Which one of the following is not an effective or attractive way to try to reduc

Question

Which one of the following is not an effective or attractive way to try to reduce manufacturing costs per pair produced at a particular plant? Investing in one or more plant upgrades Actions to improve worker productivity Actions to reduce the reject rate Cutting expenditures for Six Sigma/TQM programs to bare minimum levels (no more than $500,000 per year) Actions to operate the company's plants close to or at full-capacity, perhaps by trying to win private-label contracts and use whatever plant capacity exists after producing the desired number of branded pairs to supply private-label footwear to chain retailers

Explanation / Answer

Correct Answer:

Cutting expenditures for six sigma / TQM programs to bare minimum level (No more than $500,000 per year)

Explanation:

It can hinder the process of waste reduction. Thus, manufacturing cost may not come down. Other options given in the question will help in improving productivity, thus, reducing manufacturing cost.

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