Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack
GMAT Club

 It is currently 29 Mar 2017, 00:33

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A factory was trying out a new process for producing one of

Author Message
TAGS:

### Hide Tags

Current Student
Joined: 02 Jul 2012
Posts: 214
Location: India
Schools: IIMC (A)
GMAT 1: 720 Q50 V38
GPA: 2.6
WE: Information Technology (Consulting)
Followers: 15

Kudos [?]: 237 [0], given: 84

A factory was trying out a new process for producing one of [#permalink]

### Show Tags

13 Jun 2013, 16:06
4
This post was
BOOKMARKED
00:00

Difficulty:

55% (hard)

Question Stats:

62% (02:27) correct 38% (01:47) wrong based on 432 sessions

### HideShow timer Statistics

A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.
[Reveal] Spoiler: OA

_________________

Give KUDOS if the post helps you...

Last edited by Zarrolou on 13 Jun 2013, 16:11, edited 1 time in total.
Renamed the topic, edited the question.
If you have any questions
New!
Director
Joined: 24 Aug 2009
Posts: 506
Schools: Harvard, Columbia, Stern, Booth, LSB,
Followers: 18

Kudos [?]: 706 [2] , given: 276

Re: A factory was trying out a new process for producing [#permalink]

### Show Tags

13 Jun 2013, 20:27
2
KUDOS
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion? - Conclusion is highlighted in Red Color
A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.- Close answers but incorrect because we don't want to compare the effectiveness of new process based on expectations

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.- Typical Shell game option. It just states how new process reduced the production costs.

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.- This statement conclusive weakens the argument by stating that new process was not the cause of reduced production cost. It was something else that cause the reduction in production cost. Correct

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product. - OFS

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes. - This statement strengthens the conclusion by adding one more info. Incorrect

Hope this helps many.

Fame
_________________

If you like my Question/Explanation or the contribution, Kindly appreciate by pressing KUDOS.
Kudos always maximizes GMATCLUB worth
-Game Theory

If you have any question regarding my post, kindly pm me or else I won't be able to reply

Senior Manager
Joined: 21 Jan 2010
Posts: 343
Followers: 3

Kudos [?]: 188 [0], given: 12

Re: A factory was trying out a new process for producing [#permalink]

### Show Tags

16 Jun 2013, 15:55
Thoughtosphere wrote:
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.

Argument : production cost is decreased because of the new process.
Typical answer : No , it's not the new process but something else. Answer C does that.
Manager
Joined: 11 Aug 2011
Posts: 196
Location: United States
Concentration: Economics, Finance
GMAT Date: 10-16-2013
GPA: 3
WE: Analyst (Computer Software)
Followers: 11

Kudos [?]: 262 [2] , given: 886

Re: A factory was trying out a new process for producing one of [#permalink]

### Show Tags

18 Oct 2013, 23:35
2
KUDOS
This is a cause and effect question and once we understand the cause and effect its not too difficult to point out the answer choice.
cause - New process that was introduced.
Effect - Cost savings .

In order to weaken this cause effect relationship we need to either have another cause which could result in the effect or prove that the cause was not correct.

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
This is n Out of Scope answer choice

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
Strengthens the conclusion based on the cause

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
Alternate cause of reduction in costs - correct answer.

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes
Strengthens the conclusion based on the premise.

Kudos me if you like the post !!!!!!!!!!
_________________

Kudos me if you like my post !!!!

Current Student
Joined: 06 Sep 2013
Posts: 2030
Concentration: Finance
GMAT 1: 770 Q0 V
Followers: 65

Kudos [?]: 624 [0], given: 355

Re: A factory was trying out a new process for producing one of [#permalink]

### Show Tags

09 Jan 2014, 10:00
akhil911 wrote:
This is a cause and effect question and once we understand the cause and effect its not too difficult to point out the answer choice.
cause - New process that was introduced.
Effect - Cost savings .

In order to weaken this cause effect relationship we need to either have another cause which could result in the effect or prove that the cause was not correct.

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
This is n Out of Scope answer choice

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
Strengthens the conclusion based on the cause

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
Alternate cause of reduction in costs - correct answer.

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes
Strengthens the conclusion based on the premise.

Kudos me if you like the post !!!!!!!!!!

They got me on B. I thought it was an alternate cause. Since they only did a few samples, then they would have fewer rejections and thus save money. This would not happen in large scale operation

Bumpingggg

Cheers!
J
Current Student
Joined: 02 Jul 2012
Posts: 214
Location: India
Schools: IIMC (A)
GMAT 1: 720 Q50 V38
GPA: 2.6
WE: Information Technology (Consulting)
Followers: 15

Kudos [?]: 237 [0], given: 84

Re: A factory was trying out a new process for producing one of [#permalink]

### Show Tags

28 Oct 2014, 20:46
1
This post was
BOOKMARKED
jlgdr wrote:
akhil911 wrote:
This is a cause and effect question and once we understand the cause and effect its not too difficult to point out the answer choice.
cause - New process that was introduced.
Effect - Cost savings .

In order to weaken this cause effect relationship we need to either have another cause which could result in the effect or prove that the cause was not correct.

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
This is n Out of Scope answer choice

B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
Strengthens the conclusion based on the cause

C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
Alternate cause of reduction in costs - correct answer.

D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.

E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes
Strengthens the conclusion based on the premise.

Kudos me if you like the post !!!!!!!!!!

They got me on B. I thought it was an alternate cause. Since they only did a few samples, then they would have fewer rejections and thus save money. This would not happen in large scale operation

Bumpingggg

Cheers!
J

Dear J
The new process was introduced to reduce the cost. Now there can be numerous reasons for a high in cost,and one if the reasons can be a large number of rejected products. If the number of rejections have decreased because of the introduction of new processes, then it would mean that the new process has decreased the rejections, let's say by increasing the quality. This decrease in rejection would support the statement that the new process has decreased the rejection and thus saved the cost.

On the contrary, option C suggests that another product similar to the product in question also showed 15℅ reduction in the cost. This would really question the understanding that the reduction in the product was because of the new process since products using the old process are also showing a decrease in cost.

Hope that helps you..
_________________

Give KUDOS if the post helps you...

Senior Manager
Status: Always try to face your worst fear because nothing GOOD comes easy. You must be UNCOMFORTABLE to get to your COMFORT ZONE
Joined: 15 Aug 2014
Posts: 379
Concentration: Marketing, Technology
GMAT 1: 570 Q44 V25
GMAT 2: 600 Q48 V25
WE: Information Technology (Consulting)
Followers: 8

Kudos [?]: 51 [0], given: 472

Re: A factory was trying out a new process for producing one of [#permalink]

### Show Tags

25 Aug 2016, 09:03
UmangMathur wrote:
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.

Can someone help me to understand why option 'B' is incorrect.

_________________

"When you want to succeed as bad as you want to breathe, then you’ll be successful.” - Eric Thomas

I need to work on timing badly!!

BSchool Forum Moderator
Joined: 18 Jul 2015
Posts: 1331
Location: India
GMAT 1: 670 Q50 V32
GMAT 2: 700 Q50 V34
GPA: 3.65
WE: Brand Management (Health Care)
Followers: 33

Kudos [?]: 298 [0], given: 42

Re: A factory was trying out a new process for producing one of [#permalink]

### Show Tags

25 Aug 2016, 10:24
sairam595 wrote:
UmangMathur wrote:
A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?

A. In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
B. Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
C. While the trial was being conducted, production costs at the factory for a similar product, produced without benefit of the new process, also showed a fifteen percent reduction.
D. Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
E. Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.

Can someone help me to understand why option 'B' is incorrect.

Our aim is to find out whether the new process actually lead to cost reduction.

B is saying new process achieved the reduction by this way or that way. Which is nothing by an additional information on how the cost is reduced.

D is saying that there was overall reduction in cost, even in those processes that donot use the new process. hence, weakens the conclusion stating that there was something else that caused the reduction all over.

_________________

Thanks.

Wanna say Thank you? Just hit Kudos.

Re: A factory was trying out a new process for producing one of   [#permalink] 25 Aug 2016, 10:24
Similar topics Replies Last post
Similar
Topics:
6 Road to V42: The new manufacturing process should 2 05 Feb 2016, 04:19
13 A factory was trying out a new process for producing one of 4 13 Jun 2014, 07:10
1 Doctors are trying out heart transplants using 6 15 Apr 2012, 06:17
5 A factory was trying out a new process for producing one of 5 12 May 2011, 08:35
4 Try this....good one 6 30 Jan 2010, 07:28
Display posts from previous: Sort by