Link Manufacturing Process and Product Life Cycles PDF

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Link Manufacturing Process and Product Life Cycles...

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Link Manufacturing Process and Product Life Cycles Introduction The product life cycle has been studied very frequently but there are sufficient theories that question the usefulness. Advantage: useful framework to think about the growth and development of a new product, company or entire industry Disadvantage: concentrates on marketing implications of life cycle process  misleading in strategic planning

The Product Process Matrix Process evolution: 1. Fluid process  highly efficient but not cost effective 2. Systemic process  very efficient but much more capital intensive and less flexible Interaction of product and process life cycle:

Diagonal Position 1. Jumbled-flow (job shop) (e.g. commercial printer) o Each job is unique o Job shop process o Jobs arrive in different forms and require different tasks  general purpose equipment 2. Disconnected line flow (batch) process o Economies of scale o Several basic models with a variety of options  flow pattern 3. Connected line flow process (assembly line) (e.g. automobile industry) o Only a few models o Relatively merchandized and connected production process 4. Continuous flow  refinery operations (e.g. oil processing) o Product is a commodity o Process is continuous o Highly specialized o Inflexible o Capital intensive o Low variable costs Off the Diagonal Companies might seek a position off the diagonal to gain a competitive advantage  if you drift from the diagonal without knowing about the implications you may have serious troubles Potential threat: 1. Too dissimilar from competitors  more vulnerable to attack 2. Makes coordination of marketing and manufacturing more difficult Advantages: 1. Encourages creative thinking about organizational competence and competitive advantage 2. More informal predictions about changes 3. Natural way of incorporating manufacturing managers in the planning process and relating them to marketing strategies...