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Jdt Task 2

In: Business and Management

Submitted By korywillis
Words 2488
Pages 10
Non-Compliance Report

To: CEO, Executive team
Purpose:
The intent of this document is to discuss the recent discovery of trace amounts of lead in the whistles to be included in the Elementary Toy Collection (ETC). It details the situation, list three alternative solutions for your consideration, and gives a recommendation to the preferred alternative. Further the idea of a Code of Ethics will be presented with the benefits laid out as well as a case study of one of our competitors and their success with a code of ethics. The ultimate purpose of this document is to find an ethical solution to the current whistle problem, and create a plan to avoid such issues in the future.
Situation:
During production random testing is preformed to verify compliance with U.S. standards. The (ETC), with an intended audience of young grade school kids, contains a small metallic whistle. This whistle is manufactured here in our Salt Lake manufacturing facility. Post production testing showed trace amounts of lead which is just outside of U.S. allowed amounts for children 7 and younger. The whistles have already been packed in the ETC; the first large shipment is scheduled to be sent out at the end of the week to schools in South America. The lead problem has been identified in the manufacturing process and has been corrected; new whistles being produced are within acceptable limits of lead. The cost estimate to replace the whistles in the ETC units with defective whistles is roughly $100,000. A decision will have to be reached quickly in order to get the first shipment out to the schools in time for school to start.
Recommendations:
As stated earlier three possible alternatives have been created, each can be accomplished in the time frame necessary to avoid a late shipment, which would mean a breach of contract. Each idea will be discussed in detail; however they are...

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