Now, let's turn our attention to what all this means in terms of what types of customers are being served. So if you look at a job shop, it's catering to customers that care about high variety and are not looking for too much volume. And on the other extreme, if you're looking at a line, you're looking at customers that do not care too much about variety, but one high volume. So here we can build a a diagonal that says if you're on this diagonal, it's a good fit between what the product market is looking for and what the process arrangement is. And typically we think of a position of the diagonal as a a bad fit. Now, what you should think about is that's the conventional way of thinking that going off the diagonal is a bad fit. You can take a different perspective of this idea of going off the diagonal and say that, what if we could use a line environment and at the same time produce high variety at a high volume and be able to give the customer what they want. So we're moving away from the diagonal in the sense of well, it should have been a job shop from the point of view of high variety. But what if we could get both of those advantages? Take that, take that compromise away, take that tradeoff away based on process configurations. So what I want you to think about is although this is a conventional way of thinking, you might want to be thinking about pushing the envelope and trying to go to that other side of making that compromise and saying, why should we have that compromise? We might be able to get some kind of cumulative capability in which we are able to offer the customer both these aspects. They can get high variety at the same time they can get the advantages of high volume through lower costs. So just to give you some practical examples, some examples of processes out there where they've they've had these different kinds of combinations. So the first example that you're seeing over here is of a specialized hospital. So this hospital is following the conventional diagonal that you saw earlier, which is, it's saying that we're going to focus on high volume of a particular kind of procedure. So this is Shouldice hospital that deals with a hernia repairs. So it deals with one kind of ailment and it focuses on a certain type of hernia repairs. So it's even more specialized than looking at different types of hernia repairs. This focuses on one, the idea being that it gets the same types of patients. It has the same types of procedures that are needed, generally speaking for all its patients and it's able to do it very efficiently. Customers are happy, they're in and out very quickly, patients are happy they're in and out quickly and they are able to achieve all of this at a low cost. So that's an example of having a process that is built exactly for what the requirements of the customers are. You can think of businesses that require different process arrangements under the same roof. So the best example for you to think about in my opinion would be a bakery, a bakery that makes breads but also makes pastries and also gives sandwiches to customers. So when you think of that kind of a bakery and you think of the process arrangements that they might have. If they are making their own bread, and it's a bread that is produced that is demanded at high volumes, they might be making it on an assembly line, right? On a line process, it may not be an assembly line but a line process where it's dope getting in from one end of the process at the start of the process and in getting converted into bread and getting packed into polyethylene bags that are going to customers. So it's almost like a continuous process that that we're talking about for making breads. And then you're talking about pastries that might be more of a job shop process or a batch process or a combination of those two. You might make the base for the same types of pastries from a more of a batch process. And then maybe if there are pastries that each one of them is being worked on, that might be more of a job shop process. Similarly with cakes, those are going to be from a job shop process because you have to customize them based on the message that a customer might want on the cake that they're purchasing from you. Sandwiches would also be similarly a job shop process. So what you have is under the same roof multiple process arrangements. Now, you can also have this idea of offering high volume to a customer and at the same time customization by having a split process. So Ralph Lauren shirts, they make their shirts, they stitch their shirts to a basic shirt from a line process, from a high volume line process. And then they customize it based on monograms and the type of polo monogram that you want on it. And if you want your initials on it, those parts get customized right at the end. So it's a combination of a line and a job shop process. Another example of a company that uses two different types of processes for the same product. So this is Harley Davidson motorcycles. What Harley Davidson does is they make motorcycles that are sold to you in the store where you can go and pick up a motorcycle, but they also make customized motorcycles. The customized motorcycles are made using a job shop kind of an arrangement. So it's one person who is dedicated to making a particular motorcycle and takes that particular motorcycle through the different departments to get the motorcycle completed. And then puts his or her signature on it as it being assembled by that particular individual. So that's your customized motorcycles from Harley Davidson. And under the same roof they have this standard motorcycles that are being made, that are being assembled on an assembly line. So that's where you have the standard motorcycles that you see in the showroom. So what you see here is examples of using different types of processes based on what kind of competency the company is trying to achieve. Which is based on what they are trying to offer to customers in terms of what the customers might desire, in terms of how can you win their orders based on what they need.
