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The Product / process matrix: an empirical test on the French industrial manufacturing industries

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This paper tests the validity of the product/process matrix, introduced by Hayres and Weelwright, through a sample of approximately 1700 French manufacturing companies. The results indicate that industries tend to have a natural position on the diagonal of the product/process matrix, as a consequence of the life cycle phase the industry is in. However, the data also shows that the individual company in an industry can reposition itself, and as such differentiate from the other players in its industry. This indicates that a company's position in the product/process matrix is an important element of the manufacturing strategy of the company, rather than just a consequence of a natural evolution in the industry. Companies positioned "off the diagonal" can be successful, but success requires an adapted business strategy, oriented towards quality, lead time, responsiveness and price for the companies below the diagonal and oriented towards reputation, service and innovation for the companies above diagonal

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp1996/96-26.pdf

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Copyright INSEAD. All rights reserved