As part of the educational process of the production team, it is important for them to understand the importance of monitoring outcomes and initiating corrective action before sending inferior products to the market. Complete the following:
Why is it important to monitor outcomes and initiate corrective action?
What problems can arise with supply-chain partners if monitoring is not done?
Research different types of methods for monitoring outcomes to initiate correct action.
Discuss the importance of monitoring outcomes.
Discuss the problems that can arise with supply-chain partners as a result of not monitoring outcomes.
1. Why is it important to monitor outcomes and initiate corrective action?
Monitoring outcomes is relatively associated with risk management. Before implementing a product into the marketplace, leaders are required to evaluate potential threats in the marketplace, which can range from the inclusion of competitive forces, which causes an organization to rethink their strategy or reposition their competitive structure to realign itself with the competition.
The purpose of risk management is to reduce the likelihood of potential liability. One example of the consequences of neglecting to monitor outcomes is the recent events surrounding the GM debacle in which GM manufacturers failed to monitor the risks associated with Saturn ION's, Chevy Cobalt, and several other vehicles. Apparently, the cars aforementioned were defective and contributed to putting drivers lives in danger. Consumers complained of power steering issues. Imagine driving your car and losing control of the steering wheel, which thrusts you into oncoming traffic (Associated Press, 2014). This is the reality of one of many complaints from drivers. Instead of running comprehensive tests on various vehicles, GM determined the vehicles are ready for mass public consumption. The GM outcome is the worst-case scenario because the organization endures public ridicule and scrutiny, possible class action lawsuits, loss of revenue, and loss of credibility.
2. What problems can arise with supply-chain partners if monitoring is not done?
If organizations neglect to monitor outcomes or progress, there is a possibility of succumbing to massive inventory control issues. For instance, there is a potential to have more inventory on hand than what is distributed to consumers. Low demand and high supply is problematic for most organizations and quite costly. As a result, ...
In this problem solution we review a few real world events and discuss the importance of risk management.