Product Line Rationalization
Product line rationalization is a very substantial approach to revamp their profits, ease in their logistics, free and utilize their resources, and also as it encourages the employees to work efficiently as it simplifies their work. Product line rationalization is also known as Pareto’s Principle.
Intrinsically, a company’s 80% of the profitability or turnover is only because of the 20% of its products in the market. This occurs, as all the organization give emphasis on adding the more and different products majorly due to Umbrella branding strategy. Furthermore, due to excess competition in the market and sales incentives, the company will follow take all the orders strategy to survive. This leads to ineffectual …show more content…
The term Fordism can be described as achieving mass production by simplifying and standardizing the production process to such level that even unskilled laborer’s can manufacture goods and lower the cost such that even common people become capable to purchase the product with some profitability. This paradigm shift has developed mass production in the automobile industry instead of craft production. The economies of scale came into driving force due to the large-scale production. The Ford’s main contribution in mass production as well as mass consumption was mainly in process engineering. He standardized the whole manufacturing process of an automobile by making optimum utilization of advanced machinery. He installed electric motors, conveyer belt, and formed a continuous moving assembly line in his plant. This made the process working of manufacturing very easy such that even unskilled workers can perform efficiently without any supervision and because of it the production of automobiles was increased on a large scale. But on the contrary it became a perpetual never ending dull and monotonous job. The standardization made the workers displeased. So, to overcome this objection of workers, Henry Ford then decreased the shift-time by 25%and doubled the hourly wages of workers to $5. This strategy lead to a positive impact on the workers although their job was very monotonous, on the manufacturing as well as consuming of the products. Fordism is an excellent example of how can a standardization of the process on manufacturing can motivate the employees to work more efficiently. Although Fordism faced some criticism, it has altogether revolutionized the manufacturing activity of any organization along with its economy. (Cddc.vt.edu,
Product line rationalization is a very substantial approach to revamp their profits, ease in their logistics, free and utilize their resources, and also as it encourages the employees to work efficiently as it simplifies their work. Product line rationalization is also known as Pareto’s Principle.
Intrinsically, a company’s 80% of the profitability or turnover is only because of the 20% of its products in the market. This occurs, as all the organization give emphasis on adding the more and different products majorly due to Umbrella branding strategy. Furthermore, due to excess competition in the market and sales incentives, the company will follow take all the orders strategy to survive. This leads to ineffectual …show more content…
The term Fordism can be described as achieving mass production by simplifying and standardizing the production process to such level that even unskilled laborer’s can manufacture goods and lower the cost such that even common people become capable to purchase the product with some profitability. This paradigm shift has developed mass production in the automobile industry instead of craft production. The economies of scale came into driving force due to the large-scale production. The Ford’s main contribution in mass production as well as mass consumption was mainly in process engineering. He standardized the whole manufacturing process of an automobile by making optimum utilization of advanced machinery. He installed electric motors, conveyer belt, and formed a continuous moving assembly line in his plant. This made the process working of manufacturing very easy such that even unskilled workers can perform efficiently without any supervision and because of it the production of automobiles was increased on a large scale. But on the contrary it became a perpetual never ending dull and monotonous job. The standardization made the workers displeased. So, to overcome this objection of workers, Henry Ford then decreased the shift-time by 25%and doubled the hourly wages of workers to $5. This strategy lead to a positive impact on the workers although their job was very monotonous, on the manufacturing as well as consuming of the products. Fordism is an excellent example of how can a standardization of the process on manufacturing can motivate the employees to work more efficiently. Although Fordism faced some criticism, it has altogether revolutionized the manufacturing activity of any organization along with its economy. (Cddc.vt.edu,