Chapter_5_Mfg._and_Service_Process_Choic1

Chapter_5_Mfg._and_Service_Process_Choic1 - Manufacturing...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1 The Eli Broad College of Business, Michigan State University, 2010 Manufacturing and Service Manufacturing and Service Process Choices Process Choices
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 2
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
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 4
5 The Eli Broad College of Business, Michigan State University, 2010 Critical Elements of Process Choice Equipment: Flexibility Staffing and training: Skill level of workers Volume of output Product design: Variety of products that can be produced
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern