ABC Ltd. is manufacturing auto spare parts on large scale. The company policy is that 3% of the daily production could be defective.

Over the last two months, it is being observed t about 10-12% of production is defective.

(i) What steps should be taken to correct above case?
(ii) Which value is missing in the above case?

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Solution

(i) Since the standards set for permissible limits of defects was 3%, but defects are much higher than the permissible limits i.e. 10-12%, it calls for an urgent need for taking corrective actions. Following steps should be taken to correct the defect:

(a) Find out the causes of deviations as defective percentage rise from 3 to 12%. The causes may be the poor quality of raw material, lack of skilled labour, lack of motivation, etc.

(b) Take corrective measures to control the deviations.

(ii) Values missing in the above case are:

(a) Efficiency

(b) Proper control over operations

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Ltd. is manufacturing auto spare parts on large scale. The company policy is that

3 %

of the daily production could be defective. Over last two months it is observed that about

10 - 12 %

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