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But separate lines you could change one to the upgrade while keeping the old one on full efficiency.
It gets better with research, namely the dispersed industry research. This research will help you retain your efficiency when updating your production lines.
Researching the production (left most) will raise your cap, which will also help.
In terms of actual production there may be a marginal rounding advantage in consolidating lines. There is though a QoL advantage in having fewer production lines.
Note that this is for army and airforce production. Navy is different in that as there is no production efficiency you can always move dockyards from lines without cost so fewer lines is almost always worth it.
When you get to produce the upgraded version of a thing because you've got the tech (be it artillery or especially infantry equipment and fighters) DO NOT just switch the outdated equipment to the new one on the same production line.
Obviously it's going to vary on the situation but if you're in the middle of an armed struggle (rather than pre-war) you definitely don't want your infantry equipment's output to suddenly drop (which it will dramatically if you just switch).
Suddenly you'll be getting through equipment faster than you can replace it, your stockpiles will run down and before you know it you'll be in a world of trouble. Divisions in the field on low strength and you can't train anymore. Particular problem for countries like China.
Set up a new production line for the new equipment (perhaps with a few factories taken off the old) and as it's efficiency and output rise, start switching more over until you can get rid of the old production line completely.
As China I once had three versions of infantry equipment going at once just so I could keep my enormous manpower equipped.
This can also be a huge issue with aircraft. Keep the old lines going (as they often were in real life).
Britain in 1940 is a good example. The Luftwaffe are about to come over in large numbers but if you switch your Hurricane line straight over to Spitfires, they'll get shot down faster than they can be replaced. Keep producing the Hurricanes. In RL Fighter Command had more aircraft at the end of the Battle of Britain than they did at the start. You want to keep it that way.
Germany needs to do that over Barbarossa for most of it's aircraft for similar reasons. The Soviet air force is always bigger than you think it'll be.
If you're in such a brutal deficit that you can't afford the few months it takes to regain efficiency because it's costing you the ability to keep your units supplied, or to build new units to hold the line, or hold the air, then you shouldn't be thinking about upgrading anyway, just adding more factories to the things you need to get your production in order.