PRODUCT PROCESS MIX

PRODUCT PROCESS MIX

One of the component of marketing mix which helps the manufacturers in understanding how and why the should change their production process. The changes in the product, market requirement and competition will cause a change in production process, procedure and human resources. So the selection of proper process mix is important for an organization. The some important considerations while selecting a production process are given below:

1. Variety & Volume: While selecting the production process we should keep two factors that are variety and volume of products. Let us discuss how volume and variety in the products influence the choice of production.

(a) Case I – Volume high and variety low: The mass and flow or the batch type production process is suitable for this kind of requirement. Since the volumes are huge these type of production processes are capable to handle it.

(b) Case II - When both variety & Volume are low: Job system is more suitable in such case. Variable cost in this case is more but fixed overhead costs are lesser in comparison of other production processes.

(d) Case III- Variety is high and volume is low; Process production is more suitable in this case because this system is capable to handle different varieties of products and at the same time maintains the quality of the product.

(e) Case IV- Single product production : In case where only single product is produced such as bridges, dams, buildings etc project system is more suitable. Different agencies with different skittles are deployed to produce the specific product.

2. Lead Time: It is the time within which product should be ready to launch in the market. The consumers demand and expectation from one product with current market scenario changes quickly and if there is a delay in product reaching the market consumers may shift other brands of products in competition that are available in the market. So the effective management will be one that formulates and chooser the most effective production process that is capable to produce the pr in required quantity meeting unrespectable quality standards within a given time.

3. Efficiency: The efficiency of production process can be defined as the ability to produce required quantity at minimum cost. The objective of efficiency is achieved, when the productions are produced in large volumes. But the decisions on volume to be produced are based upon the demand for that pr in the market and sales estimation from the marketing department. By using this information the management can pick up the suitable production process that is most feasible for producing the product for that volume.

4. Flexibility and Scalability: Some times we can’t predict that accurate demand for the product. In such cases, we should adopt that production process which is flexible to scale down and up the production volume with no or little increase in infrastructure investment.

5. Reusability: If we look at the past many products have changed their shapes and sizes according to the market requirement. Since the plants’ and production facilities are setup with the mindset with the created facility will be for all types to come in future.