In the case of GM, they used a direct material component part called a detent plunger in

manufacturing its automobile ignition switches. The direct laborers of GM can install this part.
The part costs the company between $2 and $5 per unit to manufacture. Apparently, one of the
reasons why they opted to acquire this part from a supplier is cost. Purchasing the part at a
lower cost is an economic advantage on the company's part without considering its future
impact. However, things turned differently. The automobile ignition switches manufactured out
of this part is a failure. It led to accidents that killed people, and it affected the reputation and
position of the company.