Diagonal of the product- process matrix

There are a few reasons why some industries do not progress to become highly standardized and efficient.

• Customer demand for customization. In some industries, customers place a high value on customization. For example, people who buy furniture may want a piece that is specifically designed to fit their needs and style. This makes it difficult to standardize the production process, as each piece of furniture would need to be made to order.
• The nature of the product. Some products are simply not amenable to high levels of standardization. For example, houses are complex structures that are made up of many different components. It would be very difficult to standardize the production process for a house, as each house would need to be tailored to the specific needs of the buyer.
• The cost of standardization. In some cases, the cost of standardization outweighs the benefits. For example, it may be more expensive to set up a highly standardized production process for fashion clothing than it would be to simply produce each piece of clothing on demand.
• The desire for innovation. Some industries are constantly innovating, which makes it difficult to standardize the production process. For example, the furniture industry is constantly coming up with new designs and materials. This makes it difficult to create a standardized production process that can keep up with the latest trends.

In general, industries that are characterized by customer demand for customization, the nature of the product, the cost of standardization, or the desire for innovation are less likely to progress to become highly standardized and efficient.

Here are some additional thoughts on this topic:

• The role of technology. Technology can sometimes help to overcome the challenges of standardization. For example, 3D printing is making it possible to produce customized products more efficiently. However, technology can also create new challenges, such as the need to protect intellectual property.
• The importance of flexibility. In today’s rapidly changing marketplace, flexibility is becoming increasingly important. This means that businesses need to be able to adapt their production processes quickly to meet changing customer demands. This can be difficult to do if the production process is highly standardized.

Overall, there are a number of factors that can prevent industries from becoming highly standardized and efficient. However, the importance of standardization is likely to vary depending on the specific industry.