Answer to Question #207982 in Economics of Enterprise for AbdeAli

Question

.4. Wong Thien runs the family’s noodle-making factory, which has been operating in Jeranjum, Malaysia since 1950. The noodle–making process involves each worker blending ingredients to make the dough, kneading the dough with long wooden rolling pins, and cutting noodles to various sizes. Wong’s factory now supplies 70% of the noodle-based food stalls in the town. He is considering introducing division of labor in the process in order to increase productivity. A). With reference to the data and your knowledge of economics, evaluate whether introducing division of labor is the best way for Wong to increase productivity in his noodle-making factory. (6 marks). 

Answer 1

The introduction of division of labor is the best way for Wong to increase productivity in his noodle making factory due to the following reasons:

• In labor division, workers have to master only a small number of tasks which requires quite less training.
• It will be faster for one worker to use one tool in doing a single job.
• Workers in the factory will be loyal to their areas of specialization and hence a great achievement will be realized from their branches of production.
• The rate of production will be swift as there will be no wastage of time by a worker dropping a tool and picking up another.
• Workers will pay attention to those jobs in which they are well equiped with the necessary skills and the areas that will suit their temperament.

$\therefore$ division of labor is necessary in this factory given the fact that it produces high volumes of output from the production process to be supplied in 70% noodle based stalls in town.