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An Empirical Analysis of Process Industry Transformation Systems

Author

Listed:
  • Daina Dennis

    (Management Department, Richard T. Farmer Business School, Miami University, Oxford, Ohio 45056)

  • Jack Meredith

    (P.O. Box 7659, Babcock Graduate School of Management, Wake Forest University, Winston-Salem, North Carolina 27109)

Abstract

Process industries share many characteristics because their transformation systems are designed for nondiscrete materials. Hence, the process industries typically are lumped together in a general group and contrasted from the discrete industries as a whole. The result is a poor understanding of the differences between distinct types of process industries. In this article, 19 different process industry sites are analyzed for the purpose of identifying the key differences between their transformation systems. Using cluster analysis, seven major subtypes of process industries are identified within the sample: (1) process job shop, (2) fast batch, (3) custom blending, (4) stock hybrid, (5) custom hybrid, (6) multistage continuous, and (7) rigid continuous. It is shown how these seven subtypes differ on the composite dimensions of (1) materials diversity, (2) equipment, (3) materials movement, and (4) run time. The research and managerial implications of these results are discussed.

Suggested Citation

  • Daina Dennis & Jack Meredith, 2000. "An Empirical Analysis of Process Industry Transformation Systems," Management Science, INFORMS, vol. 46(8), pages 1085-1099, August.
    • Handle: RePEc:inm:ormnsc:v:46:y:2000:i:8:p:1085-1099
    DOI: 10.1287/mnsc.46.8.1085.12031
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    File URL: http://dx.doi.org/10.1287/mnsc.46.8.1085.12031
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    2. Andrea Masini & Luk N. Van Wassenhove, 2009. "ERP Competence-Building Mechanisms: An Exploratory Investigation of Configurations of ERP Adopters in the European and U.S. Manufacturing Sectors," Manufacturing & Service Operations Management, INFORMS, vol. 11(2), pages 274-298, May.
    3. Moser, Philipp & Isaksson, Olov H.D. & Seifert, Ralf W., 2017. "Inventory dynamics in process industries: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 191(C), pages 253-266.
    4. Demeter, Krisztina & Golini, Ruggero, 2014. "Inventory configurations and drivers: An international study of assembling industries," International Journal of Production Economics, Elsevier, vol. 157(C), pages 62-73.
    5. Federica Ceci & Francesca Masciarelli & Andrea Prencipe, 2016. "Changes in Organizational Architecture: Aspiration Levels, Performance Gaps and Organizational Change," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 1-21, February.

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