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Use of rubber bladder costing $5.08 per car
Employing an extra steel plate costing $11 per car.
Effective communication.
breakdown hierarchy.
Human resource
INEFFECTIVE RELATIONSHIP
All planned and the controlled activities of an organization to build and maintain the relationship between employees and the organization in order to meet both business objectives and employee expectation
Ford aims to maintain good communication channels between management, unions and employees.
The design, production and manufacturing engineers knew the risk of ford pinto BUT they did not bother to convince the superior that pinto was a fire trap.
It was their moral obligation not to produce ford pinto with the known defect.
Even when a solution was found, it was not enforced or opted to the management.
According to the standard ISO 31000 "Risk management – Principles and guidelines on implementation,"[3] the process of risk management consists of several steps as follows:
Risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety and societal outcomes.
Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty.
What was the failure?
Quality control
Quality assurance
Why?
Just for competition
Ford assumed that saving money for upgrading the fuel system would not effect them in the future.
[2]
Savings: 180 burn deaths, 180 serious burn injuries, 2100 burned vehicles
Unit Cost: $200,000 per death, $67,000 per injury, $700 per vehicle
[2]
Total Benefit: 180 x ($200,000) + 180 x ($67,000) + 2100 x ($700) = $49.5 Million
Sales: 11 million cars, 1.5 million light trucks
Unit Cost: $11 per car, $11 per truck
[2]
Total Cost: 11,000,000 x ($11) + 1,500,000 x ($ I 1) = $137 Million
[1]
[1]
In order to compete with burgeoning Japanese imports, Ford Motor Company mandated the production of a car that would cost no more than $2000 and weigh no more than 2000 pounds. The result was the Ford Pinto and its cousin the Mercury Bobcat. As the car neared production, engineers discovered that it failed rear end collision tests miserably due to the location of its fuel tank between the rear bumper and rear axle. Despite being made aware of the problem, Ford management decided to leave the car as is, electing to bear the cost of any lawsuits versus spend the $11 per car to fix the problem. In 1978, after over 100 deaths caused by fuel tank fires were reported due to rear end collisions, the NHTSA recalled 1.4 million Pintos and Bobcats to modify the fuel tank. Ford’s reputation suffered terribly, being seen as the company that put profit ahead of safety, and drove even more buyers to imported cars, the purpose for creating the Pinto from the start.
Quality is the customer opinion about product and service
[1]
Procurement management is a form of management, where goods and services are acquired from a different organization or firm.
All parts and resources were housed.
Procurement Management
Integration management is a collection of processes required to ensure that the various elements of the projects are properly coordinated. It involves making trade-offs among competing objectives and alternatives to meet or exceed stakeholder needs and expectations.
What is scope?
The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions
Scope creep is a term which refers to the incremental expansion of the scope of a project, which may include and introduce more requirements that may not have been a part of the initial planning of the project
The up gradation of the Defective fuel system design in ford pinto should depend on cost-benefit analysis and not on ethics
Overlooking the errors during analysis
The process of retooling
The Ford Pinto is a subcompact car produced by the Ford Motor Company for the model years 1971–1980. Initially offered as a two-door sedan.
Competitors: Japanese small cars .
In order to obtain the huge available market. It was necessary ford manufactured the new automobile in a short duration
Introduction