Question : Case Study 7:
RST Motors is an automobile manufacturer. The company wants to implement an effective control system to ensure that its production processes meet the required quality standards.
Question:
How would RST Motors benefit from an effective control system?
Option 1: By lowering production costs.
Option 2: By reducing employee training.
Option 3: By discontinuing certain products.
Option 4: By expanding its market reach.
Correct Answer: By lowering production costs.
Solution : The correct answer is (a) By lowering production costs.
RST Motors would benefit from an effective control system by lowering production costs. An effective control system helps monitor and regulate the production processes to ensure they adhere to the required quality standards. By maintaining consistent quality, the company can reduce the likelihood of producing defective or substandard products. This, in turn, leads to a reduction in waste, rework, and the need for additional resources to fix quality issues. Lowering production costs is a significant benefit of effective control because the company can operate more efficiently, allocate resources optimally, and deliver products that meet quality standards without incurring unnecessary expenses.
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