Process Characteristics Matrix

For the process characteristics matrix we found that Lowe’s best fits into the continuous assembly Made to Stock cell. We came to this conclusion because most of Lowes products are made in mass quantities. Things like nuts and bolts are kept readily available and are constantly being produced because there is such a high demand. This means that their product flow is continuous assembly. In order to satisfy the huge demand the company needs a process that can keep up with it. For their customer order we found that Lowe’s uses make to stock because once they produce their products they stock them for when customers are ready to buy them.
We also found the Lowe's could fit in the continuous assemble, assemble to order cell or the Batch flow, made to stock cell because of the other products they offer. In Lowe’s you could order certain customizable products like kitchen cabinets and such that are made in batches and can be changed to suit what the customer wants. Also, some of these products are also only made when the customer orders them. In other words once a customer places and order for a specific set of cabinets that have been customized to the customers liking then the product is made and delivered to the customer.

Customer Order

As I've stated before Lowe's carries many different items in its store which lead us to the conclusion that Lowe's must use different product flow types and when we researched Lowe's customer order process we came up with a similar answer. Lowe's carries items that are produced in different ways because they are demanded differently by the customers.

Make To Stock (MTS)

As we stated before Lowe's uses the Continuous/Assembly product flow to make certain items such as nails, screws, bolts, and etc. So the customer order type that goes hand in hand with that product flow is the make to stock. This means that when the product is made it is then stocked and ready for the customer to purchase it. There is a diagram that explains how this process works where the orders are forecasted and then put into production. In the next stage the finished goods are put into inventory and then finally purchased by the customer and the process repeats over again.


Assemble To Order (ATO)

We also decided that Lowe's probably uses the Assemble to Order process for some of its other items. Assemble to order is relied on more for mass customization of items that can still be produced in a fairly large quantity. Some of Lowe's items such as its furniture cabinets are not mass produced. They are made in parts and then assembled when a customer has ordered them. This is what made us believe that Lowe's also uses the Assemble to Order process.

Product Flow

Lowe's is a huge home improvement retail store. They carry many different sorts of items such as tools, nails, screws, bolts, furniture, wood, etc. It would be hard to say Lowe's only uses one type of product flow because of the variety of items that it sells. Here's what our group came up with...

Continuous/Assembly

The assembly line is used for products that have a high demand and need to be produced in high volume. This is a low cost procedure but it has low flexibility and requires all of the products to be standardized. We think that Lowe's uses the Continuous/Assemble product flow for most of its items. A lot of Lowe's items consist of tools and various things to repair your home such as nails and bolts. Some of these items have a high demand, don't cost much to make, and are highly standardized and they are produced in very high volumes. This lead us to the conclusion that for these types of items Lowe's uses the Coninuous/Assembly product flow method.

Batch Flow/Job Shop

Items that are produced through the Batch Flow or Job Shop product flow type are produced in batches. They share the same machine for different items. Items produced in this way are not too cheep but also not too costly and they are produced at a medium volume as well. We thought Lowe's might also use this type of product flow because it has many other items that are not mass produced such as it's furniture. Lowe's sells things such as cabinets which are not mass produced. They are somewhat customizable and are more costly to make than screws or nails. This led us to the conclusion that Lowe's probably also uses the Batch flow production flow for these types of items.

Lowe's

The company our group chose to research was Lowe's Home Improvement Warehouse. Lowe's was founded in 1946 by Lucius S. Lowe. Lowe's started as Lowe's North Wilkesboro Hardware in North Wilkesboro, North Carolins in 1921. The store was taken over by Lucius Lowe's daughter Ruth and then was sold to her brother Jim Lowe the same year. Lowes grew to be one of the biggest home improvement warehouse stores in the world. Lowes is now a very successful company with $47.2 billion in revenue for the year of 2009. Lowe's has recently stepped into the international market and has opened several stores in Canada. With all Lowe's has to offer in the home improvement industry it is easy to see why they have become so successful.