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The agency's Air Transportation Operations Inspector's Handbook (FAA Order 8400.10, August 9, 2006) details what a valid FOQA system contains. An excerpt from Volume 1, Chapter 5, Section 2, page 1-221 of this FAA document states: "Flight Operational Quality Assurance (FOQA) is a voluntary safety program designed to improve aviation safety ...
An explanation of the difference between efficiency and (total factor) productivity is found in "An Introduction to Efficiency and Productivity Analysis". [1] To complicate the meaning, operational excellence , which is about continuous improvement, not limited to efficiency, is occasionally used when meaning operational efficiency.
Every decision in the product development process affects cost: design is typically considered to account for 70–80% of the final cost of a project such as an engineering project [1] or the construction of a building. [2] In the public sector, cost reduction programs can be used where income is reduced or to reduce debt levels. [3]
[25] [26] [27] In this case, with perfect competition in the output market the long-run equilibrium will involve all firms operating at the minimum point of their long-run average cost curves (i.e., at the borderline between economies and diseconomies of scale).
A complete compilation of cost-utility analyses in the peer-reviewed medical and public health literature is available from the Cost-Effectiveness Analysis Registry website. [ 6 ] A 1995 study of the cost-effectiveness of reviewed over 500 life-saving interventions found that the median cost-effectiveness was $42,000 per life-year saved. [ 7 ]
X-inefficiency underscores the importance of competition and innovation in fostering efficiency, which can reduce costs for companies, resulting in increased profits and better output and prices for consumers. However, X-inefficiency only focuses on productive efficiency and minimizing costs, not on allocative efficiency and maximizing welfare.
Note that TOC recommends inventory be valued strictly on totally variable cost (TVC) associated with creating the inventory, not with additional cost allocations from overhead. Operating expense (OE) is the money the system spends in generating "goal units." For physical products, OE is all expenses except the cost of the raw materials.
The business needs analysis contributes tremendously to the re-engineering effort by helping the BPR team to prioritize and determine where it should focus its improvements efforts. [21] The business needs analysis also helps in relating the BPR project goals back to key business objectives and the overall strategic direction for the organization.