Product Process Matrix

Operations Management notes by Rahul Sir’s MBA/BBA Classes

The product process matrix is a tool that operations managers use to analyse and optimise the
product development process. It helps identify areas for improvement, and it can help shorten
product development timeframes. It is often used in conjunction with other tools such as process
flow diagrams and Gantt charts. We will discuss the product process matrix and how you can use
it to improve your product development process!

Understanding Product Process Matrix: An Overview

It is a two-dimensional grid that helps operations managers visualise the relationship between
product types and production processes. The product process matrix is divided into four
quadrants each representing a different type of product-process combination.

 Quadrant I contain products that are mass-produced using highly automated processes.
 Quadrant II has products that are produced in batches using semi-automated or manual
processes.
 Quadrant III contains products made to order using semi-automated or manual processes.
 Quadrant IV includes products that are custom-made using highly customised manual
processes.

The product process matrix can help operations managers decide which type of product to
produce and which production process to use. It can also help managers understand the trade-offs
between product variety and production efficiency.

It is a tool used in operations management that helps businesses to determine the best way to
produce a product or service. It was first developed by Dr W. Edwards Deming, an American
statistician, quality control expert, and management consultant. The product process matrix is
also known as the Deming Cycle or PDCA (plan-do-check-act) Cycle.

The product process matrix is a simple yet powerful tool that can be used to improve quality and
productivity in any organisation. It is established on the principle of constant improvement,
which Deming developed while working at the Bell Telephone Laboratories in the 1930s. The
product process matrix has four steps:

 Plan: Identify the problem or opportunity and develop a plan to address it.
 Do: Implement the plan and collect data.
 Check: Analyse the data and identify any problems or areas for improvement.
 Act: Take corrective action as necessary and continue monitoring the situation.

The product process matrix can improve any process, from manufacturing to customer service.
Time and again, it has emerged as a valuable tool for Six Sigma and other quality improvement
initiatives. When used correctly, the product process matrix can help organisations to achieve
their quality and productivity goals.

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 Product Process Matrix
Operations Management notes by Rahul Sir’s MBA/BBA Classes

Want to get deep into product management and learn more about the product process matrix in
an interactive way? Edureka brings you the ultimate and insightful course, i.e., Advanced
Certificate in Product Management. If you want to enjoy the flexibility and ease of learning
product management, this course is just for you.

Benefits Of Product Process Mix

Increased Productivity

The product process matrix helps to increase productivity as it provides a clear and concise plan
that employees can follow. This, in turn, leads to less confusion and fewer errors. When product
processes are well-defined, it also allows for easier training of new employees and reduced
onboarding time. Overall, a product process matrix can help to improve efficiency in the
workplace and lead to increased productivity.

Improved Quality

Another benefit of the product process matrix is that it can help improve product quality or
service quality. An organised process can help ensure all steps are carried out correctly and in the
correct order.

A product process matrix can help improve the quality of your products or services. Improved
quality can lead to happier customers and increased sales. It will eventually lead to a state of
fewer mistakes being made and a higher quality product or service.

Cost Savings

A product process matrix can also help to save costs. This is because when production processes
are well-defined, they can reduce waste and fewer errors. It will save time and money that would
otherwise be spent on rectifying or correcting errors. In addition, it can help improve a
company’s overall efficiency, leading to further cost savings.

Increased Customer Satisfaction

Finally, the product process matrix can also help to increase customer satisfaction. A meticulous
process makes it easier to ensure that products or services are delivered on time and meet
customer expectations.

Happy customers will definitely come back and even recommend your company to others.
Therefore, increasing customer satisfaction is essential for any business, and the product process
matrix can help you to achieve this.

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 Product Process Matrix
Operations Management notes by Rahul Sir’s MBA/BBA Classes

What Are The Advantages?

A product process matrix brings numerous advantages such as it can help to standardise
operations across a company. This can lead to increased efficiency and effectiveness and
improved quality control. Additionally, the product process matrix can help to improve
communication between different departments within a company. This can ultimately lead to
better coordination and cooperation between departments, further improving operations.

Finally, the product process matrix can help to identify areas of improvement within a
company’s operations. By identifying these areas, companies can then take steps to correct them
and improve their overall performance. Consequently, the product process matrix provides
several advantages that can be extremely beneficial to companies.

Disadvantages:

The product process matrix has a number of disadvantages, including:

 It can be difficult to understand and use, particularly for businesses with complex product
portfolios.
 It doesn’t consider the different types of products and processes a business might have.
 It doesn’t consider the impact of changes in technology or customer demand.

What Are The Different Stages of the Product Process Matrix?

Operations management is the process of designing, controlling, and monitoring the production
process. It is a tool used by operations managers to help them understand and control the
production process.

There are four different stages of the product process matrix:

 Job Shop
 Batch
 Assembly Line
 Continuous Flow

Job Shop

In the job shop stage, each product is made individually, and there is no set order of production.
The product can be customised to the customer’s specifications. It is the most crucial stage where
product quality is controlled.

Product managers must set up quality control procedures and establish product standards. They
will also need to monitor the production process closely to ensure that the product meets
customer requirements.

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 Product Process Matrix
Operations Management notes by Rahul Sir’s MBA/BBA Classes

Tasks Involved In Job Shop Stage:

 Establish product quality standards

 Set up quality control procedures
 Monitor the production process closely
 Make product changes as necessary to meet customer requirements

Example of Job Shop Stage

A tailor shop is an example of a business operating in the job shop stage. Each product (suit,
dress, pants, etc.) is made individually to the customer’s specifications. There is no set
production order, so the tailor can make product changes as necessary to meet customer
requirements.

Batch

In the batch stage, products are made in small batches. There is a set order of production, and
each product is made one at a time. This is often used for products that are made-to-order or
customised products.

It is important to note that the batch stage is primarily dedicated to product preparation. In other
words, product assembly begins in earnest only after the batch is complete. The quality of
products in the batch stage is usually very high since each product is individually crafted.

Tasks Involved In Batch Stage:

 Batching inventory items together that will be used in production

 Assembling product components
 Performing product quality assurance checks
 Packaging products for shipment
 Shipping products to customers

Example of Batch Stage:

A perfect example of a batch stage would be the production of special order computer. All
components for that particular computer will be gathered together (batching) and then put
together according to the customer’s specifications (assembly). A final product quality check
will be done (quality assurance), and the product will be packaged for shipment (packaging).

Assembly Line

This stage is dedicated to physically putting the product together. This process is usually
completed by machines but can also be done by hand. Quality control is important at this stage to
ensure that the product meets all specifications.

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 Product Process Matrix
Operations Management notes by Rahul Sir’s MBA/BBA Classes

The streamlined process here is crucial to ensuring that the product is assembled quickly and
efficiently. It also highlights the key performance indicators (KPIs) that need to be monitored to
assess the assembly line’s success.

Tasks Involved In Assembly Line Stage:

 Assemble the product according to specifications

 Quality control of product
 Monitor KPIs

Example of Assembly Line Stage:

Companies like Tesla and Panasonic use an assembly line to build their product. Each product
goes through a series of stations, where a team of workers works on it. The product is moved
along the line until it is completed.

Continuous Flow

Finally, the continuous flow stage is where the product is able to be produced at a constant rate
without interruption. The product process matrix is essential to understand as it provides
organisations with a way to map out their product development journey.

It creates a continuous flow of process and product information that can be used to make
improvements along the way. This stage requires specific attention to detail, as any interruption
can cause delays further down the line.

Tasks Involved In Continuous Flow Stage:

 Quality Control
 Scheduling
 Inventory Management
 Capacity Planning
 Documentation
 Change Management

Example of Continuous Flow Stage:

To understand the continuous flow stage, let’s take a look at an example. In the automotive
industry, there are different stages that a product goes through before it is ready for sale. The
continuous flow starts after the product has been designed and goes through production,
assembly, and testing.

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