Referring to Chapter 5 how can you determine the strengths a

Referring to Chapter 5, how can you determine the strengths and weaknesses of a production department? Why is it important in determining the resources needed for a new venture?

Solution

Answer:

Production Department:

It is the department where inputs are converted into finished goods through a production process. Following questions will help in determining the strengths and weaknesses of production department.

1. Is production department using its full capacity?

2. Is production department producing goods of standard quality?

3. Is production department incurring cost as per standard and budget?

4. Is production department having flexibility in the terms of production units?

5. Are employees of production department happy and satisfied with their job?

6. Are proper training of workers happening in department?

7. Is production department having sync with other departments?

Before starting new venture one must consider strengths and weaknesses of production department. Production department analysis will help in determining the cost of new venture\'s product, amount of resources needed, quality of workforce required, personnel required in production as well as other departments etc. For successful set-up of new venture, prior analysis of strengths and weaknesses of production department is required.

Analysis of strengths and weaknesses of production department is important in determining the resource needed because it will not only quantify the resources needed but also help in using those resources effectively.