'Alpha Manufacturing Ltd.' is a company manufacturing high ...

CBSE Class 12 Business Studies 2025 All Sets Solved Paper

Question : 20 of 20

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'Alpha Manufacturing Ltd.' is a company manufacturing high quality car spare parts. The company has a well-established production line and its products are highly demanded in the market. However, it was noticed that the defect rate in the manufacturing process was higher than the standard of 10 per 1,000 pieces produced. In spite of best efforts, the Production Manager was not able to reduce the defect rate. So, he decided to revise the standards.
The step of the controlling process, followed by the Production Manager after not being able to reduce the defect rate, will be:

Taking corrective action
Measurement of actual performance
Analysing deviations
Comparing actual performance with standards

Solution:

The controlling process involves setting standards, measuring actual performance, comparing actual performance with standards, analyzing deviations, and taking corrective action. In this case, the Production Manager, after failing to reduce the defect rate despite efforts, revises the standards, which is a step within the controlling process.

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