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Placido Engine Company

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Placido Engine Company
PLACIDO ENGINE COMPANY I. Major Facts

Placido Engine Company is a division of the General Products Corporation, a $2 billion company that enjoyed a worldwide reputation for quality and leadership in aviation, aerospace, and industrial products. So it is imperative that Placido Engine Company performs at its best and assures it delivers top quality products and services. Placido had built more than 45,000 gas engines for a wide variety of commercial, industrial, and military applications.

II. Major Problem

The major present problem Placido Engine Company is going through is that it started receiving complaints from its customers concerning corroded gearboxes on engines. The problem was significant and serious to the company that they created an Executive Corrosion Task Force to provide suggested solutions to the corrosion problem, as well as recommendations for implementing suggested programs. It was later determined that a large part of the corrosion problem centered in the Turbo 110 engine and its magnesium casting. It was found that a significant proportion of these casting were already corroded on receipt from Placido’s suppliers. The Task Force was under pressure and was ready to implement and take new initiatives to provide better quality products.

III. Possible Solutions/ Alternatives

There are many possible solutions/alternatives for the issue to be fixed the following are: a) Assurance that castings are corrosion free on receipt of shipment from our suppliers. Must provide Clean & Corrosion free castings by following strict procedures on how Placido Engine Company specifically wants the castings done. The supplier is responsible for delivering corrosion-free magnesium castings. Failure to do so necessitates an immediate rework at Placido to stop the corrosion process that may ultimately scrap parts. The cost incurred for the rework will be passed on to the supplier, along with negative quality ratings. A

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