Question

Which one of the following is likely to be the most effective and/or competitively attractive way! to try to reduce total production costs per pair at a particular production facility? Reducing the incentive pay per non-defective pair the company offers to production workers Actions to reduce use of superior materials to no more than 10% (so as to conserve on materials costs) Cutting the number of models/styles produced to 50 (so as to minimize production run setup costs) Curtailing actions to reduce the reject rate and cutting expenditures for Six Sigma /TQM programs at each of the company's production facilities Pursuing actions that will better enable the company to operate its production facilities at (or very close to) full production capacity, sometimes including maximum use of overtime SSJ30000000000

Answer 1

1. The most effective and competitively attractive way to reduce the total production costs per pair at a particular production facility of a company will be,
2. Curtailing actions to reduce the reject rate and cutting expenditures for six Sigma or TQM programs at each activity of the company's production.
3. All other options mentioned to reduce the costs will impact the employee benefits or else quality of the product.
4. When a company is trying to reduce costs it should also focus on quality of the product, one cannot reduce quality of the product to reduce costs.