Cost Effectiveness and               Production                    

Cost effective production  -  

The definition of cost effective is something that is a good value, where the benefits and usage are worth at least what is paid for them.


They must be cost effective to maximise their potential profit margin. If they waste their money then this will set them back as they will be trying to make up lost money.

What can help a factory to produce more in less time and therefore reduce costs?

To control stock carefully so as to minimise wastage e.g. Use JIT production.

To use new technology e.g. Robotics

Why might Cadbury try to reduce it’s workforce and produce at the same level?

To save money and be able to spend more money on other areas, like higher quality products, new machinery or to save for a back up in the future.

Does Cadbury use Robotics and JIT?

Yes, Cadbury does use robotics and they believe in the rule, Just in time. This enables them to make more profit while getting rid of stock.