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Job Shop Organisation - Operations Function
Job shop systems generate special products or services to customer specification, with little likelihood that any particular product will be repeated. In a manufacturing context a tool room, which makes special tools and fixtures, is a classic example of the job-shop. In a service context, a bespoke tailor, who makes made-to-measure clothes, provides a job-shop service. Such low-volume systems tend to use general-purpose equipment manned by highly skilled personnel: they exhibit a high degree of flexibility but have high unit costs.
There is a fixed cost of$50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. Expressio
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