MV WERFTEN is the heart of the maritime industry in the German federal state of Mecklenburg-Vorpommern. Luxurious polar expedition yachts as well as the world's largest and most technologically advanced cruise liners are designed and built here. A passion for shipbuilding, a belief in our abilities and the courage to innovate is what sets us apart. "Three shipyards. One team." is not just a slogan for our 2,900 employees, but our entrenched corporate philosophy. Over the last 75 years, our shipyards in Wismar, Rostock, and Stralsund have delivered more than 2,500 new vessels for deployment in the tourism sector, the Arctic region, and the logistics and offshore industry. In 2016, we opened up a new and exciting chapter in the long and rich history of shipbuilding excellence in Mecklenburg-Vorpommern with the construction of unparalleled cruise ships, delivering four luxury river cruise ships within eight months and progressing with the construction of the first Endeavor expedition yacht and the first two Global Class ships at our three yards. Our employees' unsurpassed construction skills and our state-of-the-art, high-tech production facilities guarantee the finest workmanship and the highest quality products. That is the MV WERFTEN way. Source: extracted from www.mv-werften.com., 2022.

A spokesperson for the German unions at the shipyard said that they believe the future hangs in the balance with the financial talks that are also complicated by politics. The shipyards currently have approximately 2,000 workers with 1,600 reportedly working on a giant new cruise ship called Global Dream that is being built for Genting’s Dream Cruises. Work on the 208,000 gross ton cruise ship has been delayed several times first by the pandemic and then the financial troubles but it was expected to be delivered this year. Genting and MV Werften’s financial difficulties began in the summer of 2020 when all of their operations were suspended due to the pandemic. Genting Hong Kong completed a recapitalization which in part was based on loan guarantees from the state government where the shipyard is located as well as the federal government’s Economic Stabilization Fund. An initial bridge loan supplied in 2020 was used to complete the construction of the Crystal Endeavor, an expedition cruise ship, and in June 2021, Genting reported that it had reached agreements with Germany for financial support to be used to run the shipyard and complete the construction of the Global Dream.

Source: adapted from "Genting’s MV Werften Nears Insolvency With German Aid Stalled", Maritime Executive, 7 Jan 2022.

According to Slack and Brandon-Jones: “Processes that inhabit different points on the diagonal of the product–process matrix are some- times referred to as ‘process types’. This means that most processes should lie close to the diagonal of the matrix that represents the ‘fit’ between the process and its volume–variety position. This is called the ‘natural’ diagonal. “

a. Explain the concept of “natural diagonal” in process design

b. Discuss with illustration, the significance of line of fit for various manufacturing process types

c. Provide 2 product/service examples for each of the process types with an explanation.

d. Identify the process type used by the MV Werften company above and critically analyze its impact on the company.