![]() The choice obviously depends on anticipated demand. A break-even chart visually presents alternative profits and losses due to the number of units produced or sold. The trade-offs involve the cost of the equipment (the manual drill is inexpensive, and the drill press expensive), the setup time (the manual drill is quick, while the drill press takes some time), and the time per unit (the manual drill is slow, and the drill press quick).Ī standard approach to choosing among alternative processes or equipment is break-even analysis. Given the proper setup, the drill press can drill holes much quicker than the hand drill can. ![]() An alternative special-purpose drill is a drill press. For example, if we need to drill holes in a piece of metal, the general-purpose option may be to use a simple hand drill. More specialized equipment, referred to as special-purpose, is often available as an alternative to a general-purpose machine. Less specialized equipment is referred to as general-purpose, meaning that it can be used easily in many different ways if it is set up in the proper way. In the productprocess matrix ( Exhibit 7.1), there is often a trade-off between more and less specialized equipment. The choice of which specific equipment to use in a process often can be based on an analysis of cost trade-offs. ![]() Please change your browser preferences to enable javascript, and reload this page. You must have javascript enabled to view this website.
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