Practice Quiz

MTEL Technology and Engineering

Category - Tech and Engineering

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The quality control team for a company that produces camshafts for gasoline engines currently takes one camshaft in every 100 off the production line and subjects it to rigorous testing. The company is considering changing the production process to include sampling one camshaft out of every 75 camshafts. Arguments against this change will most likely focus on which of the following factors?
  1. Long-term profits
  2. Production costs
  3. Sales volume
  4. Marketing needs
Explanation
Correct Response: B. This change will result in a 33% increase [(1/75)/(1/100)] in time and money spent on testing. This increase will have to be added directly to the overall production costs. On the other hand, this change could have a positive influence on long-term profits (A), sales (C), and marketing (D) since it should result in a higher quality product.
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