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ProductPolicy

ManufacturingPolicy

Marketing Policy

CustomMarketing Mass Marketing

Small BatchManufacturingSpecial Order

Products

Volume

Manufacturing

StandardProducts

Small BatchManufacturing

VolumeManufacturing

1

3

5

7

2

4

6

8

Note: The cell numbers 1-8 are simple identifiers of distinct and potentiallyconflicting policies as used in the original reference.

Source: Blois 1980b

Manufacturing-oriented marketing

Strong cost-effective productioncapability

Tendency toward automatedequipment and fixed costs

Longproductionruns

Shortproductionruns

Order-based marketing

Strong distribution system

Large inventories in field and factory

Careful product-line management

Justified fear of product-proliferation

Low customisation

Account-oriented marketing

Strong applications engineeringfunction

Strong direct salesforce

Flexible marketing

High gross margin

High manufacturing capability

Small operating units

Integrated sales and manufacturingorganisations

High customisation

Source: Shapiro 1979

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Skinnersvariouscombinations

Skinner,1969, 1974

CostQualityDelivery reliabilityFlexibility

CostQualityDelivery speedDelivery reliabilityFlexibilityInnovativeness

Wheelwright,1978

Hayes et al,1988

CostQualityDelivery speedDelivery reliabilityFlexibilityInnovativenessService

Chase, 1990Garvin, 1993

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Marketing Manufacturing

Communications

FlexibilityCustomisation TransferPerformance

ProblemSolving

(a)

(b)

Marketing Manufacturing

Communications

DesignSpecification

TransferProblemSolving

34

5

ProductArchitecture

ProblemDefinitionSolution

Realisation

ProcessFlexibility

Customisationtype

Processcharacteristics

2

CustomerExpectations

1Performance

Quality performance& features

Service

Cost

Performance

Quality conformance

Delivery speed& reliability

Cost

Marketing and Technical

Communications

The Trade-off

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Little interactionLow

High

SolutionRealisation

Applications Eng.

Sales Engineer

Customer

Design Eng.

Applications Eng.

Design Engineer

Applications Eng.

Sales Engineer

Customer

Low High

(a)

(b)

Customer

SalesEngineer

ProductManager

DesignEngineer

ApplicationsEngineer.

Problem-Definition

Solution-Realisation

Production

Procurement

Problem Definition

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(a)

(b)

Molloy

Custom-Design

CombinedCustom-Build/Custom-Design

Custom-Build

Catalogue

Murphy Watt Sappho

Occasional

Products arecombination ofstandard platformand options

Custom-Designoffered

Customer-specified detailsmay be varied

Cataloguepresentsstandardproducts

All productsstandard, butspecific togeographicalarea: territoryspecificity viamodules

Custom diaries(all incorporatesome standardmodules)

Catalogue items forretail

Molloy

Custom-Design

CombinedCustom-Build/Custom-Design

Custom-Build

Catalogue

Murphy Watt Sappho

Increasingproportion andlevel ofcustomisation

Some productsalmost entirelycustomised

All new productrequests treatedas customised;heavy forwardintegration

Cataloguestandards aremerely examples ofcustom

products

Arguably, littleterritory specificityvia modules different platformsand hardware

Custom diaries(all incorporatesome standardmodules)

Catalogue items forretail

Products arecombination ofstandard platformand options

Increasing use ofbadged,essentiallystandard products

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Parametric

Continuous Discrete Substitutional

Essential Murphy devicelead length

Optional Extras Murphy manyspecial housingfeatures

Molloy mast-height

Watt number ofextra data deviceconnections

Molloy tyre type

Molloy speciallifting attachments

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Molloy

3-4 months

Murphy

2 years

15-20 years

Original build After-market

1-2 years

Watt

Sappho

2-3 months

Designcycle

Key

Materialcycle

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Automate problemLow

High

Repetition

Continuity of

personnel

integrated design

engineering and

production

[Molloy custom

design]

Design for

manufacture

Transfer-cycle cost

reduction

Supply-chain control

[Watt]

Mechanisms for

continuity detailed

process specs,

collective

organisational memory

[Murphy]

Low High

Delay between Problem Solving and Transfer

solving by information

systems

[Molloy custom

build]

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Custom-Build

Capacity

Custom-DesignDesign

Engineering

Production

CustomisationType

Role in

Relationship

Relationship-BuilderProfit-Taker

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