Question#1:
If OEM decides to make a complete recall, the associated costs would be charged to the tiered suppliers; especially a higher potion on Automek and then Agile. Automek takes the risks on Agile, the manufacturer has no previous experience on producing this critical part, with the major purpose of reducing the cost. Moreover, it was the Automek's responsibility to carefully audit the qualification and capability of the lower tiered suppliers. But, it turns out that it was the failure of the tier four supplier caused the major defect on the final part, which causes the potential recalls.
Agile is also responsible for the damages because Agile offers ECPL-the tier three supplier- to produce the PCB, which is the most critical component for the actuator assembly by previously knowing that the PCB that ECPL usually make has a different standard comparing to the one Automek requires.
The tier three and four …show more content…
Automek should be responsible for the quality of the final part which delivered from Agile, who is expected to manage the its quality in proper way. The quality for the outsourced components should be audited and monitored by both Automek; Agile is responsible to narrow the quality and process gaps between lower and higher tier suppliers. The final product in this case is produced extremely dependent among each suppliers, whose quality management would affect the quality chain in dramatic ways. It is the ORM's responsibility to test the parts in proper temperature in order to avoid the future defects. Agile should figures out a better way to monitor the quality for the completed assembly since it is easily damaged and highly fragile. For ECPL and BIPL. it is theirs responsibilities to produce the parts that qualify the upper stream customers' quality standards and