ABSTRACT
This chapter discusses the strategic significance of layout and process choice which, together, form the core of the transformation process. Comprehend the strategic importance of layouts and process choice–these provide massive clues about what the organization can, and cannot, do. The chapter shows that 'throwing money' at technology is not the answer, although appropriate investment in technology is a necessary requirement. It describes how process choice will help guide the organization, including how to avoid being pulled into market segments in which it cannot compete. More importantly, the operational factors may be expected to degenerate if the company retains outdated production methods, preventing it from competing on key competitive bases such as cost, delivery speed and reliability and new product innovation. The R. W. Schmenner matrix links the extent of customization with the level of labour input in the transformation process.
