Comprehension
Imagine you have just been appointed as a consultant for a manufacturing company that is experiencing a decline in its production efficiency. The company produces a wide range of products, and the management is concerned about the overall output. Your task is to identify the root causes of this decline and recommend solutions.
As you begin your investigation, you gather information and observe the following: 
• The company recently introduced a new production system that is more automated but requires highly specialized operators. 
• The workforce has reported a lack of motivation and job satisfaction, which has led to increased absenteeism. 
• There have been several breakdowns in the new machinery, leading to production delays and quality issues. 
• The company’s competitors have adopted similar automation technologies and are experiencing increased productivity. 
• Customer complaints about product quality have increased in recent months.
Question: 1

Based on the information provided, which of the following is a potential root cause of the decline in production efficiency?

Updated On: Jun 10, 2025
  • The introduction of a new production system
  • Lack of motivation and job satisfaction among the workforce
  • Increased absenteeism
  • Breakdowns in machinery
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The Correct Option is B

Solution and Explanation

Step 1: Analyzing the provided information:
The passage outlines several factors that may be contributing to the decline in production efficiency, including the introduction of a new production system, workforce issues, machinery breakdowns, and customer complaints.

Step 2: Identifying the potential root causes:
- The new production system: While it requires highly specialized operators, the system itself is not inherently inefficient, and similar automation technologies have led to increased productivity for competitors.
- Lack of motivation and job satisfaction among the workforce: This is a key factor mentioned in the passage, leading to increased absenteeism. Disengaged employees often have lower productivity, which can directly affect production efficiency.
- Breakdowns in the new machinery: These breakdowns are causing production delays and quality issues, but this may be a symptom of poor maintenance or insufficient training rather than the root cause itself.
- Increased customer complaints: Customer complaints are a result of quality issues but are more of an outcome of other underlying problems (e.g., machinery breakdowns, workforce dissatisfaction).

Step 3: Conclusion:
The root cause of the decline in production efficiency seems to be the lack of motivation and job satisfaction among the workforce, as it directly affects employee attendance and engagement, leading to lower overall productivity.
Therefore, the correct answer is Lack of motivation and job satisfaction among the workforce.
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Question: 2

What makes the introduction of the new production system a potential contributing factor to the decline in efficiency?

Updated On: Jun 10, 2025
  • The system is highly automated
  • It requires specialized operators
  • The machinery is prone to breakdowns
  • Competitors have adopted similar technologies
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The Correct Option is B

Solution and Explanation

Step 1: Analyzing the introduction of the new production system:
The new production system introduced in the company is more automated, which is a positive aspect in terms of potential efficiency improvements. However, the passage highlights that it requires highly specialized operators.

Step 2: Identifying the challenges posed by the new system:
- The need for specialized operators could be a key factor contributing to the decline in efficiency. If the operators do not have the required skills or training, this can lead to delays, errors, and breakdowns in machinery. Additionally, this could increase the need for training, which might not be immediate or effective.
- Lack of specialized knowledge or improper handling of the machinery could also cause breakdowns, leading to further delays and lower overall productivity.

Step 3: Conclusion:
The introduction of the new production system requires specialized operators, which could lead to inefficiencies if the workforce is not adequately trained or equipped to handle the advanced machinery. Therefore, the correct answer is It requires specialized operators.
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Question: 3

What is a critical difference between the company’s situation and that of its competitors?

Updated On: Jun 10, 2025
  • Both the company and its competitors have introduced new production systems.
  • The competitors have experienced increased customer complaints.
  • The company’s workforce lacks motivation and job satisfaction.
  • The company’s machinery is prone to breakdowns.
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the situation of the company:
The company is facing a decline in production efficiency, which is partly due to a lack of motivation and job satisfaction among its workforce. This has led to increased absenteeism, machinery breakdowns, and production delays.

Step 2: Understanding the situation of the competitors:
The competitors, on the other hand, have adopted similar automation technologies and are experiencing increased productivity. This suggests that the competitors are effectively using the technology and maintaining a motivated workforce.

Step 3: Identifying the critical difference:
The key difference between the company and its competitors is that the company’s workforce lacks motivation and job satisfaction, which is affecting its overall productivity. In contrast, the competitors seem to have better engagement and motivation among their employees, contributing to their improved productivity.

Step 4: Conclusion:
The critical difference between the company’s situation and that of its competitors is The company’s workforce lacks motivation and job satisfaction.
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Question: 4

How might the increased absenteeism affect production efficiency?

Updated On: Jun 10, 2025
  • It might lead to increased quality issues.
  • It might result in longer machinery breakdowns.
  • It could lead to delays in production.
  • It has no impact on production efficiency.
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the impact of absenteeism on the workforce:
Absenteeism occurs when employees miss work due to illness, personal reasons, or lack of motivation. In this case, the passage mentions that absenteeism has increased due to a lack of motivation and job satisfaction among the workforce.

Step 2: Analyzing how absenteeism affects production:
- When employees are absent, it can lead to a shortage of workers, affecting the smooth flow of production. This could delay the completion of tasks and reduce the overall output of the company.
- With fewer workers available, the company may also experience delays in operating machinery, which can further impact production efficiency.

Step 3: Conclusion:
Increased absenteeism could lead to delays in production because there are fewer workers available to operate machinery, complete tasks, and meet production deadlines. Therefore, the correct answer is It could lead to delays in production..
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Question: 5

What could be a possible solution to address the decline in production efficiency?

Updated On: Jun 10, 2025
  • Hire more specialized operators for the new system.
  • Implement a motivation and job satisfaction program for the workforce.
  • Upgrade the machinery to reduce breakdowns.
  • Purchase new machinery to replace the automated system.
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The Correct Option is B

Solution and Explanation

Step 1: Analyzing the causes of the decline in production efficiency:
The passage highlights that the decline in production efficiency is largely due to a lack of motivation and job satisfaction among the workforce, leading to increased absenteeism and lower overall productivity.

Step 2: Identifying the importance of motivation and job satisfaction:
Motivation and job satisfaction play a crucial role in ensuring that employees are engaged, committed, and productive. When employees feel valued and are satisfied with their work environment, they are less likely to take time off and more likely to put in their best efforts, which directly impacts production efficiency.

Step 3: Implementing a solution:
To address the decline in production efficiency, a possible solution is to implement a motivation and job satisfaction program. This program could include: - Offering rewards and recognition for good performance. - Providing opportunities for career development and growth. - Ensuring a healthy work environment that promotes employee well-being.

Step 4: Conclusion:
The most effective solution to address the decline in production efficiency is to Implement a motivation and job satisfaction program for the workforce, which can improve engagement and productivity.
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Question: 6

Based on the information provided, what is a potential consequence of increased customer complaints about product quality?

Updated On: Jun 10, 2025
  • It indicates that the company’s competitors are also experiencing quality issues.
  • It suggests that the company’s products are meeting customer expectations
  • It may lead to a loss of customers and reputation damage.
  • It shows that the company’s automated system is performing well.
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The Correct Option is C

Solution and Explanation

Step 1: Analyzing the impact of customer complaints on the company:
The passage mentions that there has been an increase in customer complaints about product quality. This suggests that the company is facing issues with the consistency and reliability of its products, which directly affects customer satisfaction.

Step 2: Identifying potential consequences of these complaints:
- Increased customer complaints are usually a sign of dissatisfaction, which can have serious consequences for the business. - If the product quality continues to be subpar, customers may lose trust in the company’s products and services.

Step 3: Possible consequences:
- A loss of customers could occur as dissatisfied buyers may switch to competitors who offer better quality products. - Reputation damage is also a significant risk, as negative word-of-mouth or online reviews can harm the company’s image and deter potential customers.

Step 4: Conclusion:
A potential consequence of increased customer complaints about product quality is that it may lead to a loss of customers and reputation damage, which can further affect the company’s sales and growth.
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