CPIM Practice Exam

What characteristic is common in a functional layout?

1. Each work center must be flexible

2. Specialized equipment is used

3. Capital costs are lower than in a product-based layout

4. There is little buildup of WIP inventory

The correct answer is: Each work center must be flexible

A functional layout is designed to group similar activities or processes together in one area, which typically facilitates a high degree of flexibility in operations. The arrangement allows for a variety of tasks to be performed, as different work centers focus on specific functions. This flexibility is crucial in environments where varied products or services are produced and where the ability to quickly adapt to changing demands or product types is essential. In a functional layout, the work centers are organized according to the function they perform, leading to a more efficient workflow for companies that handle a wide range of products that may require different setups. While specialized equipment can enhance the performance of specific work centers, it is not a defining characteristic of a functional layout. Moreover, the capital costs may not necessarily be lower in a functional layout compared to a product-based layout due to the potential need for more equipment and space to accommodate various functions. Lastly, functional layouts often face challenges with work-in-progress (WIP) inventory buildup, as different processes may have varying cycle times, leading to accumulation of inventory at some work centers. These aspects of the functional layout underscore its emphasis on flexibility as a key characteristic.