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Journal Article

Equivalence Unit Assumptions on Productivity and Capacity Evaluations

2012-04-16
2012-01-0502
In addition to providing a wide product range and meeting individual requirements of the customers to make the companies able to orient themselves to the competitive conditions in the automotive industry, properly structuring a capacity-productivity calculation algorithm is of a great importance in obtaining a competitive price advantage. In cases product diversity is too wide, and finished products cannot be measured with a single unit, measuring the production efficiency gets complicated. In addition, the ability to analyze all the inputs and outputs of the production with a single unit based on the same value for enterprises instead of analysis of combined units carried out based on a single perspective when calculating the production efficiency of the enterprises underlies continuous improvement and being able to set goals for the processes.
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