Volvo Ltd’s target is to produce 10,000 shirts per month at a cost of’ 100 per shirt. The production manager achieved this target at a cost of’ 90 per shirt. Do you think the production manager is effective? Give one reason in support of your answer.
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Yes, the production manager is both efficient and effective. He is effective because he has achieved the target in time and is efficient because he produced the shirts at a lower production cost.NOTE (i) Effectiveness means completing the task within specified time.(ii) Efficiency means doing the task correctly with minimum cost.
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Volvo Ltd's target to produce 10,000 shirts per month at a cost of Rs. 100 per shirt. The Production Manager achieved this target at a cost of Rs. 90 per shirt. In this situation, Production manager is effective as the production manager did the right things to a required standard of quality.
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