...founded in the 1950’s, Treasure Island is an established manufacturing company providing construction chemicals and paints. Globally competitive and trusted in the way we do business, Treasure Island exists with this goal in mind: To provide customers with exceptional service and quality products that have the best value for money. Commercial buildings and homes proudly stand stamped with the quality only Treasure Island can bring. From 30 sq. meter studios to breathtaking skyscrapers, Treasure Island has long been a passionately committed partner in this dynamic construction industry and has become a household name in construction needs across the country. Fulfilling the demands of this ever-growing industry, Treasure Island went into the production of quality house and automotive paints aptly named Island Paints. Thinking and acting one step ahead of the competition, we are also the recognized partner of international label, Transocean Marine Paints, distributing specially-formulated paints for ocean-faring ships and other marine craft. Treasure Island ventured into manufacturing another growing market need: styrofoam boxes. Hence, together with an industrial partner, Treasure Island created Styropack Industrial Corp, a subsidiary existing solely for manufacturing styrofoam products. Thus, Styropack Industrial Corp completed the Treasure Island packaging division. Manufacturing tin cans, cap seals and shrinkable plastic, this division was initially created to service the company’s...
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...besa44438_ch06.qxd 09/23/2004 04:18 PM Page 183 6 C H A P T E R INPUTS AND PRODUCTION FUNCTIONS 6.1 INTRODUCTION TO INPUTS AND PRODUCTION FUNCTIONS APPLICATION 6.1 Competition Breeds Efficiency 6.2 PRODUCTION FUNCTIONS WITH A SINGLE INPUT 6.3 PRODUCTION FUNCTIONS WITH MORE THAN ONE INPUT High-Tech Workers versus Low-Tech Workers APPLICATION 6.2 6.4 S U B S T I T U TA B I L I T Y A M O N G INPUTS Elasticities of Substitution in German Industries APPLICATION 6.3 APPLICATION 6.4 Measuring Productivity APPLICATION 6.5 Returns to Scale in Electric Power 6.5 RETURNS TO SCALE Generation APPLICATION 6.6 Returns to Scale in Oil Pipelines APPLICATION 6.7 Technological Progress in the U.K. 6.6 TECHNOLOGICAL PROGRESS Appendix THE ELASTICITY OF SUBSTITUTION FOR A COBB–DOUGLAS PRODUCTION FUNCTION besa44438_ch06.qxd 09/23/2004 04:19 PM Page 184 Can They Make It Better and Cheaper? The production of semiconductor chips—thin, glasslike wafers that are used to store information in digital equipment—is costly, complex, and delicate.1 Production involves hundreds of steps and takes place in facilities called fabs, expensive factories that can cost more than $1 billion to construct. To avoid contaminating chips, fabs must be 1000 times cleaner than a hospital operating room. Because the manufacturing process is so expensive and because a typical fab is obsolete in 3 to 5 years (and...
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...Define and Describe the Four Factors Of Production In every society there are so called 'factors of production,' that are used to manufacture goods and services. These are often referred to as limited resources: The first factor of production is land. This refers not just to land itself but to all natural resources - the surface of the earth, forests, mineral deposits etc... These resources can be split into two different types: non-renewable and renewable. Non-renewable resources are resources such as coal, oil, gold and copper which once used up can never be replaced as their formation took millions of years. Renewable resources include fish stocks, water and wind power and these can be renewed and replaced. However these sources require careful management as misuse can lead to destruction of the source. Some nations are endowed with natural resources and exploit this by specialising in the extraction and production of these resources LAND This category sometimes extends over all natural resources. It is intended to represent the contribution to production of nonhuman resources as found in their original, unimproved form. For the French physiocrats led by Francois Quesnay in the 1750s and 1760s, land was the only factor yielding a reliable gain to its owner. In their view, laborers and artisans were powerless and in excess supply, and hence they earned on average only a subsistence-level income; and in the same way what they produced outside of agriculture fetched enough to...
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...Caribbean Maritime Institute School of Academic Studies Associate Applied Science Degree in Industrial System, Operation & Maintenance Production Systems Group Assignment #3 Name and ID Number: Gavin Francis 20146834 Shelair Venair 20147670 Chevaughn Wright 20132043 Tevin Kitson 20146857 Brian White 20132042 Alex Mcfalane 20147378 Stream: II Course Name: Production System Date of Submission: November 16, 2015 Lecturer’s Name: Mr. Wynter 1. Discuss the terms Method Study and Work Study in relation to management control procedures. Answer: Method Study: Systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing cost. Advantages include: * Improvement in use of all inputs * Economy in human effort * Layout improvement * Improvement in design of plant and machinery * Improvement in safety standards and procedures * Better working environment Work Study: The systematic examination of the method of carrying on activities so as to improve the effective use of resources and to set up standards of performance for the activities being carried out. Benefits include: *...
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...Cellular Layout Betty Ward Liberty University Operation Management Busi 411-D03 Professor Wagner April 6, 2015 Cellular Layout Definition Cellular production or cellular manufacturing is a lean method process, which eliminates set-up and unneeded cost. This is accomplished by using cells, group of team members, workstations, or equipment to produce similar products or services. The concept of cellular design is the use of group technology, placing people, tools and machines so that there is little change in processing or setup ("Cellular manufacturing," n.d.). Summary Cellular production or manufacturing is a layout design that enables companies to minimize waste, while providing a smooth workflow, with minimal transport or delay. Additional benefits of cellular production include reduced work in progress; reduce space requirements, and improvement in quality and productivity (Stevenson, 2015, p. 256). The article, “Integrating Cell Formation with Cellular Layout and Operation Scheduling” is an investigation into designing a cellular system. The research is on two mathematical proposed models. In the first model is an integration of cellular layout (CL) problem with cell formation (CF) problem to determine the optimal configuration of machine and cell layout to minimize movement cost. The second model included in the integration of the cellular layout (CL) and cell formation (CF) problems, with the cellular scheduling (CS) to minimize the completion time...
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...------------------------------------------------- Questions 1) What are the disadvantages of using robots in Hyundai’s production lines? The Hyundai does not use robot is because circulation of technology is very fast and it is considered irrelevant or out-of-date. The cost to buy a robot is very high and the duration of use is very short due to the technological changes that are very significant. In this regard, the Hyundai has taken steps to do not use a robot because the disadvantages are very high as compared to the advantages. Secondly, the Hyundai felt if there is damage to the robot then all operations will be disrupted until the robot is repaired or replaced with a new one compared with the existing manpower which we can throw them at it. It's a lot more flexible. 2) How did Hyundai maximize its operational efficiency? Hyundai has taken the step to not use a forklift in the operation and what they want is more to refineries on automotive industry. Between such operational efficiency that being used are the deduction of worker. This means, if there are three workers had been laid to make the same work, so Hyundai has been reducing to one where two more workers have been doing others jobs in the plant. 3) Why do firms actively seek to develop new methods to achieve a higher level of productivity? One of the reasons why a company is working to increase productivity by using the new method is because it able to give competitiveness to their competitor...
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...1.Total costs The total cost (TC) curve is found by adding total fixed and total variable costs. Its position reflects the amount of fixed costs, and its gradient reflects variable costs Total fixed costs Given that total fixed costs (TFC) are constant as output increases, the curve is a horizontal line on the cost graph. Total variable costs The total variable cost (TVC) curve slopes up at an accelerating rate, reflecting the law of diminishing marginal returns. . OUTPUT | TOTAL FIXED COST | TOTAL VARIABLE COST | TOTAL COST | 1 | 100 | 50 | 150 | 2 | 100 | 80 | 180 | 3 | 100 | 100 | 200 | 4 | 100 | 110 | 210 | 5 | 100 | 150 | 250 | 6 | 100 | 220 | 320 | 7 | 100 | 350 | 450 | 8 | 100 | 640 | 740 | Plotting this gives us Total Cost, Total Variable Cost, and Total Fixed Cost. 2.Average total cost Average total cost (ATC) is also called average cost or unit cost. Average total costs are a key cost in the theory of the firm because they indicate how efficiently scarce resources are being used. Average variable costs are found by dividing total fixed variable costs by output. Average fixed costs Average fixed costs are found by dividing total fixed costs by output. As fixed cost is divided by an increasing output, average fixed costs will continue to fall. Average variable costs Average variable costs are found by dividing total fixed variable costs by output. Always rises at a constant rate. AVC is ‘U’ shaped because of the principle of variable Proportions...
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...COST OF PRODUCTION CONTENTS 1. Introduction 2. Types of costs 3.1 Opportunity, implicit and explicit costs 3.2 Fixed and variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential learning & technological advances 6.11 Many dimensions 6.12 Unmeasured costs 6. Conclusion SUMMARY REFERENCES SUMMARY This study examines the different types of costs such as opportunity, implicit, explicit, fixed, variable and average costs that a firm would incur in order to carry out the production process. It talks about different types of cost curves to understand various measures of cost and establish a relationship between the changing patterns of different cost curves. It also tells how costs vary significantly in the long run and in the short run and how it effects the firms’ production and pricing decisions. Apart from the standard model, it also tells about the real...
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...CHAPTER 7 THE COST OF PRODUCTION QUESTIONS FOR REVIEW 1. A firm pays its accountant an annual retainer of $10,000. Is this an economic cost? Explicit costs are actual outlays. They include all costs that involve a monetary transaction. An implicit cost is an economic cost that does not necessarily involve a monetary transaction, but still involves the use of resources. When a firm pays an annual retainer of $10,000, there is a monetary transaction. The accountant trades his or her time in return for money. Therefore, an annual retainer is an explicit cost. 2. The owner of a small retail store does her own accounting work. How would you measure the opportunity cost of her work? Opportunity costs are measured by comparing the use of a resource with its alternative uses. The opportunity cost of doing accounting work is the time not spent in other ways, i.e., time such as running a small business or participating in leisure activity. The economic, or opportunity, cost of doing accounting work is measured by computing the monetary amount that the owner’s time would be worth in its next best use. 3. Please explain whether the following statements are true or false. a. If the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive. True. Since there is no monetary transaction, there is no accounting, or explicit, cost. However, since the owner of the business could be employed...
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...Evaluate the technological components of the production process and determine which provides the greatest overall benefit. Explain your rationale. I think the greatest overall benefit is computer advancements for machinery or Computer-Integrated Manufacturing (CIM) systems. I believe this because it increases productivity, decreases design cost, increases quality and equipment utilization but does not automatically mean the loss of jobs due to increased technology. The CIM is the cornerstone of which the future of industry will be built. An example of this is robots which provide a great benefit by eliminating major work casualties that are seen in hazardous environments or conditions. Robots can be designed for work in these dangerous work environments whereas a human might need frequent breaks, hazardous pay or costly engineering controls that would be constant recurring costs. CIM helps to integrate the following areas: Part and product design. The four phases include preliminary design, refinement, analysis, and implementation. Tool and fixture design. Tooling engineers using computer-aided design (CAD) tools to develop the systems or fixtures that produce the parts. Process planning. The process planner designs a plan that outlines the routes, operations, machines, and tools required to minimize cost, manufacturing time, and machine idle time while maximizing productivity and quality. Programming...
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...CHAPTER 11 BACKGROUND TO SUPPLY: THE THEORY OF PRODUCTION AND COST Grading * straightforward questions & definitions ** challenging questions *** more challenging questions MULTIPLE CHOICE QUESTIONS In economics, the short run is a period of time (*) 2 of one year or less. 3 in which all inputs are variable. 4 in which all inputs are fixed. 5 in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. 6 in which all inputs are variable but technology is fixed. Which of the following statements is correct? (*) 2 The short run is a time period of one year or less. 3 The short run is a period of time during which the quantities of all inputs can be varied, but technology is held constant. 4 The short run is a period of time during which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. 5 The long run is a period of time during which the quantities of all factor inputs are fixed. 6 The time period separating the short run from the long run is at least 3 months. Answer Questions 3 and 4 with reference to the following table, which shows the short-run production function of a polo ball manufacturer. |Number of machines |Number of workers |Output | | ...
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...TOPIC 5: PRODUCTION THEORY Production refers to the creation of wealth for the sole purpose of utility in order to improve the welfare of people. It is creation of goods and provision of services to satisfy human wants. Forms of production a) Direct production. Also known subsistence production and it refers to production of Goods for own consumption. It s output is normally low. b) Indirect production. It is production for sale. It is also known as market economy. It uses modern production methods / technology. Levels of production There are three levels of production. a) Primary level. This is the basic level where production starts. It’s sometimes known as extraction level and involves production of raw materials. E.g. mining b) Secondary level. This is also known as transformation / manufacturing level. In this level output from primary level is used to produce finished goods or services. E.g. engineering, carpentry c) Tertiary level. This summarizes the production process. It involves the supply of finished goods and services to the final consumer. E.g. transport, banking Types of goods produced 1) Consumer goods. These are goods which satisfy human wants directly. They are categorized into durable and non-durable goods. 2) Producer goods. This refers to categories of goods which give indirect utility to the consumer. 3) Services. These are intangible economic goods. E.g. teaching, insurance Factors of production These...
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...Report on Production Strategy International Business Submitted By Aqib Sharif 2901 Abeer Zahid 2907 Ahmad Malik 2918 BBA 5th Submitted To Ma’m Malka Liaqat National University of Modern Languages 2014 11/27/2014 Acknowledgements First of all we would like to thank that great entity that helped us to get through this report safely, the one who was always there when no one was! SHUKER- ALL- HUMDULILLAH! Would that we have words to pay tribute to our loving parents and teachers whose invaluable prays salutary admire and embodying attitude kept our spirit alive to strive for knowledge and integrity which enable us to reach Milestone. We would also like to express enormous gratitude to our respectable teacher “Mam Malka Liaqat” for providing the direction, all scope of this report and for helping us in refining our effort and ideas. We also acknowledge the help and pleasant gathering of all our class Fellows. We are also thankful to all of those people who helped us in Accomplishing our report. Executive Summary Production strategy is critical to effective international operations. Since most goods and services have very limited lives, MNE’s must continually...
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...Music Production A record producer is an individual working within the music industry, whose job is to oversee and manage the recording of an artist's music. A producer has many roles that may include, but are not limited to, gathering ideas for the project, selecting songs and/or musicians, coaching the artist and musicians in the studio, controlling the recording sessions, and supervising the entire process through mixing and mastering. Producers also often take on a wider entrepreneurial role, with responsibility for the budget, schedules, and negotiations. A music producer can, in some cases, be compared to a film director, with noted practitioner Phil Ek himself describing his role as "the person who creatively guides or directs the process of making a record, like a director would a movie. The engineer would be more the cameraman of the movie. The music producer's job is to create, shape, and mold a piece of music. The scope of responsibility may be one or two songs or an artist's entire album – in which case the producer will typically develop an overall vision for the album and how the various songs may interrelate. In most cases the music producer is also a competent arranger, composer, musician or songwriter who can bring fresh ideas to a project. As well as making any songwriting and arrangement adjustments, the producer often selects and/or gives suggestions to the mixing engineer, who takes the raw recorded tracks and edits and modifies them with hardware and software...
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...Production and Perfect Competition Christopher Landeros Production and Perfect Competition When a firm is operating under a profit loss, it must decide whether to continue to operate under a short-run by reducing the number of employees or completely shutting down. To do this, the firm must calculate its Total Variable Cost, Average Variable Cost, Average Total Cost, and Productivity based on its fixed cost. A firm that has a fixed cost of $1,000,000 would not be able to keep the company operating just to break even, because the worker productivity rate would increase from 4 to 26 based on the number of remaining employees. Based on the $ 1,000,000 fixed cost, here are the calculated figures. 1. Total Variable Cost = $4,400,000 2. Average Variable Cost = $22 3. Average Total Cost = $27 4. Worker Productivity = 4 The average variable cost would be $3 less than the output cost but an increase of $2 on the average total cost. In order for the firm to work under a $1,000,000 break even scenario, it would have to cut 42,500 employees. The re-calculated cost would be: 1. Total Variable Cost = 1,000,000 2. Average Variable Cost = $5 3. Average Total Cost = $10 4. Worker Productivity = 26 The average variable cost would be $3 less than the output cost but an increase of $12 on the average total cost. In order for the firm to work under a 3,000,000 break even scenario, it would have to cut 17,500 employees. The re-calculated cost would be: 1. Total Variable...
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