LAYOUTS
This layout type is used when the product is too large to move, so all resources must come to it. Examples include building a cruise ship or a bridge.
Fixed-position layout
Groceries on the shelf at Albert Heijn, cars on a dealer lot, and clothing at H&M are all examples of this market orientation, where finished goods are produced in advance based on forecasts.
MTS — Make to Stock
This additive manufacturing technology builds products layer by layer from materials like plastic, metal, ceramics, and even chocolate. Invisalign® uses it to create custom dental molds.
3D printing
Retail banks, gas stations, supermarkets, and H&M stores belong in this quadrant of the service process matrix, characterized by low customization and high labor intensity.
Mass service
In this layout, similar resources are grouped together — like all the welding stations in one area and all the painting stations in another. A department store organizes its shoe, jewelry, and cosmetics sections this way.
Functional layout (also called departmental layout)
Medium Subway sandwiches, custom-mixed paint at a hardware store, and a MINI Cooper built from standard modules after the customer orders it are examples of this market orientation.
ATO — Assemble to Order
This network of physical devices — washing machines, vehicles, sensors, appliances — is embedded with software that lets them exchange and analyze data. A self-driving truck is one example.
IoT — Internet of Things
McKinsey consultants, notaris offices, and architects at MVRDV all belong in this quadrant — high customization, high labor intensity, and typically the most expensive of the four.
Professional service
This layout arranges workstations into small teams that make a "product family" with similar processing needs. La-Z-Boy uses it to reduce lead time, and banks have used it to group employees who used to be in separate departments.
Cellular layout
Harder A meal at an elegant restaurant, a haircut, and a visit to the emergency room have this in common — design is already done, but production only starts when the customer's order arrives.
MTO — Make to Order
Companies use this software to automate routine business transactions in purchasing, accounts payable, and inventory management. Chatbots that answer frequently asked questions are a common example.
RPA — Robotic Process Automation
Ryanair, Premier Inn, and Deutsche Bahn ICE trains all fall into this quadrant. Operations managers here focus mainly on utilizing equipment and facilities to the maximum, because fixed assets account for most operating costs.
Service factory
This is the maximum allowable cycle time at each workstation, calculated by dividing available production time by required customer demand. If your line exceeds this number at any station, you won't meet demand.
Takt time
Meyer Werft cruise ship, a custom-designed industrial robot, and a tailor-made corporate training program all fall into this market orientation, which typically has the longest order-to-delivery lead time.
ETO — Engineer to Order
This distributed ledger technology, used by Walmart and Maersk, increases supply chain visibility because once information is recorded it cannot be altered. It's especially valuable for tracing food safety and sustainability claims.
Blockchain
Academic hospitals, BMW dealer service centers, and Apple Genius Bars all belong in this quadrant — high customization combined with high capital intensity. Keeping up with technology and scheduling expensive equipment effectively are the key operations challenges.
Service shop