Cost Effective Production

By Abbie Batten

Why must Cadbury and other businesses always seek to be cost effective?

A business needs to strive towards being cost effective to produce the most economical outcome for consumers.

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.

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

CAD is computer aided design.

CAM is computer aided manufacture.

CIM is computer integrated manufacture.

Cadbury would make use of CAD as the packaging of the products will look much more professional and up to high standards.

They may use CAM as they may need to have help from computers to keep track of stock and productivity etc.

CIM may be used as Cadbury's may need help integrating their products and how they work?

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

Cadbury are unlikely to use Electronic funds that transfer at point of sale as they do not sell straight to customers, they sell to companies which then sell on to the public.