Which of the following raises quality risks?
Multiple Choice
? ?benchmarking
? ?outsourcing to less-developed countries
? ?streamlining the supplier base
? ?empowering employees
?
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The correct answer and explanation is:
The correct answer is:
Outsourcing to less-developed countries.
Explanation:
Outsourcing to less-developed countries can raise quality risks for several reasons:
- Variable Quality Standards:
Many less-developed countries may not have the same quality standards or regulatory frameworks as more developed regions. This can lead to discrepancies in product quality, as suppliers may not consistently meet the required specifications. - Communication Barriers:
Differences in language, time zones, and cultural practices can create challenges in effectively communicating quality expectations. Misunderstandings during the production process can result in defective or subpar goods. - Inconsistent Infrastructure:
Less-developed countries often face issues such as unreliable transportation, power supply, or manufacturing infrastructure. These factors can contribute to production delays and compromised quality during manufacturing or delivery. - Skill and Expertise Gap:
Workers in less-developed countries may lack the training or experience required for complex manufacturing processes. Without adequate knowledge and skills, the likelihood of defects or errors increases. - Limited Oversight:
Managing quality remotely can be challenging. Companies often face difficulties in monitoring and auditing supplier performance, which can result in less effective quality control measures. - Ethical and Social Concerns:
Outsourcing to less-developed countries may involve working with suppliers who have unethical labor practices or inadequate safety standards. Such factors indirectly affect the quality and reputation of the final product.
Why Other Options Do Not Raise Quality Risks:
- Benchmarking:
Benchmarking involves comparing practices and performance metrics with industry leaders to improve processes and quality. It typically enhances quality by identifying best practices. - Streamlining the Supplier Base:
Reducing the number of suppliers often allows for better control and collaboration with key suppliers, improving consistency and quality. - Empowering Employees:
Empowering employees often leads to higher engagement, better decision-making, and more proactive quality management, reducing quality risks.
By addressing the potential risks of outsourcing, companies can mitigate issues and ensure product quality.