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OM-1 PPT 3rd Sept

Discussed so far
• Overview of OSCM
• Whats Ops, SCM,Logistics
• Dependency within and Across organizations
• What are some OSCM processes
• Possible Careers in OSCM
• Current issues in SCM
Time Line Depicting When Major OSCM
Concepts Became Popular
The Major Concepts that Define the
OSCM Field
• Manufacturing strategy paradigm
• Lean manufacturing, JIT, and TQC
• Service quality and productivity
• Total quality management and quality certification
• Business process reengineering
• Six sigma quality
• Supply chain management
• Electronic commerce
• Sustainability and the triple bottom line
• Business strategy that includes social, economic and
environmental criteria
• Business analytics
Current Issues in Operations and Supply
Chain Management
1. Coordinating the relationships between mutually
supportive but separate organizations
Optimizing global supplier, production, and distribution
Managing customer touch points
Raising senior management awareness of OSCM as a
significant competitive weapon
Sustainability and the triple bottom line
Efficiency, Effectiveness, and Value
• Efficiency - doing something at the lowest possible cost
• Effectiveness - doing the right things to create the most
value for the company
• Value - quality divided by price
• Quality - the attractiveness of the product, considering its features
and durability
Management Efficiency Ratios
• π‘…π‘’π‘π‘’π‘–π‘£π‘Žπ‘π‘™π‘’ π‘‡π‘’π‘Ÿπ‘›π‘œπ‘£π‘’π‘Ÿ =
• πΌπ‘›π‘£π‘’π‘›π‘‘π‘œπ‘Ÿπ‘¦ π‘‡π‘’π‘Ÿπ‘›π‘œπ‘£π‘’π‘Ÿ =
• 𝐴𝑠𝑠𝑒𝑑 π‘‡π‘’π‘Ÿπ‘›π‘œπ‘£π‘’π‘Ÿ =
π΄π‘›π‘›π‘’π‘Žπ‘™ πΆπ‘Ÿπ‘’π‘‘π‘–π‘‘ π‘†π‘Žπ‘™π‘’π‘ 
π΄π‘£π‘’π‘Ÿπ‘Žπ‘”π‘’ π΄π‘π‘π‘œπ‘’π‘›π‘‘ π‘…π‘’π‘π‘’π‘–π‘£π‘Žπ‘π‘™π‘’
πΆπ‘œπ‘ π‘‘ π‘œπ‘“ πΊπ‘œπ‘œπ‘‘π‘  π‘†π‘œπ‘™π‘‘
π΄π‘£π‘’π‘Ÿπ‘Žπ‘”π‘’ πΌπ‘›π‘£π‘’π‘›π‘‘π‘œπ‘Ÿπ‘¦ π‘‰π‘Žπ‘™π‘’π‘’
𝑅𝑒𝑣𝑒𝑛𝑒𝑒 π‘œπ‘Ÿ π‘†π‘Žπ‘™π‘’π‘ 
π‘‡π‘œπ‘‘π‘Žπ‘™ 𝐴𝑠𝑠𝑒𝑑
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Sustainable Strategy
• The firm’s strategy describes how it will create and sustain
value for its current shareholders
• Shareholders – individuals or companies that legally own one or
more shares of stock in the company
• Stakeholders – individuals or organizations who are directly or
indirectly influenced by the actions of the firm
• Adding a sustainability requirement means meeting value
goals without compromising the ability of future
generations to meet their own needs
• Triple bottom line – evaluating the firm against social,
economic, and environmental criteria
Triple Bottom Line
Triple Bottom Line Continued
• Social responsibility: this pertains to fair and beneficial
business practices toward labor, the community, and the
region in which a firm conducts its business
• Economic prosperity: the firm is obligated to
compensate shareholders who provide capital
• Environmental stewardship: this refers to the firm’s
impact on the environment
What is Operations and Supply Chain
• Operations and supply chain strategy: setting broad
policies and plans for using the resources of a firm – must
be integrated with corporate strategy
• Corporate strategy provides overall direction and coordinates
operational goals with those of the larger organization
• Can be viewed as part of a planning process that coordinates
operational goals with those of the larger organization
• Operations effectiveness: performing activities in a
manner that best implements strategic priorities at a
minimum cost
Competitive Dimensions
• Make the product or deliver the service cheap
• Make a great product or delivery a great service
Delivery Speed
• Make the product or deliver the service quickly
Delivery Reliability
• Deliver it when promised
Coping with Changes in Demand
• Change its volume
Flexibility and New-Product Introduction Speed
• Change it
Other Product-Specific Criteria:
“Support It”
Technical liaison and support
• A supplier may be expected to provide technical assistance for product
Meeting a launch date
• A firm may be required to coordinate with other firms on a complex project
Supplier after-sale support
• An important competitive dimension may be the ability of a firm to support its
product after the sale
Environmental impact
• This dimension is related to environmental/green criteria
Other dimensions
• These typically include such factors as colors available, size, weight, location of
the fabrication site, customization available, and product mix options
• Management must decide which parameters of
performance are critical and concentrate resources on
those characteristics
• For example, a firm that is focused on low-cost production
may not be capable of quickly introducing new products
• Straddling: seeking to match a successful competitor
while maintaining its existing position
• It adds features, services, or technology to existing activities
• Often a risky strategy
Order Winners and Order Qualifiers
• Order qualifiers: those dimensions that are necessary for
a firm’s products to be considered for purchase by
• Features customers will not forego
• Order winners: criteria used by customers to differentiate
the products and services of one firm from those of other
• Features that customers use to determine which product to
ultimately purchase
Strategies are Implemented Using
Operations and Supply Chain Activities
• All operations activities relate to one another
• To be efficient, the firm must minimize total cost without
compromising customers’ needs
• Consider IKEA
• Targets young, low cost buyers
• Uses a self-service model showing furniture in familiar settings
• Designs its own low-cost, modular, ready-to-assemble furniture
• Stores stock the products in boxes
• Customers pick their own boxes from inventory
• Offers in-store child care and extended hours
Supply Chain Risk Examples
• Japanese Tsunami (March 2011)
• In 1996 General Motors experienced an 18-day labor
strike at a brake supplier factory
• This strike idled workers at 26 assembly plants and led to an
estimated $900 million reduction in earnings
• In 1997 a Boeing supplier’s failure to deliver two critical
parts led to a loss of $2.6 billion
• In 2000, a 10-minute fire at a Phillips plant that supplied
integrated circuits led to a $400 million loss
Assessing Risk Associated with OSCM
• All strategies have an inherent level of risk
• Uncertainty in the environment causes supply chain planners to
evaluate the relative riskiness of their strategies
• Supply chain risk: the likelihood of a disruption that
would impact the ability of a company to continuously
supply products or services
Supply chain coordination risks are associated with the day-today management of the supply chain
Disruption risks are caused by natural or manmade disasters
Risk Mitigation Framework
1. Identify the sources of potential disruptions
• Focus on highly unlikely events that would cause a significant
disruption to normal operations
2. Assess the potential impact of the risk
• Here the goal is to quantify the probability and the potential impact
of the risk
• Could be based on financial impact, environmental impact, ongoing
business viability brand image/reputation, potential human lives,
and so on
3. Develop plans to mitigate the risk
• A detailed strategy for minimizing the impact of the risk could take
many different forms, depending on the nature of the problem
Risk Mitigation Strategies
Risk Mitigation Strategy
Natural disaster
Contingency planning (alternate sites,
etc.) insurance
Country risks
Hedge currency, produce/source
Supplier failure
Use multiple suppliers
Network provider failure
Support redundant digital networks
Regulatory risk
Up-front and continuing research;
good legal advice, compliance
Commodity price risks
Multisource, commodity hedging
Risk Mitigation Strategies Continued
Risk Mitigation Strategy
Logistics failure
Safety stock, detailed tracking and
alternate suppliers
Inventory risks
Pool inventory, safety stock
Major quality failure
Carefully select and monitor suppliers
Loss of customers
Service/product innovation
Theft and vandalism
Insurance, security precautions,
knowledge of likely risks, patent
protection, etc.
Risk Assessment Matrix
Productivity Measurement
• Productivity is a measure of how well resources are used
• π‘ƒπ‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘–π‘£π‘–π‘‘π‘¦ =
• Productivity is a relative measure
• Must be compared to something else to be meaningful
• Operations can be compared to each other
• Firms can be compared to other firms or themselves over time
• Partial productivity measures compare output to a single
• Multifactor productivity measures compare output to a
group of inputs
• Total productivity measures compare output to all inputs
Productivity Calculation
Partial Measures of Productivity
Productivity Measure
Customers (meals) per labor hour
Retail store
Sales per square foot
Chicken farm
Pounds of meat per pound of feed
Utility plant
Kilowatt hours per ton of coal
Paper mill
Tons of paper per cord of wood
• A strategy that is sustainable needs to create value
• Shareholders are equity owners in the company
• Stakeholders are individuals and organizations that are influenced by the firm
• Operations and supply chain strategy involves setting the broad policies for using a firm’s
• Coordinates operational goals with those of the larger organization
• Strategies are implemented through a set of activities designed to deliver products and
services in a manner consistent with the firm's overall business strategy
• Operations and supply chain strategies need to be evaluated relative to their riskiness
• Supply chain disruptions are unplanned and unanticipated events that disrupt the normal flow
of goods and materials
• Supply chain coordination risks and disruption risks
• Productivity measures are used to ensure that the firm makes the best use of its resources
Practice Exam
1. A strategy that is designed to meet current needs
without compromising the ability of future generations to
meet their needs
2. The three criteria included in a triple bottom line
3. The seven operations and supply chain competitive
4. This occurs when a company seeks to match what a
competitor is doing while maintaining its existing
competitive position
Practice Exam Continued
5. A criterion that differentiates the products or services of
one firm from those of another
6. A screening criterion that permits a firm’s products to be
considered as possible candidates for purchase
7. A measure calculated by taking the ratio of output to
Akshaya Patra Foundation Case
• For-profit Vs Not-for-profit organization
• Vision & Mission
• Startup issues
• Scaling the Operation
• Supply chain, Operation, Logistics
• Supply Chain Strategy
• Segmentation
• Centralized Vs Decentralized distribution strategy
• Automation
• Supply chain risks
• Diversification in product portfolios
• Performance KPIs
Economies of Scale Made of Steel
• The Economics of Very Big Ships
• Economy of Container Ships
• Allows a T-shirt made in China to be sent to the Netherlands for just
2.5 cents
• The Eleonora Maersk and the other seven ships in her class are
among the largest ever built
• Almost 400 m long, or the length of four soccer fields, and another
half-field across
• The ships can carry 7,500 or so 40-foot containers, each of which
can hold 70,000 T-shirts
• On this voyage, the Eleonora was carrying supplies for
Europe’s New Year celebrations: 1,850 tons of fireworks,
including 30 tons of gunpowder
Capacity Management in Operations and
Supply Chain Management
• Capacity: the ability to hold, receive, store, or
In business, viewed as the amount of output that a system
is capable of achieving over a specific period of time
Capacity management needs to consider both inputs and
Many industries measure and report capacity in terms of
Industries whose product mix is very uncertain, like
hospitals, often express capacity in terms of inputs
Capacity Planning Time Durations
Long range
• Greater than one year
Intermediate range
• Monthly or quarterly plans covering the next 6
to 18 months
Short range
• Less than one month
Short-term and long-term decisions
Strategic Capacity Planning
• Determining the overall level of capacity-intensive
resources that best supports the company’s long-range
competitive strategy
• Facilities
• Equipment
• Labor force size
• Capacity level selected has a critical impact on response
rate, it cost structure, is inventory policies, and
management and staff support requirements
• Too low and the firm will lose customers and encourage
• Too high and firm may have to cut costs or underutilize its capacity
Capacity Planning Concepts
• Capacity utilization rate: a measure of how close the
firm is to its best possible operating level
• πΆπ‘Žπ‘π‘Žπ‘π‘–π‘‘π‘¦ π‘ˆπ‘‘π‘–π‘™π‘–π‘§π‘Žπ‘‘π‘–π‘œπ‘› π‘Ÿπ‘Žπ‘‘π‘’ =
πΆπ‘Žπ‘π‘Žπ‘π‘–π‘‘π‘¦ 𝑒𝑠𝑒𝑑
𝐡𝑒𝑠𝑑 π‘œπ‘π‘’π‘Ÿπ‘Žπ‘‘π‘–π‘›π‘” 𝑙𝑒𝑣𝑒𝑙
• Economies of scale: the idea that as a planet gets larger
and volume increases, the average cost per unit tends to
• Diseconomies of scale: at some point, the plant
becomes too large and average cost per unit begins to
Capacity Planning Concepts
• Capacity focus – the idea that a production facility works
best when it is concentrated on a limited set of production
• Focused factory or plant within a plant (PWP) concept
• Capacity flexibility – the ability to rapidly increase or
decrease product levels or the ability to shift rapidly from
one product or service to another
• Comes from the plant, processes, and workers or from strategies
that use the capacity of other organizations
Capacity Flexibility
• Ability to quickly adapt to change
• Zero-changeover time
• Flexible manufacturing systems
• Simple, easily set up equipment
• Ability to switch from one kind of
task to another quickly
• Multiple skills (cross training)
Considerations in Changing Capacity
Maintaining System Balance
• Similar capacities desired at each operation
• Manage bottleneck operations
Frequency of Capacity Additions
• Cost of upgrading too frequently
• Cost of upgrading too infrequently
External Sources of Capacity
• Outsourcing
• Sharing capacity
Decreasing Capacity
• Temporary reductions
• Permanent reductions
Frequent versus Infrequent Capacity
Determining Capacity Requirements
forecasting to
predict sales
for individual
Calculate labor
and equipment
to meet
Project labor
and equipment
availability over
the planning
Determining Capacity Requirements
• Stewart Company produces two flavors of salad dressing
• Paul’s and Newman’s
• Each is available in bottles and single-serving bags
• Have three machines that can package 150,000 bottles
each year
• Each machine requires two operators
• Have five machines that can package 250,000 plastic
bags per year
• Each machine requires three operators
• What are the capacity and labor requirements for the next
five years?
Step 1: Use Forecast to Predict Sales for
Individual Products
Step 2: Calculate Equipment and Labor
Bottling Operation
• Capacity: 450,000
Bagging Operation
• Capacity: 1,250,000
• 150,000 x 3
• 250,000 x 5
• Operators: 6
• Operators: 15
• 2x3
• 3x5
• Year 1
• Year 1
• πΆπ‘Žπ‘π‘Žπ‘π‘–π‘‘π‘¦ π‘’π‘‘π‘–π‘™π‘–π‘§π‘Žπ‘‘π‘–π‘œπ‘› =
= 0.3
• πΆπ‘Žπ‘π‘Žπ‘π‘–π‘‘π‘¦ π‘’π‘‘π‘–π‘™π‘–π‘§π‘Žπ‘‘π‘–π‘œπ‘› =
= 0.24
• π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’ π‘Ÿπ‘’π‘žπ‘’π‘–π‘Ÿπ‘’π‘šπ‘’π‘›π‘‘ = 0.3 × 3 = 0.9
• π‘€π‘Žπ‘β„Žπ‘–π‘›π‘’ π‘Ÿπ‘’π‘žπ‘’π‘–π‘Ÿπ‘’π‘šπ‘’π‘›π‘‘ = 0.24 × 5 = 1.2
• πΏπ‘Žπ‘π‘œπ‘Ÿ π‘Ÿπ‘’π‘žπ‘’π‘–π‘Ÿπ‘’π‘šπ‘’π‘›π‘‘ = 0.9 × 2 = 1.8
• πΏπ‘Žπ‘π‘œπ‘Ÿ π‘Ÿπ‘’π‘žπ‘’π‘–π‘Ÿπ‘’π‘šπ‘’π‘›π‘‘ = 1.2 × 3 = 3.6
Step 3: Project Equipment and Labor
Availabilities over the Planning Horizon
Using Decision Trees to Evaluate
Capacity Alternatives
• A decision tree is a schematic model of the sequence of
steps in a problem – including the conditions and
consequences of each step
• Decision trees help analysts understand the problem and
assist in identifying the best solution
• Decision tree components include the following:
• Decision nodes – represented with squares
• Chance nodes – represented with circles
• Paths – links between nodes
• Work from the end of the tree backwards to the start of
the tree
• Calculate expected values at each step
Example : Decision Trees
• The owner of Hackers Computer Store is evaluating
three options – expand at current site, expand to a new
site, do nothing
• The decision process includes the following
assumptions and conditions
• Strong growth has a 55% probability
• New site cost is $210,000
• Payoffs: strong growth = $195,000; weak growth = $115,000
• Expanding current site cost is $87,000 (in either year 1 or 2)
• Payoffs: strong growth = $190,000; weak growth = $100,000
• Do nothing
• Payoffs: strong growth = $170,000; weak growth = $105,000
Calculate the value of each alternative
Diagram the Problem Chronologically
Calculate Value of Each Branch
Decision Tree Analysis with Net Present
Value Calculations
Planning Service Capacity
Goods can be stored for
later use
Capacity must be available
when service is needed –
cannot be stored
Goods can be shipped to
other locations
Service must be available
at customer demand point
Volatility of demand is
relatively low
Much higher volatility is
Capacity Utilization and Service Quality
• The relationship between service capacity utilization and
service quality is critical
• Arrival rate: the average number of customers that come to a
facility during a specific period of time
• Service rate: the average number of customers that can be
processed over the same period of time
• Best operating point is near 70 percent
• Optimal levels of utilization are context specific
• Low rates are appropriate when the degree of uncertainty (in
demand) is high and/or the stakes are high (e.g., emergency
rooms, fire departments)
• Higher rates are possible for predictable services or those without
extensive customer contact (e.g., commuter trains, postal sorting)
Relationship Between the Rate of Service
Utilization and Service Quality
Exhibit 5.6
Case Presentation
• An operations and supply chain management view of
capacity emphasizes the time dimension of capacity
• Long range, intermediate range, and short range
• Best operating level is the rate that is sustainable by the
• With economies of scale, as volume increases, average
cost per unit drops
• Focused manufacturing plants are designed to produce
multiple products using a concept called plant within a
• From a strategic, long-term view, capacity additions or
reductions come in chunks
Summary Continued
• A useful technique for analyzing capacity problems is the
decision tree
• With this format, the sequences of decisions are organized like
branches in a tree
• The potential consequences of the decisions are
enumerated based on their probability of occurrence and
corresponding expected value
• Often, services require that capacity be available
immediately and that it be near where the customer
• Firms that offer services often need to deal with dramatic changes
in customer demand over time
What Are Production Processes?
• Production
processes are used
to make any
manufactured item
• High level view can
be divided into
three steps
• Step 1 – Source the
parts needed
• Step 2 – Make the
• Step 3 – Deliver the
Production Process Terms
Lead time
• The time needed to respond to a customer order
Customer order decoupling point
• Where inventory is positioned to allow entities in the
supply chain to operate independently
Lean manufacturing
• A means of achieving high levels of customer
service with minimal inventory investment
Types of Firms
• Serve customers from finished goods inventory
• Combine a number of preassembled modules to meet a
customer’s specifications
• Make the customer’s product from raw materials, parts, and
• Work with the customer to design and then make the product
• Examples of products include the following:
• Televisions
• Clothing
• Packaged food products
• Essential issue in satisfying customers is to balance the
level of inventory against the level of customer service
• Easy with unlimited inventory, but inventory costs money
• Trade-off between the costs of inventory and level of customer
service must be made
• Use lean manufacturing to achieve higher service levels
for a given inventory investment
• A primary task is to define a customer’s order in terms of
alternative components because these are carried in
• An example is the way Dell Computer makes their desktop
• One capability required is a design that enables as much
flexibility as possible in combining components
• There are significant advantages from moving the
customer order decoupling point from finished goods to
• Boeing’s process for making commercial aircraft is an
• Customer order decoupling point could be in either raw
materials at the manufacturing site or the supplier
• Depending on how similar the products are, it might not
even be possible to preorder parts
How Production Processes Are
• The product remains in a fixed location
• Manufacturing equipment is moved to the product
Workcenter (job shop)
• Similar equipment or functions are grouped together
Manufacturing cell
• A dedicated area where products that are similar in processing requirements are
Assembly line
• Work processes are arranged according to the progressive steps by which the product
is made
Continuous process
• Assembly line only the flow is continuous such as with liquids
Product–Process Matrix: Framework Describing Layout
Production System Design
Project Layout
• The product remains in a fixed location
• A high degree of task ordering is common
• A project layout may be developed by arranging materials
according to their assembly priority
• Similar Machines at one place
• Most common approach to developing this type of layout is
to arrange workcenters in a way that optimizes the
movement of material
• Optimal placement often means placing workcenters with
large interdepartmental traffic adjacent to each other
• Sometimes is referred to as a department and is focused
on a particular type of operation
Production System Design
Manufacturing Cell
• Formed by allocating dissimilar machines
to cells that are designed to work on
similar products (shape, processing, etc.)
Assembly Line and Continuous
• Designed for the special purpose of
building a product by going through a
series of progressive steps
Break-Even Analysis
• Defined as standard approach to choosing among
alternative processes or equipment
• Model seeks to determine the point in units produced
where a company will start making profit on the process
• Model seeks to determine the point in units produced
where total revenue and total cost are equal
• π΅π‘Ÿπ‘’π‘Žπ‘˜π‘’π‘£π‘’π‘› π‘‘π‘’π‘šπ‘Žπ‘›π‘‘ =
π‘ƒπ‘’π‘Ÿπ‘β„Žπ‘Žπ‘ π‘’ π‘π‘œπ‘ π‘‘ π‘œπ‘“ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘  π‘œπ‘Ÿ π‘’π‘žπ‘’π‘–π‘π‘šπ‘’π‘›π‘‘
π‘ƒπ‘Ÿπ‘–π‘π‘’ π‘π‘’π‘Ÿ 𝑒𝑛𝑖𝑑 − πΆπ‘œπ‘ π‘‘ π‘π‘’π‘Ÿ 𝑒𝑛𝑖𝑑
• π΅π‘Ÿπ‘’π‘Žπ‘˜π‘’π‘£π‘’π‘› π‘‘π‘’π‘šπ‘Žπ‘›π‘‘ =
π‘‡π‘œπ‘‘π‘Žπ‘™ 𝑓𝑖π‘₯𝑒𝑑 π‘π‘œπ‘ π‘‘π‘  π‘œπ‘“ π‘π‘Ÿπ‘œπ‘π‘’π‘ π‘  π‘œπ‘Ÿ π‘’π‘žπ‘’π‘–π‘π‘šπ‘’π‘›π‘‘
π‘ˆπ‘›π‘–π‘‘ π‘π‘Ÿπ‘–π‘π‘’ π‘‘π‘œ π‘π‘’π‘ π‘‘π‘œπ‘šπ‘’π‘Ÿ −π‘‰π‘Žπ‘Ÿπ‘–π‘Žπ‘π‘™π‘’ π‘π‘œπ‘ π‘‘ π‘π‘’π‘Ÿ 𝑒𝑛𝑖𝑑
Example 7.1: Break-Even Analysis
• Buy for $200
• Make on lathe for $75
• Make on machining center for $15
• Buy has no fixed costs
• Lathe has $80,000 fixed costs
• Machining center has $200,000 fixed costs
Example 7.1: Total Cost for Each Option
• Cost = $200 x Demand
Produce Using Lathe
• Cost = $80,000 + $75 x Demand
Produce Using Machining Center
• Cost = $200,000 + $15 x Demand
Example 7.1: Costs Shown Graphically
Example 7.1:Finding Points A and B
Point A
$80,000 + $75 οƒ— Demand = $200,000 + $15 οƒ— Demand
$80,000 + $60 οƒ— Demand = $200,000
$60 οƒ— Demand = $120,000
Demand = $120,000
= 2,000
Point B
$200 οƒ— Demand = $80,000 + $75 οƒ— Demand
$125 οƒ— Demand = $80,000
Demand = $80,000
= 640
The Charts
Assembly drawing
• An exploded view of the product showing its component parts
Assembly chart
• Defines how parts go together, their order of assembly, and overall
flow pattern
Operation and route sheet
• Specifies operations and process routing
Process flowchart
• Denotes what happens to the product as it progresses through the
production facility
• Manufacturing processes are used to make tangible items
• Sourcing parts, making the item, sending it to the customer
• To allow parts of the process to operate independently,
inventory is strategically positioned in the process
Positioning the decoupling points has an impact on speed,
flexibility, and many other trade-offs
Manufacturing layouts are designed based on the nature of the
product, the volume needed to meet demand, and the cost of
Break-even analysis is useful for understanding the cost tradeoffs between alternative equipment choices
Visual charts can be used to document manufacturing process
Flowcharts provide a simple but insightful analysis of capacity
and variable cost