Posts Tagged ‘Capacity Cost’

Fixed and Variable Costs — The Dilemma

Back in my college days, the university required two courses in economics: Macro Economics and Micro Economics. It was hard to reconcile the two courses. What is hard fact in one was flakey in the other – and vice-versa. As a student it drove me crazy.


Teams Have Responsibility for Idle Capacity

Years ago, I joined an established semiconductor firm. The firm was constructing a new manufacturing facility. In the industry, this is a wafer fab in which to make electronic circuits on silicon wafers. Wafer manufacturing facilities are enormously expensive. The decision to build the facility was made when times were good and wafer manufacturing capacity […]


Idle Capacity: Boiled Alive by Cost Management

When conditions gradually change, we often fail to recognize the magnitude and consequences of the change. Consequently, we also fail to take action appropriate to the change. Just as a frog swimming in a pot of cool water over a fire, fails to recognize the gradual warming until it is too late, we continue with […]