Based on the organization’s mission and objectives, top-level managers select the product mix and diversification. The product mix includes the number of product lines, the number of products and the mixture. Product design refers to new or improved product development. Manufacturing and design drive each other. If you lose one, you lose the other. The throughput stages must be well coordinated and controlled, because well-designed, high-quality products tend to be more profitable.

Time-based competition refers to the use of strategies to increase the speed with which an organization goes from creativity to delivery. The time required to complete this process is called throughput time. Being first to market gives a competitive advantage, and while companies need to increase innovation and speed products to market, they also need to have quality products to succeed. Rushing through the design process can lead to operations problems that can’t be easily fixed.