Response to case study scenario 1

The most compelling reason why I need inform the customer of this issue is the fact that failed power consumption tests could potentially be a fire hazard. Although only a very small percentage of units failed, I think a potential fire hazard is a very high risk.
In a worst case scenario, if the units were to fail and overheat, the result could be potentially hazardous to the consumers and their property.
I feel this gives me a reason enough to inform the customer and have the devices recalled immediately, even though my supervisor has told me to ignore the situation.

The reasoning behind this decision comes from not just the possible financial and legal consequences, but from my own morals and ethics.
Among this, the resultant loss of a client or any future clients should be reason enough for my company to recall the units immediately.
I believe from a moral point of view that any potential hazard found with any product should result in immediate notification, preceding a fix or recall to prevent any harm coming to consumers.

Looking at a similar cases to this, the memory manufacturer Lexar had to recall 66,000 USB flash drives in July 2006. The devices posed a potential burn hazard that could either harm the user, or cause property destruction.
Another example of a product recall due to a fire risk is when Lenovo had to recall 500,000 laptop batteries in 2006. the recall was ordered after one of its laptops caught fire at Los Angeles airport.
Looking at the scale of the Lexar and Lenovo recalls, the immediate recall of our 200 units is obvious choice to make.

The actions I will take to ensure the prevention of the units reaching consumers, will be firstly to inform the customer of the issue so that the units are not put to sale.
Secondly, to have all the units recalled, I will inform my manager of the situation and explain the severity of issue. Failing this I will contact or arrange a meeting with senior management to ensure that they know about the potential risk, and can arrange the recall of the units.


Source of Lexar recall: http://www.recall-warnings.com/cpsc-content-06-06205.html

Lenovo recall: http://news.bbc.co.uk/2/hi/business/5390948.stm