Author Question: Product Focused processes (Read 22 times)

PhilipSeeMore · **on:** Dec 3, 2019

Question 1

The crossover point is that production quantity where
◦ fixed costs of a process are equal to its variable costs.
◦ variable costs of one process equal the variable costs of another process.
◦ total costs for one process equal total costs for another process.
◦ total costs equal total revenues for a process.
◦ the process no longer loses money.

Question 2

Product Focused processes
◦ apply only to service firms, not to manufacturers.
◦ allow more customization, but are not very efficient.
◦ are processes that are specialized for relatively few products or customer groups.
◦ are profitable because customers demand flexibility, not specialization.
◦ are desirable because resource needs increase slowly with the complexity of a process.

nicoleclaire22 · **Reply #1 on:** Dec 3, 2019

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