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Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu

Information Systems Spring 2011. Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu. Production Function:. Production function is the specification of the (usually minimum) input requirements needed to produce designated quantities of output, given a certain production technology.

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Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu

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  1. Information Systems Spring 2011 Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu

  2. Production Function: Production function is the specification of the (usually minimum) input requirements needed to produce designated quantities of output, given a certain production technology.

  3. Isoquant: Isocost: A function that shows all possible quantities of inputs that result in the same level of output with a given production function. All combinations of inputs (e.g. labor and capital) into the production function that can be obtained for a fixed outlay.

  4. Objective One: Minimization of cost for a given output Short run Long run

  5. Understand: • Definition of cost • Time frames • Nature of change of cost over time • Cost time and output time matching • Relationship of cost to output • Production Control • Technology Impact • Economies of scope

  6. Sources of Data: Historical -Time series Cross-sectional - Others in the sector or industry Model-based or Predictive - Based on scientific observation

  7. Relationship of cost to output: Process Improvement Common Cause Special Cause Production Control (to be discussed later) Technology Impact Production Technology Change - Innovation Process Technology Change - Process Maturity

  8. Production Control: Objective Two: Minimization of cost for total output Eliminating Waste The six wastes: Over-production Inventory Motion Time (wait-time) Processing Rework

  9. Some Examples: Lot size optimization – interplay between set-up cost and inventory carrying costs Return to scale – Form of the relationship between input and output • Sub-linear • Linear • - Super-linear Output Elasticity

  10. Various Key terms: • Lean • Six Sigma • Kaizan • TQM • CMMI • ISO 9000 • BPR

  11. Design: Principles of Good Design Specific characteristics for each artifact would be different but they need to be identified and measured. Example: CMM/CMMI

  12. Over-production

  13. Inventory:

  14. Motion:

  15. Time:

  16. Processing:

  17. Rework:

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