Question : Case Study 19:
EFG Manufacturing is a company that produces consumer goods. The management team at EFG wants to implement a robust control system to improve productivity and optimize resource utilization.
Question:
How can EFG Manufacturing benefit from an effective control system?
Option 1: By increasing employee turnover.
Option 2: By raising production costs.
Option 3: By optimizing resource utilization.
Option 4: By reducing market competition.
Correct Answer: By optimizing resource utilization.
Solution : The correct answer is (c) By optimizing resource utilization.
EFG Manufacturing can benefit from an effective control system by optimizing resource utilization. A well-implemented control system helps the company identify inefficiencies, reduce waste, and improve the allocation of resources. This can lead to cost savings, increased productivity, and better overall performance, contributing to the company's success and competitiveness. The other options, such as increasing employee turnover, raising production costs, and reducing market competition, are not typically outcomes of effective control systems; in fact, an effective control system aims to mitigate such negative impacts.
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