Term
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Definition
| a complex part of any business; must be measured |
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Term
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Definition
| a big problem for many printers |
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Term
| knowing a company's true costs |
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Definition
| a key to survival in print manufacturing |
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Term
| Budgeted Hour Cost Rate System |
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Definition
| an accounting related procedure by which all costs are identified for each production center of a plant, then are broken down into hourly amounts used to estimate a customer's job |
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Term
1. BHRs for each production center
2. standard production data for that manufacturing area |
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Definition
| two components of budgeted hour cost rate systems |
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Term
1. management uses production costs to determine pricing
2. production times are used for scheduling each production step |
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Definition
| why budgeted hour cost rate systems are important |
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Term
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Definition
| a production center is also known as this |
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Term
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Definition
| an area where production activities are completed; most have equipment and employees |
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Term
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Definition
| a typical job uses numerous _____ _____; each adds to the final jobs and its costs |
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Term
| standard production times and BHRs |
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Definition
| used to charge customers based on the amount of time it takes in each cost center |
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Term
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Definition
| once the production components are developed, they are assigned one of these |
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Term
1. provides a framework for data collection
2. every production operation can be quantified
3. identifying center is essential to building BHRs |
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Definition
| purpose of an operation code |
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Term
1. output per unit of time
2. time per output quantity |
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Definition
| two ways production standards are used |
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Term
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Definition
| are "technical standards"; state specific procedures for a given job |
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Term
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Definition
| for automated production operations (film processor) |
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Term
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Definition
| operations done entirely by hand (some bindery) |
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Term
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Definition
| combination of machine and manual; most difficult to develop; requires continued re-assessing |
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Term
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Definition
| written standards that define and clarify each employee's tasks and represent criteria for evaluation |
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Term
| standardizing processes and workflow |
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Definition
| success in print production requires this |
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Term
| standardization of process |
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Definition
| the more efficient the manufacturing operation, costs can be reduced providing a competitive edge |
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Term
| standardization of product |
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Definition
| products that have significant common elements yet unique characteristics (web presses, variable-data and some bindery equipment) |
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Term
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Definition
| a certain product with slight variation is manufactured for a range of customers |
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Term
| Standards based on historical plant data through job costing |
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Definition
| most popular; is a comparison of actual vs. estimated times and costs; done after job is completed |
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Term
| standards based on intuition |
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Definition
| commonly done; may not be accurate |
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Term
| standards based on published information |
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Definition
| valuable and inexpensive way to obtain data; may not reflect that company |
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Term
| standards borrowed from the competition |
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Definition
| can provide inaccurate data |
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Term
| standards based on equipment manufacturers' data |
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Definition
| often accurate and provide a good base; may be exaggerated |
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Term
| standards based on plant engineering evaluation |
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Definition
| very precise; commonly used to initially establish production standards; often involves time and motion studies |
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Term
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Definition
| a way to determine the operational cost for a functional production area or piece of equipment |
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Term
| to accurately recover all costs incurred in the production, sales, and administration of the printed product |
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Definition
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Term
| (standard production time x BHR) + material costs + buyout costs |
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Definition
| estimated cost to produce a job |
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Term
1. build master spreadsheet format
2. choose company center and develop specifications
3. calculate BHRs manually
4. electronically develop the spreadsheet
5. check results with manual calculations
6. copy and use for other company BHRs |
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Definition
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Term
1. Dominated by smaller businesses
2. entrepreneur-friendly business-low entry costs
3. materials, labor, and capital intensive business
4. both manufacturing and service
5. intensely competitive
6. technologically unstable |
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Definition
| General characteristics of the printing industry |
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Term
1. develop a successful business niche (specialize)
2. have up-to-date equipment
3. successfully integrate sales, production, and other business aspects
4. work on personnel motivation and personnel relationships
5. have multiple shifts
6. are non-union |
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Definition
| Characteristics of high profit printing companies |
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