Product-Focused Strategy

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.

Advantages :

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%)

Disadvantages :

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.


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