Gamma Ltd. produces heating pans. Over the last one year, company is observing that their sales are decreasing and as per customers' complaint, quality of their pans is not as good as the quality of their competitor's product. The company found that the cause of poor quality is obsolete machinery.

According to the information given above, what corrective action should be taken by the company?

Upgradation of machinery

The correct answer is option 4- Upgradation of machinery.

The most appropriate corrective action for Gamma Ltd. would be *"Upgradation of machinery."

This approach involves updating the machinery to modern standards, which would address the issue of obsolescence and improve the quality of the pans. It ensures that the machinery is capable of producing products that meet or exceed competitors' quality standards. Upgrading the technology will address the root cause of the quality issues and help improve overall product performance and competitiveness in the market. The company should upgrade their technology in order to improve the product quality.

OTHER OPTIONS

• Repair the existing machinery: This might fix immediate issues but might not be sufficient if the machinery is fundamentally obsolete. Repairs alone may not bring the machinery up to modern standards required for high-quality production.

• Modify existing process: This could be helpful in optimizing production but does not address the core problem of obsolete machinery affecting quality.

• Change quality of material: While material quality is important, the problem stated is with the machinery, not the materials. Thus, changing the material might not resolve the underlying issue of poor machinery.