As a manufacturer, I think improving our productivity is important considering that the economy has not fully recovered. Shouldn't we encourage a big lot production?
If you only think about productivity, other problems will occur. Actually a bigger lot production could reduce production cost but at the same time it increases products in process and stock.
What kind of problems would happen if products in process and stock are increased?
仕掛品や在庫が増加するとどんな問題が起きるんですか？
It increases assets. Then it means we would have low asset turnover and it affects our profitability. On top of that, our funds would be absorbed by processing and stock costs that couldn't be recovered, so eventually it would cause cash-flow problems.
