...with the quality of the product. Quality assurance causes problems for managers that produce products as well as retailers. Companies need to implement testing and inspection procedures in order to reduce the chance of selling defective products. In the cases of products being defective or not to standard, companies should rectify these situations quickly. The correct response for the severity of the situation is extremely important when dealing with product quality. The quality of a product reflects not only the image of the company that creates the product, but any retailer that choose to sale that product as well. Every customer expects the product sold to function as advertised. Customer loyalty is damaged by defective products. Customer 5 was so disgusted with her Sheer Cover that she will probably never order a product seen on TV ever again. Also constantly having to replace defective products leads costs money as well. At one point, Customer 2 was replacing the phone case every four weeks. If this lack of quality is an ongoing trend with Beyond Cell, then they could be giving away a lofty sum of money in replacements monthly in addition to losing customers to competitors. Retailers would also be less willing to carry brands that have a history of being defective. Quality is definitely a category that managers want to maintain. Companies should do thorough testing and inspections to ensure that the products are being produced to standard. Products should undergo rigorous...
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...A product that meets or exceeds its design specifications and is free of defects is said to have high quality of conformance. Preventing, detecting and dealing with defects cause costs that are called quality costs or costs of quality Categories of Cost of Quality Internal Failure Costs The costs of deficiencies discovered before delivery. We associate deficiencies or nonconformities with the failure to meet explicit requirements or implicit needs of external or internal customers. Internal failure costs come from deficiencies discovered before delivery. These include all the costs associated with the failure (nonconformities) to meet the needs of your external and internal customers. This failure cost is one of the 4 key components of quality costs. Examples: • Scrap: The labor, material, and (usually) overhead that created the defective product. The item cannot be economically repaired. The titles are numerous scrap, spoilage, defectives, etc. • Rework: The cost to correct the defective material or errors in service products. • Retest: The cost to retest products after rework or other revision. • Changing processes: The cost of modifying the manufacturing or service processes to correct the deficiencies External Failure Costs External Failure Costs come from costs associated with defects that are found after the customer receives the product or service. These costs included lost opportunities for sales revenue. Lost sales revenue costs would disappear if there...
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...of quality; trade-offs As you know, when dealing with quality issues, we must consider the costs associated with quality. According to Stevenson (2008), there are three categories of these costs: appraisal, prevention, and failure. Appraisal costs may be defined as "Costs of activities designed to ensure quality or uncover defects" (Stevenson, 2008, p. 421). We incur appraisal costs when we inspect or test products, or conduct other activities to reveal defects in our products or to assure that they are free of defects. These costs include the costs of the inspectors, quality audits, tests, test equipment, and field testing. Each time someone takes a mechanical pencil off the conveyor belt and tests its functionality, he or she is inspecting, or appraising, our products. Each such occurrence causes appraisal costs. Prevention costs are the costs "of preventing defects from occurring" (Stevenson, 2008, p. 421). We pay prevention costs when we plan ways to prevent defects: planning and administration systems, training, quality control, working with vendors, and attempting to decrease defects by paying extra attention to design and production. Every hour that designers spend working on ways to improve our mechanical pencils we pay prevention costs. The same is true when our procurement people attempt to get better materials and when we pay for pay more for better materials. Failure costs are "caused by defective parts or products or by faulty services" (Stevenson, 2008, p...
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...awarded from BUG. Introduction The purpose of this paper is to explain specific, hypothetical scenarios dealing with several legal issues. Bug Inc. electronic products are assembled in foreign countries, currently the products are only distributed in U.S. mainly for the use in surveillance. BUG Inc. is planning to expand the electronic device distribution to international markets. Team C has provided detailed answers and feedback to the six scenarios and different types of legal protections BUG must have for its intellectual property, employment laws, international laws, imprisonment rights, internet law, responsibilities, and manufacturing problems associated with the company’s business dealing in domestic and international courts. These protections are elemental strategic plans allowing the organization to minimize any risks in the international distribution. The Trade Secrets Act has been adopted by many states to protect company’s trade secrets or intellectual property. BUG’s company as designer and manufacturer of electronic devices and own software is protected under the law. However, “severe precautions are necessary to avoid misuse of a trade secret crime. In addition to state law, the Economic Espionage was created to address the ease of stealing trade secrets through computer espionage and internet sources (Cheeseman, 2007). On the other hand, while the product is designed to serve its purpose well, manufacturing defects may occur during the construction or...
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...both the utilitarian and the rights would come to the same conclusion in regards to dealing with this situation. From a utilitarian point of view, we look at the overall cost. To fix the problem it will cost the company 18 million, while not doing anything and paying legal cost will only cost the company about 12 million. When thinking about the company and its funds, doing nothing seems like a better option since the company will be saving 6 million dollars. On the other hand, trying to save money could ruin the company’s reputation due to the anticipated casualties. The 12 million is just an estimate, it could actually cost more than expected. From a rights theorist point of view, we must think about how the customer has the right to have a product that will perform the way it was designed to. If the company knowingly continue to sell the defective trailers, is a violation of the rights of the customers. When a customer purchase a product, they are paying the price for a product that is not defective. If the company wish to continue to sell the product and not fix the issues at hand, the customers should be aware of the issue and it should be left up to them whether they wish to use the product. Doing it this way will cause customers to choice other brands for safety and A-1 will begin to see a decrease in revenue. The company will then have a reputation of selling low quality unreliable products. ...
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...Torts and Warranties James.Oliver78 AIU Online Abstract This is an essay about a story of the four wrongs, and the invasion of privacy. It is about a Harvard Law Review article and what the newspapers in 1890 had to do with it. The differences and similarities of the four wrongs which make-up the invasion of privacy principle, and then on towards the world of warranties and what they mean. How warranties affect our lives in today’s society and a brief description of what the buying customer can expect from a warranty. The essay ends with what defective products do to business and the legal system. How a defective product is defined legally, and how it affects profits of a business. Last but not least, a comment about the buying public, the business, brand name, and the lawyers that make-up a business in today’s world. Invasion of Privacy There exists a story involving invasion of privacy and it dates back to the 1800s, in Boston, Massachusetts. The story starts with a young married couple by the name of; Mr. and Mrs. Samuel D. Warren. Mr. Samuel D. Warren was a young lawyer who inherited a paper manufacturing business. At the time, he was partners in a prestigious law firm with his Harvard classmate, Mr. Louis D. Brandeis. There came a time when, Mr. S. D. Warren decided he would have to devote more time and energy to his paper manufacturing business and less time with his practice of law. Mrs. Samuel D. Warren was a pillar in elite high society...
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... Introduction to Business Ethics BY: Carolyn Troxel BUSN 310 Unit 1 (IP) American InterContinental University (Online) RUNNING HEAD: INTERNATIONAL LEGAL AND ETHICAL ISSUES IN BUSINESS Abstract I am going to show you how you would effectively present potentially defective products to the CEO’s. Then I am going to show how you would notify your customers of such an occurrence, and what kind of action you would take so this would not happen in future. RUNNING HEAD: INTERNATIONAL LEGAL AND ETHICAL ISSUES IN BUSINESS Introduction to Business Ethics * How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? When you effectively present an issue to the CEO and other directors and the managers, I would empathize with those in management first and then I would present my facts. I would make sure that I used “I” in my statements throughout my whole presentation. I would always tell management what was going on and I would always begin with “I have an issue that needs to be addressed and I would also have a solution ready so I can help with correcting this issue. After I have completed my presentation...
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...company. The most critical stakeholder relationships for the professional purchaser are the suppliers. Instead of tension between purchaser and supplier there is common interest. The supplier has become a stakeholder. The supplier needs to sell their goods to stay in business. The purchaser wants the best materials for the lowest price possible. If the purchaser buys more of the supplier’s product(s) the costs will decrease for both companies. The purchasing professional engages all relevant stakeholders in one way or another. Purchasing has a responsibility to the internal stakeholders through materials purchased. If the materials are defective, substandard, or nonexistent, the employee stakeholders cannot use the material. If the lines are shut down due to not enough supplies, or defective or substandard materials it affects all stakeholders both internal and external. Purchasing engages external stakeholders through interaction with suppliers. Negotiations in costs, material quality, and on time delivery are a priority when dealing with suppliers. Quality materials to make the product the consumer will purchase gives the company a reputation with...
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...retailer to compensate the consumers if their products/goods have any problems within a certain period of time given (six months of delivery). (30 words) Question 2: Based on the passage, what do you think is the aim of the “burden of proof”? Support your answers. (75-100 words) (3 marks) I think there are tow points of aim. The first point is consumer protection. Consumers could be better protected against unfair business manufacturer accountability. The second point is to hold manufacturers accountable for the products that they produce and ensure that they will be safe to use by consumers. The Lemon Laws not only protect consumers from negligent manufacturers but also those that do make an effort but simply miss a problem while not in the market. The laws oblige manufacturers and dealers alike to have an appropriate response to consumer claims. (90 words) Question 3: What do you think are the practical problems that can arise in passing the Lemon Law? How do you think it can be managed? Support your answers. (250-400 words) (10 marks) Although the Lemon Law was taken effect in some countries on the world from many years ago, in Singapore, it has just been passed on March 9, 2012 and will come into effect in September this year. Certainly there are some problems can arise in passing of the Lemon Law. Firstly, there are many dishonest customers who try to seek repairs or replacement for a product that have become defective due to misuse or wear and tear. There have...
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...LEGAL ANALYSIS Negligence The plaintiff, McDuff, is suing Jetson for liability in a negligence case. In order to prevail in a claim for negligence, the plaintiff must establish six points, referred to the law as a prima facie case. They are the following: 1. Conduct; 2. duty; 3. breach of duty; 4. actual cause; 5. proximate cause; and 6. damages Conduct and Duty In order to establish duty, there are three factors in determining whether to impose a duty at common law. They are the following: 1. The relationship between the parties; 2. the reasonable foreseeable harm to the person injured; and 3. public policy concerns The existence of any of these factors is sufficient for the court to impose a duty and although conduct is mentioned as a factor, generally, it is not discussed as an element in the prima facie case. In this case, there was no relationship between Jetson and McDuff. The next factor would be aligning the reasonable foreseeable harm to the person injured. As a general principal, a defendant owes a duty of care to all persons who are foreseeably endangered by his/her conduct, with respect to all risks which make his/her conduct unreasonably dangerous. In this case, there is reasonable foreseeable harm to the person injured because the defendant, Jetson, owed a duty of care. She had to make sure that by driving; she would pay attention to the road and make sure that she is wearing appropriate shoes for driving. We know...
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...moves up and down had a defect in it and some of the baby’s was getting caught in them. Oeuf LLC, of Brooklyn, N.Y. did a big recall on the baby bed. They asked the owners to contact them so that they could send them a new one to replace the piece that was defective. The stakeholders in this organization would be those who are investing in this company. It could be a bank or private investors. They are not the only stakeholders in this organization. I myself would be considered one because I purchase their product. This was a serious issue because anyone’s baby could have gotten hurt really badly if not killed. Therefore, they handled this sensitive issue with care. This was a very personal instance for me because I had also purchased a product that was defective. If I were in charge of this recall, I would have handled the situation with same amount of care. It is serious business when you are dealing with a baby’s life. I am not sure the extent of the damages that was caused from this defect but I would try to compensate as much as I could to those who was affected by this. If there were any hospital bills that occurred because of this, I would pay it. I would refund them their money back anyone who purchased the product and have proof that they own it and is still...
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...of Injuries 10 iv) Risks 10 – 11 v) Unavoidable Dangers 11 – 12 vi) Rationale for and debate over strict liability 12 – 13 4. Consumer Protection ACT 1999 13 i) Scope of Application of The ACT 13 ii) Implied Guarantees Respect of Supply of Goods 14 - 16 iii) Remedies 16 – 18 iv) Implied Guarantees in Respect of Supply of Services 18 v) The National Consumer Advisory Council 19 vi) The Tribunal For Consumer Claims 19 -20 5. References 20 [pic] Ethical Issues In Consumer Behaviour The term “ethical consumer” is a famous issue discuss generically, there is related with the intentional purchase of products and services that the consumers consider to be made ethically. Basically, “positive buying” with ethical is favoured, which means that consumers are purchase a good or services with reliable information and provided with reasonable consumption choices with human rights. However, there are possibility in happen “moral boycott” which means it’s happen negative purchasing by consumers. Which it is happen that during the purchasing transaction there are wrong information by intention of cheating, forcing and no consumption choices has against the consumer rights. Consumer...
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...Commerce of Acquiring Shareholders There are different benefits to commerce of acquiring shareholders, and other entities that shield their members in regard to protection from personal liability. The primary benefit is it allows the shareholders, in the course of joint agreement, this will allow themselves to be exempt from liability, whereas the general partners bear the main responsibility for their actions. This will force the top executives and other members involved to be responsible for their actions. Corporations are formed among other things, to shield shareholders from personal liability for the corporation activities. Creditors look at the assets of the corporation for payment, but may not look at the shareholders personal assets for payments. The shareholders can be millionaires and creditors will not make them pay the corporations debts. The other benefit is that the shareholders who decide to invest, but do not want to become actively involved in the organization would not want to become involved in taking responsibility for the shareholders and others in the organization who are actively involved. Because of this benefit, the shareholders that wish to invest and do not want to become actively invested will not be held responsible for the action of others, in the organization. If the benefit to commerce with shareholders not being personally liable were not enforced, investors would be concerned about their own assets, and would not want to invest in large...
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...February 2013 Midterm/MGT 5061 Over the past eight weeks, we’ve discussed several topics from the textbook Logistics Engineering and Management. For the purpose of this assignment, I will discuss only 3 aspects of the subject matter. As a Quality Assurance Specialist (QAS) supporting the U.S. Army, my job, as well as other civilian personnel, is to help ensure military readiness by supporting the warfighter in every way possible. In today’s society, the need to develop and produce high quality systems is in high demand. It’s even higher in the defense sector. In order to be successful with providing these long lasting, high quality systems to our customer, it is important that we support these systems by ensuring that the provided product designs are supportable and also ensuring that sustainment maintenance is conducted throughout the systems’ entire life cycle. These are viewed as logistics activities. With that said, the areas of logistics that I’d like to focus on are as follows: Reliability, Maintainability, and Availability Measures, The System Engineering Process, and The Measures of Logistics and System Support. According to our textbook, logistics is defined as “the composite of all considerations necessary to assure the effective and economical support of a system throughout its life cycle”. Systems have a big responsibility. They need to be able to perform as intended, be available when needed, and be cost-effective. There are certain performance measures...
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...Issue 1: Is there a contract between Leslie and her aunt and uncle? To determine whether there is contractual obligation between Leslie and her aunt and uncle, we should go through the four requirements to form a contract: 1. Offer: one party (“offeror”) must offer (verbally, in writing, or by conduct) to make a contract and specify all of the key terms. In the case, Leslie’s aunt and uncle first suggested Leslie buy the business, which is an electronics store. However, there was a “counter offer”, which is that offeree rejects the original offer and accepts a new offer before making final contract. Initially, her aunt and uncle planned to sell the business at $ 300,000. But Leslie did not accept it and insisted on buying at the fair value price $400,000. This means that she rejected the original offer, and made a counter-offer to them. Yet, as her financial ability is not strong enough to buy the business at once, her aunt and uncle suggested that they would like to receive $150,000 for now and collect the rest of money later. Thus, this is another new counter-offer to Leslie. Additionally, all the offers are made verbally without any written agreements, but it is still enforceable if it meets the other three requirements that we will discuss in the following parts. 2. Acceptance: other party (“offeree”) must accept that offer, on those terms, without any changes. At last, Leslie accepted the counter-offer that pay $150,000 for now, and with either half of profits going...
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