MunizDMBA5140-8-8.pptx - EXCELLENCE IN OPERATIONS OUR...

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EXCELLENCE IN OPERATIONS! OUR PROMISE, YOUR ROLE Improved Product Recall Processes Recommendation Domingo Muniz MBA 5140-08
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PURPOSE Ignition Recall Timeline Recognize potential near-term and far-term negative impacts of the recall Pinpoint crucial failures throughout Service/Recall process Define corporate culture Ways to leverage Info-Tech employees Methods to improve operations and supply chain management Path to an improved recall process
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EVENTS THAT LEAD TO THE RECALL 2001/2002: Ignition anomaly detected during pre- production 2003: Certified Technician reports engine stall issue related to faulty ignition. Nov 2004: GM initiates Investigation
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SEQUENCE OF EVENTS LEADING TO RECALL July 2005: First Customer Related Fatality Dec 2005: Technical Service Bulletin issued Apr 2006: GM engineer authorized ignition switch mods
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SEQUENCE OF EVENTS LEADING TO RECALL Sept – Dec 2007 & 2010: NHTSA abandons formal investigation 2012/2013: GM performs test, determines switches do not meet standards Jan 2014: GM issues recall of all effected vehicles
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NEAR-TERM DAMAGING IMPACT Can company reputation affect near-term negative impact? Will positive reputation allow for forgiveness of some error? Expectancy violation theory Did GM new vehicle sales suffer? Did used car sales plummet?
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LONG-TERM ADVERSE IMPACT What negative long-term effects can occur following recall? Lack of positive feelings toward company. Lacking on perception of quality Potential decrease purchase intent Was there an impact on new car sales? Were stakeholders effected?
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PREVIOUS RECALL PROCESSES Employees were not encouraged to report safety concerns. Developed consensus of reprisal from leadership Leadership masked information No accountability of information flow up and down chain of command Small action teams Complacency
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CURRENT SERVICE/RECALL PROCESSES Speak Up For Safety Encourages everyone to report safety concerns without fear of reprisal Makes supervisors mandatory reporters Validated set process Individuals from separate departments review findings Allows for transparency All employees can follow progress of the process
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LEVERAGING INFORMATION TECHNOLOGY Speak Up For Safety process integrated with ERP Employing ERP allows employees access to reports Minimizes strictly vertical information Acces to reports allowed for better dispersal of info PUSH and PULL recall notifications.
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IMPROVING OPERATIONS
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