Aligns the organisation’s process to separate product lines.  Each product line may have distinct units to design, develop, market, produce and service products.

Advantages

• Enables organisation to measure and monitor productivity/quality more easily
• Allows for product cost tracking
• Simplifies training
• Can promote more of a customer-focus

 

Disadvantages

• Customer may need multiple products and services
• Customer may contact multiple people in receiving or servicing products
• Promotes duplication of business activities
• Creates more cost