In this product-process matrix (attached as capture.png), different combinations of process patterns and product mix are displayed. Absent a unique strategy, the importance of being close to the diagonal of the matrix was emphasized, because otherwise a company will pay either an "opportunity costs" (being above the diagonal), or "out-of-pocket cost" (being below the diagonal). Please explain those two concepts with your own language.

One of a Lev.r High volumes; kind or volumes; several major Process Pattern fE'W many products products 1Very jumbled Project ow Job Shop Jumbled ow; but a dominant ow exists Line ovv; worker faced Machine paced Continuous, automated and rigid ow Challenge to Bidding; Quality {product Management delivery; diEerentiatim); Flexibility in product design; output volumes exibility 1Very high volumes; standard product (commodity) Price Challenge for Management Scheduling; materials handling; shifting bottlenecks Worker motivation; balance; maintaining enough exibility Capital expenses for big chunk capacity; technological change; material management; vertical integration