4. Program selection Flashcards
(8 cards)
How would you explain a production program?
A production program is the best possible plan for a company’s production and assembly, considering various goals and limitations.
It determines many operational aspects, such as process design, material needs, and capacity limitations, therefore it is crucial in production management to success.
Program is defined by production functions, which are a fixed representation of input-output relations.
For example, a car manufacturer’s production program would define how many units of each car model to produce, influencing the assembly line setup, the quantity of parts needed (tires, engines), and the workforce required.
What is the use of production and cost functions?
Production and cost functions are used to define the relationship between inputs and outputs in production, and to analyze the connection between production costs and output volumes.
Production functions serve as a theoretical basis for program definition. They help describe how much output can be achieved with a given set of inputs, discussing volumes and their relations, influences for input factor consumption and input-output relations.
Cost functions explain how costs are influenced by the volume of production.
This analysis incorporates the prices of input factors and helps in selecting production methods that lead to minimal cost positions
For instance, a bakery might use a production function to see how many loaves of bread they can bake with a certain amount of flour and labor, and a cost function to understand how the total cost changes with the number of loaves produced.
What sorts of constraints could you identify for production?
Constraints can include:
-Limitations related to input factor consumption, such as the availability of raw materials or labor.
-Capacity implications, such as the number of available machines or total production time, are also significant constraints.
-Technical impacts related to specific machine characteristics, described as “Z Factors” (e.g., volume, power, units, processes), also influence input volume consumption
-Budget
For example, a custom furniture maker might be limited by the amount of specialized wood they can source, the number of hours their woodworking machinery can operate, or the availability of skilled craftsmen
What differentiates a production function type A from type B?
Type function A
How would you describe a production function type A?
What determines in essence a production function type B?
Describe the input-output-analysis logic.
Which production function type is largely represented by the input-output analysis?
