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Ford and Firestone's Tire Recall

Ford and Firestone's Tire Recall






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    Ford and Firestone's Tire Recall Ford and Firestone's Tire Recall Presentation Transcript

    • Ford and Firestone’s Tire Recall: The Costliest Information Gap in History Chapter 7 Case Study Brian Kaufman James Grant Neng Xiong Steve Witucke Tom Dattulo
    • Problems and Major Issues
      • Federal investigation of 46 deaths and more than 300 incidents
      • March 1999: Confidential memo from Firestone to Ford: everything’s fine
      • August 1999: Ford recall in 16 countries but not in US and NHTSA not notified
      • August 2000:
        • Disagreement about tire inflation pressure (Ford 26 psi; Firestone 30 psi)
        • report that Firestone plant was “rife with quality-control”
    • Problems and Major Issues
      • September 2000:
        • Firestone memo from 3/99: “major reservations” about a plan to replace tires overseas
        • Ford said it was under no obligation to report overseas recalls
        • Ford did not have warranty data on tire recalls
        • Firestone’s damage claims moved to Nashville; warrenty adjustments in Ohio
    • Problems and Major Issues
      • September 2000 (continued):
        • Trend identified after-the-fact by the New York Times
        • Department of Transportation doesn’t have funding to track all data
        • NHTSA: “our testing is clearly outdated”
      • President of Bridestone said the lack of quality control was management’s fault
      • Group of personal industry lawyers identified a trend in 1996, but did not report to NHTSA until 2000.
    • MIS Application
      • Why was this a crisis in information management?
        • The information was available, but it was not easy to get at and it was not shared.
      • What role did databases and data mgt play?
        • There were several isolated databases
        • There were no easy ways to detect trends
        • There were no ways to share data (Ford had to “pry” information from Firestone)
        • Not all data collected
    • What took so long?
      • Individuals hid information (lawyers and executives)
      • Data not stored (lack of funding)
      • No obligation to report overseas actions
      • Didn’t have a tool to detect trends easily
    • The Players and the Data
      • Firestone
        • Nashville: Damage claims
        • Ohio: Warranty adjustments
      • Ford
        • Warranty info. for non-tire issues
        • Did not have warranty information for tires
      • Department of Transportation
        • Fatality data with vehicle type
        • Not storing actual causes of failure (i.e. from tires)
        • No data from non-fatal accidents
      • NHTSA
        • Complaints, crashes, and injuries/deaths
      • Lawyers
        • Pattern of failures recorded
    • SELECT * FROM ?
      • What questions from DBs were needed:
        • Better trend analysis
        • How many warranty issues from each tire type
        • Relate issues to manufacturing source
        • Need to be PROACTIVE not reactive!
    • Will you be my friend?
      • Relationship of organizations prohibited a rapid solution
        • Ford and Firestone had a long relationship (100 years), but did not communicate on issues
        • Ford and Firestone did not report data to the government if it might cost them
        • Legal community hid information from government for 4 years to protect their lawsuit
    • Conclusions
      • There was not an environment of information sharing
      • Not all parties were collecting the correct data
      • No one was proactive about looking into problems