Business Process Types (Product – Process Matrix)

What Are Process Types and Why Do They Matter?

Business processes vary greatly depending on how much they produce and how different their products are. Understanding process types helps managers choose the right approach for their operations.

The key relationship is between volume and variety. High-volume processes typically produce low variety products. Low-volume processes usually create high variety products. This creates a spectrum of five distinct process types.

The Volume-Variety Relationship Explained

Volume refers to how many items a process produces. Variety means how different the products are from each other. These two factors work in opposite directions.

For example, credit card processing handles millions of transactions daily. Each transaction follows the same basic steps. This is high volume, low variety.

Compare this to funding a complex business takeover. Each deal is unique and requires months of custom work. This is low volume, high variety.

Understanding this relationship helps you position your processes correctly. It also helps you manage resources and set customer expectations.

Process Type 1: Project Processes

Project processes create discrete, highly customized products. Each item takes significant time to complete. These processes have well-defined start and finish points.

Project Process Characteristics

Project processes deal with low volume and high variety. Activities can be uncertain and hard to define. Resources often need special organization for each item.

The complexity comes from the uniqueness of each project. Workers need significant professional judgment. Timescales are typically long, often months or years.

Project Process Examples

Software design represents a classic project process. Each software solution addresses specific customer needs. The development team dedicates resources exclusively to one project at a time.

Movie production is another example. Each film is unique, requiring different actors, locations, and storylines. Construction work follows project processes, especially for large buildings.

Manufacturing turbo generators also uses project processes. Each generator serves specific industrial needs and requires custom engineering.

Process Type 2: Jobbing Processes

Jobbing processes handle high variety and low volumes like projects. However, each product shares operational resources with many others.

Jobbing Process Characteristics

Resources process multiple items in series. Each item needs similar attention but has different exact requirements. Many jobs are one-time orders that never repeat.

Jobbing processes can be complex but usually produce smaller products than projects. They require considerable skill but face fewer unpredictable situations than projects.

Jobbing Process Examples

Made-to-measure tailors exemplify jobbing processes. They use the same equipment and skills for different customers. Each garment is unique but follows similar construction methods.

Precision engineers and specialist toolmakers use jobbing processes. They share expensive equipment between different custom orders. Furniture restorers also follow this approach.

Local printing shops demonstrate jobbing processes. They produce tickets, flyers, and business cards using shared equipment for various customers.

Process Type 3: Batch Processes

Batch processes produce multiple items simultaneously. They occupy the middle ground between jobbing and mass production.

Batch Process Characteristics

Batch processes create more than one item at a time. Each process section repeats itself while processing the batch. Small batches resemble jobbing processes. Large batches become more repetitive.

Batch size determines the process characteristics. Familiar products in large batches become fairly repetitive. This flexibility allows batch processes to work across various volume and variety levels.

Batch Process Examples

Machine tool manufacturing uses batch processes. Companies produce groups of similar tools before switching to different specifications.

Gourmet frozen food production follows batch methods. Manufacturers make batches of specific flavors or varieties. Component manufacturing for vehicles also uses batch processes.

Each batch contains identical items, but different batches can vary significantly.

Process Type 4: Mass Processes

Mass processes produce items in high volume with narrow variety. The fundamental product remains the same despite minor variations.

Mass Process Characteristics

Activities are repetitive and predictable. Workers perform standardized tasks efficiently. Products may have thousands of variants, but these don’t affect the basic production process.

Mass processes achieve efficiency through repetition. They work best when demand is stable and predictable. Setup costs are high, but per-unit costs are low.

Mass Process Examples

Vehicle assembly plants demonstrate mass processes. They produce thousands of cars with different colors and options. However, the basic assembly process remains constant.

Frozen food production lines use mass processes. Automatic packing lines also follow this approach. Television factories represent classic mass production.

Each example shows high volume output with limited fundamental variety.

Process Type 5: Continuous Processes

Continuous processes achieve the highest volume and lowest variety. They operate for extended periods, sometimes literally without stopping.

Continuous Process Characteristics

Products flow continuously through the system. The technology is capital-intensive and relatively inflexible. Flow patterns are highly predictable.

Products may be stored during processing, but smooth flow characterizes the system. Starting and stopping these processes is expensive and time-consuming.

Continuous Process Examples

Petrochemical refineries exemplify continuous processes. They convert crude oil into various products through continuous chemical reactions.

Water processing plants operate continuously to ensure constant supply. Electricity utilities cannot afford interruptions. Steel making and paper production also use continuous methods.

These examples show products that flow seamlessly from input to output.

Choosing the Right Process Type for Your Business

Selecting the appropriate process type depends on your specific situation. Consider your volume requirements and variety needs.

High customization demands point toward project or jobbing processes. Standard products with high demand suggest mass or continuous processes. Batch processes work well for medium requirements.

Also consider your resources and capabilities. Project processes need skilled, flexible teams. Continuous processes require significant capital investment.

Medical Service Example: Volume-Variety in Action

Medical services perfectly illustrate the volume-variety spectrum. Mass immunization programs handle thousands of patients using standardized procedures. This represents high volume, low variety.

Transplant surgery treats one patient with completely customized procedures. This represents low volume, high variety.

The same medical facility uses different process types for different services. Emergency rooms use batch processes for similar cases. Specialty clinics use jobbing processes for unique conditions.

Common Process Type Mistakes

Many businesses choose inappropriate process types. Using project methods for standard products wastes resources. Applying mass production to custom requirements disappoints customers.

The key is matching process type to customer needs. Analyze your volume and variety requirements honestly. Don’t assume one process type fits all situations.

Implementing Process Types in Your Organization

Start by auditing your current processes. Identify which type each process represents. Look for mismatches between process type and customer requirements.

Consider whether different approaches might work better. Test changes gradually before implementing major shifts. Monitor results and adjust as needed.

Remember that most organizations need multiple process types. The goal is using the right type for each specific situation.

Benefits of Understanding Process Types

Understanding process types improves operational efficiency. You can allocate resources more effectively. Customer satisfaction increases when you match processes to needs.

Cost control becomes easier when you understand process characteristics. You can set realistic timelines and budgets. Planning becomes more accurate and reliable.

Process types also help with continuous improvement. You can identify bottlenecks and inefficiencies more easily. This knowledge guides investment decisions and operational changes.

Conclusion: Mastering Process Types for Business Success

Process types provide a framework for organizing business operations. The five types span from unique projects to continuous production. Each type serves specific volume and variety requirements.

Understanding process types helps you make better operational decisions. You can choose efficient approaches for different products and services. This leads to lower costs and higher customer satisfaction.

The key insight is that no single process type works for everything. Success comes from matching the right process type to each specific situation. Master this concept, and your operations will become more efficient and effective.