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

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

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New post 12 May 2011, 08:35
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The Official Guide for GMAT Review, 10th Edition, 2003

Practice Question
Question No.: CR 198
Page: 554

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(D) Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.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

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New post 13 Jun 2014, 07:10
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7

GMAT weekly questions



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.
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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 Updated on: 13 Jun 2013, 16:11
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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.
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Originally posted by UmangMathur on 13 Jun 2013, 16:06.
Last edited by Zarrolou on 13 Jun 2013, 16:11, edited 1 time in total.
Renamed the topic, edited the question.
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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 12 May 2011, 12:15
IMO "C"

The production managers therefore concluded that the new process did produce a cost savings.

(C) While the trial was being conducted, production costs at the factory for a similar product[highlight], produced without
benefit of the new process[/highlight], also showed a 15 percent reduction.
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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 12 May 2011, 13:53
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+1 C

A - Out of scope: The conclusion is about whether the new process helped to reduce the costs.
B - Out of scope: It doesn't matter how the costs were reduced as long as the new process is the main cause.
C - The costs reduction has taken without using the new process. - Correct
Note: Maybe you could say "but it is not the same product; it is something similar". Yes, you are right. But you must remember that a "Weaken question" doesn't have to destroy totally the conclusion; it can harm the question partially. This is the case.
D - Opposite: This choice supports the conclusion. Other possible factors have not changed; therefore, the new process is the main cause of the reduction costs.
E - Same as in D.

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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 12 May 2011, 22:44
1
Between B and C.

B actually gives reasoning stating how the cost reduction was achiever.Thus affirming that the production technique improved the efficiency.

C compares and clearly creates an element of doubt that there must be some other reason for cost reductions.

C is clean.

time 1:10 sec
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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 12 May 2011, 23:33
hmmm your timing is quite good , i managed this in 1:53 min.

the OA is C
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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 13 Jun 2013, 20:27
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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.

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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 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.
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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 18 Oct 2013, 23:35
2
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.
Out of scope answer choice.

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 !!!!!!!!!!
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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 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.
Out of scope answer choice.

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

Any comments?

Bumpingggg

Cheers!
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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 13 Jun 2014, 07:11
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Bunuel wrote:

GMAT weekly questions



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.


The managers concluded that the new process produced a cost savings on the basis of a trial run of the process in which costs were 15 percent lower than they had been previously. You are asked to identify something that casts doubt on their conclusion.\

Choice C is the best answer. If production costs at the factory fell for a similar product that was produced without using the new process, it is more doubtful that the observed production cost reductions achieved during the trial run were actually produced by the new process.

Choice A is incorrect; the fact that the managers had hoped for cost reduction of fifty percent does not cast any doubt on their conclusion that the new process had produced at least some savings. Choice B is incorrect since finding the source of the cost savings in the trial shows that the savings were no mere accident and so reinforces the managers' conclusion. Choices D and E are incorrect since by emphasizing that certain aspects of the product - its design and raw materials - were the same in the standard process and the new process, these two answer choices support, rather than cast doubt on, the conclusion that the process itself produced the savings.

Answer: C.
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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 28 Oct 2014, 20:46
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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.
Out of scope answer choice.

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

Any comments?

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..
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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 26 Mar 2016, 12:44
Bunuel wrote:
Bunuel wrote:

GMAT weekly questions



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.


The managers concluded that the new process produced a cost savings on the basis of a trial run of the process in which costs were 15 percent lower than they had been previously. You are asked to identify something that casts doubt on their conclusion.\

Choice C is the best answer. If production costs at the factory fell for a similar product that was produced without using the new process, it is more doubtful that the observed production cost reductions achieved during the trial run were actually produced by the new process.

Choice A is incorrect; the fact that the managers had hoped for cost reduction of fifty percent does not cast any doubt on their conclusion that the new process had produced at least some savings. Choice B is incorrect since finding the source of the cost savings in the trial shows that the savings were no mere accident and so reinforces the managers' conclusion. Choices D and E are incorrect since by emphasizing that certain aspects of the product - its design and raw materials - were the same in the standard process and the new process, these two answer choices support, rather than cast doubt on, the conclusion that the process itself produced the savings.

Answer: C.



Hi Bunuel,

Thank for posting such good question . However I chose option B using the logic that: products produced using the new process are faulty and are rejected by quality control, so adopting this new process will not produce cost savings since it will produce faulty products ,will cause more wastage, hence less cost savings. Thus weakening our conclusion.
Please tell me how this is incorrect.


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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 27 Mar 2016, 13:56
Hi Megha_2709,

Conclusion: The new production process did produce a 15% cost saving.

We need to somehow show that the new process did not produce any better results than the existing process.

Option B tells us the reason for cost reduction using the new process. So this option does not weaken our conclusion.

Option C tells that even without using the new process we still achieved a cost reduction. Now, this options challenges the premise of using the new process for cost reduction. This option creates a doubt and so the right answer.

Hope that helped .!!
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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 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.

Many thanks in advance
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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 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.

Many thanks in advance


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.

hence, correct answer is D.
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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 15 Aug 2017, 09:45
The manager concluded that the new process produced a cost savings on the basis of a trial run of the process in which costs were 15 percent lower than they had been previously. We are asked to identify something that casts doubt on their conclusion.

Choice C is the best answer. If production costs at the factory fell for a similar product that was produced without using the new process, it is more doubtful that the observed production cost reductions achieved during the trial run were actually produced by the new process.
Choice A is incorrect; the fact that the managers had hoped for cost reductions of fifty percent does not cast any doubt on their conclusion that the new process had produced at least some savings.
Choice B is incorrect since finding the source of the cost savings in the trial shows that the savings were no mere accident and so reinforces the managers’ conclusion.
Choice D and E are incorrect since by emphasizing that certain aspects of the product-its design and raw materials-were the same in the standard process and the new process, these two answer choices support, rather than cast doubt on, the conclusion that the process itself produced the savings.
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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, 01:40
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, 12:23
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 &nbs [#permalink] 10 Sep 2017, 12:23

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