Quality – to show the quality of a product, a company has to compare the number of good parts produced with the total parts produced. If it produces 100 parts per hour but only 50 of them are of saleable standard, then quality is running at 50%. Value added per person (VAPP) VAPP shows how well people are used to turn raw materials into finished goods. In order to calculate VAPP, three things need to be taken into account: The sales value of a unit after production (output value). The raw material value of a unit before production (input value). The number of direct production process employees. Floor space utilisation (FSU) FSU measures the sales revenue generated by a square meter of factory floor space. Usually to achieve higher FSU the floor space has to be reduced. That means eliminating inventory and reducing the necessary space to a minimum. See also Project management triangle Trilemma References External links Applying QCD to Supply Chain Quality management Cost engineering