PRODUCTION
Processes and methods employed in transformation of tangible inputs ( raw materials, semi-fininshed goods etc) and intangible inputs (ideas, information etc) into goods or service. Apparel production is the process of conversion of materials (INPUT) into completed, saleable garments (OUTPUT). May be produced by own plants or out sourcing
PRODUCTIVITY The amount of output per unit of input (labor, equipment and capital). There are many different ways of measuring productivity. For example, in a factory productivity might be measured based on the number of hours it takes to produce a good.
FACTORS OF PRODUCTION
3 factors of production
MEASURE OF
PERFORMANCE IN
HUMAN RESOURCES
Overall percent daily/monthly/annual absenteeism indirect labor as a percentage of direct labor average direct labor operators per supervisor annual labor turnover
HUMAN RESOURCES
Direct Labor dollar cost per clock hour dollar cost per SAH earned excess cost per SAH Product Quality returns per 100 units in-process defects per 100 units outgoing defects per 100 units
HUMAN RESOURCES
Training training cost per hire training cost per operator average success rate per hire
INVENTORY
Turnover material inventory turns per year work in process (hours, days, weeks) finished goods inventory turns per year total inventory turns per year
INVENTORY
Distribution Center Customer Services shipping cost per dozen average time to process and ship orders unit volume per cubic foot percentage order accuracy percentage of complete shipments percentage of on time shipments
Space
average
production space per SAH average production space per dollar sales average production space per employee distribution space per SAH distribution space per dollar sales building costs per dollar sales per SAH dollar cost per SAH earned rental cost per dollar sales per SAH rental cost per dollar sales per SAH per square foot
Equipment investment per dollar sales investment per SAH produced Material Utilization percentage marker efficiency spreading efficiency losses at ends, splices, and edges
Labor 0 1 2 3 4 5 6 7 8 9 10
TPL
0
APL 14.0 70.0 106 127.3 139.2 144.3 144.3 140.0 132 120.7