Chapter_5_Mfg._and_Service_Process_Choic

Chapter_5_Mfg._and_Service_Process_Choic - Manufacturing...

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1 The Eli Broad College of Business, Michigan State University, 2010 Manufacturing and Service Manufacturing and Service Process Choices Process Choices
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2 The Eli Broad College of Business, Michigan State University, 2010 Economies of Scale : as volume increases, unit costs decrease to an optimal level Diseconomies of Scale : unit costs increase as an operation’s size increases Cost per Unit Volume (Number of Units) Diseconomies of Scale Economies of Scale Economies & Diseconomies of scale
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3 The Eli Broad College of Business, Michigan State University, 2010 Reasons for Economies of Scale 1. Allocation of fixed costs 2. Equipment and construction costs 3. Lower costs for purchases 4. Learning curves
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4 The Eli Broad College of Business, Michigan State University, 2010 High Variety Flexibility Cost Low Cellular Manufacturing Mass Customization Project Job Shop Batch Continuous Process Repetitive Process Low Volume High Product-Process Matrix
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5 The Eli Broad College of Business,
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This note was uploaded on 10/21/2011 for the course SCM 303 taught by Professor Bixbycooper during the Spring '09 term at Michigan State University.

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Chapter_5_Mfg._and_Service_Process_Choic - Manufacturing...

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