Question

Cyclone Cycles is a leading bicycle manufacturing company. The company decides to manufacture 5000 bicycles by the end of the month. The bicycle manufacturing cost is to be kept below Rs.750 per unit. The bicycles have to be manufactured at the set toughness enduring capacity at the scale of 8 out of 10. With all these parameters in mind the company kick starts its manufacturing. By the 28th of the month the company is able to achieve the manufacturing of 5050 bicycles. The toughness endurance scale is well above 8.25 out of 10. When everything seems to have gone well the manufacturing department reveals that per unit cost of each bicycle is Rs.780. Comment on the effectiveness and efficiency of the company giving reasons.

Answer 1

Comment on the given case study.

Explanation:

In the given case,it has been stated that the Cyclone cycles company had decided to manufacture 5000 bicycles as per its budget,cost per unit being proposed to be Rs.750 and ensuring 8 out of 10 rating in toughness endurance capacity scale.

Now,by 28th of month,the company was able to achieve its budget production i.e it produced 5050 bicycles,toughness rating achieved being 8.25 out of 10 but the cost per unit was exceeded to Rs.780,budgeted being Rs.750.

Therefore,the conclusion of the given case study can be provided as follows:

The company was able to achieve its planned production limit and achieved its toughness rating,even better being 8.25 than the budgeted 8 out of 10.This showcases that the Effectiveness within the company has been achieved very well as the target was also achieved by the deadline date of 28th.

However,the company was unable to achieve its efficiency level since the cost per unit was increased to Rs.780,budgeted being Rs.750.

Answer 2

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Comment on the given case study.

Explanation:

In the given case,it has been stated that the Cyclone cycles company had decided to manufacture 5000 bicycles as per its budget,cost per unit being proposed to be Rs.750 and ensuring 8 out of 10 rating in toughness endurance capacity scale.

Now,by 28th of month,the company was able to achieve its budget production i.e it produced 5050 bicycles,toughness rating achieved being 8.25 out of 10 but the cost per unit was exceeded to Rs.780,budgeted being Rs.750.

Therefore,the conclusion of the given case study can be provided as follows:

The company was able to achieve its planned production limit and achieved its toughness rating,even better being 8.25 than the budgeted 8 out of 10.This showcases that the Effectiveness within the company has been achieved very well as the target was also achieved by the deadline date of 28th.

However,the company was unable to achieve its efficiency level since the cost per unit was increased to Rs.780,budgeted being Rs.750.