Chapter 2 Flashcards
Involves the analysis of problems for manufacturing a product or rendering a service based on present or immediate costs
Present Economy
Usually occur when the effects of time such as interest and depreciation are negligible
Present Economy
In manufacturing a product it usually happens that two or more materials are available and such materials will be equally satisfactory
Selection of Material
The present economy study reduces to determining the most economical among the different methods
Selection of Method
In the design of a machine to produce a certain product, the engineer responsible for the work will usually make as many designs as possible
Selection of Design
In the choice of a factory site many factors are to be considered, among which are the cost of the land, the construction cost at the different possible sites, the availability of skilled labor, and many other factors
Site Selection
In industrial operations where the efficiency of workers is a factor affecting costs, it is usually observed that workers have varying efficiencies
Comparison of Proficiency of Workers
In many activities, tools have to be sharpened from time to time, and equipment have to be kept in optimum operating condition all the time
Economy of Tool and Equipment Maintenance
In many industrial operations it is observed that a certain number of workers cooperating on a specific phase of the work will lead to the highest productivity
Economy in the Utilization of Personnel
It is employed when the alternatives to be compared will provide the same result and the length of time involved in the study is relatively short
Present economy analysis
