GRE Essay – Argument Topic 1
Jul1
Time: 30 mins
The following appeared in a memo from the president of Viva-Tech, a manufacturer of high-tech medical equipment. “In order to reduce costs, we should close some of our existing small assembly plants and build a large central plant. Grandview would be an ideal location for this new plant. First, of the locations that we have considered, Grandview has the largest adult population, so that we
will be able to staff our plant quickly and easily. Second, since the average wage earned by workers in Grandview is less than that in the other locations, we should be able to keep production costs low. Last, as an inducement for us to build there, Grandview’s town council has offered to allow us to operate for the first three years without paying city taxes.”
premise – in order to reduce cost.
conclusion – we should close some of our existing ….and build large central.
assumption -
largest adult population equals effective and efficient workforce, this is not necessary true.
the payrate is not scale with the abilities of the workers
exempt from city taxes is the only fee to operate the plant
The issue of reducing cost by shutting down existing small assembly plants and building a large central plant is a controversial one. Large adult population of Grandview may allow quick and easy deployment of the plant’s staff. Also the competitive pay rate may reduce the cost of production. Finally, the offer of tax exempt from the city may contribute significantly to the overal company’s saving. However, in my final analysis, I think that by building a large central plant in Grandview is not the answer to the company’s plan of reducing cost. I will demonstrate my belief in the following paragraphs.
First, the company fails to create a logical connection between the largest adult population with the ease of deploying the plant’s staff. Adult population can be divided into many category from young adult from college students, college grad, middle age workers, and even retired residents. Young college students may not want to pursue a career at the plants due to constrain in their classes’ schedule. College graduate may or may not want to work at the plan because they think they can make more money working at corporate offices. Middle age workers may possess sufficient knowledge and expertise so that they can run their own company. Retired residents may not want to work at all.
Second, the company assumes that the workers’ pay rate is Grand View is scale with the workers’ efficiency and effectiveness. This is an extravagant mistake that may cost the company more resources rather than reducing production cost. Low paying workers may not have the required skills and knowledge to work in the assembly line immediately. Thus these workers may need to be trained and even further more need to be certified, and tested. The cost to educate these workers may turn out to cost the company more money; Because at the same time these workers are being trained, the company is missing the workforce that is needed to produce goods for sale.
Third, the company fails to assess the total cost to run the plant at Grandview. The city taxes is only a small part of a larger picture of the company’s grand operation cost. How about the cost to build the plant, the cost to transfer all the existing equipments to the new plant, and the cost to build the new plant.
In my conclusion, I think the company’s strategy of abandoning their existing plants and building a new larger central plant in Grandview is not the answer to reduce product cost. The first reason is that the company fails to create a logical connection between the largest adult population with the ease of deploying the plant’s staff. Second, the company assumes that the lower the workers’ pay rate in Grandview, the highest the cost of saving. Third, the company fails to assess the total cost to oeprate the plant at the new location.