How is the production process determined?
- demand/volume
- level of standardization
The challenge to coordinate activities is a characteristic of which type of production?
Project/Unit production
Project/Unit Production produces ____ unit(s) at a time and has a _____ completion time.
1; long
Simultaneous production of a range of products is a characteristic of which type of production?
Batch Production
Batch Production produces ______ quantities and a ______ of products.
small; variety
Other characteristics of batch production:
- Flexible
- skilled workers w/ wide range of skill
- unconnected work flow
- general purpose equipment
- direct labor
Standardized product with options is a characteristic of which kind of production?
Mass/Repetitive Production
Mass/Repetitive Production uses ______ equipment, has ______ production runs, & produces ______ quantities.
Specialized; Long; Large
What kind of skills are required for Mass/Repetitive Production?
limited skills required
The type of production that has very high volumes of a product with no variation is known as ________ ___________.
Continuous Production
Characteristics/an example of Continuous Production:
- automated
- workers employed to MONITOR processes
- highest cost=equipment
i.e. papermill
Project—> Batch—> Mass—> Continuous:
- Demand volume:
- Standardization:
- Automation:
- Capital investment:
- Direct Labor:
- Increases
- Increases
- Increases
- Increases
- Decreases
Total Cost Equation:
TC= Fixed Costs + (Volume)Variable Costs
Total Revenue Equation:
TR= Volume(Price)
Total Profit Equation:
TP=TR-TC
Break-Even Analysis
TR=TC
Break-Even Volume
V=Fixed Costs / (Price-Variable Costs)
