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trial production

Expert replies
by rahulg83 » Fri Jun 26, 2009 8:37 am
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 15 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 manager’s 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 50 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 umber 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 15 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(D) Although some of the factory’s managers have been arguing that the product is outdated and ought to be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 stage 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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Source: — Critical Reasoning |

by dendude » Fri Jun 26, 2009 9:00 am
IMO C
(A) But yet there was a cost reduction though not upto expectation. Does not weaken
(B) Out of scope
(C) Shows that 15% cost reduction could be achieved without the new process. And therefor new process does not contribute to cost reduction. Weakens the argument
(D) Product attributes Out of scope
(E) Does not weaken
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by sasen » Fri Jun 26, 2009 10:07 am
E seems like a good option
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by aspirant_gmat » Fri Jun 26, 2009 10:13 am
My vote goes to C.

C is the only answer choice that seems to weaken the conclusion.
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by sasen » Fri Jun 26, 2009 10:21 am
Doesnot C strengthen the argument that the new process is no different than the existing process(without the benefits of the new process) and hence isnt a good cost saving measure?
i hope we know that this is a WEAKEN question.
so we have to show something that the new process actualli reduces cost which E is doing,i suppose
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by turbo jet » Fri Jun 26, 2009 10:39 am
IMO: B

Both B and C are close choices. However I rejected C on the ground that C says that production cost for SIMILAR PRODUCT got reduced. However B targets at the PRODUCT IN THE ARGUMENT and exposes a CAUSAL FLAW (i.e tells us that there is a possibility of another cause for reduction in costs)

Cheers
TJ
Life is Tom; I am Jerry ;)
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by Domnu » Fri Jun 26, 2009 11:46 am
I would go with C as well. I don't think that B can be the answer, because though the quality may not be good, it is out of scope to assume that anything was done differently to the materials used, etc. It was a close call between B and C, however.
Have you wondered how you could have found such a treasure? -T
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by rahulg83 » Fri Jun 26, 2009 11:48 am
turbo jet wrote:IMO: B

Both B and C are close choices. However I rejected C on the ground that C says that production cost for SIMILAR PRODUCT got reduced. However B targets at the PRODUCT IN THE ARGUMENT and exposes a CAUSAL FLAW (i.e tells us that there is a possibility of another cause for reduction in costs)

Cheers
TJ
turbojet...bingo!!! i exactly thought as you did...but unfortunately we both are wrong :lol:
OA is C
This question is from OG 10
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by turbo jet » Sat Jun 27, 2009 5:03 am
I still didnt get why it is not B.

:roll: :shock: :idea: :?:
Life is Tom; I am Jerry ;)
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by schumi_gmat » Sat Jun 27, 2009 1:01 pm
turbo jet wrote:I still didnt get why it is not B.

:roll: :shock: :idea: :?:
B is actually supporting the argument.

B says that there was reduction in the number rejected due to quality. It means that process was successful.
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by turbo jet » Sun Jun 28, 2009 10:54 am
Thanks a ton Schumi.
Sometimes the mind just tends to overlook such simple things.
:D
Life is Tom; I am Jerry ;)
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by micheal_kr » Sun May 15, 2016 10:58 pm
I would go for C as well.
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