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1.EXPLAIN WHAT IS MENT BY CAPITALPRODUCTIVITY?
ANS.CAPITAL PRODUCTVITYCapital deployed in plant, machinery, buildings and thedistribution system as well as working capital are components of the costof manufacture and need to be productive. Demand fluctuation,uncertainties of productivity down. Therefore, strategies are needed tomaximize the utilization of the funds allotted towards capital. Adapting tonew technologies, outsourcing and balancing of the workstations toreduce the proportion of idle times on equipment are the focus of thissection.OUTSOURCING STRATEGIESWhen capacity requirement are determined it will be easyto determine whether some goods or services can be outsourced sothat the capital and manpower requirement can be reduced and theavailable capacities are used to augment core competencies thusreducing the cost of the product or services to the customer. However,the following factors may restricts outsourcing.I.Lack of expertise –the outsourcing firm may not have therequisite expertise to do the job requiredII.Quality considerations-loss of control over operationsmay result in lower quality. This is risk that the firm getsexposed to.III.Nature of demand-when the load is uniform and steady, itmay not be worthwhile to outsourcing. Absence of supervisions and control may be a hindrance to meet anyurgent requirements of the customer. This affects the business especially if no production facilities bare built inthe organizationIV.Cost-when the fixed costs that go along with making the product does not get reduced considerablyMATHODS IMPROVEMENTMethods improvement start with methods analysis.The focus of this process is to find out how a job is done breaking it downto elemental tasks so that they are amenable for analysis. This is done for both running jobs and new jobs.
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