Research Paper on:
Costs of Recalling Products Analysis

Unformatted Sample Text from the Research Paper:
cases, it seemed somewhat simple. The cars would be recalled to the dealerships, and service personnel in the dealerships would repair the cars. The rate of $88 per repair was  determined as a fair and reasonable reimbursement for such repairs, and management and the companys engineers believed that the learning rate for the complex repair was 90 percent.  Trouble came, however, when dealers reported that their workers believed that the flat rate was too low and were threatening not to work on  the repairs if they didnt receive more compensation. One dealer found out something even more shocking when analyzing the hours it took in repairing the defects - average time for  the first unit was 9.6 hours, while the second unit had an average time of 7.2 hours. At $22 per hour for a flat rate, this was way above the  proposed $88 flat rate first mandated. Furthermore, with time dedicated to defect repairs only decreasing 2.4 hours, this was also a far cry from the 90 percent learning rate that  senior management anticipated. In short, the company could be in huge trouble, with workers threatening to rebel and repairs not being done, which could lead to angry customers.  Before analyzing the situation, its important to develop a list of questions to determine what should be done. The first question would involve how  the engineers estimates could be so far off what the actuality was. To determine this, wed have to determine under what conditions the engineers were working. Were they in a  secluded factor with no other demands on their time, other that to experiment with the defect? Or did their repairs take into account that most dealership workers are also repairing