1.6.Matching Process and Product Life Cycles (2) Start-up Rapid growth Maturation Stabilization or decline Time- Fig.1-4The Product Life-Cycle Curve Maturation-maintain and improve the brand loyalty; increase market share through competitive pricing;save cost by improving production control and product distribution:
Fig.1-4The Product Life-Cycle Curve 1.6. Matching Process and Product Life Cycles (2) Maturation-maintain and improve the brand loyalty; increase market share through competitive pricing; save cost by improving production control and product distribution;
1.6.Matching Process and Product Life Cycles (2) Start-up Rapid growth Maturation Stabilization or decline Time- Fia.1-4The Product Life-Cvcle Curve © The final phase-the shape depends on the nature of the product:indefinite continuing growth (household goods, processed foods,and auto)/same strategy as Phase 3; natural decline/squeezing out the most from the product or product line
Fig.1-4The Product Life-Cycle Curve 1.6. Matching Process and Product Life Cycles (2) The final phase-the shape depends on the nature of the product: indefinite continuing growth (household goods, processed foods, and auto)/same strategy as Phase 3; natural decline/squeezing out the most from the product or product line
1.6.Matching Process and Product Life Cycles The Process Life Cycle Early stage-job shop;a varied mix of relatively low- volume orders;being responsive to changes in the product design;little control over suppliers; Middle stage-some automation;batch production and some transfer lines(assembly lines);more control over suppliers;unit cost decline; Last stage-automated process and standardized production process;few manufacturing innovation; continuous flow operation
1.6. Matching Process and Product Life Cycles The Process Life Cycle • Early stage- job shop; a varied mix of relatively lowvolume orders; being responsive to changes in the product design; little control over suppliers; • Middle stage- some automation; batch production and some transfer lines(assembly lines); more control over suppliers; unit cost decline; • Last stage-automated process and standardized production process; few manufacturing innovation; continuous flow operation
1.6.Matching Process and Product Life Cycle The Product-Process Matrix(PPM)was developed by Hayes Wheel Wright in 1979; Link product and process life cycles in two dimensions √/Process structure vProduct life-cycle stage
1.6. Matching Process and Product Life Cycle • The Product-Process Matrix (PPM) was developed by Hayes & Wheel Wright in 1979; • Link product and process life cycles in two dimensions Process structure Product life-cycle stage