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Management Science Vol. 46 No. 8 2000

An Empirical Analysis of Process Industry Transformation Systems

Daina Dennis1; Jack Meredith2

1 Management Department, Richard T. Farmer Business School, Miami University, Oxford, Ohio 45056 · 2 P.O. Box 7659, Babcock Graduate School of Management, Wake Forest University, Winston-Salem, North Carolina 27109

Abstract

Process industries share many characteristics because their transformation systems are designed for nondiscrete materials. Hence, the process industries typically are lumped together in a general group and contrasted from the discrete industries as a whole. The result is a poor understanding of the differences between distinct types of process industries. In this article, 19 different process industry sites are analyzed for the purpose of identifying the key differences between their transformation systems. Using cluster analysis, seven major subtypes of process industries are identified within the sample: (1) process job shop, (2) fast batch, (3) custom blending, (4) stock hybrid, (5) custom hybrid, (6) multistage continuous, and (7) rigid continuous. It is shown how these seven subtypes differ on the composite dimensions of (1) materials diversity, (2) equipment, (3) materials movement, and (4) run time. The research and managerial implications of these results are discussed.

DOI
10.1287/mnsc.46.8.1085.12031
Volume
46
Issue
8
Pages
1085-1099
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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