What Is a Product Process Matrix?
The Product Process Matrix (PPM), also known as the Hayes-Wheelwright Matrix, is a matrix that visualizes the relationships between the product lifecycle and the development process from ideation to the product decline and eventually merges them together. The matrix is two-dimensional and shows the connection between the product and the production process, helping to determine the best approach for production of a specific product based on its type, complexity, and volume or production.
The Product Process Matrix was introduced by Robert H. Hayes and Steven C. Wheelwright in 1979 to give businesses a tool to come up with strategic solutions while estimating the product progress along the related processes and analyzing if there is a fit between them.
Product Process Matrix Structure
The PPM matrix is split not columns representing the product types and rows related to the process choices.
Product types in columns:
- Unique or one-of-a-kind products with no standardization
- Low-volume products
- Few major products with a relatively high volume.
- Commodity products with high volume and high standardization
Process choices in rows:
- Jumbled flow with numerous possible routings
- Disconnected (intermittent) line flow using a mixture of general-purpose and special-purpose equipment
- Connected line flow – repetitive flow used for mass production
- Continuous flow – a linear process that theoretically runs 24/7
Most businesses fall along the diagonal of the matrix where the product type aligns with the process choice.
Process Stages
Based on the product-process relationship, the PPM matrix outlines four distinct process stages:
Job Shop
At this stage, businesses produce several varied products that are usually unique/one-of-a-kind. This stage implies high flexibility in the equipment, skilled workers, high customization and creativity, and direct interaction with customers.
Batch
The batch type is slightly more efficient than a job shop thanks to grouping of parts in processes and has certain repetition in the development process. Yet, the production volume remains low and the production process highly customizable. At this stage, businesses offer multiple low-volume products and build their success on competitive differentiation.
Assembly Line
At this stage, few major products that are quite similar to each other are produced in higher volumes and in a repetitive way. The production process is quite standardized and efficient since products pass specific workstations in a certain sequential order. Though goods are produced smoothly and at a quicker pace, they lack flexibility and variety.
Continuous Flow
At this stage, businesses reach a high product volume and high standardization. They use specialized equipment to produce goods continuously. This also implies that the range of production is very limited, and the volume is very high, so there is no space for customization or flexibility in the process.
Off the diagonal line
Of course, there are businesses that do not come in the diagonal area for the sake of reaching competitive advantage for their products. Though this approach may work, it also involves heavy risks and costs.
How to Use The Matrix
The product-process matrix facilitates the understanding of the available strategic options and contributes to product development planning. It can help businesses in multiple ways:
- Product leaders and managers can use it to identify and estimate the business’s distinctive competence, i.e. price, quality, service, etc. that make up the company’s comparative advantage and make informed decisions based on it.
- The matrix helps the company’s management to better place their processes along the process stages and make them aware of implications of their misalignment with those stages.
- Understanding where the product and process fit within the matrix allows the company’s management to better organize different operating units and find the best mix of manufacturing facilities.
- The PPM matrix can help identify market opportunities and guide investment decisions based on the existing manufacturing capabilities.
- It also helps determine the direction and timing of significant changes in processes or introduction of new ones.
Generally speaking, the PPM matrix promotes broader thinking about organizational competence and competitive advantage and educates stakeholders and employees on the product-process lifecycle.
