TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow Technische Universität München

Process-Product Matrix

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 1
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Learning Objectives
• Understand the basic differences between craft production and
mass production.
• Introduce the benefits and disadvantages of mass production.
• Explain how the process-product matrix illustrates how different
production types support different products.

Holly Ott 2
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Mass vs. Craft Production

By Literary Digest 1928-01-07 Henry Ford Interview / Photographer unknown [Public domain],
via Wikimedia Commons

Holly Ott 3
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Mass vs. Craft Production

• Invention of the automobile: 1885/86 Karl Benz /1886 Gottlieb
Helmut Daimler
• Cars produced in workshops for individual customers. Individual
parts then machined to fit together. No standard gauging system
and tooling was not available to cut pre-hardened steel.

The Machine That Changed the World: The Story of Lean Production-- Toyota's Secret Weapon in the
Global Car Wars That Is Now Revolutionizing World Industry
Holly Ott James P. Womack, Daniel T. Jones, Daniel Roos freePress, a division of Simon & Schuster, 2007 edition 4
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Mass vs. Craft Production

• Invention of the automobile: 1885/86 Karl Benz /1886 Gottlieb
Helmut Daimler
• Cars produced in workshops for individual customers. Individual
parts then machined to fit together. No standard gauging system
and tooling was not available to cut pre-hardened steel.
• Key advance: availability of interchangeable parts.
• 1903: Ford set up assembly stands to build individual cars.
• 1908: Workers had single tasks and moved from vehicle to vehicle.
• 1913: Highland Park assembly line in Detroit introduced the
moving assembly line.

The Machine That Changed the World: The Story of Lean Production-- Toyota's Secret Weapon in the
Global Car Wars That Is Now Revolutionizing World Industry
Holly Ott James P. Womack, Daniel T. Jones, Daniel Roos freePress, a division of Simon & Schuster, 2007 edition 5
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Mass vs. Craft Production

2 employees
2 dogs
2 step process

Wash Brush

Craft production Mass production

Dog A Worker A
Wash Brush Dog B Dog A Wash Brush
Toolset A
2. Brush

Worker B Worker 1 Worker 2

Dog B Wash Brush Tool 1 Tool 2
Toolset B

Holly Ott 6
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Mass Production - Benefits

• Efficiency
• Each worker can specialize in a specific set of tasks and
perform these quickly.
• Workers do not need broad skill levels.
• Workstations and toolings can be optimized for these tasks.
• No time wasted switching between activities.
• Quality
• Improved quality because of the standardized production
and limited tasks.

Holly Ott 7
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Challenges to Mass Production

• Design of process into narrow sets of activities and allocation of
these to workers
• Worker idle time
• Capacity not optimized – long set-up times
• Longer production times
• High inventories
• Quality issues
• Worker boredom, demotivation, dis-involvement in process

Holly Ott 8
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

R. H. Hayes and S. C. Wheelwright.

The Product-Process Matrix “Link Manufacturing Process and

Product Life Cycles,” Harvard
Business Review (1979, January–
February): 133–140.
Highly Highly
Process customized, Wide product Moderate standardized,
structure high product variety product variety very limited
variety product variety
Hospital
Jumbled flow
(Job shop)
Mismatch
Food
Disconnected line flow Processing
(Batch process)
Computer
Connected line flow Assembly,
(Assembly Line) Automobile
Mismatch Assembly

Continuous flow Sugar Refinery,

Chemical Plant

Holly Ott 9
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

R. H. Hayes and S. C. Wheelwright.

The Product-Process Matrix “Link Manufacturing Process and

Product Life Cycles,” Harvard
Business Review (1979, January–
February): 133–140.
Highly Highly
Process customized, Wide product Moderate standardized,
structure high product variety product variety very limited
variety product variety

High
Low
Hospital
Jumbled flow
Job shop
Mismatch
Food
Disconnected line flow Processing

Efficiency

Flexibility
(Batch process)
Computer
Connected line flow Assembly,
(Assembly Line) Automobile
Mismatch Assembly

Sugar Refinery,

High

Low
Continuous flow
Chemical Plant

Low Volume High

Holly Ott 10
 TUM School of Management
Production and Supply Chain Management
Prof Martin Grunow Technische Universität München

Process-Product Matrix

Prof. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott 11