Question

'Alpha Manufacturing Ltd.' is a company manufacturing high quality car spare parts. The company has a well-established production line and its products are highly demanded in the market. However, it was noticed that the defect rate in the manufacturing process was higher than the standard of 10 per 1,000 pieces produced. In spite of best efforts, the Production Manager was not able to reduce the defect rate. So, he decided to revise the standards.

The step of the controlling process, followed by the Production Manager after not being able to reduce the defect rate, will be:

(A) Taking corrective action

(B) Measurement of actual performance

(C) Analysing deviations

(D) Comparing actual performance with standards

Answer 1

Correct option is : (A) Taking corrective action

The controlling process involves setting standards, measuring actual performance, comparing actual performance with standards, analyzing deviations, and taking corrective action. In this case, the Production Manager, after failing to reduce the defect rate despite efforts, revises the standards, which is a step within the controlling process.

Answer 2

Correct option is: (A) Taking corrective action