Which layout arranges facilities according to the sequence of operations in production?

• A. Product Layout
• B. Process Layout
• C. Inputs
• D. Outputs

Answer: (A)

The main idea being tested is how a facility layout is organized to match the order of operations in producing a product. A product layout places workstations and equipment in the exact sequence the product must go through, creating a production line. This arrangement makes the flow highly predictable, reduces material handling, and suits high-volume, standardized production where the same steps are repeated for every unit. It speeds up throughput and lowers unit costs because each station performs a specific, repetitive task in order.

Think of an automobile assembly line or a bottling line—every step follows the previous one in a fixed path, so moving a product along the line is smooth and efficient.

Why the other ideas don’t fit as well: a process layout groups machines by function (all drilling in one area, all painting in another), which is flexible for different products but creates longer material travel and variable routing, not a fixed sequence. Inputs and outputs refer to the items entering or leaving the system, not a method for arranging the facilities themselves, so they don’t describe the layout approach.

So, arranging facilities according to the sequence of operations is the product layout.