Final Answer:
The given statement" The purchasing department of a local South African vehicle manufacturer is instructed by its top management to investigate the possibility of outsourcing its brake and fuel pipes it currently produces in-house." is false So the correct option is B) False
Step-by-step explanation:
Outsourcing decisions involve careful consideration of various factors and consultation with relevant stakeholders. Internal stakeholders play a crucial role in this process. The relevant internal stakeholders to consult regarding the outsourcing decision of brake and fuel pipes production in a South African vehicle manufacturer would include:
The production department is directly impacted by the decision to outsource as it involves a shift in the manufacturing process. The department's efficiency, capacity, and workforce utilization are key factors to be addressed during the discussion.
Quality control ensures that the produced components meet the required standards. When outsourcing is considered, maintaining or improving product quality becomes a critical discussion point to avoid any compromise in the final product's integrity.
Finance Department:The financial implications of outsourcing, including cost savings or additional expenses, are vital for the finance department. Calculations related to potential cost reductions or increased efficiency need to be discussed thoroughly.
Employee Representatives: If outsourcing affects jobs or working conditions, consulting with employee representatives or unions is crucial. Addressing concerns about job security and the overall impact on the workforce is essential for maintaining a positive work environment.
During the discussions, issues such as cost analysis, quality assurance, workforce implications, and potential disruptions in the supply chain should be thoroughly examined. This collaborative approach ensures that the decision aligns with the overall goals of the organization and minimizes negative consequences on both the company and its employees.So the correct option is B) False