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Improve Performance with Opportunity Costs

“Clearly defining and quantifying the benefits that are given up due to suboptimal performance can be a strong incentive for making necessary improvements.”

Opportunity costing is key to connecting monetary and operational metrics and optimizing the conversion process. Opportunity cost is defined as a benefit that could have been received, but was given up to take another course of action. How does this apply to manufacturing cost performance?

Read More at Automation World >