About product process matrix
Product process flow
One plant is a job shop, making mostly one-of-a-kind products. Robert H. This product represented a matrix combination in the upper left-hand quadrant, as shown in Exhibit II. Upper-left firms produce low volumes sometimes only one and cannot take advantage of economies of scale. Exhibit II Expanded product-process matrix For a given product structure, a company whose competitive emphasis is on quality or new product development would choose a much more flexible production operation than would a competitor who has the same product structure but who follows a cost-minimizing strategy. Reliance, on the one hand, has apparently chosen production processes that place it above the diagonal for a given product and market, and the company emphasizes product customizing and performance. Therefore, flexibility would be a highly appropriate distinctive competence for an upper-left firm. In a sense, then, it was mass producing designs rather than boards. This would appear to be a commodity produced by a job shop, an option that is economically unfeasible. Using our terminology, Zenith again finds itself too far above the diagonal, in comparison with its large, primarily Japanese, competitors, most of whom have mechanized their production processes, positioned them in low-wage countries, and embarked on other cost-reduction programs. If we define quality as reliability, then lower-right firms could claim this as a distinctive competence. Often, this process along with continuous; both are in the lower-right quadrant of the matrix is referred to as mass production. Even further down the diagonal, for a product like automobiles or major home appliances, a company will generally choose to make only a few models and use a relatively mechanized and connected production process, such as a moving assembly line. Although the company may make a number of products a customer may even be able to order a somewhat customized unit , economies of scale in manufacturing usually lead such companies to offer several basic models with a variety of options. Abernathy and Philip L.
Wheelwright is the Class of Professor at the Harvard Business School, where he specializes in product development. The fifth plant is a highly automated pipe plant, making what is largely a commodity item.
One of the major short comings of this approach, however, is that it concentrates on the marketing implications of the life cycle pattern.
About product process matrix
Such a choice positions it to the left or right of its competitors, along the horizontal dimension of our matrix. While the flow is smoother, the work-in-process still moves around to the various machine groupings throughout the shop in a somewhat jumbled fashion. A firm positioned in the lower-left corner would represent a unique one-time product produced by a continuous process, again not a feasible option. Determining the direction and timing of major changes in a company's production processes. The columns represent the product life cycle phases, going from the great variety associated with startup on the left-hand side to standardized commodity products on the right-hand side. For example, in a machine shop, hydraulic presses would be grouped in one area of the shop, lathes would be grouped into another area of the shop, screw machines in another area, heat or chemical treatment in still another, and so on also contributing to the jumbled flow. Each process choice on the matrix has a unique set of characteristics. This enables manufacturing to move from a job shop to a flow pattern in which batches of a given model proceed irregularly through a series of work stations, or possibly even a low volume assembly line. Firms organize different operating units so that they can specialize on separate portions of the total manufacturing task while still maintaining overall coordination. Also, the low volume of production does not allow upper-left firms to spread their fixed costs over a wide enough base to provide for reduced costs. Companies in the major materials industries—steel companies and oil companies, for example—provide classic examples of process-organized manufacturing organizations. Using a product-process matrix, Exhibit I suggests one way in which the interaction of both the product and the process life cycle stages can be represented. Evaluating product and market opportunities in light of the company's manufacturing capabilities. A similar sequence of competitive emphases occurs as a company moves along the product structure dimension.
This would be especially true if the work content for component production or the volume needed was not sufficient for the creation of a dedicated line process. The columns represent the product life cycle phases, going from the great variety associated with startup on the left-hand side to standardized commodity products on the right-hand side.
The choice of product and process structures will determine the kind of manufacturing problems that will be important for management. Since efficiency is not a strong point of upper-left firms, neither is low-cost production.
For example, Fender Musical Instruments not only mass produces electric guitars assembly line but also offers customized versions of the same product through the Fender Custom Shop job shop.
Boston: McGraw-Hill Irwin, Each unique job travels from one functional area to another according to its own unique routing, requiring different operations, using different inputs, and requiring varying amounts of time.
This may or may not, depending on its success in achieving focus and exploiting the advantages of its niche, make it more vulnerable to attack. A basic material is passed through successive operations i.
While a fairly narrow focus may be required for success in any single product market, companies that are large enough can and do effectively produce multiple products in multiple markets.
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