Product-Process Matrix

PRODUCT STRUCTURE
VERY LOW VOLUMES VERY HIGH VOLUMES LOW VOLUMES Many Products HIGH VOLUMES Few Products HIGH STANDARDIZATION Commodity Products

PROCESS STRUCTURE
JUMBLED FLOW (Job Shop)

LOW STANDARDIZATION One-of-a-kind Products

DISCONNECTED LINE FLOW (Batch Flow)

CONNECTED LINE FLOW (Machine or Worker paced)

CONTINUOUS FLOW

Product-Process Matrix
Movement along the Diagonal
Rarely does a company move directly from one cell on the diagonal to another. Usually, due to a internal decision or a external factor, a company follows one of two paths:
the red path (over & down)

OR the green path below (down & over).

PRODUCT STRUCTURE
VERY HIGH VOLUMES LOW VOLUMES Many Products HIGH VOLUMES Few Products HIGH STANDARDIZATION Commodity Products

VERY LOW VOLUMES

PROCESS STRUCTURE
JUMBLED FLOW (Job Shop)

LOW STANDARDIZATION One-of-a-kind Products

DISCONNECTED LINE FLOW (Batch Flow)

CONNECTED LINE FLOW (Machine or Worker paced)

CONTINUOUS FLOW

Movement along the Diagonal

Product-Process Matrix
(continued)

Which path red or green can be described as Conservative, puts pressure on Manufacturing, and results in Opportunity Costs? Which path red or green can be described as risky, puts pressure on Marketing/Sales, and results in out-of-pocket costs?
PRODUCT STRUCTURE
VERY LOW VOLUMES VERY HIGH VOLUMES LOW VOLUMES Many Products HIGH VOLUMES Few Products HIGH STANDARDIZATION Commodity Products

PROCESS STRUCTURE
JUMBLED FLOW (Job Shop)

LOW STANDARDIZATION One-of-a-kind Products

DISCONNECTED LINE FLOW (Batch Flow)

CONNECTED LINE FLOW (Machine or Worker paced)

CONTINUOUS FLOW

Service Process Matrix

DEGREE OF CONTACT WITH, AND CUSTOMIZATION FOR, THE CONSUMER Low The Service Factory Low DEGREE OF LABOR INTENSITY High High The Service Shop

Mass Service

Professional Service