P. 101-108
Basic Concept
Volume and variety affect process type; usually low variability goes together with high volume and vice versa. Other factors involved or affected are diversity and repetition as well as continuality or intermittency of production. The position in the volume variety matrix shapes the design and approach to managing activities. These approaches are called process types.
Process Types
Project Processes
Discrete, highly customized products/goods, usually long time scale until completion, well defined beginning and end, low volume and high variety, dedicated resources and often complex processes.
Example: construction, prototyping
Jobbing Processes
Low volume and high variety, non repetitive, often complex, resources shared with other jobs.
Example: furniture restoration, tailoring
Batch Processes
Similar to jobbing processes with less variety. Production of one item at a time. This can be found over a wider range of volume and variety levels.
Example: frozen foods, automotive components
Mass Processes
High volume, relatively low variety, repetitive and predictable
Example: DVD production, catering food production, automobile plants
Continuous Processes
Often capital intensive, predictable flow, highest volume, and lowest variety.
Example: water processing, petrochemical refineries
Professional Services
High contact processes, high customer contact and involvement, high level of customization, often people based.
Example: Management consultants, doctors, lawyers
Services Shops
Mix of front and back-office services, differing levels of volume and variety.
Example: Banks, hotels, schools, restaurants
Mass Services
High amount of throughput, limited customer contact, little customization. High division of labour.
Example: Supermarkets, police service, library
The Product-Process Matrix
Method to illustrate the relationship between a process’ volume –variety position and its design