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24 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."
8.12;14:07--14:37 ;440
If we analyze the argument carefully we will inevitably find there are several crucial flaws with the conclusion of buliding a large central plant in Grandview.
First of all, the arguor unfairly assume building a large central plant will reduce costs for the manufacturer. At the beginning, there is no information provided indicationg there is a need for Viva_Tech(VT) to build a large central plant. It is likely the existing small assembly plants can meet the need of VT. What's more, there is also no comaparison between the cost of the existing small plants and the new plant. As we know, building a plant, especially a large one, will need a lot of money for the new buildings, new employees, and the place. It is highly possible that the cost of building the new plant is much more than the cost of the existing ones. The arguor cannot reach the conclusion of the building of a new plant will saving money for VT without providing clear statistics.
Furthermore, even if we admit that there is really a need for building a large central plant and the new plant wil save money for VT,the suggestion of choose Grandview as location is still problematic. Firstly, the largest adult population does not automatically lead to the result of being able to staff the new plant quickly and easily. Whether the people in Grandview are fit for the job in the new plant? What about the knowledge level of the population? Are the people there willing to work in the plant? The arguer does not give us any evidence to guarantee a positive answer to the above questions. Moreover, the average wage of the workers in Grandview is less than that in the other locations also does not guarantee a low cost of the production. There are many other factors determining the costs of the production, such as the supply of the material, the costs of the equipments, the money spent on ads and so on. Additionally, although the new pland do not need to pay city taxes for the first three years, what about the following years? It is probably that the taxes will be much larger than other cities. Finally, the arguer also ingnores other factors influencing the further of the new plant, such as the tranfic, the weather, the terran of the Grandview. We can suspet that the condition of the roads connecting Grandview and other cities is too poor to satisfy the transport of materials and productions.
Judging from all the factors discussed above, we can see that this argument is lacking of sufficient and powerful evidence to support its conclusion.
[ Last edited by staralways on 2005-8-12 at 22:42 ] |
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