MANAGEMENT ACCOUNTING

Management Accounting

Financial & Management Accounting

Question 1

A

The product-process matrix is a device for investigating the connection between the merchandise life cycle and the technological life cycle. It was presented by Robert H. Hayes and Steven C. Wheelwright in two classic administration items released in Harvard Business Review in 1979, deserving "Link Manufacturing Process and Product Life Cycles" and "The Dynamics of Process-Product Life Cycles." The authors utilised this matrix to analyze market-manufacturing congruence matters and to help the comprehending of the strategic choices accessible to a company. The matrix itself comprises of two proportions, merchandise structure/product life cycle and method structure/process life cycle (Kuprianov, 1996, 40).

The output method utilised to construct a merchandise proceeds through a sequence of phases, much like the phases of goods and markets, which starts with a highly flexible, high-cost method and progresses in the direction of expanding standardization, mechanization, and automation, culminating in an inflexible but cost-effective process. The method structure/process life cycle dimension recounts the method alternative (job shop, batch, assembly line, and relentless flow) and method structure (jumbled flow, disconnected line flow, attached line flow and relentless flow) while the merchandise structure/product life cycle recounts the four phases of the merchandise life cycle (low capacity to high volume) and merchandise structure (low to high standardization). Later writers on the subject occasionally inject an added stage in the farthest upper-left corner of the matrix: the project.

A business can be distinguished as occupying a specific district on the matrix (see accompanying Figure). This district is very resolute by the firm's stage in the merchandise life cycle and the firm's alternative of output process. At the top left farthest, companies are distinguished as method oriented or concentrated while the smaller right farthest retains companies that are said to be merchandise focused. The conclusion of where a firm finds on the matrix is very resolute by if the output scheme is coordinated by grouping assets round the method or the product. Note from the number that the vertices of the matrix outcome in four distinct kinds of procedures (described by the befitting method choice) established on the diagonal of the matrix (Amburgey, 1994, 1427).

 

PROCESS CHOICES

PROJECT

Projects are succinctly encompassed in the consideration since they are occasionally discovered at the farthest upper-left corner of the matrix (depending on the author). These encompass large-scale, one-time, exclusive goods for example civil-engineering agreements, aerospace programs, building, etc. They are furthermore customer-specific and often too large to be shifted, which virtually dictates that task is the method of choice.

  

JOB SHOP

If a constructor had broken a large cog on an outdated (i.e., replacement components are no longer available) but still helpful appliance, she would take the broken cog to an appliance shop where they would construct a new one from scratch. This appliance shop (along with device and pass away manufacturers) is likely the prime demonstration of constructing job shops. A job shop is the manufacturer of exclusive products; generally this merchandise is of a one-by-one environment and needs ...