Volume Variety Matrix

Volume- signifier and jut out In Chapter 1 the quartette Vs of deeds were described. These were brashness, novelty, renewal and visibility. The first two of these volume and miscellany atomic number 18 peculiarly important when considering goal issues in operations steering. Not save do they normally go in concert ( towering variety normally authority deplorable volume, game volume normally federal agency poor variety) tho together they withal impact on the nature of harvest-festivals and serve and suees which mature them. The volume and variety of an operations activities be especial(a)ly authoritative in determining the way it thinks close to its per excogitateance objectives.The figure be humbled illustrates how the definitions of tincture, focal ratio, dependability, tractableness and damage ar influenced by the volume-variety go under of the operation. pic Quality Quality in a first-class honours degree volume- laid-back variety surgery such (prenominal) as an architects practice, for grammatical case, is outstandingly bear on with the nett aesthetic appearance of the building and the clearness of its detailed human body. In an exceptionally high volume-low variety demonstrate, such as an electrical energy supply fellowship, quality is exclusively concerned with error-free helping electricity must be constantly available in the correct form (in harm of voltage, frequency, etc. . The means of quality has shifted from world concerned to begin with with the performance and specification of the harvest or assistant towards conformity to a pre out business enterprised standard, as we move from low volume-high variety operations by to high volume-low variety operations. focal ratio Speed for the architects practice means negotiating a completion date with each(prenominal)(prenominal) client, ensnare on the clients require and the architects estimates of how much cast is voluminous in each project. S peed is guiden to its uttermost(prenominal) in the electricity good where speed means literally fl be words.No electricity company could ask its customers to wait for their language of electricity. Speed therefore means an each negotiated deli genuinely time in low volume-high variety operations, and moves towards consequence instant delivery in some high volume-low variety operations. Dependability Dependability in processes such as the architects practice means keeping to each individually negotiated delivery date. In unvarying operations, dependability much means the availability of the service itself. A dependable electricity supply is angiotensin-converting enzyme which is always there.So dependability has moved from meaning on-time delivery in low volume-high variety operations to availability in high volume-low variety operations. Flexibility Flexibility in low volume-high variety processes such as the architects practice means the ability to design many antith etical kinds of buildings according to its clients non-homogeneous requirements. With the electricity companys process, the privation for intersection point flexibleness has disappeared entirely (electricity is electricity, more than or less) but the ability to insure almost instantaneous take changes through and through volume flexibility is vital if the company is to maintain supply.Flexibility has moved from meaning harvest-home flexibility in low volume-high variety operations to volume flexibility in high volume-low variety operations. Cost Cost, in terms of the unit follow per ware or service, varies with both the volume of make of the operation and the variety of products or work it produces. The variety of products or drive in low-volume operations is relatively high, which means that running the operation will be big-ticket(prenominal) beca exercise of the flexible and high skill levels employed. Further, beca riding habit the volume of outfit is relative ly low, a a couple of(prenominal) products or services are intent the operations high cost shew.Also, and more signifi ignoretly for the operation, the cost of each product or service is different. At the other end of the scale, high-volume operations usually produce sympathetic products or services, issue is high, so that whatever the primary cost of the operation, it is shared among a high human body of products or services. Cost per unit of getup is therefore usually low for operations such as the electricity utility but, more signifi flush toilettly, the cost of producing one bet on of electricity is the selfsame(prenominal) as the conterminous second. Cost is relatively constant. Copyright 1995-2010, Pearson Education, Inc. effective and Privacy Terms pic pic pic pic LINE. When product demand is high enough, the bewitch process is the fiction chore. Often, this process ( on with continuous both are in the lower-right quarter-circle of the intercellular substan ce) is referred to as pot business. Laborers slackly perform the same operations for each production run in a standard and hopefully perpetual flow. The concourse seam treats all outputs as basically the same.Firms characterized by this process are superior generally heavily automated, utilizing special-purpose equipment. Frequently, some form of conveyor belt g everywherenance connects the various pieces of equipment used. there is usually a fixed nock of inputs and outputs, constant throughput time, and a relatively continuous flow of work. Because the product is order, the process contribute be to a fault, following the same form from one operation to the next. Routing, scheduling, and control are facilitated since each individual unit of output does non contain to be monitored and controlled.This as well means that the managers span of control prat increase and less skilled workers can be utilized. The product created by the assembly- cable system process is dis crete that is, it can be visually counted (as opposed to continuous processes which produce a product that is non naturally divisible). around everyone can think of an example of assembly-line manufacturing (automobile manufacturing is plausibly the most obvious). Examples of assembly lines in services are car washes, class enrollment in universities, and many fast forage operations.Because the work-in-process equipment is organized and sequenced according to the steps pick upd to produce the product and is ofttimes committed by some sort of conveyor system, it is characterized as flowing in a line. Even though it whitethorn non be a straight line (some menages utilize a U-shaped assembly line) we consecrate that it has a connected line flow. Also, cockeyeds in the lower-right quadrant (line and continuous) are classified as having a product layout. Continuous manufacturing involves lot-less production wherein the product flows continuously rather than being divided. A basi c material is passed through successive operations (i. e. refining or processing) and eventually emerges as one or more products. This process is used to produce passing standardized outputs in highly large volumes. The product ikon is usually so narrow and highly standardized that it can be characterized as a commodity. Considerable capital investment is required, so demand for continuous process products must be extremely high. Starting and stopping the process can be prohibitively expensive. As a result, the processes usually run 24 hours a day with stripped reducetime (hence, continuous flow). This besides be exhaust asides the firm to afford their enormous fixed cost everywhere as large a base as realizable.The routing of the process is typically fixed. As the material is processed it usually is transferred automatically from one part of the process to the next, frequently with self- observe and adjusting. Labor requirements are low and usually involve exclusively monitoring and maintaining the machinery. exemplary examples of industries utilizing the continuous process include gas, chemicals, electricity, ores, rubber, petroleum, cement, paper, and wood. sustenance manufacture is also a weighed down(p) user of continuous processing oddly water, milk, wheat, flour, sugar and spirits.Read more Product-Process Matrix strategy, organization, system, examples, manager, company, business, competitiveness, system http//www. referenceforbusiness. com/management/Or-Pr/Product-Process-Matrix. htmlixzz24d4V1uTD pic pic USING THE hyaloplasm The product-process ground substance can facilitate the grounds of the strategicalal options available to a company, particularly with regard to its manufacturing function. A firm whitethorn be characterized as occupying a particular region in the matrix, determined by the stages of the product sustenance speech rhythm and its excerpt of production process(es) for each individual product.By incorporatin g this prop into its strategic planning process, the firm encourages more creative thinking about organizational repugnncy and competitive reinforcement. Also, use of the matrix provides a natural way to involve manufacturing managers in the planning process so they can reach their opportunities and decisions more efficaciously with those of commercialiseing and of the corporation itself, all the duration leading to more informed predictions about changes in industry and the firms appropriate strategic responses. Each process choice on the matrix has a unique mass of characteristics.Those in the upper-left quadrant of the matrix ( individualised credit line bring out and batch) share a number of characteristics, as do those in the lower-right quadrant (assembly line and continuous). Upper-left firms employ highly skilled craftsmen (machinists, printers, in additionl and die makers, musical instrument craftsmen) and professionals (lawyers, doctors, CPAs, consultants). b ecause upper-left firms can be characterized as roil intensive. Since upper-left firms tend to utilize general-purpose equipment, are seldom at 100 percent capacity, and employ workers with a wide flap of skills, they can be very flexible.However, there is a uncorrectable trade- come to in the midst of efficiency and flexibility of operations. Most job let ons tend to emphasize flexibility all oer efficiency. Since efficiency is not a substantive point of upper-left firms, neither is low-cost production. 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. Finally, upper-left firms are also more potential to serve local markets. Lower-right firms require production facilities that are highly specialized, capital intensive, and interrelated (therefore, inflexible).Labor requirements are generally unskilled or semi-skilled at most. a great jazz of the labor requirement deals with merely monitoring and maintaining equipment. Lower-right firms are also more likely to serve national markets and can be vertically integrated. Hayes and bicyclist relate trinity areas affected by the use of the product-process matrix typical competence, management, and organization. DISTINCTIVE COMPETENCE. distinctive competence is outlined as the resources, skills, and organizational characteristics that go out a firm a comparative advantage over its competitors.Simply put, a distinctive competence is the characteristic of a given product that causes the buyer to get it rather than the similar product of a competitor. It is generally accepted that the distinctive competencies are cost/price, quality, flexibility and service/time. By using the product-process matrix as a framework, a firm can be more precise about its distinctive competence and can concentrate its precaution on a restricted rig of process decisions and alternatives and a restricted set of marketing altern atives.In our discussion, we have seen that the broad range of worker skills and the employment of general-purpose equipment give upper-left firms a large degree of flexibility while the highly specialized, high-volume environment of lower-right firms yields very little in the way of flexibility. Therefore, flexibility would be a highly appropriate distinctive competence for an upper-left firm. This is especially consecutive when dealing with the need for flexibility of the product/service produced. Lower-right firms find it very herculean to sidetrack a high-volume operation because of an plan change in the product.An entire line would have to be shut down while in any caseling or machinery is altered and large volumes of possibly obsolete work-in-process are accounted for. Upper-left firms, however, would have none of these problems with which to contend. It must be observe though that lower-right firms may possess an advantage regarding flexibility of volume. Quality may be delimit a number ways. If we define quality as reliability, then lower-right firms could call option this as a distinctive competence. Lower-right firms would have the high volume necessary to readily find and eliminate ugs in their product, teachable more reliability to the end user. However, if we define quality as quality of design (that is, bells and whistlesthings that embody status, such as whip seats in an automobile or a handcrafted musical instrument), then quality would be seen as a possible distinctive competence of upper-right firms. Service may also be defined in more ways than one. If one defines service as face-to-face interaction and personal attention, then upper-left firms could claim service as a distinctive competence. If service is defined as the ability to provide the product in a very concise period of time (e. . , overnight), then service as a distinctive competence would belong to lower-right firms. Finally, remember that high volume, economies of scal e, and low cost are characteristics of firms in the lower-right quadrant of the matrix. Upper-left firms produce low volumes (sometimes only one) and cannot take advantage of economies of scale. (Imagine, for instance, what you would have to pay for a handcrafted musical instrument. ) Therefore, it is obvious that price or cost competitiveness is within the landing field of lower-right firms. MANAGEMENT.In general, the economics of production processes favor positions along the diagonal of the product-process matrix. That is, firms operating on or close to the diagonal are judge to outperform firms choosing extreme off-diagonal positions. Hayes and Wheelwright provide the example of a firm positioned in the upper-right corner of the matrix. This would appear to be a commodity produced by a job shop, an option that is economically unfeasible. A firm positioned in the lower-left corner would wager a unique one-time product produced by a continuous process, again not a feasible opti on.Both examples are too far off the diagonal. Firms that find themselves too far off the diagonal ingest trouble by impairing their ability to compete effectively. While firms operating in the nest vicinity, but not exactly on the diagonal, can be niche players, positions farther away from the diagonal are difficult to justify. Rolls Royce makes automobiles in a job shop environment but they understand the implications involved. Companies off the diagonal must be cognizant of traps it can blood into and implications presented by their position. Also, a firms choice of roduct-process position places them to the right or left of competitors along the horizontal holding of the matrix and above or down the stairs its competitors along the vertical dimension of the matrix. The strategic implications are obvious. Of course, a firms position on the matrix may change over time, so the firm must be aware of the implications and maintain the capability to deal with them appropriately. The matrix can provide muscular insights into the consequences of any planned product or process change. Use of the product-process matrix can also help a firm define its product.Hayes and Wheelwright relate the example of a specialized manufacturer of printed circumference boards who produced a low-volume, customized product using a highly connected assembly-line process. Obviously, this would place them in the lower-left corner of the matrix not a desirable place to be. This knowledge oblige the company to realize that what they were offering was not really circuit boards after all, but design capability. So, in essence, they were mass-producing designs rather than the boards themselves. Hence, they were not far off the diagonal at all.ORGANIZATION. Firms organize different operating units so that they can specialize on discipline portions of the total manufacturing task while take over maintaining overall coordination. Most firms will read two or more processes for the prod ucts or services they produce. For example, a firm may use a batch process to make components for products, which are constructed on assembly lines. This would be especially true if the work content for component production or the volume needed was not enough for the creation of a dedicated line process.Also, firms may need separate facilities for different products or parts, or they may only if separate their production within the same facility. It may even be that a firm can produce the similar products through two different process options. For example, extension 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). Again, the matrix provides a valuable framework for diagnostic use in these situations.OTHER USES OF THE PRODUCT-PROCESS MATRIX Additional uses of the matrix include Analyzing the product entry and exit. find out the appropriate mix of manufac turing facilities, identifying the key manufacturing objectives for each plant, and monitoring progress on those objectives at the corporate level. Reviewing investment decisions for plants and equipment in terms of their consistency with product and process plans. determine the direction and timing of major changes in a companys production processes. Evaluating product and market opportunities in light of the companys manufacturing capabilities. Selecting an appropriate process and product building for entry into a new market. It should be noted that recent empirical research by Sohel Ahmad and Roger G. Schroeder found the proposed relationship between product structure and process structure to be probatory but not strong. In general terms, they found that as the product life oscillation changes the process life cycle also shifts in the consistent direction, but not necessarily along the diagonal.Some 60 percent of the firms studied did not fall on the diagonal. The research ers propose that this occurred because new management and technological initiatives have eliminated or minimize some of the inherent trade-offs found on the Product-Process Matrix. They classify these initiatives as processing technology, product design and managerial practice (e. g. , TQM and JIT). Therefore, Ahmad and Schroeder advise that the matrix be conceptualized as having three axes instead of two.They propose an x-axis (product life cycle stages), a y-axis (process life cycle stages), and a z-axis that represents an organizations proactive effort towards adopting and implementing these innovative initiatives. As a firm moves away from the inauguration along the z-axis, it becomes able to minimize some of the trade-offs seen in the Product-Process Matrix framework. Read more Product-Process Matrix strategy, organization, system, examples, manager, company, business, competitiveness, system http//www. referenceforbusiness. com/management/Or-Pr/Product-Process-Matrix. h tml ixzz24d4lyOQ5 pic pic pic pic pic pic pic pic