Product (line) layout: Which of the following is NOT true?

Introduction / Context:
Product layouts are designed for flow and high utilization. Understanding what is and is not true helps avoid misapplication when demand or variety changes.

Given Data / Assumptions:

• Stable, high-volume demand and repetitive routing.
• Stations arranged in operation sequence with line balancing.
• Goal: high throughput, low WIP, short lead time.

Concept / Approach:
In a well-balanced line, machines typically operate at or near design capacity, yielding high utilization. However, if volume falls or variety rises, the fixed sequence and specialization can cause underutilization and higher unit costs, reflecting a scale sensitivity of product layouts.

Step-by-Step Solution:

Verification / Alternative check:
Line balance charts and OEE reports commonly show high utilization at design throughput; cost models reflect increased unit cost when demand shrinks.

Why Other Options Are Wrong:
(a), (c), (d), and (e) accurately describe product layouts. Statement (b) is the “NOT true” option because these layouts are specifically built to maximize utilization under design conditions.

Common Pitfalls:
Assuming product layouts are flexible; ignoring the impact of product mix changes on line balance and capacity utilization.

Final Answer:
Machines cannot be used to their maximum capacity in a product layout.