Increasing Capacity tends to
A. reduce the Needed Complement
B. reduce the number of workers on Second Shift
C. reduce Overtime
The correct answer and explanation is :
The correct answer is C. reduce Overtime.
Explanation:
Increasing capacity in a production or operational context refers to the ability to handle more work or produce more products. When a company or organization increases its capacity, it typically means they have more resources, equipment, or labor available to meet demand without needing to resort to additional temporary measures such as overtime. Here’s how each option relates to this:
A. Reduce the Needed Complement
This is incorrect. Increasing capacity doesn’t typically reduce the “needed complement,” which refers to the necessary workforce or resources to meet production demands. In fact, increasing capacity could involve expanding the workforce or increasing equipment usage. However, the idea of complement refers to ensuring there are enough resources for the task, and this wouldn’t necessarily decrease with added capacity.
B. Reduce the Number of Workers on the Second Shift
This is also incorrect. The second shift usually exists because the capacity during regular hours (the first shift) isn’t enough to meet demand. If capacity is increased, it may reduce the need for second-shift workers, but this is not guaranteed. It depends on the nature of the capacity increase (whether it involves automation or additional equipment during the first shift, for example).
C. Reduce Overtime
This is the correct answer. Overtime is typically used when regular shifts and capacity are not sufficient to meet demand. By increasing capacity—whether through additional workers, extended shifts, or automation—the organization can handle the workload within regular working hours. As a result, the need for overtime decreases because more output can be achieved within the standard operating hours.
Increasing capacity allows an organization to produce more without overworking employees or paying extra for overtime, which can be costly and potentially lead to employee burnout. By optimizing capacity, companies ensure they meet demand efficiently without the reliance on excessive work hours.
Here is the infographic illustrating how increasing capacity can reduce overtime in a business. It shows how enhancing production capacity can help reduce the need for overtime, leading to more efficient use of regular working hours.