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CHAPTER THIRTEEN: Measurements for the Production Department

CHAPTER THIRTEEN

Measurements for the Production Department

PRODUCTION MEASURES ARE UNIQUE in that they involve very few financial inputs. Instead, most of the information from which they are derived is obtained from other sources, such as tracking systems for units of production, machinery utilization time, and scrap tracking. These systems may not be as tightly controlled as financial systems, so the data used for these measurements should be tested to ensure that it is of a sufficient quality to yield accurate information.

The measurements described in this chapter fall into several categories: the utilization of key production constraints, also known as bottleneck operations; overall productivity and effectiveness; asset usage; and overhead expense utilization. The measurements discussed in this chapter include:


  

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