The following appeared in a presentation by the chief production manager of a machine parts manufacturing company at a management meeting:
“Our factory in Cookville is our most advanced and efficient. It is capable of producing ten drill bits for each dollar of production costs, whereas none of our other factories can produce more than seven drill bits per dollar of production costs. Therefore, we can reduce our overall drill bit production costs by devoting the Cookville factory entirely to drill bit production. Since reducing the production costs of individual machine parts is the only way to achieve our larger goal of reducing our overall production costs, dedicating the Cookville factory entirely to drill bit production and shifting all other machine part production to our other factories will help us to attain that larger goal.”
Discuss how well reasoned . . .etc.
1. Is there any kind of costs other than production costs when drill bits are produced? What if there are other kinds of costs during the production, and that the total cost to produce A is greater than those of drill bits produced in other factories？
2. The manager fails to take this into account that the drill bits produced by other factories may be much more profitable with a higher quality than those produced by the factory in Cookville.
3. The manager takes it for granted that reducing the production costs of individual...is the only way to achieve their larger goal of reducing the overall production costs without any evidence to support this conclusion.
够写了么？
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