Physically locating personnel and product lines in a single area thereby enabling rapid and constant communication among the key personal responsible for those products.

Coments: Many companies now co-locate sales, customer service, engineering, administrative, production, and other functions in an attempt to create a fairly independent and full-service department that focuses on a single product or product family.

There are pros and cons to this approach as many redundant roles are common. The up-side is that there is an expertise and almost “omniscient” awareness of customer needs, and production status.