Bridging the gap between production management and economics Part 2: A macroproduction model

SUMMARY

This is the second of two papers. It describes a macroproduction function which follows on from the microproduction model described in the first paper. The macroproduction model is a general management appreciation of the production function. A set of perspectives is integrated to define structural stability. The basic assumption is a relationship between the flow of work and the flow of money, leading towards a ‘first and second law of production dynamics’. The overall production function is defined in terms of levels of structure and structural stability.