R. B. Patrick Company manufactures a high-tech component that passes through two production processing departments, Molding and
Question:
Sue Wooten is the department head in the Molding Department, and Fred Barando is her quality control inspector. During the month of June, Sue had 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, Sue told Fred to pass through inspection and on to the Assembly Department all units that had defects non-detectable to the human eye. “Company and industry tolerances on this product are too high anyway,” says Sue. “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
(a) Who are the potential stakeholders involved in this situation?
(b) What alternatives does Fred have in this situation? What might the company do to prevent this situation from occurring?
Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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