Working with 4 levels of a categorical factor in a screening experiment with only 16 runs seems like it might over simplify your system. If there is any chance that there is an interaction between the categorical factor and the continuous factors, it might be a good idea to add the interaction term to your model. This makes your screening experiment a little bigger; however, a few extra runs for each level of the categorical variable would increase your ability to detect differences between them.
As an example, let's say that only 3 of the continuous variables are important, and you select one level of the categorical variable, then an additional 8 runs would be necessary to add the interactions and quadratic effects for the remaining 3 continuous variables. (DOE>AUGMENT)
If the experimental units aren't difficult or expensive, more runs is better anyway.
JMP Systems Engineer, Health and Life Sciences (Pharma)