CIMA Risk Management P3 Question # 20 Topic 3 Discussion

CIMA Risk Management P3 Question # 20 Topic 3 Discussion

P3 Exam Topic 3 Question 20 Discussion:
Question #: 20
Topic #: 3

M, a manufacturing company, has had some problems with defects in one of the main products it produces. This product has been made by the company for many years and is very profitable. Last month it had over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability.

Which of the following controls could M introduce to reduce defects and also increase profitability?


A.

M could increase the number of quality control staff.


B.

M could introduce a procedure where quality control staff sign a form at the end of each day to say they have examined 1 in 10 products for defects and they are satisfied with the quality.


C.

The production director could examine one in every 10 products and sign a form to say they are satisfactory.


D.

M could service machinery at least once a month as recommended by the machinery supplier.


E.

M could check all employees qualifications to ensure they are qualified for their jobs.


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