Final answer:
A layout that groups the transformation process into related departments is known as a process layout. It's suitable for customized, low-volume products, unlike the product layout used for high-volume, standardized products such as cars in a factory with a conveyor belt system.
Step-by-step explanation:
A layout that organizes the transformation process into departments that group related processes is known as a process layout. A process layout is designed for industries where the production process is divided into several operations and each operation is completed in a separate department or area. It's used in situations where a variety of products are produced, and the volume of production of any one product is not large.
This contrasts with a product layout, where the equipment and workstations are arranged according to the sequence of operations that are required to produce a particular product, like in the case of a car factory with a conveyor belt system.
In the example provided, where cars are built in a factory and the conveyor belt moves the car from one workstation to the next where specific parts like body, doors, wheels, and steering wheel are attached sequentially, this describes a product layout.
A continuous manufacturing organization and fixed-position layout are other types of production layouts, but they describe different organizational methods. A continuous manufacturing organization pertains to an unbroken flow of production, whereas a fixed-position layout is used when the product is too large or heavy to move, and workers bring materials and equipment to the production site instead.