(Answered) A company that manufactures small household appliances has

Management Studies

A company that manufactures small household appliances has experienced high scrap and rework for several years. The total cost of the scrap and rework was recently estimated on an annual basis. The number shocked top management. Discussions by the management team degenerated into arguments. Finally, top management proposed that all departments reduce scrap and rework costs by 20% in the coming year. Comment on this proposal.

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