utilization

Because competition is getting harder and harder, outsourcing becomes more important for companies. Especially lower labour costs, opening up new markets and capacity bottlenecks are the main reasons for companies to source out. The influence of outsourcing onto a company’s profit and performance was examined on the basis of a survey of Austrian production companies. As a result you can also see risks and the effects of wrong outsourcing in this paper.

Production plant managers try to maximize the machine utilization. In this article it is shown that the operative responsible plant managers should minimize the machine utilization to guarantee minimum cost per unit. Only the sales force has the task to maximize the machine utilization. Operations Management has to organize the production efficiently and has to ensure to meet the customer due dates.