d tested to be sure it runs properly. 4.Using the minimizing cost of labor is not the best thing to do. Production is always concerned with cost. By minimizing the cost of labor a company may lose business, have poor customer service, and may not be focusing on the overall picture. Many things need to be taken into consideration and factored in. Just reducing labor costs will not solve problems or necessarily help matters. It can in fact cause a company to lose more money in the end. Effectiveness and efficiency are both important. It is important to do things effectively to get the job done and it is equally important to be efficient and to do things right. For example: A company may employ 35 people who are to make 35 chairs a day. Let us say that the company thinks that cost of labor is too high and want to lower that. Therefor the company lets 10 employees go. The now 25 people are pushed to get the chairs done but they make do. This allows the company to make more profit with lower labor costs. However, the job may be getting done and it may be effective, however it may not be efficient. If the remaining 25 people are pushed to hard and become upset to the point where they do not want to continue with their job or say the quality of chairs were sacrificed, then the company is not doing business in the right manner....
