A Company Manufacturing Computer Chips Finds That 8% of All

Essay

A company manufacturing computer chips finds that 8% of all chips manufactured are defective. Management is concerned that employee inattention is partially responsible for the high defect rate. In an effort to decrease the percentage of defective chips, management decides to offer incentives to employees who have lower defect rates on their shifts. The incentive program is instituted for one month. If successful, the company will continue with the incentive program.
-Over the trial month, 6% of the computer chips manufactured were defective. Management decided that this decrease was significant. Why might management might choose not to permanently institute the employee incentive program?