Question # 1 suppliers?

Should the complete recall/field failure and associated costs be charged to the tiered

A quality in supply chain is what companies will address in managing quality assurance in the manufacturing of a product. If there is an error or poor product, investigation is necessary and correction can be immediate. This generally refers to the management of upstream and downstream activities of an organization. The most logical response to quality issue in an organization would be bring all the stakeholders together and have a discussion to the challenges in the process. The recommendation for the mitigation of challenges should also be approved by the key stakeholders. This is very important aspect in any industry, as the quality issue will not only bring in monetary losses but also result in brand damage. Generally we dont believe in passaging down the recall/field failure and associated cost to the tiered suppliers as the company is also at fault for not having appropriate quality measures in place before delivering product to customer. In case of Agile (Exibit:1) which states; Supplier is responsible for ensuring quality and quality from sub-suppliers. All risk due to sub-supplier (are) suppliers responsibility. Suppliers should ensure zero defects from sub-suppliers

Complete recall/field failure and associated costs should be charged to tiered suppliers. Furthermore to support the recommendation, both tier-3 and tier-4 suppliers had issues supplying the initial parts for the product. It was noted form the case that; Process parameters not adhered to at drilling station. Chemical composition specifications. Copper bath temperatures higher than the required specifications. No tolerance limits were mentioned in many specifications, hence it was difficult to say whether or not the process was operating within the limits. Plating thickness had a high amount of variation

Question # 2 Was Automeks decision to source the business from Agile a good one? Did Agile make the right call in accepting the contract? The decision of Automeks to source the business from Agile was not a good one. Agile had the capability and experience to provide the best and quality products to the Automek but; Automek had no experience. It had too many sub-tier supliers.

As, the current project that was given by Automek was also out of capability of Agile and due to this, it was the responsibility of Agile to tell the current capability of the organization. It could be stated that Agile made the right call in accepting the contract because Automek had told them that they would help

the product development department of Agile in locating and developing the sub-tier suppliers. Agile made the right call in accepting the contract as; Its beneficial to the business growth. They committed to provide support in locating and developing sub-tier suppliers.