Potential Stakeholders Involved in this Situation
R. B. Dillman Company manufactures a high-tech component used in Bluetooth speakers that passes through two production processing departments, Molding and Assembly. Department managers are partially compensated on the basis of units of product completed and transferred out relative to units of product put into production. This was intended as encouragement to be efficient and to minimize waste.
Jan Wooten is the department head in the Molding Department, and Tony Ferneti is her quality control inspector. During the month of June, Jan hired three new employees who were not yet technically skilled. As a result, many of the units produced in June had minor molding defects. In order to maintain the department’s normal high rate of completion, Jan told Tony to pass through inspection and on to the Assembly Department all units that had defects nondetectable to the human eye. “Company and industry tolerances on this product are too high anyway,” says Jan. “Less than 2% of the units we produce are subjected in the market to the stress tolerance we’ve designed into them. The odds of those 2% being any of this month’s units are even less. Anyway, we’re saving the company money.”
Instructions
Who are the potential stakeholders involved in this situation?
What alternatives does Tony have in this situation? What might the company do to prevent this situation from occurring?
Potential Stakeholders Involved in this Situation
- R.B. Dillman Company: The company itself is a stakeholder as it may face potential consequences, such as reputational damage and financial losses, if defective products are passed through inspection and reach the market.
- Jan Wooten: Jan, as the department head in the Molding Department, has a stake in maintaining high rates of completion and minimizing waste, which may influence her decision to instruct Tony to pass defective units.
- Tony Ferneti: Tony, the quality control inspector, is directly involved in the decision-making process of passing defective units. He is responsible for ensuring the product meets the required quality standards.
- Employees in the Molding Department: The employees who produced the units and may be aware of the defects are stakeholders as their job performance and compensation may be affected by the number of units completed and transferred out.
- Assembly Department: The department that receives the units from the Molding Department is indirectly affected by this situation as they may receive defective units that could impact their own production processes and final product quality.
- Customers: The end-users of the Bluetooth speakers are stakeholders as they expect products that meet the required quality standards. Defective units reaching the market may lead to customer dissatisfaction and potential harm if the defects affect the functionality or safety of the product.
Alternatives for Tony in this Situation
- Follow instructions: Tony can choose to follow Jan’s instructions and pass through inspection all units that have defects nondetectable to the human eye. This would align with Jan’s intention of maintaining high completion rates and minimizing waste.
- Refuse to comply: Tony can refuse to pass through inspection any units that have known defects, even if they are nondetectable to the human eye. This would uphold his responsibility as a quality control inspector and prioritize product quality over completion rates.
- Report the situation: Tony can report the situation to higher management, such as his supervisor or the quality control department. By doing so, he can bring attention to the issue of passing defective units and seek guidance on how to handle the situation appropriately.
Preventing the Situation from Occurring
To prevent this situation from occurring in the future, the company can take several measures:- Quality Control Training: Provide comprehensive training programs for both employees in the Molding Department and quality control inspectors. This would ensure that employees understand the importance of maintaining quality standards and are equipped with the necessary skills to identify defects accurately.
- Hiring Skilled Employees: Ensure that new hires in technical positions have the required skills and experience to perform their tasks effectively. Proper screening and training processes should be implemented to minimize the number of defective units produced.
- Strengthen Quality Control Processes: Implement robust quality control processes and procedures at every stage of production. This includes regular inspections, thorough testing, and clear guidelines for identifying and addressing defects.
- Ethical Guidelines: Establish clear ethical guidelines that prioritize product quality and customer satisfaction over completion rates. Emphasize the importance of integrity and adherence to quality standards throughout the organization.
- Communication Channels: Encourage open communication between department heads, quality control inspectors, and other relevant stakeholders. This would allow issues and concerns regarding product quality to be addressed promptly and effectively.