1. Job Shop, Flow Shop, and Batch Processing

2. 2 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Facility Layout : Job Shop A C B D Product 1 Output Input Product 2

3. 3 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Functional layout : similar resources in the same department. Ex. all press machines are located in stamping department. Ex. Bakeries, law firms, emergency rooms, repair shops. low volume, high variety customized products flexible resources skilled human resources jumbled work flows high material handling large volume of inventories long flow time highly structured information system high cost per unit of product but low investment Job Shop (Functional Layout)

4. 4 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Facility Layout : Flow Shop Output Input A C BD BA Product 1 Product 2

5. 5 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Product layout or line layout: Resources are arranged according to the sequence of the operations. Usually requires duplication ( and investment) of a resource pool; dedication of resources. Discrete flow shop; assembly line, Continuous flow shop; beverage. high standardization, high speed low material handling, short flow time low flow unit processing cost high investment cost; needs mass production. special purpose equipment, and low skilled labor prevent flexibility Most processes fall somewhere on the continuum between Job Shop and Flow Shop; batch processing. Flow Shop (Product Layout)

6. 6 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix  The product-process matrix is a tool for improving strategic fit. It focuses on the match between product attributes – defined by the market segment and reflected in the customer value proposition – and process capabilities to deliver value.  It verifies alignment, often by comparing the degree of variety in the value proposition with the degree of flexibility in the process. This combination is then represented by a covered area in the matrix where the distance to the diagonal represents the degree of misalignment. The Product-Process Matrix

7. 7 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Matching Process Choice with Strategy: Product-Process Matrix Process Capability Flexibility JOB SHOP Commercial Printer, Architecture firm BATCH Heavy Equipment, Auto Repair FLOW SHOP Auto Assembly, Car lubrication shop CONTINUOUS FLOW Oil Refinery Product Attribute Variety Low Opportunity Costs Out-of-pocket Costs High Low High Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. Low Standardization One of a kind Low Volume Many Products Few Major Products High volume High Standardization Commodity Products Opportunity Costs Out-of-pocket Costs

8. 8 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix Matching Process Choice with Strategy: Product-Process Matrix JOB SHOP Commercial Printer, Architecture firm BATCH Heavy Equipment, Auto Repair FLOW SHOP Auto Assembly, Car lubrication shop CONTINUOUS FLOW Oil Refinery Low Low Standardization One of a kind Low Volume Many Products Few Major Products High volume High Standardization Commodity Products Jumbled Flow. Process segments loosely linked. Disconnected Line Flow/Jumbled Flow but a dominant flow exists. Connected Line Flow (assembly line) Continuous, automated, rigid line flow. Process segments tightly linked. Opportunity Costs Out-of-pocket Costs High Low High A similar graph can be prepared to show the relationship between process flexibility and cost, or process flexibility and response time, but not for quality. Process Capability Flexibility Product Attribute Variety

9. 9 Ardavan Asef-Vaziri Aug.-2013Product-Process Matrix  Positions outside the diagonal signal misalignment. Three star chefs who serve simple meals (burritos and tacos) with their highly flexible job shop process incur high opportunity costs. Substantial savings would result from changing resources (including chefs) and streamlining the process into a flow shop.  Asking Chipotle's to change its menu daily would require high changeover costs. Asking it to deliver a three-star dining experience is virtually impossible. The Product-Process Matrix