Question: For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection. Inspection time for a plant is 1 6

For each situation, identify the cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection.
Inspection time for a plant is 16,000 hours per year. The cost of inspection consists of salaries of 8 inspectors, totaling $320,000. Inspection also uses supplies costing $5 per inspection hour. The company eliminated most defective components by eliminating low-quality suppliers. The number of production errors was reduced dramatically by installing a system of statistical process control. Further quality improvements were realized by redesigning the products, making them easier to manufacture. The net effect was to achieve a close to zero-defect state and eliminate the need for any inspection activity.

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