Automation reduces per unit labor costs but it has several, Ask an Expert

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Automation reduces per unit labor costs but it has several disadvantages. What are some of these? (Pick one answer)

1. Higher automation is costly, and it ncreases the length of time required for R&D projects on the product-line - making product re-positioning more difficult. Depending on overtime (second shift costs), separation costs may be incurred as a result of the requirement for fewer workers.

2. Automation increases the price of products, makes products less reliable, and may reduce the performace (but not the size) of products.

3. Automation decreases the rate at which new workers can be hired, requires additional training on new machinery, and takes three years to implement.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92273354

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