Production-oriented
Describing a system, strategy, or business philosophy that prioritizes the efficient and effective creation or manufacturing of goods or services. This approach emphasizes maximizing output, controlling costs, and streamlining processes to produce the greatest quantity of products or services within set parameters, often at the expense of factors like customization, customer relationships, or rapid innovation. The focus lies predominantly on the operational aspects of the business. It typically works best in stable markets where consumer demand is high for standardized goods. This contrasts with a more market-focused or customer-centric approach that places a greater emphasis on the needs and desires of the customer.
Production-oriented meaning with examples
- In the early days of the Ford Motor Company, the business was highly production-oriented. The assembly line enabled mass production of the Model T, greatly reducing costs and increasing availability, though customer choice was highly limited. This focus led to the company's early success and a domination of the automotive market.
- Historically, agriculture has been production-oriented, particularly in developing nations. The goal is to maximize crop yields and livestock output. This has often driven farmers to employ intensive farming practices, and leading to questions regarding the ethics of modern industrial farming practices and the environment.
- A manufacturing plant in the 1970s exemplified a production-oriented structure. The departments focused on output and machinery function. Employee training programs and continuous improvement methods were a constant emphasis for better product generation and output quantity.
- Some software companies, particularly those developing commodity products, may adopt a production-oriented strategy to maintain price competitiveness. The goal is to produce software with the features and capabilities most commonly requested, and offer it at the lowest cost possible.
- Pharmaceutical manufacturing is often production-oriented, particularly for generic drugs. The focus is on producing large quantities of medication that meets strict quality standards at a low unit cost to provide affordable health solutions to wide markets across many socioeconomic backgrounds.