AEGN 3192 lecture 1- Selection and Management of Farm machinery

Optimum level of mechanization is the degree of mechanization that produces the most beneficial production systems in terms of efficiency and economic returns. The performance of a machine system is profitable only when it can add value to products and processes beyond the system’s cost of production. A minimum cost would appear to be an optimum economic goal, but the overall profit maximization is the true goal of business. The manager uses conceptual skills to diagnose and assess different types of management problems because they depend on an understanding of the interrelationships of various factors. Conceptual skills are among the most difficult to develop. The conceptual skills are especially important to managers in making decisions.