Fudge the facts-what measurement system dilemmas are present

Assignment Help Operation Management
Reference no: EM131034973

Read the following case and answer the questions below

Fudge the Facts?

In an attempt to improve quality, the shop superintendent at FWM Inc. has instructed all work cell supervisors to keep records of waste, scrap, and rework items. These records will be reviewed periodically at irregular intervals to identify which work cells are performing best and to make adjustments as necessary. The superintendent has stressed that the records will be used for making continual improvements to machining processes and to the performance of individual machinists. But John Simpson, supervisor of Work Cells B and C, is concerned. He was passed over for a promotion the last time he was eligible because his work cells were at the bottom of the company’s performance ratings.

John Simpson is a new father of a child suffering from a rare and debilitating disease that requires the baby to have constant medical attention. Most of the medical costs are covered by FMW’s health insurance policy. So, Simpson cannot risk losing his job and, in turn, his health insurance because his work cells fail to measure up to company quality standards. Simpson’s problem is complicated by the fact that his Work Cells B and C have the least experienced machinists in the company. He knows how competitive the machining business has become. FWM needs the absolute best work from its machinists – no waste, no scrap, and no rework – so the pressure to perform is intense.

Simpson is considering doctoring his waste, scrap, and rework records to make things look better. He knows this is only a temporary tactic. The truth will eventually come out. But he hopes before that happens he will be able to improve the performance of his machining teams to acceptable, competitive levels.

1. What ethical dilemmas are present in this case? Explain.

2. What measurement system dilemmas are present in this case? Explain.

3. Are the shop superintendent’s actions appropriate? Explain. Assume you are the shop superintendent and assume that you are not aware of John Simpson’s dilemma. What, if anything, would you do differently?

4. Assume you are a machinist working in Cell B or C. What advice would you give John Simpson?

5. Assume you are John Simpson’s personal friend. What advice would you give him?

Reference no: EM131034973

Questions Cloud

Delta neutral portfolio of call options and stock : Consider an option on a non-dividend-paying stock when the stock price is $45, the strike price is $42, the risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is five months. It can be shown that d1=..
Desired during the reorder interval-what is reorder point : Annual demand for an item is 18,000 units with the cost per unit at $440. The holding rate is 8% and the order cost is $21.00 per order. The standard deviation of daily demand is 2 units. Assume 263 days in the year and a lead-time of 7 days. If a se..
The hearst and minds of people in a society : How does one win the hearst and minds of people in a society?
Install and maintain a computerized record system : Halifax Ciorp. contracted with the city of Richmond to create, install, and maintain a computerized record system. The contract stated that BIS would be hired as a subcontractore. The work was to be done n two phases. After the first phase, the city ..
Fudge the facts-what measurement system dilemmas are present : In an attempt to improve quality, the shop superintendent at FWM Inc. has instructed all work cell supervisors to keep records of waste, scrap, and rework items. These records will be reviewed periodically at irregular intervals to identify which wor..
Estimated times interest earned ratio : Manufacturer's Inc. estimates that its interest charges for this year will be $700 and that its net income will be $3,000. Assuming its average tax rate is 30%, what is the company's estimated times interest earned ratio?
A monopolist is producing a quantity : If a monopolist is producing a quantity where marginal revenue is equal to $125 and the marginal cost is equal to $125, the monopolist should
Determine the smallest magnitude of the force p : The drum has a weight of 100 lb and rests on the floor for which the coefficient of static friction is µs = 0.5. If a = 3 ft and b = 4 FT
Metrics on the financial statements : Construct this organization's June financials. Once financials are translated, elaborate upon why this information is important for managers to assess. Finally, how to changes in key metrics on the financial statements firm value? In your answer, ..

Reviews

Write a Review

Operation Management Questions & Answers

  Raising the level of professionalism in the department

Carrie Wilson, a registered nurse with more than 10 years of active supervisory experience, was hired from outside as nursing manager for the emergency department of County Hospital. What are the weaknesses, if any, in Carrie’s final statement about ..

  Lead taskforce to develop a sales incentive plan

Suppose you have been asked to lead a taskforce to develop a sales incentive plan at your firm. The taskforce is to generate a list of strategies and issues to be evaluated by upper management. Using details from www.salescompensation.org and other r..

  Formulate and solve the lp relaxation of the given problem

Formulate and solve the LP Relaxation of the problem. Solve it graphically, and round down to find a feasible solution. Specify an upper bound on the value of the optimal solution.

  What is the optimal stocking level

The cost of baking a cake is $5 and demand is estimated to be normally distributed with a mean of 30 and a standard deviation of 6. What is the optimal stocking level?

  How many will leave the company for personal reasons

The company currently has 920 managers: 640 middle managers and 280 senior managers. How many of these managers will eventually retire from the company? How many will leave the company for personal reasons?

  Total preference in his worker-to-aircraft schedule

Joe Fix plans the repair schedules each day for the Freeway Airline. Joe has 3 planes in need of repair and 5 repair personnel at his disposal. Plane 1 requires a single repairperson, while plane 3 and 2, which need 2 personnel each. Draw the network..

  What amount of safety stock is appropriate

What amount of safety stock is appropriate? When should this item be reordered? What risk of stockout would result from a decision not to have any safety stock?

  What is berkshire partners'' corporate strategy

What is Berkshire Partners' corporate strategy. Is their organizational design aligned with their current strategy? Do they have a corporate advantage relative to other private equity firms

  When inflation is not considered

a. When inflation is not considered. b. When inflation is considered

  What is the private sector

What is the private sector? Mention the difference between the self -regulation and Co-regulation with suitable examples.

  What are the benefits of across-the-board pay cuts

When moving to another country and culture in order to manage a subsidiary, it is important to remember that what works in one country may backfire in another. What are the benefits of across-the-board pay cuts? What are the benefits of reduction in ..

  In these states the comparative negligence rule means that

A majority of states have adopted comparative negligence similar to California; in these states the comparative negligence rule means that?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd