Paper 2 · operations management and production
An Operations Manager wants to improve capacity utilisation without buying new machinery. Which of the following actions would achieve this?
AReducing the number of quality control checks performed on finished output.
BIncreasing the selling price charged for every unit produced.
CReducing the number of supervisors employed on the factory floor.
DSubcontracting some of the excess production work to another producer.
Explanation: Subcontracting excess work to another producer allows the manufacturer's existing capacity to be used more fully for its own core output, raising capacity utilisation. Cutting quality checks, raising prices or reducing supervisors do not increase the proportion of capacity actually being used.
Derived from ZIMSEC Business_studies Paper 2, November 2018, Q5
