Team Exercise
Calculating the Cost of Conscience
The Situation
Product quality and cost affect every firm’s reputation and profitability, as well as the satisfaction of customers. As director of quality for a major appliance manufacturer, Ruth was reporting to the executive committee on the results of a program for correcting problems with a newly redesigned compressor (the motor that cools the refrigerator) that the company had recently begun using in its refrigerators. Following several customer complaints, the quality lab had determined that some of the new compressor units ran more loudly than expected, although they still effectively cooled the units.
The Decision
Faced with this information, Ruth has been asked to recommend a strategy ...
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