Cost Effective Production

By Anita Basra

1. Why must Cadbury (and other businesses) always seek to be cost effective?

Businesses must always be cost effective, because they should invest money in new technology instead of the businesses efficiency.

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

You can firstly improve on its productivity, you can do this by getting more workers, by this you would get more number of goods. As this is about, reducing cost you can, work the machines faster.  Other ways are to control stock carefully, to minimise wastage, for example use the JIT method (Just In Time).

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

Cadbury might want to reduce its workforce because of the wages of the workers, it can be more expensive than the machines. also the machines work faster. Although the machines are expensive it can then later on be free. Another reason why cadburys might want to do this because machines work way faster than a worker.

4. Does Cadbury use Robotics and JIT?

Yes, Cadbury does use JIT because it can control stock carefully so it can reduce the waste. Also Cadbury's new technology is Robots.

5. What are CAD, CAM or CIM? Do you think Cadbury would make use of any of them? How?

  • CAD- Computer aided design - used to design new products.
  • CAM-Computer aided manufacture-controlling production machines using computers
  • CIM- Computer Integrated manufacture- Where the whole factory is computer controlled also it usually involves robots.

Cadbury would make use of these, because it can help improve the business a lot for example CAD, this can be a use because it can help Cadbury think of new ideas and thoughts.  

Which one of the 4 methods of cost effectiveness on is Cadbury NOT likely to have used? Why?

Cadbury is not likely to have used CIM because it is also has workers aswell as it has machines.