Production Check List
What are Production responsible for?
- number of units of a specific product to be produced
- time intervals over which production will occur
- availability of equipment, materials and work force
- cost effective inventory and resource management.
Production as a Goal:
resources are planned and used in the production process regardless of actual demand
often based on economies of scale, where lower cost per item is presumed to generate product demand.
Production as a Means:
resources are planned and used in the production process only because of product demand often based on economies of scope, where product demand has greater influence over production unit costs.