Quote:
Previously, Autoco designed all of its cars itself and then contracted with specialized parts suppliers to build parts according to its specifications. Now it plans to include its suppliers in designing the parts they are to build. Since many parts suppliers have more designers with specialized experience than Autoco has, Autoco expects this shift to reduce the overall time and cost of the design of its next new car.
Which of the following, if true, most strongly supports Autoco’s expectation?
A) When suppliers provide their own designs, Autoco often needs to modify its overall design.
B) In order to provide designs for Autoco, several of the parts suppliers will have to add to their existing staffs of designers.
C) Parts and services provided by outside suppliers account for more than 50 percent of Autoco’s total costs.
D) When suppliers built parts according to specifications provided by Autoco, the suppliers competed to win contracts.
E) Most of the Autoco’s suppliers have on hand a wide range of previously prepared parts designs that can readily be modified for a new car.
adkikani wrote:
Hi
GMATNinja VeritasPrepKarishma GMATNinjaTwoCan you please help me to eliminate C?
In a practical world we outsource few tasks which are either demanding increasing
time or screwing up our business bottom line (eg BPO / Call center / banks) Here we already know that outsourcing parts to suppliers will result in increase in bottom line from argument , and also the time that was earlier utilized in designing own parts can be efficiently used to maximize some other activity.
First of all, Autoco is not simply planning on
outsourcing parts to suppliers. Autoco plans to
include its suppliers in designing the parts. Before, Autoco was designing the parts by themselves, but now they are going to INCLUDE the suppliers in the design process. That doesn't necessarily mean that the suppliers will do all of the design work by themselves.
Also, the suppliers have more specialized experience, but does that necessarily mean lower costs and shorter timelines? Maybe not. Maybe including the suppliers will INCREASE the design times (maybe the specialists are perfectionists and take more time to develop the best designs). Or maybe the specialists will charge a very high rate for their services.
We need something that indicates that including the suppliers will reduce time and cost. The percentage cited in choice (C) won't help us if including suppliers doesn't save us both time and money. In other words, whatever the percentage, we still don't have any reason to think time and costs will be reduced by the plan.
Choice (E), on the other hand, provides evidence that including suppliers
could save time and money. The designers will be able to leverage all of the work that was done on the previously-prepared parts. This should reduce the amount of work that must be done to create new parts. In other words, the designers won't have to start from scratch.
subhash941 wrote:
Though the
OG claims that A is incorrect and it is weakening statement, I strongly disagree with it.
My reasons :
1. You give some specifications to the
manufacturer and the manufacturer will
design the product to meet the specifications. In this case Autoco, in the past used to provide specifications and the manufactures used to design the products according to these specifications.
"A. When suppliers provide their own designs, Autoco often needs to modify its overall design."
So A was taking place in the past. So how is it a weakening statement?
Can anyone clarify?
Regards,
Subhash
(A) was not happening in the past. In the past, Autoco was providing the designs, and the suppliers were simply building based on those designs.
Choice (A) suggests that, if the suppliers make designs, then Autoco will have to make changes to its overall car designs. This is one way that the plan might actually INCREASE time and costs (Autoco will have to spend time and money changing its overall designs). Choice (A)
weakens the expectation, and should be eliminated.
Choice (E) is the best answer.