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Previously, Autoco designed all of its cars itself and then contracted

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Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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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.

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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 18 Jun 2016, 22:10
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C and E can compete for the answer.

I would negate C

C) Parts and services provided by outside suppliers account for more than 50 percent of Autoco’s total costs.
- Negating this we get
If supplier cost doest not account for >50 % of cost , then it would be an insignificant investment to do for the company. But however insignificant , it will reduce cost if suppliers help. So , negation does not weaken , rather strengthen by a bit. Hence eliminated

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.
- Already existing parts would not need an investment of labor for suppliers. All they have to do is just modify the parts which would cost less.
Hence this is the answer
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 19 Jun 2016, 01:04
I know this is not a Sentence Correction question, but ...

Shouldn't "Since many parts suppliers have more designers with specialized experience than Autoco has" be "Since many parts suppliers have more designers with specialized experience than Autoco does"? The auxiliary verb is clearly "do" rather than "have".
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 19 Jun 2016, 20:03
HiLine wrote:
I know this is not a Sentence Correction question, but ...

Shouldn't "Since many parts suppliers have more designers with specialized experience than Autoco has" be "Since many parts suppliers have more designers with specialized experience than Autoco does"? The auxiliary verb is clearly "do" rather than "have".



I will try to explain here.

No , 'does' is not correct here.

This is based on parallelism
Since many parts suppliers have more designers with specialized experience than Autoco has
There are two parts in the sentence that should be parallel.Let me break it :
1.many parts suppliers have designers with specialized experience
2. Autoco has designers as well
And Parts suppliers have more than what Autoco has

So 'has' is not auxiliary here . It is the main verb , and they must be parallel.

If use does in place of have , it will mean : Autoco does have designers - here does is the auxiliary verb that is stressing on the point that Autoco has designers and this is not necessary here. It is actually non nonsensical. Because.Because if you stress on the point that Autoco has designers then why would you suggest that autoco must give the control to third party designers
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 06 Jul 2016, 11:46
E.

Was between C and E however if you think C in more detail you will see that if the other costs actually increase, then it will not be able to support the expectation.

Lets say if it was 60% outside supplier and the rest is other costs. If 60% of it went down, there is nothing to say that the rest of the cost stays the same.

E takes a safer route and doesn't allow for such an assumption and that bet pays off
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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AbdurRakib wrote:
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.

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(A) weakens the argument. If Autoco often needs to modify its overall design, it will not reduce the overall time and cost of the design of its next new car.

(B) also hurts the argument. If several of the parts suppliers will have to add to their existing staffs of designers, it is quite possible that those suppliers will pass on the cost to Autoco.

(D) is irrelevant.

Between (C) and (E), (E) most strongly supports Autoco's expectation. Here's my reasoning.

First, let's evaluate (C). If parts and services provided by outside suppliers account for more than 50 percent of Autoco’s total costs, so what? Will it reduce Autoco’s overall time and cost of the design of its next new car? Probably not.

Now, let's evaluate (E). Autoco plans to include its suppliers in designing the parts they are to build and many parts suppliers have more designers with specialized experience than Autoco has. Now, if 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, Autoco will not have to design those parts itself. Hence, time saved. Suppliers have part designs that can be readily modified so including them in designing the parts will save cost. So, time + cost reduced. Win win!
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 28 Jan 2017, 07:40
AbdurRakib wrote:
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.

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Hi Experts EMPOWERgmatMax,

Could you please provide your comments for option c? in option C we can see pats and services are responsible for significant amount. .

Thanks
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 21 Dec 2017, 13:20
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?

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Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 11 Feb 2018, 03:46
Hi GMATNinja VeritasPrepKarishma GMATNinjaTwo


Can 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.
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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New post 11 Feb 2018, 10:25
Autoco Expectation:
To reduce the overall time and cost of the design of its next new car.

A: This is a disadvantage. Modifying overall design will not reduce time or cost. Eliminated
B. If several parts suppliers add designers, the cost might be transferred to autoco. This is not our choice. Eliminated

C. Parts and Suppliers provided by outside contracts account for 50% of the cost - This is a promising choice. But this does not help to understand how the time will be reduced for Autoco. We can hold this choice for now.

D. When suppliers built parts according to specifications provided by Autoco, the suppliers competed to win contracts. -
This is an interesting choice. In general one would think that if there is a competition, there are chance people will try to outbid others by bidding for low cost and less time to deliver. But this probably would be the case for existing bids as well. We can eliminate this choice.

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.
This is classic way of cost and time saving we have seen everywhere. Reusing the existing design saves both cost and time. This clearly explains the Autoco's expectation.

Between C and E, option E explains how to meet expectation better.

Ans: E
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Re: Previously, Autoco designed all of its cars itself and then contracted [#permalink]

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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 GMATNinjaTwo


Can 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.
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Re: Previously, Autoco designed all of its cars itself and then contracted   [#permalink] 15 Feb 2018, 23:14
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