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Topic: Psychology
Number of pages / Number of words: 4 / 1091
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The new equipment would pay for itself in a year because less rework would be necessary.

It was a tight year financially for the company. Money would probably have to be borrowed at a fairly high interest rate to purchase the equipment. But the executives had said they wanted better quality.

Here’s what the company actually did...


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The managers of this company bought the new equipment. They were committed to improving the quality of their product and they believed the new equipment would solve some of their problems.

When the new equipment arrived, they put the old equipment into surplus. Managers at a subsidiary company heard about the old equipment and were able to pick it up before it was scrapped...


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