B_Process%20Selection

B_Process%20Selection - Reading Pages bottom 229 top 235...

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BIT 3414 Copyright 2011 p. 1 Process Selection When a company decides to produce items in-house, it must select the production process to make the items. Project Production one-at-a-time production of a product made to customer order Production Process Classifications Standardization Continuous production Project production Batch production Mass production Volume Reading Pages bottom 229 – top 235 bottom 262 – middle 266
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BIT 3414 Copyright 2011 p. 2 Batch Production many jobs are processed at the same time in batches Mass Production large volumes of a standard product are produced for a mass market
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BIT 3414 Copyright 2011 p. 3 Continuous Production very high volume production of a commodity product Process Selection w/ Break-Even Analysis Formulas Total Cost = total fixed cost + total variable cost TC = c f + vc v Total Revenue = volume x price TR = vp Total Profit = Total Revenue – Total Cost Z = TR - TC Where: c f = fixed cost c v = variable cost per unit v = volume p = price per unit Project Batch Mass Continuous
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This note was uploaded on 11/21/2011 for the course BIT 3134 taught by Professor Clark during the Fall '11 term at Virginia Tech.

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B_Process%20Selection - Reading Pages bottom 229 top 235...

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