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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. |
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| The strategic decisions result in manufacturing
capabilities compatible with job shops, batch processing, assembly
lines, and continuous production |
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| 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. |
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| Batch production offers the capability to produce a
higher volume and more standardized products, with some flexibility
to vary products. |
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| 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. |
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| 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. |
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