National

National Farm and Garden

Roles:

Summary of what happened:

1.  Under pressure to improve sales and recover eroding market share, the leaders of NFG agreed to launch an improved version of their flagship tiller known as Turbo Tiller.

2.  Under pressure to meet scheduling and volume demands, the manufacturing group were “forced” to use a shield designed and installed on an older model, the Utr2a Tiller.  

3.  With this older shield installed, occasionally the blades would have to be cleaned and this required for the shield to be removed.  Removal could be easily done by the operator, but not reinstallation.  Special tools were needed for this – tools which most owners did not have or care to buy.

4.  Knowing there was some product liability risk encumbent with this decision, decals were added warning against operating the tiller without the shield.  NFG even offered factory warranty covered replacements for a modified shield that could be installed by the operator.

5.  However, as some owners removed the old shield, they chose not to take advantage of the factory offer and operated the tiller without a shield.  

6.  Over the last year, NFG was aware of a number of farm animals that had been killed by Turbo Tillers operated without shields.  And then a boy’s arm was badly mangled when he became entangled in the blades while riding on a tiller that had was being operated without a shield.  This incident has been published on the front page of a newspaper and seen by NFG’s explosive CEO.  The CEO has called an emergency with the key stakeholders.

The stakeholders have 3 minutes to make their case.

Proposed strategy for the meeting.

1.  Assume, the Division Vice President will have called for an advanced meeting with the Director of Product Development, Director of Manufacturing, Director of Sales and V.P. of Public Relations.  

2.  Team should come to the meeting with a solution or a plan to get to a solution.

3.  Take 30 seconds each to say what your team is doing.

Division V.P.:  sales, manufacturing, field service engineering reports to you, but not the R&D  department.  

R&D sent you a recent memo citing some potential problems with the Turbo Tiller.  Memo cc to directors of manufacturing and sales.  But you agreed with the director of mfg not to share with the CEO because you felt this was a small concern – don’t bother the CEO.

Failure to improve division output in 60 days – on notice, will be terminated.

Director of Product Development (R&D):  uncompromising about products engineered under your watch.  You fast tracked the Turbo Tiller under pressure by the Director of Sales.  

Later, recently you became concerned and sent a memo to Divisional V.P. , Sales Director  and Mfg Director, expressing your concerns about the borrow shield, i.e. that NFG could be sued.  You believe NFG has violated governing rules that have to do with safety and liability.  You did not get a response to your memo and contemplated going to the CEO but have not so far due to the CEO’s historic temper.

Director of Manufacturing:  You are award of the issues, i.e. using the old shield on the new tiller.  Know too that besides special tools, replacement requires professional machine shop and added assistance, i.e. can’t be done by typical owner operator.  But your statistics lead you to think that the risk of injury to animals or people is small.  You are under pressure to meet your production unit goals which triggers your bonus.  You agreed with Division V.P. not to forward R&D’s email (of concern) to the CEO.   However, since the Turbo Tiller was first released, you’ve learned that 85 of the tillers in the field are operating without shields.