etc). This is ideal for small batch production where the business is producing small volumes and where communication is required between the production team - for example the production of exclusive jewellery items. On the other hand, the product layout may be more expensive, as equipment cannot be shared between products, requiring increased costs and maintenance.

Process Layout

a process layout where equipment, processes and people are arranged according to the process performed

Equipment and people would be clustered (arranged) according to the task (i.e. arranged by process and not by product), so all cutting tasks would be done in one place (for all products), and all sewing (irrespective of garment type) and all packaging (irrespective of garment type) would be done in one place. This is ideal for high volumes of output, which can then complete a batch and send them on to the next task. Process layouts can reduce production costs (through economies of scale) and would be used by LEGO, Samsung, Foxconn and car manufacturers. On the other hand, process layout may make custom orders more difficult to fill, and make communication between processes more complex.

Fixed Position Layout

a process layout where equipment, processes and people are brought to the product being produced in this layout, rather than the product passing by equipment (i.e. using a production line), equipment and workers are moved to where the product is being manufactured or assembled. This is used for large, heavy, or fixed items ranging from the construction of buildings and bridges, through to container ships, warships and planes.