US Parts
originally titled: USAWAY
I
John Budinski, quality control engineer at Clarke
Engineering, has a problem. Clarke contracted with USAWAY to
supply a product subject to the requirement that all parts are
made in the United States. Although the original design clearly
specifies that all parts must satisfy this requirement, one of
Clarke's suppliers failed to note that one of the components
has two special bolts that are made only in another country.
There is not time to design a new bolt if the terms of the
contract are to be met. USAWAY is a major customer, and not
meeting the deadline can be expected to have unfortunate
consequences for Clarke.
John realizes that the chances of USAWAY discovering the
problem on their own is slim. The bolts in question are not
visible on the surface of the product. Furthermore, it is
highly unlikely that those who work on repairs will notice that
the bolts are foreign made. In any case, Clarke is under
contract to do the repairs. Meanwhile, it can work on a bolt
design so that it will be ready with USA bolts when, and if,
replacements are needed.
What should John do?
- Keep quiet and allow the product to go out as is.
- Discuss the problem with his superiors.
- Other.
II
[Following I. 1.]
John lets the product go to USAWAY with the foreign bolt.
Some months later a recently dismissed Clarke employee is at a
party. After several drinks, several people begin telling "war
stories" about business. The former Clarke employee tells the
story of how Clarke once faced a tough situation -- conceal the
fact that a pair of bolts were foreign made or give up a
multi-million dollar contract. Although USAWAY was not named, a
USAWAY stockholder is present and contacts USAWAY officials to
check out its contracts with Clarke. Prior to examining the
products Clarke has supplied, USAWAY confronts Clarke. What
should Clarke representatives do?
III
[Following I. 2.]
John informs his immediate superior of the problem. He is
told simply to let the product go out as is. What should he do?
[Suppose he does as he is told and then the former employee
tells the story in II.]