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: Nov 7, 2024
  • 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

Lack of motivation and job satisfaction among the workforce can directly lead to lower productivity, disengagement, and ultimately a decline in production efficiency.
The Correct Answer is option (B): 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: Nov 7, 2024
  • 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

The introduction of the new production system that requires highly specialized operators could contribute to inefficiency if the workforce is not properly trained or capable of operating the system efficiently.
The Correct Answer is option (B): 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: Nov 7, 2024
  • 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

The passage highlights that the workforce in the company has reported a lack of motivation and job satisfaction, which is a significant difference between the company and its competitors, who are experiencing higher productivity.
The Correct Answer is option (C): 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: Nov 7, 2024
  • 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

Increased absenteeism reduces the number of available workers, which can delay production and affect overall efficiency.
The Correct Answer is option (C): 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: Nov 7, 2024
  • 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

Focusing on improving employee motivation and job satisfaction can help reduce absenteeism, improve morale, and increase overall productivity, addressing one of the key underlying issues in the company.
The Correct Answer is option (B): Implement a motivation and job satisfaction program for the workforce.

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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: Nov 7, 2024
  • 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

Increased customer complaints about product quality often result in customer dissatisfaction, potential loss of business, and damage to the company’s reputation.
The Correct Answer is option (C): It may lead to a loss of customers and reputation damage.

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