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Identify the problems identified in the case.

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1. Identify the problems identified in the case. Evaluate the options of possible solutions presented by the authors.

2. Given the fact that Texaco operated in partnership with the Ecuadorean government, is Texaco's activity in the Amazon morally justifiable? Explain.

3. Does Texaco (now ChevronTexaco) have a moral obligation to provide additional funds and technical expertise to clean up areas of the Amazon it is responsible for polluting? Does it have a moral obligation to provide medical care for the residents of the Amazon region who are suffering from the effects of the pollution? Explain?

4. Does the fact that the military plays a dominant role in Ecuadorean political life undermine Texaco's claim that its environmental practices are justified because the government of Ecuador permitted them? Explain.

5. Does the example of Texaco's conduct in Ecuador indicate a need for enforceable regulations governing transnational corporate activity? Explain.

6. What was the author's recommend solution? Do you agree or disagree with their recommendation? Why or why not?

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Ecuador is a small nation on the northwest coast of South America. During its 173-year history, Ecuador has been one of the least politically stable South American nations. In 1830 Ecuador achieved its independence from Spain. Ecuadorean history since that time has been characterized by cycles of republican government and military intervention and rule. The period from 1960 to 1972 was marked by instability and military dominance of political institutions. From 1972 to 1979 Ecuador was governed by military regimes. In 1979 a popularly elected president took office, but the military demanded and was granted important governing powers. The democratic institutional framework of Ecuador remains weak. Decreases in public sector spending, increasing unemployment, and rising inflation have hit the Ecuadorean poor especially hard. World Bank estimates indicate that in 1994, 35 percent of the Ecuadorean population lived in poverty, and an additional 17 percent were vulnerable to poverty.

The Ecuadorean Amazon is one of the most biologically diverse forests in the world and is home to an estimated 5 percent of Earth's species. It is home to cicadas, scarlet macaws, squirrel monkeys, freshwater pink dolphins, and thousands of other species. Many of these species have small populations, making them extremely sensitive to disturbance. Indigenous Indian populations have lived in harmony with these species for centuries. They have fished and hunted in and around the rivers and lakes; and they have raised crops of cacao, coffee, fruits, nuts, and tropical woods in chakras, models of sustainable agroforestry.

Ten thousand feet beneath the Amazon floor lies one of Ecuador's most important resources: rich deposits of crude oil. Historically, the Ecuadorean government regarded the oil as the best way to keep up with the country's payments on its $12 billion foreign debt obligations. For 20 years American oil companies, led by Texaco, extracted oil from beneath the Ecuadorean Amazon in partnership with the government of Ecuador. (The United States is the primary importer of Ecuadorean oil.) They constructed 400 drill sites and hundreds of miles of roads and pipelines, including a primary pipeline that extends for 280 miles across the Andes. Large tracts of forest were clear-cut to make way for these facilities. Indian lands, including chakras, were taken and bulldozed, often without compensation. In the village of Pacayacu the central square is occupied by a drilling platform.

Officials estimate that the primary pipeline alone has spilled more than 16.8 million gallons of oil into the Amazon over an 18-year period. Spills from secondary pipelines have never been estimated or recorded; however, smaller tertiary pipelines dump 10,000 gallons of petroleum per week into the Amazon, and production pits dump approximately 4.3 million gallons of toxic production wastes and treatment chemicals into the forest's rivers, streams, and groundwater each day. (By comparison, the Exxon Valdez spilled 10.8 million gallons of oil into Alaska's Prince William Sound.) Significant portions of these spills have been carried downriver into neighboring Peru.

Critics charge that Texaco ignored prevailing oil industry standards that call for the reinjection of waste deep into the ground. Rivers and lakes were contaminated by oil and petroleum; heavy metals such as arsenic, cadmium, cyanide, lead, and mercury; poisonous industrial solvents; and lethal concentrations of chloride salt, and other highly toxic chemicals. The only treatment these chemicals received occurred when the oil company burned waste pits to reduce petroleum content. Villagers report that the chemicals return as black ...

Solution Summary

1. Identify the problems identified in the case. Evaluate the options of possible solutions presented by the authors.

2. Given the fact that Texaco operated in partnership with the Ecuadorean government, is Texaco's activity in the Amazon morally justifiable? Explain.

3. Does Texaco (now ChevronTexaco) have a moral obligation to provide additional funds and technical expertise to clean up areas of the Amazon it is responsible for polluting? Does it have a moral obligation to provide medical care for the residents of the Amazon region who are suffering from the effects of the pollution? Explain?

4. Does the fact that the military plays a dominant role in Ecuadorean political life undermine Texaco's claim that its environmental practices are justified because the government of Ecuador permitted them? Explain.

5. Does the example of Texaco's conduct in Ecuador indicate a need for enforceable regulations governing transnational corporate activity? Explain.

6. What was the author's recommend solution? Do you agree or disagree with their recommendation? Why or why not?

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Similar Posting

Lean Six Sigma Project Case: Analyze Phase of DMAIC

See attached file for format.

Analyze

Assignment:

Submit an Analyze Definition Document which will demonstrate your ability to analyze a problem situation using the Analyze Phase of DMAIC.

Expectations:

? Differentiate the various relevant aspects of the situation and analyze the problem at the Blackbelt level using various tools of the Analyze Phase.

? Organize the appropriate information into a coherent report.
o Use the Analyze Report Outline provided.
o Be sure to use Topic Headings that correspond to the major topics

? The report should contain all the necessary and sufficient aspects to completely analyze the problem.
o Include copies of various Tools that were used
o Provide Discussion and explanation where appropriate and necessary
o Include sources of documentation
o Include examples of reports used to generate evidence and data
o You may also upload supplemental documents into Additional files.

? The length of the paper should be as long as necessary to include the all of the appropriate information.

ANALYZE PHASE REPORT OUTLINE

The Analyze and use the following Phase Report below. USE TOPIC HEADINGS.

Data and Process Analysis

? What does the data say about the performance of the business process?
? Was a detailed process map created to amplify critical steps of the 'as is' business process?
? Were any designed experiments used to generate additional insight into the data analysis?
? Did any additional data need to be collected?
? What model would best explain the behaviour of output variables in relation to input variables?
? Be sure to include the data and the data analysis. Attach Excel files. Explain it. Connect the data and data analysis in the spread sheet to the discussion in the report.

Root Cause Analysis

? What tools were used to generate the list of possible causes?
? Was a cause-and-effect diagram used to explore the different types of causes (or sources of variation)?
? What tools were used to narrow the list of possible causes?
? Were Pareto charts (or similar) used to portray the 'heavy hitters' (or key sources of variation)?
? What conclusions were drawn from the team's data collection and analysis?
? How did the team reach these conclusions?

Quantifying the Gap/Opportunity

? What is the cost of poor quality as supported by the team's analysis?
? Is the process severely broken such that a re-design is necessary?
? Would this project lend itself to a DFSS project?
? Have any additional benefits been identified that will result from closing all or most of the gaps?
? Were any quick fixes ('ground fruit or low-hanging fruit') implemented? If so, what were the resulting benefits?
? What quality tools were used to get through the analyze phase?

Preliminary Solutions

? What preliminary possible solutions were determined?
? How were they determined and who was involved?

Required reading:

iSix Sigma, Six Sigma DMAIC Roadmap retrieved on Mar 16, 2010 from
http://www.isixsigma.com/index.php?option=com_k2&view=item&layout=item&id=1477&Itemid=343
iSix Sigma, Six Sigma DMAIC Reference retrieved on Mar 16, 2010 from
http://www.isixsigma.com/index.php?option=com_k2&view=item&layout=item&id=1484&Itemid=139
Find additional websites and reference that provide additional information on the DMAIC process and in particular the Analyze Phase.

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