...computers, help average and marginal productivity. Computer help to make jobs go faster whether the task is giving multiple people a memo or giving a single person a message that is two cities away, e-mail is very useful for these tasks. Excel makes accounting duties that use to take days, even weeks to accomplish, can now be put together in matters of minutes or an hour. Law of Diminishing Marginal Productivity An economic principle that states that while increasing one input and keeping other inputs at the same level may initially increase output, further increases in that input will have a limited effect, and eventually no effect or a negative effect, on output. The law of diminishing marginal productivity helps explain why increasing production is not always the best way to increase profitability. The law of diminishing marginal productivity shows us that instead of continuing to increase the same input, it might be better to stop at...
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...| 61 | | | | | | | | | | | 14 | 5 | 1596 | 114 | 23 | | | | | | | | | | | 15 | 5 | 1575 | 105 | -21 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The three stages of production are identified by the shape and slope of both curves. The first stage is illustrated by an increasingly positive slope. | | | Short-run production of this stage takes place due to increasing marginal returns. When variable input is added to fixed input, the MP of the variable input increases. | The second stage...
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...Memorandum To: Cynthia Crowninsheild From: Date: 2/22/2014 Re: Production Analysis SHUZWORLD A. Distribution Pattern Shuzworld has three plants that ship units to three central warehouses. The company would like to know the lowest transportation cost monthly along with the best shipping plan to achieve the lowest cost. To analyze the cost we are using the transportation modeling tool. The optimal cost is $13,400 which would be the lowest monthly transportation costs which is shown below. Transportation modeling is the best tool to use as it finds the lowest optimal costs when shipping products from several plants to several different destinations. Our model shows three different plants of Shanghai, Shuzworld H, and Shuzworld F with three different warehouses. The individual unit costs to ship from each plant to each warehouse is entered in order to calculate the optimal cost. Also shown below is a shipping list whish details the exact amounts that should be shipped from each plant to each warehouse in order to achieve the optimal costs shown. This would be the best distribution pattern to use in order to achieve the optimal costs. The patterns show any demand constraints and also meets availability while minimizing total shipping costs. Looking at the shipping list chart the increased production from 1300 to 2800 units caused the supply to exceed the demand which is shown in the Dummy row ( dummy destination at no cost) that way the cost figures...
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...Analysis of Global Production Networks within Consumer Electronic Industry. Introduction A diagnostic characteristic of contemporary globalization is that the component parts of the world economy are increasingly interconnected in qualitatively different ways from the past. Another way of saying this is that the world economy consists of tangled webs of production circuits and networks that cut through, and across, all geographical scales, including the bounded territory of the state. It is too simple to just define the global production networks, that involving a process of production, distribution and consumption of commodities, goods and services, as technical-economic mechanisms (Coe, Dicken and Hess, 2008). More than this oversimplified conceptual framework, Levy (2008) argues GPN as ‘simultaneously economic and political phenomena . . . organizational fields in which actors struggle over the construction of economic relationships, governance structures, institutional rules and norms, and discursive frames . . . GPNs thus exist within the ‘‘transnational space’’ that is constituted and structured by transnational elites, institutions, and ideologies’. In Levy’s theory, we can find out that more than a economic process of productions, GPNs is also a ‘social’ and ‘cultural’ phenomena in which the geographically differentiated political and social cultural circumstance are also shaped (Coe, Dicken and Hess, 2008). Considering the consumer electronic industry in particular...
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...By having multiple productions plants globally, it is able to create flexibility and backup options should one of their plants fail to deliver when there is natural disasters or uncertainty within the country. During the Thailand floods, its production was greatly affected as its plants were shut down and unable to operate due to the damage caused by the flood. (Thailand was responsible for the production of 891,000 forecasted vehicles, one of the biggest in SEA). Due to the crippling of its plants in Thailand, Toyota has to scale back its productions in the rest of SEA due to issues faced while exporting certain parts from Thailand. The car maker estimates the disruption in the parts supply chain has affected about 100 kinds of parts. The overall output loss caused by the floods amounted to an estimate of 37,500 vehicles. ISSUES FACED: Toyota has to be prepared for unforeseeable circumstances such as natural disasters. As shown, during the Thailand floods in 2011, its production was scaled back by 37,500 vehicles. Backup supplies from its other branches around the world creating the same vehicle parts could be supplied to SEA during this period to alleviate the burden faced by the plants in Thailand. OPINION: Safety is one of Toyota’s key concerns and also selling point. This must be ensured from the various parts that make the car, from the start to the end. It is understandable that Toyota decided to specialize each plant so that they can be focused on what they produce...
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...out over a co-worker * 10 votes to dismiss Foreman Edward George The workers are the most important asset to the company, so their interest should be first. Second, you have to figure out what to do about the votes to dismiss Ed George. Solutions: Talk to Ed George about his problems with his co-workers. Hold a meeting and get even more workers involved in the voting process, the take another vote. Item#4 Problems: * Overloading which can result in interruption of electrical power. * Not being reachable for Southern Power Solution: Contact Southern Power ASAP. See if they could come out and help with the problem. Item#5 Problem: * Balancing your work and his until Wednesday * Upping production by mid December in the long run Upping production would be the most important problem, because it’s long term. Balancing your work load is just something you have to do until your boss gets back. Solution: Schedule your...
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...Production Cost Analysis and Estimation Applied Problems BUS640 Managerial Economics Gail Coates October 20, 2015 Isabel Wan Introduction The cost that a business incurs when it combines raw material and labor to produce or manufacture a product or service is called production cost. Knowing the distinction between the fixed and variable inputs in the production process is very important in production and cost analysis (Douglas, 2012). We will be examining two different problems of production cost analysis and estimation applied problems in this paper. We will also show which inputs are fixed and which are variable in one of the problems. During the other problem the marginal cost curve and the incremental cost will be described as well as the profit-maximizing price and output levels. PROBLEM 1 Workers | Oven cost- Fixed | Labor cost- Variable | Total cost | 0 | $1,000 | 0 | $1,000 | 1 | 1,000 | 500 | $1,500 | 2 | 1,000 | 1,000 | $2,000 | 3 | 1,000 | 1,500 | $2,500 | 4 | 1,000 | 2,000 | $3,000 | 5 | 1,000 | 2,500 | $3,500 | 6 | 1,000 | 3,000 | $4,000 | 7 | 1,000 | 3,500 | $4,500 | 8 | 1,000 | 4,000 | $5,000 | Number of pizzas-Variable | Average cost | Pizzas per worker | Increase in production | 0 | 0 | 0 | 0 | 75 | 20.00 | 75 | 75 | 180 | 11.11 | 90 | 105 | 360 | 6.94 | 120 | 180 | 600 | 5.00 | 150 | 240 | 900 | 3.89 | 180 | 300 | 1140 | 3.51 | 190 | 240 | 1260 | 3.57 | 180 | 120 | 1360 | 3.68 | 170 | 100 | ...
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...Systems Area 1/25/2016 Vinay Kalakbandi 1 Agenda • • • • • Recap Donner company – Recommendations Process Selection Facility layout planning Inventory Management - Basics 1/25/2016 Vinay Kalakbandi 2 1 25-01-2016 Donner Company – Recommendations • Tactical chances • Operational changes • Strategic changes 1/25/2016 Vinay Kalakbandi 3 PROCESS SELECTION 1/25/2016 Vinay Kalakbandi 4 2 25-01-2016 1/25/2016 Vinay Kalakbandi 5 Process Selection • Deciding on the way production of goods or services will be organized • When do you do it? • Why is it important? 1/25/2016 Vinay Kalakbandi 6 3 25-01-2016 Key factors • Key factors that process selection depends on – Volume of output – Variety of output • Other factors to consider – Flexibility of equipment – Flow of material 1/25/2016 Vinay Kalakbandi 7 Remember the Level of analysis? 1/25/2016 Vinay Kalakbandi 8 4 25-01-2016 Arrange these in the decreasing order of Volume of output. 1/25/2016 Vinay Kalakbandi 9 Do you have it? 1/25/2016 Vinay Kalakbandi 10 5 25-01-2016 Arrange these in the increasing order of Variety of output. 1/25/2016 Vinay Kalakbandi 11 Do you have it? 1/25/2016 Vinay Kalakbandi 12 6 25-01-2016 Observations? 1/25/2016 Vinay Kalakbandi 13 Not Competitive Variety Too Expensive Volume 1/25/2016 Vinay Kalakbandi ...
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...Debreceni Műszaki Közlemények 2012/1 (HU ISSN 2060-6869) 1 ROBOT PRODUCTION VOLUME DATA TRENDS AND ANALYSIS⊗ TRENDEK ÉS ADATANALÍZIS A ROBOTGYÁRTÁSBAN Bob STRUIJK, BSc, MBA General Manager, Vice President Europe FANUC Robotics Magyarország Ltd. ZM NDU, PhD Student struijkb@fanucrobotics.es bob@fanucrobotics.hu Abstract: To determine how industrial robots has grown and how they will grow and to understand why it has grown in that way, a large number of factors can be investigated: ‐ The annual production volume of industrial robots. ‐ The type of application where the robots were used in ‐ The types of industries adapting robots over time ‐ The geographical markets that used robots over time ‐ Macro-economic data of the automotive industries of the regions involved ‐ The spread and use of industrial robots and UAV’s in current society in industry, its effect on employment. The data analysis will highlight growth trends of the various regions and indicate sectors for growth. Keywords: robots, unmanned aerial vehicle UAV, robot applications, IFR, automobile industry, articulated , BRIC, robot density. Kivonat: A szerző célja bemutatni, hogyan nőtt az iparban alkalmaztott robotok száma, és várhatóan hogyan fog tovább nőni. A szerző az alábbi tényezőket vizsgálja a cikkben: - az előállított ipari robotok száma - az ipari robotok alkalmazási területei - az ipari robotok földrészenkénti alkalmazása - a vizsgált régiók makroökonómiai adatainak vizsgálata az...
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...PEST Analysis One way of planning your business is to undertake a PEST analysis.1 PEST analysis involves looking at the Political, Economic, Socio-cultural and Technological factors that could affect your business. Every business needs to consider a range of external forces in order to take decisions. For many people imagination is very limited and is coloured solely by their own experience and personal beliefs. This can lead to wish fulfilment or a refusal to see reality or recognise the critical changes that are happening in the world around them. It can also lead to grabbing short-term solutions that, if they do not exacerbate problems, certainly ignore the longer term. In the business world pressure is often applied to take decisions quickly, acting on judgement and instinct rather than careful analysis. There are many driving forces in the external environment that might impact on your business. These can be categorised as: • Social; • Technological; • Economic; • Environmental; and • Political. Social forces Social forces include, for example, changing demography and education, etc. The population in Western Europe is relatively static, but the age bands are changing. The number of older people, for example, is growing rapidly. Technological forces Technological forces are changing dramatically quickly. What effects will this have on your production, marketing and distribution plans? Depending on your market, technology might either raise or lower entry barriers...
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...Case: Brixton Surgical Devices Brixton Surgical Devices, a public company with sales of over $900,000,000, is one of the world’s largest productions of surgical clamps, saws, screws, and stents. Its business involves production of both stock items and customs pieces for doctors at research hospitals. At the end of the third quarter of 2011, it became clear to Ed Walters, chief operating officer, and Robin Smith , chief financial officer, that the company would not make the aggressive annual earnings target specified by the board of directors. In consequence, Ed and Robin would not receive bonuses, which historically had averaged about 35 percent of their base compensation. The two devised the following strategy. “Here’s what we’ll do,” suggested Ed. “We’ve never offered our customers a discount. Let’s change that right now. We’ll offer a 25 percent discount on all orders placed in October and November for delivery in December of 2011.” “That will certainly boost fourth-quarter sales,” said Robin. “But you know, it won’t really increase total sales. It’ll just transfer some sales from the first quarter of 2012 to the fourth quarter of 2011. Of course, 2011 is where we need earnings to hit our bonus target. Hey, I’ve got another idea. We can also jack up productions of our stock items in the fourth quarter. With our high-priced production equipment we’ve got a ton of overhead. But the more we produce the more overhead we can bury in inventory. With lower unit costs and higher...
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...Case: Brixton Surgical Devices Brixton Surgical Devices, a public company with sales of over $900,000,000, is one of the world’s largest productions of surgical clamps, saws, screws, and stents. Its business involves production of both stock items and customs pieces for doctors at research hospitals. At the end of the third quarter of 2011, it became clear to Ed Walters, chief operating officer, and Robin Smith , chief financial officer, that the company would not make the aggressive annual earnings target specified by the board of directors. In consequence, Ed and Robin would not receive bonuses, which historically had averaged about 35 percent of their base compensation. The two devised the following strategy. “Here’s what we’ll do,” suggested Ed. “We’ve never offered our customers a discount. Let’s change that right now. We’ll offer a 25 percent discount on all orders placed in October and November for delivery in December of 2011.” “That will certainly boost fourth-quarter sales,” said Robin. “But you know, it won’t really increase total sales. It’ll just transfer some sales from the first quarter of 2012 to the fourth quarter of 2011. Of course, 2011 is where we need earnings to hit our bonus target. Hey, I’ve got another idea. We can also jack up productions of our stock items in the fourth quarter. With our high-priced production equipment we’ve got a ton of overhead. But the more we produce the more overhead we can bury in inventory. With lower unit costs and higher...
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...Material Flow Improvement By Léo Belime Diploma work No. 35/2010 At Department of Materials and Manufacturing Technology CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sweden Diploma work in the Master in Production Engineering Program Performed at: Société des Ateliers Louis Vuitton Supervisor(s): Florence Laprade Société des Ateliers Louis Vuitton 36100 Issoudun - France Peter Almström Department of Materials and Manufacturing Technology Chalmers University of Technology, SE-412 96 Gothenburg Marie-Agnès Girard Ecole Nationale Supérieure des Mines de Saint Etienne 42023 Saint Etienne - France Examiner: Bertil Gustafsson Department of Materials and Manufacturing Technology Chalmers University of Technology, SE-412 96 Gothenburg Material flow improvement Léo Belime © Léo Belime 2010 Diploma work no 35/2010 Department of Materials and Manufacturing Technology Chalmers University of Technology SE-412 96 Gothenburg Sweden Telephone + 46 (0)31-772 1000 Chalmers Repro Service Gothenburg, Sweden 2010 Material flow improvement Léo Belime Department of Materials and Manufacturing Technology Chalmers University of Technology Contents Abstract ............................................................................................................................. i Acknowledgements........................................................................................................... ii Foreword ..............................................................
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...ASSIGNMENT # 1: PRODUCTION AND COST ANALYSIS IN THE SHORT-RUN by Mandar Adkar May 8, 2011 ECO 550: Managerial Economics and Globalization Prof. Fereidon Shahrokh, Ph.D. ASSIGNMENT # 1: PRODUCTION AND COST ANALYSIS IN THE SHORT-RUN Introduction This document analyzes production data for a fictitious company to explain the stages of production with the help of table and figures. The document also provides identifies the three stages of production and explains why the firm's short run production has only one rational stage. The table below provides the data required for creating graphs related to productivity measures of Total Product (TP), Average Product (AP) and Marginal Product (MP) that constitute the Short run analysis of the Production process. Table 1 Table showing the Average and Marginal product of labor for a hypothetical firm |Amount of labor( units) |Amount of capital(No. of |Output of parts(Q, hundreds |Average product (Q/L) |Marginal product(∆Q/ | | |machines) |of parts) | |∆L) | |0 |5 |0 |- |- | |1 |5 |49 |49 |49 | |2 ...
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...competitive advantage Cost Advantage (=> cost efficiency => cost cutting : restructuring, outsourcing, lean production…)is normally considered as the primary basis for competitive advantage in an industry. The Key to cost-cutting is the study of the 8 factors that determine a firm’s cost position : 1. Economies of scale Economies of scale exist wherever an increase in the amount of inputs employed in a production process results in a greater increase in total output. As the scale of production increases, the unit cost fall. 3 principal sources : 1. Technical input-output relationships : increases in output do not require proportionate increases in inputs. Ex 5l bottle of water not cost 5times 1l 2. Indivisibilities : Inputs unavailable in small sizes offer economies of scale as long as the company is able to spread the costs to these items over larger volumes of output. 3. Specialization : Mass production involves breaking down the production process into a series of separate tasks to be performed by specialized workers using specialized equipment. Other Scale than scale production : packaged consumer (12packs of cigarettes…), scale in marketing (distribution industry). Limits to scale economies : 3 reasons for not choosing scale economies 1. Differentiation : higher prices for niche market outweighs higher cost of the small volume production 2. Flexibility : Adapt rapidly to new technologies or changes in customer preferences 3. Complexity...
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