Largest Product Recall - MARUTIKasturikaDebojyotiAbhishekSourav
Contents• About Companies• What was the problem?• How was the problem detected?• Cost-Benefit alternatives• Theories• Conclusion
Maruti Udyog Limited• The largest car manufacturer in India.• Recalled nearly 60,000 cars in four monthstime• Largest product recalls in indian automobileindustry
Sona Steering Limited• The sub assembly system of Maruti Udyog Ltd(MUL)• Joint venture with MUL for gear system• It consists of two engaged gears which helpedin transferring the rotary motion from thesteering column to the wheels.• Failure of gears lead to fatal accidents.
Mukund Iron• Located at Thane• Supplier of hard alloy steel to Sona Steering• Providing alloy steel to Sona steering on JITbasis.
What was the problem ?Mukund IronConveyor beltbreakdownManual stacking ofraw materials Chemical compositionmismatchUnstandardized productinstead of SCM415
UnstandardizedproductSona SteeringIneffective samplinginspectionSupplied to MULFitting of defectivesteering column
How was it detected?• Satinder Singh Rawat, an operator who had 4years experience on the heat treatmentdivision- detected the problem• The problem-– The alloy was soft, got bent out of shape during900 degree celcius heat treatment process
Alternative 1 replacing the parts Rs. In croresSteering column change @Rs 450 P.C 2.70Labour cost @Rs.150 P.C .90Recall cost .10Transport cost (defective parts) .12Total 3.82Alternative 2 meeting liabilities when they ariseCompensation cost (2 lacs each for 40 cars) .80Compensastion for victims (2 lacs for each40 cars).80Total 1.60
Virtue Ethics• Virtue ethics is a broad term for theories thatemphasize the role of character and virtuein moral philosophy rather than either doingone’s duty or acting in order to bringabout good consequences.• A virtue ethicist is likely to give this kind ofmoral advice: “Act as a virtuous person wouldact in a situation.”
Virtue Ethics• A virtuous person is someone who is kind acrossmany situations over a lifetime because that is hercharacter and not because she wants to maximizeutility or gain favours or simply do her duty.• Unlike deontological and consequentialist theories,theories of virtue ethics do not aim primarily toidentify universal principles that can be applied inany moral situation.
Virtue Ethics• And virtue ethics theories deal with widerquestions—• “How should I live?”• “What is the good life?” and• “What are proper family and social values?”
Utilitarianism• Bentham and J.S. Mill both criticized Kant.They asked “do we really care what a personsintentions are if we get hurt or benefit?”Bentham said, for the most part, we focus onthe utility of actions.• Utility: an act or thing has utility for a personif it makes them happy or brings pleasure ordecreases pain.
Deontology• The term deontology comes from the Greek Word“deon” means “duty”. According to thedeontologist the rules and principles are crucialfor guiding human action. They believe thatethical reasoning should concern activities thatare rationally motivated and apply universally toall human action. Emphasis is given to intent ofthe action.
Teleology• The term teleology is derived from the Greekword “telos” which means, “end” or “purpose”.• The concept of end or purpose of the action.• This is also called consequentialist theory.– Which suggest that ethical reasoning concentrate onthe consequence of human action, and all actionsare evaluated in terms of the extent to which theyachieve desirable results.