bike simulation Flashcards
product design
product design: creating a product customers will want to buy
quality function deployment
method that uses customer wants and needs to help bring produced to the market
1. research
2. product design
3. engineering
4. manufacturing
5. sale and distribution
positive vs. negative correlations
positive: which features add to product satisfaction
negative: which features take away from product satisfaction
goal of production scheduling
produce enough units in the factor to satisfy the demand created by the marketing department
no stockout, ending inventory, and excess operating capacity
fixed capacity
maximum number of units the factor can produce in a work day; determined by size of factory
operating capacity
number of units to produce each day to meet projected demand
- upper limit is fixed capacity
- portion of fixed capacity you actually use in production
- how you set op capacity determines number of factory workers to hire and how fast to run production line
maximum inventory
upper limit of units to leave on the shelf at end of quarter, keep inventory levels controlled and consistent with demand
stockout
operating capacity too low, unhappy customerse
excess inventory
operating cap too high, unsold units don’t bring any revenue to offset production costs
excess operating capacity costs
if op capacity is too high and factory manager must stop production line completely, must still pay costs of factory maintenance and factory workers wages while production idle is idle
- increase production costs, hurt bottom line
demand curve
higher the price the lower the quantity demanded
pricing survey
best way to estimate demand curve is to split survey audience into different groups, ask each group if they’re willing to purchase at given price and how much
demand schedule
table that shows quantity demanded of good/service at diff price levels
factors of cost
supply cost, production overhead, labor cost, marketing cost
accounting transaction
any business activity that affects assets, liabilities, equity