Final answer:
Redesigning the production line to speed up production is an example of business process reengineering as it involves fundamental changes to the process for efficiency. This concept aligns with firms adjusting their production technologies from labor-intensive to machinery-intensive as labor costs rise.
Step-by-step explanation:
Business Process Reengineering (BPR) is about making radical changes to an organization's processes to improve efficiency, reduce costs, and enhance quality. It's not just about incremental improvements or minor updates, but about rethinking and redesigning the way things are done at a fundamental level. When considering the provided options, D. Redesigning the production line to speed up production is a clear example of business process reengineering. This option involves a fundamental rethink of the production process rather than just an update or an addition of new machinery.
In the scenario where the cost of labor rises, leading to changes in production technology use, firms move away from labor-intensive production (technology 1) towards more capital-intensive production (technology 2 or 3). This substitution away from labor and towards machinery as labor costs rise is an example of an organization adjusting its production process in accordance with BPR principles, looking for the most efficient way to structure their production process.