7 The nature of the product structure is closely related to the design of the product. This is reflected in the product structure shape. The shape is partly determined by the number of components and parts used at each level – the more that are used, the wider the shape. There are some recognised typical shapes of product structure – ‘A’, ‘T’, ‘V’ and ‘X’. In A-shape structures, a product only has a limited product range to offer the customer. However, because there is little variety, the volumes of standardised production can give some economies of scale. A ‘T’-shape product structure is typical of operations that have a small number of raw materials and a relatively standard process, but which produce a very wide range of highly customised end products. The ‘V’-shape product structure is where a small number of raw materials are used to create a wide range of products and by-products.

An X structure is when an operation has standardised designs of a small number of standard modules, to which a wide range of features and options can be added, giving a wide range of finished products.

What structures would you use to describe the following?

(a) The game described in the supplement to this chapter.

(b) A manufacturer producing personal name and address labels.

(c) A petrochemical supplier, blending a few raw materials into a larger number of products.

(d) A kitchen unit manufacturer making standardised bodies to which a wide range of doors and fittings can be added.