FIRE UP PRODUCTION Flashcards
Improving productivity can be achieved in 2 ways
- By reducing inputs while output remains constant
- By increasing output while input remain constant
machinery, tools, and building humans use
to produce goods
Capital
combines the other factors to
produce goods
Entrepreneurship
any natural resource used to produce goods
(renewable/nonrenewable)
Land
the effort that people contribute to the
production of goods and services
Labor
Production Resources
- Financial Resources
- Human Resources
- Informal Resources
- Material Resources
Four Phases of Production
- Operation
- Assembly
- Finishing
- Inspection
refers to operating expenses like salaries, cost of raw
materials, office supplies, Bills for water, telephone, or electric.
Variable Cost
Four Stages of Product Lifecycle
Introductory Stage
Growth Stage
Maturity Stage
Decline Stage
. This is the stage when new
products are launched in to the market.
Introductory Stage
This is stage is characterized when the market has accepted the product and sales begin to
increase.
Growth Stage
Consumer are already tested the
product this is time when sales of the product will
reach their peak.
Maturity Stage
This stage comes sooner if nothing
has been done to innovate the product
- Decline Stage
Considerations for Production
- Production Strategy
- Raw Materials to be used
- Production Technology
- Process Operation
- Manpower Requirement
- Location
- Plant Layout
- Product Quality
refers to the ability of a product, whether tangible or
intangible, to consistently meet and exceed customer
requirements or expectations.
Quality
an approach that evaluates the
financial return of investments in quality.
Return of Quality (ROQ)
Cost Associated with Quality
Appraisal Cost
Prevention Cost
Failure Cost
cost of activities designed to
uncover defects through subsequent evaluation of
the different aspects of production
Appraisal Cost
costs of associated with
preventing defects from occurring.
Prevention Cost
costs caused by defective parts or products or by faulty services.
Failure Cost
Ex. Inspections, Routine equipment testing, etc.
Appraisal Cost
Ex. Training Programs, etc.
Prevention Cost
Internal Failures, External Failures
Failure Cost
Dimensions of Product Quality
- Aesthetics
- Conformance
- Durability
- Perceive Quality
- Performance
- Reliability
- Service Ability
- Special Features
one that is gauged according to what is
the preferred appearance, feel, smell, taste of the
customer.
Aesthetics
one that is determined as to how well the product conforms to design specification
Conformance
one that is determined by length of usefulness of the product
Durability
one that is based on how the
customer perceive the product to be of quality
Perceive Quality
one that is based on what the
customers expects the product to be able to do.
Performance
one that is based on the consistency of
performance.
Reliability
one that is based on availability of
options in handling of complains or repairs.
Service Ability -
– one that is based on the extra
characteristics or unique features of the product.
Special Features
the process of
mainstreaming quality consciousness in the organization, from supplier to customer.
Total Quality Management (TQM)
Effective TQM includes:
Employee Empowerment
Continuous Improvement.
Bench Marking.
Just-in-time
Knowledge of EQM
Global Standards
ISO
HACCP
Halal
the international organization for standardization is
considered the largest developer of standard in the
world. 155 countries.
ISO
internationally accepted technique for preventing microbiological, chemical, and physical contamination of food particularly during the processing of food products.
HACCP - Hazard Analysis Critical Control Point
This refers to food that is permissible for consumption
under Islamic Law
Halal
e planned and systematic activities implemented in systems to fulfill the quality requirements for a product or service
Quality Assurance (QA
are cost that continue even if no
units are produced.
Fixed Expenses
those that vary with the volume of units produced.
Variable Expenses (cost of goods/cost of sales
this includes the wages of
workers whose outputs are closely related to or associated with the making of the product
Direct labor
these refer to cost of
inputs or raw materials that become part of
the product.
Direct materials
comprises all other costs incurred
in production but do not become part of product.
Overhead Costs
