An Empirical Analysis of Process Industry Transformation Systems

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.