GCM 372 Lecture Notes - Lecture 4: Cost Estimate, Absenteeism, Iso 9000
14 Feb 2020
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Standard too low and we lose money. Standard too high and we don"t get the jobs. So our costs are consistent and not erratic. Inconsistent and erratic standards and we might as well just pull numbers out of the air. We can expect to lose loyalty of customers over time. Allows us to determine the speed to complete an operation. Is based on the amount of time required to perform a manufacturing operation. Is based on the amount of material required to perform an operation. Allows us to schedule jobs, employees, equipment and cost centres accurately. Time required for makeready activities on a piece of equipment usually expressed as time or units of activity. Speed at which the machine can run usually expressed as completed pieces per time (could be length to be completed over time). Materials required to perform a given task usually expressed as a variable volume (ink) or fixed quantity (plates) per task.
