Page 30 - Business-10

Unit14

Manufacturing costs down

Spencer: Well, one of the most important points in the highly competitive field of small cars is to
keep manufacturing costs down.
Yoon: That’s right. I really think so, too. If you’ll ask me, manufacturing costs are the reasons
why cars are getting more and more expensive. If only car companies can think of resourceful
ways to trim down manufacturing costs, then car prices will be lower, and more people will
be able to buy cars.
Spencer: I agree with you! For example, companies can cut down on energy use.
Yoon: Another point to consider is the size of the cars. As you know, there will be less manufac-
turing costs for a compact car. A minimum amount of space is also needed for installation,
but the ease of operation should still be excellent. We cannot compromise the quality of the
product.
Spencer: That’s a good point.
Yoon: This means simply that a lot can be done with to cut down manufacturing costs.
Spencer: We found that out during the tests, but we’re a little worried about durability. Some-
times, some features are sacrificed to lower manufacturing costs.

1. Are you satisfied with the manufacturing costs that your company has at the
moment?

Sample answer:
No, I’m not. We have set a target manufacturing cost and we’re still trying to meet
that goal. Despite this, I’m glad that we are slowly but surely reaching our goal. If we’ll
just be consistent with our performance, and as long as there will not be any drastic
change in the market, I think we’ll be able to reach our target manufacturing cost.

2. How do you plan to cut down manufacturing costs?

Sample answer:
First, we plan to maximize the capabilities of our manpower. We’re planning different
shifting schedules and hours in order to benefit from the skills of our workers when
they’re at their best. Tiredness can also slow down work and make a big dent in manu-
facturing. We’ve also canvassed for cheaper resources in the market. We’re also more
conscious of our energy use. These are our three strategies in cutting down manufac-
turing costs.

3. What part of your manufacturing process costs much? Why?

Sample answer:
It is the assembling stage where we make use of expensive resources and the combi-
nation of manpower and machine power in the work. This stage also uses up a great

30