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Question

ABC 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 1012% of production is defective.Which function of management is required to correct the above case?
State the procedure to be followed to correct the things.

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Solution

The management function required to correct the above case is "controlling". The procedure to be followed is:
1. Find out the cause of deviation of defective percentage from 3 to 12.
2. Take corrective measures to control the thing.
Following can be the cause of deviation:
Sr. No.CausesCorrective Action
1.Lack of motivation of workers.Offer financial or non-financial incentives to motivate workers.
2.Power breakdown. Install a generator.
3.Fault in machinery.Get the machinery repaired or replace the machinery with new one.

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