Question 9 k Previous Next > Which one of the following is likely to be the most
ID: 434857 • Letter: Q
Question
Question 9 k Previous Next > Which one of the following is likely to be the most effective or attractive way to try to reduce manufacturing costs per pair produced at a particular plant? o Reducing piecework incentive payments to plant employees o Curtailing actions to reduce the reject rate and cutting expenditures for Six Sigma ITQM programs to $500,000 or less at each of the company's plants O Actions to avoid any use of superior materials (so as to conserve on materials costs) Cutting the number of models/styles produced to 50 (so as to minimize production run setup costs) Pursuing actions that will better enable the company to operate its plants at (or very close to) ful production capacity, including maximum use of overtime Copying, redistributing or website posting is expressly prohibited and constitutes copyright violation Copyright o 2018 by Glo-Bus Software, Inc Next >Explanation / Answer
Answer: (E) Pursuing actions that will better enable the company to operate its plants at (or very close to) full production capacity, including maximum use of overtime.
Explanation: Of the given alternatives, the most effective or attractive way to reduce manufacturing costs per pair produced at a particular plant is by taking actions that will help the management of the company to effective utilise the production capacity of the plant and ensure that the production levels are in line with the capacity of the plant. The better and higher the productivity of the plant is, higher would be the volume of the pairs produced. Higher volume of pairs produced will subsequently bring down the per pair manufacturing costs. This strategy will also include making the maximum use of workers’ overtime.