Final answer:
Key metrics for a calculator manufacturing company transitioning to a single-piece flow are the inventory turnover rate and production cycle time, which affect efficiency and quality control. Additional productivity measures include machinery uptime and defect rates. The company should also consider economies of scale to reduce average production costs.
Step-by-step explanation:
When evaluating the transition from batch manufacturing to a single-piece flow process in a calculator manufacturing company, several key metrics should be considered. These include the inventory turnover rate and production cycle time. These metrics are crucial for assessing the efficiency and responsiveness of the production process. A single-piece flow can significantly reduce the time calculators spend in the production process, decrease work-in-progress inventory, and potentially improve quality control by simplifying the tracking of defects and reducing variability in the production process.
Productivity can also be measured beyond the amount produced per hour of work, such as through the uptime of machinery, the rate of product defects, customer satisfaction levels, and cost savings from reduced inventory storage. Furthermore, taking advantage of economies of scale can lower the average cost of production as the quantity of output increases. This concept is essential for larger production facilities aiming to leverage their capacity for cost-efficient manufacturing.
The choice of production technology and scale of production are also essential decisions for the firm; the firm should opt for the technology that leads to the lowest total cost and the optimal scale that capitalizes on economies of scale.