What Is Meant By Capital Productivity In Production Management?


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Capital Productivity
Capital deployed in plant, machinery, buildings and the distribution system as well as working capital are components of the cost of manufacture and need to be productive. Demand fluctuations, uncertainties of production owing to breakdowns and inventories being created drag the productivity down. Therefore, strategies are needed to maximize the utilization of the funds allotted towards capital. Adapting to new technologies, outsourcing and balancing of the workstations to reduce the proportion of idle times on equipments are the focus of this section.

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