Process or functional layout
This type of layout is developed for process focused systems. The processing units are organized by functions into departments on the assumption that certain skills and facilities are available in each department. Similar equipment and operations are grouped together. The functional layout is more suited for low-volumes of production (batch production) and particularly when the product is not standardized. It is economical when flexibility (material can be rerouted in any sequence) is the basic system requirement. The flexibility may be in terms of the routes through the system, volume of each product and the processing requirement of the items.