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Ford and Firestone's Tire Recall

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Ford and Firestone's Tire Recall

  1. 1. Ford and Firestone’s Tire Recall: The Costliest Information Gap in History Chapter 7 Case Study Brian Kaufman James Grant Neng Xiong Steve Witucke Tom Dattulo
  2. 2. Problems and Major Issues <ul><li>Federal investigation of 46 deaths and more than 300 incidents </li></ul><ul><li>March 1999: Confidential memo from Firestone to Ford: everything’s fine </li></ul><ul><li>August 1999: Ford recall in 16 countries but not in US and NHTSA not notified </li></ul><ul><li>August 2000: </li></ul><ul><ul><li>Disagreement about tire inflation pressure (Ford 26 psi; Firestone 30 psi) </li></ul></ul><ul><ul><li>report that Firestone plant was “rife with quality-control” </li></ul></ul>
  3. 3. Problems and Major Issues <ul><li>September 2000: </li></ul><ul><ul><li>Firestone memo from 3/99: “major reservations” about a plan to replace tires overseas </li></ul></ul><ul><ul><li>Ford said it was under no obligation to report overseas recalls </li></ul></ul><ul><ul><li>Ford did not have warranty data on tire recalls </li></ul></ul><ul><ul><li>Firestone’s damage claims moved to Nashville; warrenty adjustments in Ohio </li></ul></ul>
  4. 4. Problems and Major Issues <ul><li>September 2000 (continued): </li></ul><ul><ul><li>Trend identified after-the-fact by the New York Times </li></ul></ul><ul><ul><li>Department of Transportation doesn’t have funding to track all data </li></ul></ul><ul><ul><li>NHTSA: “our testing is clearly outdated” </li></ul></ul><ul><li>President of Bridestone said the lack of quality control was management’s fault </li></ul><ul><li>Group of personal industry lawyers identified a trend in 1996, but did not report to NHTSA until 2000. </li></ul>
  5. 5. MIS Application <ul><li>Why was this a crisis in information management? </li></ul><ul><ul><li>The information was available, but it was not easy to get at and it was not shared. </li></ul></ul><ul><li>What role did databases and data mgt play? </li></ul><ul><ul><li>There were several isolated databases </li></ul></ul><ul><ul><li>There were no easy ways to detect trends </li></ul></ul><ul><ul><li>There were no ways to share data (Ford had to “pry” information from Firestone) </li></ul></ul><ul><ul><li>Not all data collected </li></ul></ul>
  6. 6. What took so long? <ul><li>Individuals hid information (lawyers and executives) </li></ul><ul><li>Data not stored (lack of funding) </li></ul><ul><li>No obligation to report overseas actions </li></ul><ul><li>Didn’t have a tool to detect trends easily </li></ul>
  7. 7. The Players and the Data <ul><li>Firestone </li></ul><ul><ul><li>Nashville: Damage claims </li></ul></ul><ul><ul><li>Ohio: Warranty adjustments </li></ul></ul><ul><li>Ford </li></ul><ul><ul><li>Warranty info. for non-tire issues </li></ul></ul><ul><ul><li>Did not have warranty information for tires </li></ul></ul><ul><li>Department of Transportation </li></ul><ul><ul><li>Fatality data with vehicle type </li></ul></ul><ul><ul><li>Not storing actual causes of failure (i.e. from tires) </li></ul></ul><ul><ul><li>No data from non-fatal accidents </li></ul></ul><ul><li>NHTSA </li></ul><ul><ul><li>Complaints, crashes, and injuries/deaths </li></ul></ul><ul><li>Lawyers </li></ul><ul><ul><li>Pattern of failures recorded </li></ul></ul>
  8. 8. SELECT * FROM ? <ul><li>What questions from DBs were needed: </li></ul><ul><ul><li>Better trend analysis </li></ul></ul><ul><ul><li>How many warranty issues from each tire type </li></ul></ul><ul><ul><li>Relate issues to manufacturing source </li></ul></ul><ul><ul><li>Need to be PROACTIVE not reactive! </li></ul></ul>
  9. 9. Will you be my friend? <ul><li>Relationship of organizations prohibited a rapid solution </li></ul><ul><ul><li>Ford and Firestone had a long relationship (100 years), but did not communicate on issues </li></ul></ul><ul><ul><li>Ford and Firestone did not report data to the government if it might cost them </li></ul></ul><ul><ul><li>Legal community hid information from government for 4 years to protect their lawsuit </li></ul></ul>
  10. 10. Conclusions <ul><li>There was not an environment of information sharing </li></ul><ul><li>Not all parties were collecting the correct data </li></ul><ul><li>No one was proactive about looking into problems </li></ul>