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An Empirical Analysis of the Product-Process Matrix

Author

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  • M. Hossein Safizadeh

    (Department of Operations and Strategic Management, Wallace E. Carroll School of Management, Boston College, Chestnut Hill, Massachusetts 02167)

  • Larry P. Ritzman

    (Department of Operations and Strategic Management, Wallace E. Carroll School of Management, Boston College, Chestnut Hill, Massachusetts 02167)

  • Deven Sharma

    (Booz, Allen, & Hamilton, New York, New York 10178)

  • Craig Wood

    (University of New Hampshire, Durham, New Hampshire 03824)

Abstract

Process choice, a major part of operations strategy, is a key decision that links operations to business strategy. Hayes and Wheelwright, among others, argue that the emphasis given to product customization and other competitive priorities should agree with process choice. Our empirical study investigates whether firms actually link their process choice to product customization and other competitive priorities as hypothesized, and whether compatible decision patterns lead to better performance. Analysis of data collected from managers at 144 U.S. manufacturing plants shows a strong correlation between process choice, product customization, and competitive priorities. Process choice is highly related with the degree of product customization, and also with the emphasis placed on the quality and cost competitive priorities. Job shops and batch shops tend to have more product customization, higher costs, and higher quality. Some continuous flow shops use part commonality and flexible automation to achieve more customization than would otherwise be expected. Without these initiatives, customization in continuous flow shops results in weak performance.

Suggested Citation

  • M. Hossein Safizadeh & Larry P. Ritzman & Deven Sharma & Craig Wood, 1996. "An Empirical Analysis of the Product-Process Matrix," Management Science, INFORMS, vol. 42(11), pages 1576-1591, November.
  • Handle: RePEc:inm:ormnsc:v:42:y:1996:i:11:p:1576-1591
    DOI: 10.1287/mnsc.42.11.1576
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    Citations

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    Cited by:

    1. Jonsson, Patrik, 2008. "Exploring problems related to the materials planning user environment," International Journal of Production Economics, Elsevier, vol. 113(1), pages 383-400, May.
    2. Kathuria, Ravi & Anandarajan, Murugan & Igbaria, Magid, 1999. "Selecting IT applications in manufacturing: a KBS approach," Omega, Elsevier, vol. 27(6), pages 605-616, December.
    3. Koufteros, Xenophon & Lu, Guanyi & Peters, Richard C. & Lai, Kee-hung & Wong, Christina W.Y. & Edwin Cheng, T.C., 2014. "Product development practices, manufacturing practices, and performance: A mediational perspective," International Journal of Production Economics, Elsevier, vol. 156(C), pages 83-97.
    4. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    5. Mohammad Agung Saryatmo & Vatcharapol Sukhotu, 2021. "The Influence of the Digital Supply Chain on Operational Performance: A Study of the Food and Beverage Industry in Indonesia," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    6. Paul S. Adler & Barbara Goldoftas & David I. Levine, 1999. "Flexibility Versus Efficiency? A Case Study of Model Changeovers in the Toyota Production System," Organization Science, INFORMS, vol. 10(1), pages 43-68, February.
    7. Furlan, Andrea & Dal Pont, Giorgia & Vinelli, Andrea, 2011. "On the complementarity between internal and external just-in-time bundles to build and sustain high performance manufacturing," International Journal of Production Economics, Elsevier, vol. 133(2), pages 489-495, October.
    8. Heim, Gregory R. & Sinha, Kingshuk K., 1999. "Design And Delivery Of Electronic Services: Implications For Customer Value In Electronic Food Retailing," Working Papers 14341, University of Minnesota, The Food Industry Center.
    9. Pinjala, Srinivas Kumar & Pintelon, Liliane & Vereecke, Ann, 2006. "An empirical investigation on the relationship between business and maintenance strategies," International Journal of Production Economics, Elsevier, vol. 104(1), pages 214-229, November.
    10. Hazen, Benjamin T. & Overstreet, Robert E. & Jones-Farmer, L. Allison & Field, Hubert S., 2012. "The role of ambiguity tolerance in consumer perception of remanufactured products," International Journal of Production Economics, Elsevier, vol. 135(2), pages 781-790.
    11. Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.
    12. Ariss, Sonny S. & Zhang, Qingyu, 2002. "The impact of flexible process capability on the product-process matrix: an empirical examination," International Journal of Production Economics, Elsevier, vol. 76(2), pages 135-145, March.
    13. Adenike A. Moradeyo, 2019. "Analysis Of Manufacturing Methods Using Market Demand Dynamics," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 10(1), pages 61-76.
    14. Dohale, Vishwas & Gunasekaran, Angappa & Akarte, Milind & Verma, Priyanka, 2021. "An integrated Delphi-MCDM-Bayesian Network framework for production system selection," International Journal of Production Economics, Elsevier, vol. 242(C).
    15. Erik Brynjolfsson & Wang Jin & Kristina McElheran, 2021. "The power of prediction: predictive analytics, workplace complements, and business performance," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 56(4), pages 217-239, October.
    16. Kemppainen, Katariina & Vepsalainen, Ari P.J. & Tinnila, Markku, 2008. "Mapping the structural properties of production process and product mix," International Journal of Production Economics, Elsevier, vol. 111(2), pages 713-728, February.
    17. Manuel Guisado-González & Len Tiu Wright & Manuel Guisado-Tato, 2017. "Product–process matrix and complementarity approach," The Journal of Technology Transfer, Springer, vol. 42(3), pages 441-459, June.
    18. Yinyun Yu & Congdong Li & Weiming Yang & Wei Xu, 2021. "Determining the critical factors of air-conditioning innovation using an integrated model of fuzzy Kano-QFD during the COVID-19 pandemic: The perspective of air purification," PLOS ONE, Public Library of Science, vol. 16(7), pages 1-24, July.
    19. Daina Dennis & Jack Meredith, 2000. "An Empirical Analysis of Process Industry Transformation Systems," Management Science, INFORMS, vol. 46(8), pages 1085-1099, August.
    20. Hill, Alex, 2008. "How to organise operations: Focusing or splitting?," International Journal of Production Economics, Elsevier, vol. 112(2), pages 646-654, April.
    21. Ayd{i}n Alptekinou{g}lu & Charles J. Corbett, 2008. "Mass Customization vs. Mass Production: Variety and Price Competition," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 204-217, August.
    22. Azadegan, Arash & Wagner, Stephan M., 2011. "Industrial upgrading, exploitative innovations and explorative innovations," International Journal of Production Economics, Elsevier, vol. 130(1), pages 54-65, March.
    23. Jennifer González-Blanco & Jose Luis Coca-Pérez & Manuel Guisado-González, 2018. "The Contribution of Technological and Non-Technological Innovation to Environmental Performance. An Analysis with a Complementary Approach," Sustainability, MDPI, vol. 10(11), pages 1-26, November.
    24. John G. Wacker & Danny Samson, 2021. "Beyond supply chain management: jointly optimising operations/ supply and the marketing mix," Operations Management Research, Springer, vol. 14(3), pages 451-466, December.
    25. Johansson, Pontus & Olhager, Jan, 2006. "Linking product-process matrices for manufacturing and industrial service operations," International Journal of Production Economics, Elsevier, vol. 104(2), pages 615-624, December.

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