Question

The benefit of a flexible manufacturing system is that: a. the necessary skill levels of workers are reduced, allowing the firm to reduce costs. b. it captures the cost savings of economies of scale. c. it lends itself to empowerment of employees. d. the lot size needed to manufacture a firm's product efficiently is reduced.

Answer 1

Answer:

The answer in this case would be the option b. or it captures the cost savings of economies of scale.

Explanation:

• Flexible manufacturing system basically implies the ability of the production or manufacturing system to respond to any predictable or unforeseen changes.Hence,it measures the flexibility level of firms or companies to adjust the production or manufacturing mechanism or procedures to any current or potential changes.
• In this regard,the firms or companies can alter the productive efficiency of the entire manufacturing or production system by employing innovative and productive technological inputs which can influence the productive capacity or efficiency level of the factors/inputs of production.This might be essential as various requirements of production or manufacturing can change periodically.
• Flexible manufacturing system can essentially reduce the per unit production cost or the average cost of production of any firm or company by enhancing the productive efficiency of the factors/inputs of production thereby,increasing the overall production or output volume.This can lead to higher long term profitability of any firm or company.This phenomenon is known as Economies of Scale in Economics which refers to gradual reduction or decrease in the per unit production cost with a simultaneous increase in the production or output level.