A contingency theoretical perspective to the product-process matrix

• Published in: International journal of operations & production management 2013-01, Vol.33 (2), p.216-244
• Main Authors: Helkio, Pekka, Tenhiaelae, Antti
• Format: Article
• Language: English
• Subjects: Advanced manufacturing technologies; Assembly lines; Contingency; Design; Flexibility; Industrial engineering; Job shops; Manufacturers; Manufacturing; Operations management; Plants; Production management; Strategy; Studies; Supply chains; Tasks
• ISSN: 0144-3577; 1758-6593
• DOI: 10.1108/01443571311295644

Purpose - The product-process matrix of Hayes and Wheelwright is widely known for its prescriptive managerial guidance. Yet, most empirical studies have found no support for its performance assertions or have even contradicted them. The purpose of this paper is to propose a contingency theoretical generalization and extension that accommodates both the performance implications of the original model and the best-known departures from it.Design methodology approach - The authors test their extended model with survey data from 151 manufacturing plants.Findings - The authors' model extends the process dimension of the original model into a specificity dimension that depends not only on the layout of the process but also on the flexibilities that can be achieved with advanced manufacturing technologies. Similarly, the product dimension, which was operationalized as product variety in the original matrix, is generalized to the complexity of the production task, where product variety is only one element among others. Furthermore, the authors extend the model to accommodate also the dynamism of the task environment.Research limitations implications - In addition to the testing of the extended model, the study provides openings for further theoretical development. In particular, the findings demonstrate the value of the contingency theoretical concept of suboptimal equifinality to operations management research.Practical implications - The study updates the product-process matrix to match the modern industrial reality and thus enables the continued application of this important operations strategy prescription.Originality value - The study integrates insights from previous research in operations management and contingency theory into a generalization and extension of the product-process matrix.