To: Dr. Allison Lea, CEO and Executive Leader Team
From: Keith Rentfro, Elementary Division Manager
Date: December 7, 2013
Subject: South American Toy Shipment
ACME Toy Company is scheduled to ship a $100,000 order to South America at the end of the week. During routine quality assurance testing, a concern was discovered. The product, a toy whistle, has an unacceptable amount of lead for the United States Market. According to the United States Consumer Product Safety Commission (CPSC), all children’s products manufactured after August 14, 2011, must not contain more than 100 parts per million (ppm) of total lead content in accessible parts.”
ACME Toy Company leadership must come to a decision on the next step for this scheduled shipment. In my estimation, there are three (3) appropriate responses to this unfortunate occurrence: a) process the shipment to South America as scheduled; b) eliminate the order in its entirety; c) reproduce the entire order.
The PrOACT method was used to formulate a response. The PrOACT decision making model was developed by John S. Hammond, Ralph L. Keeney, and Howard Raiffa. The PrOACT method involves five (5) steps: a) problem, b) objective, c) alternatives, d) consequences, and e)tradeoffs
First option: Process the shipment to South America as planned
Problem: Whistles do not meet United States (U.S.) guidelines for lead in children’s products
Objective: Produce a safe toy for children worldwide
Alternatives: eliminate the order or reproduce the entire order
Consequences: Potential for lead poisoning in the local South American children
Tradeoff: Save money in the short term by shipping original whistles; however, open the company up to fallout from shipping toys with an unacceptable lead content in the United States to foreign countries.
Second option: Eliminate the entire order
Problem: Whistles do not meet U.S. guidelines for lead in children’s products