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Process Planning
In the design of processes there is a certain similarity to the design of products, in that there is a hierarchy of design stages. At the top level, process planning, there is the conceptualisation of several feasible methods of delivering the product or service, followed by the screening and selection of the one to be implemented. There follows the detailed design of the various operations to be performed: facility layout and job design.
A product is currently made in a job shop, where fixed costs are $4,500 per year and variable cost is $10 per unit. The firm sells the product for $70 per unit. What is the break-e
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