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Metrics for production processes
As the company Manychip examines various methods to assess its performance and design processes, it is looking for an analysis of the existing workflow production process and the factors that most directly impact such measurements. As a review, the most common metrics for production processes are as follows:Quality: the number of defects associated with a given productCost: material and labor costsTimeliness: how quickly products are manufactured and deliveredFlexibility: the degree to which the production process can be adapted to produce other products or specific products more quicklyProductivity: a ratio of outputs divided by inputsEfficiency: a ratio of actual outputs divided by standard (or expected) outputs, multiplied by 100% to give a total efficiency percentageCycle Time: the total time it takes to complete a production processTheory of Constraints and Queuing Theory
1. Explain how each measure can be applied to Manychip's production planning process - can the company use each one? How?2. Rank the criteria listed above in order of importance to Manychip's production planning strategy, detailing your rationale for such a ranking.3. Identify other measures that might apply to Manychip and explain them.
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