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Surbhi Ltd. produces safety pins on a mass scale. The company‟s policy is that not more than 3% of the daily production should be defective. Over a three months period, it has been observed that 8% - 10% of the production is defective. The cause of deviation found is defective machinery. What corrective action should be taken by the management?

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Repair the existing machine or replace the machine if it cannot be repaired.

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