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LINKING PROCESS CHOICE WITH PLANT‐LEVEL DECISIONS ABOUT CAPITAL AND HUMAN RESOURCES

Larry P. Ritzman^1,2; M. Hossein Safizadeh^1,2

¹ Boston College · ² HEC Paris

We examine how process choice links with design decisions about capital and human resources. Our analysis confirms empirically most expected differences between process‐ and product‐focused plants for these decisions. What is unexpected is how top‐performing plants resemble other plants within the same process choice category in most respects, while distinguishing themselves on a few selected process attributes. For example, better performing process‐focused plants not only achieve higher machine flexibility levels and lower overhead costs as expected, but also have more intensive preventive maintenance programs. Similarly, product‐focused plants that achieve certain hallmarks of process‐focused plants also enjoy superior performance.

DOI

10.1111/j.1937-5956.1999.tb00314.x

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