Chapter 7 Manufacturing Process D id L Design and Layout
Chapter 7 Manufacturing Process D id L Design and Layout
Chapter 7 Manufacturing Process D id L Design and Layout
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Cost Performance• Operations Cost = Fixed Cost + Variable Cost= Administrative Costs + Depreciation <strong>and</strong> Interest +Production Cost + Inventory <strong>and</strong> Transportation Cost + …• Operations Cost = Direct Cost + Indirect Cost= Direct Materials Cost + Direct Labor Cost +Overhead <strong>and</strong> Utilities Cost + …• Net Profit = Revenue– Operations Cost – Taxes• Profit Margin = Net Profit / Revenue• Return on Assets = Net Profit / Total Assets13Example 7.2 <strong>Manufacturing</strong> <strong>Process</strong> Analysis6 machines, 25 × 6 parts/hr15 workers,150 components/hrWeekly production = 150 × 8 × 6 = 6000147
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