MAE486_Fall11_L23_S

Data of a manufacturer of small hydraulic turbines

Info iconThis preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: sign Example (cont’d) •  Step 5: Observe the plots: Which factor is not important? S/N larger the beher, or the other way around? •  Step 6: Obtain the opOmum seWng of the control parameters Cost EvaluaOon •  Why is it useful? –  InformaOon  Selling price / QuotaOon; –   The most economical method, process, or material (4 manufacturing); –  Basis 4 cost ­reducOon; –   Standards of producOon performance 4 control costs –  Input  Profitability of a new product Categories of Costs What are the costs? •  Fixed costs (period costs): Over a period of Ome regardless of the amount (volume) made or sold •  General and administraOve expenses (Q&A expenses): Categories of Costs (cont’d) •  Variable costs (product costs): costs that vary with each unit of product made –  –  –  –  –  –  –  –  –  Materials Direct labor (including fringe bene...
View Full Document

Ask a homework question - tutors are online