Production/Process Matrix

Relationship between types of process flow structure and volume of output is often displayed by so called Production/Process Matrix - продуктово-процессная матрица.

This matrix shows that the increase in output and deepening of specialization of production line (horizontal axis) are making specialized equipment and streamlined material flow (vertical axis) cost-effective. Because the structure of this evolution is often correlated with the stages of product life cycle (development of production, increase production and stage of maturity), this matrix is very convenient to reflect the interrelationship of marketing and production strategies.

Companies listed in matrix are ideal types that finally determined their structural niche. However, any of those shown on this matrix typical representatives of their industry can choose for themselves another position.

The main task of modern industrial strategy is to find opportunities to combine flexibility of enterprise, which manufactures products to order (Stage I), with the cost advantages of an assembly line and continuous production (stage III and IV). Currently, however, this combination is economically feasible =целесообразнo only in a fully automated production system.

Matching of main stages of product life cycle with technological processes

Efficiency criteria

For 1 – flexibility – high, unit cost – high

For 4 – flexibility – low, unit cost – low