4.2  Manufacturing Strategies Depend on Matching Resources with Volume, Flexibility, and Product Variety Needs

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The product/process matrix is provided near the end of Chapter 4, along with the service system design matrix, as a means of exemplifying tradeoffs common in strategic decision making. It provides an excellent example of the types of tradeoffs that accompany many strategic decisions for manufacturers. Manufacturers frequently identify high volume, low cost and low volume, high product variety as two ends of a continuum. VIDEOmp1
The strategic decisions result in manufacturing capabilities compatible with job shops, batch processing, assembly lines, and continuous production VIDEOmp2
Job shops provide the capabilities to make specialty items, frequently for other manufacturers.  Flexibility of equipment and highly-skilled employees combine to yield high product variety and great flexibility. VIDEOmp3
Batch production offers the capability to produce a higher volume and more standardized products, with some flexibility to vary products. VIDEOmp4
Assembly lines are used when little variety is needed and high volumes are required.  Each work station is "dedicated" to to a narrow set of tasks. Each line is dedicated to a very narrow set of products. VIDEOmp5
Continuous production is on the high volume extreme. The production takes place continuously, with no change. Equipment has very little flexibility and is designed for extremely high volumes. VIDEOmp6