Product-Process Matrix

PRODUCT STRUCTURE
VERY LOW VOLUMES VERY HIGH VOLUMES

PROCESS LOW STANDARDIZATION LOW VOLUMES HIGH VOLUMES HIGH STANDARDIZATION

STRUCTURE One-of-a-kind Products Many Products Few Products Commodity Products

JUMBLED FLOW
(Job Shop)

DISCONNECTED LINE FLOW

(Batch Flow)

CONNECTED LINE FLOW

(Machine or Worker paced)

CONTINUOUS FLOW

1
 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 LOW VOLUMES VERY HIGH VOLUMES

PROCESS LOW STANDARDIZATION LOW VOLUMES HIGH VOLUMES HIGH STANDARDIZATION

STRUCTURE One-of-a-kind Products Many Products Few Products Commodity Products

JUMBLED FLOW
(Job Shop)

DISCONNECTED LINE FLOW

(Batch Flow)

CONNECTED LINE FLOW

(Machine or Worker paced)

CONTINUOUS FLOW

2
 Product-Process Matrix
Movement along the Diagonal (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

PROCESS LOW STANDARDIZATION LOW VOLUMES HIGH VOLUMES HIGH STANDARDIZATION

STRUCTURE One-of-a-kind Products Many Products Few Products Commodity Products

JUMBLED FLOW
(Job Shop)

DISCONNECTED LINE FLOW

(Batch Flow)

CONNECTED LINE FLOW

(Machine or Worker paced)

CONTINUOUS FLOW

3
 Service Process Matrix
DEGREE OF CONTACT WITH, AND CUSTOMIZATION FOR, THE CONSUMER

Low High

The Service Factory The Service Shop

Low

DEGREE
OF
LABOR
INTENSITY Mass Service Professional Service

High