Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:

In Production Plan, under which situation some or all manufacturing process is to be subcontracted or outsourced.

Options:

No manufacturing involved

Partial manufacturing

Complete manufacturing

Double manufacturing

Correct Answer:

Partial manufacturing

Explanation:

The situation in which Partial manufacturing is involved calls for subcontracting or outsourcing some or all of the manufacturing process.

A partial manufacturing strategy involves producing some of the product's components or subassemblies in-house and outsourcing the production of other components or subassemblies to external suppliers. This strategy can be used to reduce costs, improve efficiency, or gain access to specialized expertise.

Partial manufacturing: If some or all the manufacturing process is to be subcontracted or outsourced, then the production plan should describe:

i) Name and location of subcontractor(s)

ii) Reasons for their selection

iii) Cost and time involved

iv) Any contracts that have been completed etc. In such cases, a clear mention of what entrepreneur intends to do himself and what he plans to get it done from outside is required.