Product-Focused Strategy is the second type, from types of Process Strategies. The characteristics : facilities are organized by product, high volume, and low variety products. Where found : discrete unit manufacturing, continuous process manufacturing. Other names : line flow production or continuous production.
1. Lower variable cost per unit
2. Lower but more specialized labor skills
3. Easier production planning and control
4. Higher equipment utilization (70% to 90%)
1. Lower product flexibility
2. More specialized equipment
3. Usually higher capital investment
Examples of Product-Focused strategy : Soft Drinks (Continuous, then Discrete), Paper (Continuous), Light Bulbs (Discrete), and Mass Flu Shots (Discrete).
Originally Posted at Arif Info.