Case 17 Quality Problems and a New Parent Company
Setting: Automotive Manufacturer; Your Position: Vice President, Engineering
Your company, which has a reputation for advanced styling and design but only average quality of manufacture, has recently been purchased by a large German firm with conservative styling and an outstanding reputation for both safety and quality. While it is not clear what effects this merger will have, one message is clear--quality and safety must become much higher priorities. Consequently, it was of great concern when an airbag designed to protect against side collisions failed to activate under required conditions in your flagship automobiles. The company president, to whom you report, has asked you to solve this problem and to do so as quickly as possible.
The initial data that you have compiled implies that correcting the problem will require major modifications, which could result in significant delays in production. The new parent company has offered their proven airbag and/or their aid in solving the problem. More than likely their airbag would require modifications to the door assembly, and time would be required before the new part could be integrated into existing operations.
Several of your department heads have implied that a timely modification of the existing airbag is feasible thereby allowing production to be resumed much more quickly. While you are not an engineer and certainly don't have the answer to this problem yourself, you question the reasoning underlying this position. You are concerned that your department heads' resistance to going to the new parent may be influenced by their desire to save "face." They have been accustomed to working closely together and are defensive about the products they develop and the people who work for them. The number of orders has significantly dropped in recent months, and layoffs are a distinct possibility. The purchase of airbags from the parent would take work away from these departments and represent an "unfortunate precedent."
You must decide on a course of action soon. Though you know your department heads would not like the idea of using an external source for the airbag, their high regard for you will help them understand any decision that is made.