Unit 1 Assignment
Richelle Cooper
June 18, 2013
Problem 1-32: Now that you know of the chip’s faults, what should you disclose and to whom should you disclose it?
Being as though I am now aware of the chip’s faults, I would immediately disclose this information to management for production of the chip to cease. At that time, they can determine whether the chip should be repaired, replaced or discontinued. This determination is a part of planning and decision making which is one of the four functions of management (Blocher, Stout & Cokins, 2010). Management should be informed that the chip could possibly cause hard to discover failures that can be unrecoverable. Under scarce and abnormal circumstances, the faults could cause potential damage to the users upon implementation therefore; the users should be made aware of this information as well. On the contrary, should the faulty chip return the proper results with no noticeable consequences, this information need not be shared with the user.
Reference:
Blocher, E., Stout. D., and Cokins, G. (2010). Cost Management: A Strategic Emphasis. McGraw-Hill/Irvin
Problem 2-55: Where does this program fit in the Harley-Davidson value chain? From a value chain perspective, how does the Rider’s Edge program at Harley-Davidson support the firm’s strategy?
The value chain consist of three phases: upstream: product development and the firm’s linkages with suppliers; operations: manufacturing operations for retailer or service firm (providing products and services); downstream: linkages with customers, including delivery, service, and other related activities (Blocher, Stout & Cokins, 2010).
Rider’s Edge program fits in the Harley-Davidson value chain under the downstream focus on servicing customers. In this program, the firm provides a customer service that is unique in the industry and potentially an important way to attract new