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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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