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CONTENTS UNIT 5. PRODUCTION COST VS QUALITY UNIT 6. QUALITY MANAGEMENT TEAM |
UNIT 5. Production Cost vs Quality Reading: Offshore Manufacturing
vs. Domestic Manufacturing Grammar: Gerund Video: Reducing Costs and
Improving Quality in Pharma Production Career Skills: Production Costs vs Volume and Quality Dilemma: Reducing Production Costs Keynotes: Production Cost is a cost incurred by a business
when manufacturing a good or producing a service. Production costs combine
raw material and labor. To figure out the cost of production per unit, the
cost of production is divided by the number of units produced. A company that
knows how much it will cost to produce an item, or produce a service, will
have a clearer picture of how to better price the item or service and what
will be the total cost to the company. Preview: 1. Discuss the questions with a
partner. 1. How do enterprises decide what
to produce and how much to produce? 2. How do enterprises determine
production costs? 3. What determines the price? 4. What factors influence a
profit? 2a. A company's total manufacturing
cost is the amount of money spent to manufacture products in a given period.
Understanding the total manufacturing cost is crucial because it can be compared to total revenue and ultimately used to determine your business' profitability. If you are to calculate total manufacturing costs what data would you need to do
that? 2b. Read the information below to check if you were right. The calculations are broken into steps and mixed up. Match the column A with the column B and place them in the right order. Explain your decision.
Reading: 1. You are going to read a text about one way of reducing production
cost. Before you read, check that you understand these important words. Match the words
to the definitions.
Offshore Manufacturing vs. Domestic Manufacturing From factories moving operations overseas to technical support in
India, outsourcing is a
part of everyday business life for many companies. Perhaps the most obvious advantage of offshore manufacturing is the
lower overall cost of production. It’s common knowledge that labor costs are
lower offshore, and raw
materials can often be acquired at better
prices, as well. These materials are of the same high quality that domestic
suppliers provide, but
cost less because the manufacturer’s location is closer to the source of the
material. When it costs less to manufacture a product, it can be sold for less
while still generating profit for the company selling it. Offering a quality
product at lower cost—whether lower than your own initial price or
lower than similar, competing
products—generally leads to more
sales and more satisfied customers. Ultimately, this can help improve the economy of both the country your
company is based in and the country where your contract manufacturing is
done. By reducing production
costs, your business can pass the
saving on to customers; the money consumers save on these products can
potentially be spent elsewhere, thereby helping your local economy grow. The
influx of capital from offshore manufacturing can help other nations’ economies,
giving them a much-needed boost in the challenging global marketplace. 1. Answer the questions. 1.
What is the purpose of offshore manufacturing? 2.
Who benefits from the outsourcing? Why? 3.
Are there any negative effects? What are they? 4.
Are there any other methods that can reduce production cost? Speaking: Make a report on how to reduce materials cost. You can choose 2 or 3
aspects from the list below and focus on them. 1. Substitute Lower Cost Materials
Where Possible 2. Reduce
Waste 3. Eliminate
Unnecessary Product Features 4. Leverage
Suppliers 5.
Buy Need, Not Potential 7. Buy
Bargains 8. Transform
Buyers Into Suppliers 9.
Barter Finished Goods for Raw Materials 10.
Provide Warehouse and Distribution Services 11.
Offer Quick Payment for Lower Prices 12.
Enter Into Cooperative Purchase Agreements to Gain Buying Muscle 13. Negotiate
Long-Term Supply Agreements Video: Reducing costs and improving quality in pharma
production You are going to watch Jan Verelst, SIPAT Business Development Manager, Siemens,
talking about the business benefits of implementing PAT with SIPAT. 1. Before you watch pay attention to these notes explaining the terms
that are used in the video: PAT
(Process Analytical Technology) is a system for designing, analyzing and
controlling manufacturing processes based on timely measurements (e.g. during
processing) of critical quality and performance attributes of raw materials,
in-process materials and processes with the goal of ensuring final product
quality. 2. Now watch the video and fill in the missing information into the
script. Pharmaceutical
and _____ ______ industry make an exceptional contribution to the
health and well-being of people all over the world. At the same time
development and production of _____ is quite costly in terms of energy,
____ and material waste. One major challenge in pharma
is to eliminate all _____ costs. And one important key to achieve this is to
improve process ____ . An efficient process means: ____ your process
performance to improve process understanding; ensuring that your operations
are fully ____ with the regulations; optimally utilizing all your process and
____ equipments, and establishing quality by ____ principles into your
production environments, so you can release your products in ____ time. 3. Answer the questions. -
What is the use of implementing PAT? - How
can SIPAT improve your process understanding? -What
are the SIPAT business benefits according to Jan Verelst?
Give them a brief characteristic. - an
important lever in achieving the business goals -
reduces the risks of non-compliant releases - to
develop a new manufacturing process - can
be set practically out of the box Grammar: Gerund 1. Work individually. Study the information below. A
gerund is a form of a verb that is used in place of a noun
or a pronoun. It has the same form as the present participle (simple form + ing). A gerund can be active or passive, simple or
perfect (the simple gerund refers to the present or future, the perfect
gerund shows that the action of the gerund happened before the action of the
verb).
RULES TO REMEMBER: 1. Gerunds can be the subject
(Swimming is my favourite sport), the object
of a preposition (The student is good at speaking) or the object of
a verb (Helen enjoys reading). 2. Like nouns, we can use gerunds with
adjectives (including articles and other determiners): pointless questioning,
a settling of debts, the making of Titanic, his drinking of alcohol. But when we use a gerund with an
article, it does not usually take a direct object: a settling of debts (not
a settling debts), Making "Titanic" was expensive. The making of
"Titanic" was expensive. 3. If we want to use a verb after
a preposition, it must be a gerund: I will call you after arriving at the
office. Please have a drink before leaving. I am looking forward to meeting
you. Do you object to working late? Tara always dreams about going on
holiday. 4. We use gerund form after certain verbs: admit, appreciate, avoid,
consider, delay, deny, discuss, dislike, enjoy, escape, excuse, fancy,
finish, forgive, go (for activities), give up, can't help, imagine, involve,
keep (= continue), mention, mind, miss, postpone, practise,
prevent, recollect, report, resent, resist, risk, can't stand, suggest,
understand, etc. 5. We use gerund form after
expressions such as: be busy, it’s no use, it’s (no) good, it’s
(not) worth, there is no point (in), have trouble, etc. 6. Some verbs can be followed by
the gerund form or the infinitive form without a big change in meaning: begin, continue, hate, intend,
like, love, prefer, propose, start: I like to play tennis. I like
playing tennis. It started to rain. It started raining. 7. Some other verbs are followed
by both of them, but the meaning changes. Notes: You could replace all the
above gerunds with "real" nouns: I will call you after my
arrival at the office. Please have a drink before your departure. I am
looking forward to our lunch. Do you object to this job? Tara always dreams
about holidays. 2. Complete the sentences with the
gerund form of the verbs in box.
1. He is good at ______. 2. She is crazy about ______. 3. I don't like ______ cards. 4. They are afraid of ______ in
the sea. 5. ______ fruits and
vegetables is good for your health. 6. You should give up ______. 7. Sam dreams of ______ an actor. 8. ______ fun of other people is
not polite. 9. He is interested in ______
friends. 10. My mother is afraid of ______
by plane. 11. She insists on ______ the
dinner herself. 12. ______ a good job is not
easy. 3. Read the sentences. Make
a gerund or gerund phrase from the first sentence. Put that gerund in
the second sentence. The gerund replaces it, this, that, these, and
those in the second sentence. The first one has been done for you. 1. I watch airplanes take
off. It is very relaxing. Watching airplanes take off is
very relaxing. 2. Jack got hit by the ball.
That sent Jack to the hospital. 3. You should brush your teeth
twice daily. This is what all dentists recommend. 4. Franklin was warned about
drinking and driving. It forced him to be much more careful on the highway. 5. She wants to be a
journalist. It is her dream. 6. You have to take the
TOEFL. It is the only way to get into that college. 4. Fill each of the gaps with
suitable words. The first one has been done for you. 1. I can't help ______ worried about
the situation in the Middle East. I can’t help feeling worried
about the situation in the Middle East. 2. I think most people prefer
______ in comfortable cars to going on foot. 3. She loves ______ in the ocean. 4. After ______ my homework
I usually go for a walk. 5. Don't keep on ______ like that;
you will wake up the baby. 6. I enjoy ______ in the afternoon
after ______ my homework. 7. I hate ______ examinations for
fear of ______ them. 5. Form
perfect gerund from verbs in brackets. The first one has been done for you. 1. I don’t remember (to meet) having
met her before. 2. He mentioned (to hear)
__________ it in the day’s news. 3. I don’t remember (to discuss)
________ the matter. 4. He admitted (to commit)
________ that crime. 6. Choose the correct answer. 1. Stop ______ me how to run my
life. a)
tell b)
telling c) to tell 2. ‘I can’t decide what ______to
the party.’ ‘Why don’t you wear your black
dress?’ a)
wear b) wearing
c) to wear 3. We were hungry and I suggested
______ to go to a Chinese restaurant. a)
go b)
going c) to go 4. ‘Did you go to the disco last
night?’ ‘No my mom made me ______ for the
exam instead.’ a) study b)
studying c) to study 5. I want to buy a car as I hate
______ for the bus every day. a)
wait b)
waiting c) to wait 6. ‘Why did you go to the
library?’ ______ some books to read. a)
get b)
getting c) to get 7. ______ Robert that he had lost
his job was the most difficult thing that I've had to do as a manager. 8. ‘Shall we go to a café this
evening?’ ‘I’d rather ______ at home. I’m
very tired.’ a) stay b)
staying c) to stay 9. We used ______ to the south
every summer. a)
go b)
going c) to go 10. There is no point in ______
for the sky. a) reach b)
reaching c) to reach 11. We can't think of ______ a new
house as we haven’t sold the old one. a)
buy b)
buying c) to buy 7. Study the difference in the
meaning of the verbs given in the table below.
8. What are these people saying?
Complete their sentences using a verb from the box in the correct form.
Career Skills: Production costs vs volume and quality Process Task: Imagine that you are
manufacturing managers. You wants to reduce production costs but at the same
time increase volume, and improve quality. Discuss how all three can be
accomplished simultaneously. Choose your roles from the boxes below. Choose the best option and support
your idea with arguments.
Dilemma: Reducing Production Costs
Comment on such statements as: - Manufacturing managers try to do
three basic things: increase volume, reduce costs and improve quality. With
the right technology, all three can be accomplished simultaneously. - An effective strategy for
reducing production costs is to redesign the product. - When a company trains its
employees to be aware of how to reduce costs and informs them of progress,
production workers become partners in cost reduction. Word list
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