In product layout
-Specialized and strict supervision is required
- Machines can not be used to their maximum capacity
- Manufacturing cost rises with a fall in the volume of production

Product layout is also known as Synthetic layout.
Product layout refers to a production system where the work stations and equipment are located along the line of production, as with assembly lines.

Process layout is a design for the floor plan of a plant which aims to improve efficiency by arranging equipment according to its function.
Process layout is also known as analytical layout.
In Process layout machining operation are performed in group together and not arranged according to any sequence.

Process layout is employed
- Where low volume of production is required
- Where similar jobs are manufactured on similar machines
- Where machines are arranged on functional basis