Company A manufactures 10 defective products on an average out of 1000 products

Question

Company A manufactures 10 defective products on an average out of 1000 products manufactured. Company B manufactures 5 defective products on an average out of 1000 products manufactured. Which company must be chosen for benchmarking and by whom?

Options:

A . B should choose A as benchmark

B . A should choose B as benchmark

C . Both are equally efficient

D . Concept of benchmarking is not applicable here

Answer: Option B
Answer: (b).A should choose B as benchmark

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