1-55). Therefore, the lesser defects, the higher the quality.
Cost is a crucial metric of production in terms of considering that costs of materials and labor would be an input to the unit price of the products being offered. Thus, the lower the costs of the materials and labor, the lower the unit price that the organization could peg to the consumers. This cost component would be instrumental in the pricing strategy that would be designed to ensure competitive advantage within the specialty memory chip market.
Timeliness was described as “whether a unit of work was done on time” (Section 1: Development Process, n.d., p. 1-55). This metric measures the ability of the organization to produce in the most limited number of time and within the stipulated delivery period. Since there is a noted pre-order of as much as 10 million units of a new cellular phone memory chip, the time element is crucial to ensure that these parts are delivered within the given time frame.
Currently, flexibility is a metric that needs evaluation and focus. With the identified six key products and 24 distinct products, customers who might require specialized parts that cater to their distinct needs and requirements. Thus, there is a need to evaluate standardization of products produced using similar machines. or producing more varied products with standardized machines.
Productivity is actually defined as “the amount of a resource used to produce a unit of work” (Section 1: Development Process, n.d., p. 1-55). This is an important metric since it defines the number of output produced using the amount of inputs (raw materials and labor). The organization’s productivity would therefore be measured according to how efficiently the resources are used to produce the needed products.
Efficiency is deemed an important metric of production since it ensures that a task (production) is undertaken with the minimum use of resources but that which optimized the outcome.