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A great deal of simplification is necessary one way

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Unformatted text preview: in most organization. A great deal of simplification is necessary. One way to simplify is to group activities into a hierarchy. Product-Level Activity Customer-Level ustomerActivity Organizationsustaining Activity Categories Categories of activities HIERARCHY Unit-level activity: An activity that is performed for each activity An activity that is performed for each driven by volume unit of production (utilities for machines, labor hours, inserting a component, etc.) Batch-level activity: An activity that is performed for each batch of products rather than for each unit of production (machine setup, purchase ordering, production scheduling) Product-sustaining activity: An activity that is performed to support the production of given product to support the production of a given product (product design, parts administration) engineering Organization-sustaining activity: An activity that is performed to sustain the organization (production of products in...
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