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

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

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New post 09 Sep 2017, 00:40
I have a doubt in this question and it is that if the new process would be applied to the similar product it doesn't mean that the new method would make the same changes to the product in question. So i feel similar is not equal to being same.
Also when i eliminated the options i was left with A which said there was reduction but had to be 50% since the argument said that there was just a 15% reduction i chose A but later realized that it was the reduction which was important and not the percentage. But i am still not convinced with option C so please can anyone kindly help. Thank you

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

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New post 10 Sep 2017, 11:23
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 cost savings.

Which of the following, if true, casts most doubt on the production managers' conclusion?
Boil it down - New process did produce cost savings.
Type - weaken

(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. - Incorrect - okay but still 15 is better than 0

(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. - Incorrect - it provides a reason for reduction

(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.- Correct - If this is true , the cost reduction was not due to process change but due to some other factor -- maybe cheaper raw material

(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. - Incorrect - the goal of the new process is to reduce cost not change the product design

(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. - Mild strengthener - it tells that one of the input costs for both processes is the same.

Answer C
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Re: A factory was trying out a new process for producing one of its produc   [#permalink] 10 Sep 2017, 11:23

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