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What Are Some Reasons That Production Output Varies
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Production is referred to as an economic process of converting inputs into outputs, thus the manufacturers are the ones who determine the output of a given product. The production process uses Raw materials (resources) to provide goods and services that are ready for use (James, 2009). According to James (2009) in his book “Statistics, Data Analysis & Decision Modeling” production is a process just like the others processes this is because it requires time and space for the outcome to be realized; thus it is measured in terms of the“rate of output per time”. Thus the difference in time is some of the things that result to the varied values of the outputs as a result of difference in time and space (James, 2009).
The Reasons for the varied outputs includes the varied cost of manufacturing, the cost of storing and the cost of packaging which are seen as varied some include the costs of transporting, raw materials, labour, energy consumption and capital goods.
Explain the difference between common causes of variation and special causes of variation
Common variation is the type of variation that is caused by a system as a whole, this variation is not as a result of a movable cause but it is as a result of the natural process of system (James, 2009). On the other hand special cause of variation is a variation that is resulted from factors that are constantly present in the system or are found from outside the system. With that in mind there are clear differences between common and special causes of variation and these are outline below.
The first difference between the two types of differences is that the special caused variation can be easily eliminated, this is by reacting to the individual variations while in the common caused variable is difficult to eliminate it as a result of dealing with one variable.
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The second difference is that the common caused variable are very severe and once they occur their effects is felt and they will require a long time and more skills to solve the problem at hand; while the special caused variation will require less skill and time to solve (James, 2009).
The other difference between the common and special variable is that the common caused variable outcome will be perfectly be balanced and thus providing a clear perspective of the problem while the special caused variable will be abrupt.
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