Mapping the structural properties of production process and product mix

Abstract

The description and classification of production capabilities, referring to the kind of product mix that can be produced in a given type of facility, is a fundamental task in analyzing production strategy and economics. In practice, however, the concepts of product structure and process structure have been hard to operationalize since there are no generally applied measurement scales or indices to capture the degree of standardization or customization of products, for instance, or to characterize the configuration and type of control of a production line. The objective here is to provide a systematic approach for analyzing production capabilities, or productabilities for short, by mapping the structural properties of production process and product mix with a set of quantitative indicators acknowledging the different levels of reference (actual operations, existing or planned resources, and strategic intentions) as well as the disciplinary perspectives of marketing and manufacturing management. The new mapping method is illustrated in the context of the product–process matrix by Hayes and Wheelwright which links the two dimensions of productability and their alignment to the performance-oriented measures of production capabilities, such as productivity of plants or profitability of products. The use of the mapping method is demonstrated with some illustrative numerical examples of productability analysis and a case study of an individual firm. Further development and testing of data collection in the context of industrial surveys and statistical studies are discussed.