Positioning Manufacturing Plants Away from US States Essay

Positioning Manufacturing Plants Away from US States - Essay Example4 Discussion. 6 Conclusion 10 References 11 tweet Several states in America, specifically the state of California, practice strict environmental compliance policies that become a burden to most manufacturing companies. The costs attributed to the improvement of environmental management and production process are very high, adding up the labor costs in the US. This theme case impart explore the complexities of the given scenario and ascertain the possible management strategies by functioning as the companys CEO. The causes and reason why American companies move their manufacturing operations to an offshore location will be determined, as well as its implication in the American work force and community. Product financial obligation will also be the institution of the discussion, focusing on the quality of the products to reduce product recalls and product liability lawsuits. Methods in improving the production p rocess will also be tackled. ... This sight is known as product liability. Heizer and Render (2011), the authors of the Operations Management book, describe this quality implication as a legislation that is implied to organizations that . . . design, produce or open faulty goods and services. The organization is held liable to any form of damages or injuries that may be incurred with the use of faulty products. According to Polinsky and Shavell (2010), thousands of product liability cases are filed each year in different states in the US, as well as in federal courts. These cases include class or upsurge tort actions that involve thousands or millions of individuals as plaintiffs (Polinsky & Shavell, 2010). Product liability suits attract the attention of the media, especially in cases where the product being sued is a widely change commodity that can affect a large number of consumers. This situation will also be detrimental to the company since it will create doubts from consu mers and root to an abrupt decrease in product sales. In 1982, the market share of Tylenol greatly fell from 35% to 5% after incidents of death associated with consumption of Tylenol contaminated capsules. Audi car sales were also affected during the mid-80s when reports spread that the automobile has a risk of suddenly accelerating which can cause accidents (Polinsky & Shavell, 2010). Significant cause of product liability and the strategy of outsourcing the production of goods and services will be discussed in this paper by analyzing a given theme case. The case provides a scenario wherein a CEO is faced with a challenge to suppress the effects of a product liability case associated with the allegation that one of their manufacturing plants had been involved in the improper