Question

Hypothetical problem statement for report written to identify the reasons behind the increase in manufacturing defect

Answer 1

Answer:

Factory X is a well known shoe manufacturing company formed in 2002, has 100 employees in all with an investment of Rs 1 crore from 3 partners one having 51% of the stake and each of the others having 49% stake

Problem Context: The increase in manufacturing defects

Problem Reason Context: To increase profits they might have lowered the wages of the workers and hence reducing their production. The turmoil in which the partners refuse to intake more funds for reinvesting in their machinery, resulting in the depreciation of their assets over a periodly time. As a result of bad cost-cutting, raw materials are accessed with lower prices as well as lower qualities.