Process input output feedback managers production

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Unformatted text preview: ck Managers Production Systems Example 9 The Product Life-Cycle Curve Life- The Product/Process Matrix 10 Learning Curves The The basic concept is that as a worker or an industry gains experience with a task or product, the process becomes more efficient. Experience has shown that this relationship is accurately described by an exponential function. Let Let Y(u) be the number of hours to produce the uth unit. Then the theory says that Y(u) = au-b which gives Y(2u) a(2u)-b = = 2-b -b Y(u) au A typical value is an 80% learning curve which is 2-b = .80. typical (This gives a value of b = -ln(.80)/ln(2) =0.322.) Prices of Integrated Circuits During the Period 1964-1972 1964- 11 BreakBreak-even Curves for the Make or Buy Problem Cost to Buy = c1x Cost to make=K+c2x K Break-even quantity Productivity Measure Measure of process improvement Represents Represents output relative to input Only Only through productivity increases can our standard of living improve Productivity = Units produced Input used 12 Productivity Labor Productivity: Productivity = Units produced LaborLabor-hours used MultiMulti-Factor Productivity Also Also known as total factor productivity Output Output and inputs are often expressed in dollars Output Productivity = Labor + Material + Energy + Capital + Miscellaneous 13 Productivity Hamdi Hamdi usta pro...
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