7 Process Analysis

Mercedes’ Management pulling in Wealthy Chinese again

Posted on by spr1322tgutheil

After Daimler’s CEO Dieter Zetsche sat in the Mercedes S-Class, he realized it would not recline as far as a seat in an airplane did, and therefore not give the same amount of comfort that the wealthy individuals that would buy this car are accustomed to. This was especially an issue in China where the car-owner sits in the back a lot of the time as they have chauffeurs. Zetsche had his designers recline to 43.5 degrees to make it more comfortable and luxurious and therefore more appealing to the wealthy Chinese. When the backseat reclines, the front seat automatically moves forward a bit to give more legroom, and the seats even have a massage feature for ultimate comfort.

Mercedes Revamps the S-Class to Lure China's Wealthy Buyers

To be able to realize that this is necessary is very impressive forecasting while also looking at the past sales and realizing that something is wrong. For the CEO to go out and try the features of the Mercedes S-Class and help come up with solutions shows the dedication he has to the company, and shows good management as well. It is rare that you hear that a chief executive officer figures out the issue a company has and makes it a point to fix it.

Chinese buyers account for more than half of all the sales of the S-Class, which makes improving the sales even more important. With Mercedes operating profit margin down in comparison to BMW and Audi, it is important that the sales of the S-Class are improving again because the profit margin is 25% for these cars. Zetsche was also smart

in realizing that innovating and improving this car is important to the bottom line of making more money, as it is the most profitable.

China is a huge market as the sales of luxury cars are projected to go up 12 percent annually up through the year 2020. Clearly the operations management of Mercedes is of highest quality, because being able to put together all of the factors I have talked about and realizing that perfecting the S-Class is essential is rather impressive.

A Mercedes S-Class can cost as much as 486,000 dollars in China due to very heavy import levies. Due to the halo effect, Mercedes is able to generally charge more for its other cars as well. Mercedes sold about 20,000 more of their luxury cars than BMW and a little over 40,000 more than Audi’s luxury car, so clearly Mercedes is the best at perceiving an image of luxury and highest of quality. With this fact in mind, Mercedes’ management needs to realize that they need to improve the sales of their other cars to become the most profitable company in overall again in comparison to their biggest rivals of BMW and Audi.

What do you think Mercedes can do to improve their sales and become the most profitable company again? Are you impressed by the improved S-Class moves?

Can You Have Your Cake and Eat It Too

Posted on by spr1311dferek

As I’m lounging on the sofa in the family room watching my husband decorate the cakes that he baked for both our moms on Mother’s Day, thoughts about how he plans the whole process are running through my head. While my husband wasn’t enthused about the interruption, I was busy asking him multiple questions regarding how to forecast future demand, how to manage quality and quantity, and finally what inventory method is used by businesses that produce wedding cakes.

Forecasting is a critical aspect of the business to effectively manage overhead costs, ingredient inventories and most importantly, volume projections to meet demand while maintaining a profitable business. To achieve desired profitability, the business should deliver a wide variety of designs at competitive prices.

In class, I had learned about five quantitative forecasting methods. The simplest method to forecast how many wedding cakes will be produced next month is looking back at the last month’s production quantity. Another forecasting model is using the moving averages forecast method. This method uses an average of the most recent periods of data to predict of how many wedding cakes need to be produced next period. For example, the bakery may use a 3-month moving average by adding the last 3-month production of wedding cakes and dividing by 3 months. However, to use this method, we would assume that the market for wedding cake demands is quite stable.

Next important aspect for a Wedding Cake business is how to efficiently manage the quantity and quality of the cakes. Higher quality of ingredients used during production will lead to a better reputation for the business and create higher customer satisfaction, leading to repeat customers. Moreover, business would save ingredient costs by purchasing larger volumes.

This reminded me of what I had recently learned in my class about product focus. Some bakery businesses focus on producing high volumes and low variety. For example, one business can focus on a niche market and produce only wedding cakes that will deliver a high volume but limited designs. But such a business will need to be highly completive in the market in order to be successful. On the other hand, another bakery might produce low volume of cakes, but cater to a much broader customer base such as birthdays, graduations, anniversaries, Bar Mitzvahs, etc.

Managing inventory of raw ingredients as well as finished goods is another critical aspect that has to be closely managed. The perishable nature of the products makes it very important to effectively manage inventory of seasonal products, while maintaining stocks for rush orders. Also, inventory management is crucial in maintaining business profitability by reducing waste of both raw ingredients and expired finished products.

Although I learned a great deal regarding the wedding cake industry from my husband, I”m still left with a few questions: What is the best way to forecast wedding cakes? What process strategies should be used by bakeries? Would it be more profitable to use process focus or mass customization strategy?

http://smallbusiness.chron.com/examples-management-strategies-cake-bakery-business-12208.html

Angus got kicked out!!

Posted on by spr1321schow

As the economy keeps changing, products’ prices keep are raising as well. A lot of the companies made a lot of changes to adapt to this economy. Not only supermarket and clothing stores are affected by the economy, so are fast food restaurants. The fast food industry are facing higher beef prices and McDonald’s have to change their menu to adjust to this change. McDonald’s have to decide what changes will keep costs low and balance customers demand. Recently, McDonald’s announced that they will have three new quarter pounders added to their menus, replacing the Angus burger.

McDonald’s tried to control their cost of operating and total revenue, but not affecting the customers too much. Therefore, they made a decision to create three new Quarter Pounders to replace the Angus burgers. The product decision have met product strategy options, there are different burgers produced with low costs. Also, they made a lot of concerns of these new burgers. For example, they understood the customers’ needs; they can attract more teenagers for the new innovation of quarter pounders. They also knew that if they raise the prices, they will scare customers away. Instead of raising the prices of their burgers, McDonald’s created and changed products to reduce costs and not affect customers demand. Moreover, the most concern of the new change is the price-conscious customers and traditional fast-food chains because McDonald’s are trying to meet fast-food market demand and provide high quality food like its competitors.

In addition, “McDonald’s executives say the strategy is necessary to steal away customers at a time when the restaurant industry is barely growing” (Choi). They have met the Product Focus, one of the basic process strategies. In product focus, products are in high volume and low variety, therefore, McDonald’s decides to bring Angus Burgers down and bring up Quarter Pounders to replace it. They did it not only for the price, but also the changes of value. Since Angus Burgers were the most expensive item on McDonald’s menus and it hasn’t made any newer variety of the Angus burgers, it would be a great decision to balance McDonald’s sales and profits. This strategy will also attract more customers to try out more new products other than quarter pounders. The value of quarter pounders is healthier and better than Angus burgers. McDonald’s provide healthier items on their menus to meet customers’ demand and new customers that are loyal to other fast food restaurants..

After reading the article, I believed that McDonald’s are not only making new quarter pounders or McMuffin to attracts customers, they are trying to change traditional fast-food chains to fast-food market demand which they can meet customers demand. As long as they can win back customers from other fast food restaurants, they can make anything that customers like and put them on menus. For example, McDonald’s in Hong Kong even put Chinese food on their menus, even though it is an American fast food restaurant. I think this is unbelievable. In the United States, McDonald’s put Mexican style McWraps and breakfast burrito on their menus.

Do you think the three new quarter pounders can satisfy those customers who like third-pounder angus burgers? Would McDonald’s be affected if their menus contain items other than American style food?

Sources:

http://finance.yahoo.com/news/mcdonalds-adding-3-quarter-pounders-160308861.html;_ylt=AoiOCNv7.6R0UnCgiu4jiiTQtDMD

Infer: Better Math Can Produce More Sales

Posted on by spr1313zmares

Infer is a company that develops technology that allows company’s sales-tracking system to rank customer leads based on how likely they are going to purchase something. The company has raised 10 million over the last two years while working on this technology. Infer is rather simple as its software starts with basic information. For example, if a customer decides to enter their name, address and company when signing up for a product. The Infer system will then start doing research behind the person that signed up for the product.

The CEO, Vik Singh is young as he is only 28 years old, but he believes that his mathematical formulas will increase sales. Vik Singh and his 10-employee team are in the midst of improving sales by using better math.

Vik doesn’t seem to be short on confidence as he feels that this new  innovation is sure to help increase sales. The problem is the fact that he is  very young and there may not be that many people that believe in his new ideas. He may not be the best person to trust for sales, but he certainly has the right engineering track record. He worked with Google fine tuning search systems before moving to Microsoft. At Microsoft, he developed technology with Jim Gray, who of the greatest computer scientists of the last half century. He finished working with Microsoft and built a new Yahoo search system.

Vik Singh has worked with some of the biggest technology gurus in the world. Vik Singh says, ” The way the typical company manages data is piss-poor in comparison and there is more science at Facebook (FB) behind seeing which of your friends are getting drunk across the street from you.” This seems to be a common theme with all the new web-savvy engineers that are trying to make new rules for business applications. Vik Singh wants to treat sales deals like a puzzle. If Infer can makes their sales deal like a puzzle then it can be solved with an algorithm rather than a dinner between people who have ideas.

Infer has worked with Box and other customers to verify their research. It works with historic sales and compares outcomes with their own predictions. Singh continues to tell everyone that the experiments come out nearly perfect, but he has not released any proof of this for businesses to see. In my opinion, there are a lot of other things that factor in when dealing with sales. There needs to be more facts when trying to rely on just math to increase sales. From a management point of view, I don’t know if Vik is taking things a little too far with all these math equations, but he does have the technology background to speak for him. Then again who has time for someone that is only 28 years old and is trying to change the way selling works?

Links:

http://www.businessweek.com/articles/2013-04-24/infer-promises-more-sales-through-better-math

http://techcrunch.com/2013/04/23/infer/

http://blog.studentrnd.org/post/37455656817/why-asians-are-better-than-americans-at-math

Follow LeanPath: Way to reduce food waste

Posted on by spr1333rmortha

Among 150 hotels, hospitals and universities, the University of Massachusetts Amherst is utilizing an innovative method to reduce food waste conjured by a company called LeanPath.

According to LeanPath, the issue of food waste is getting to be tremendously harmful for energy and water resources. Being the biggest source of waste in the United States, food waste accounts for $8 billion to $20 billion worth of waste annually. This is because about 4% to 10% of food bought is wasted rather than consumed.

What exactly is this waste? What LeanPath tracks is not exactly what we think of when we think of the term “food waste”. It is not the food our moms tell us to “finish because kids in Africa are starving”. The food waste that LeanPath targets is focused to tackle the root of the problem. It is the food that is wasted even before it reaches the plate. This can be anything from meat to vegetable trimmings. Imagine you are making mashed potatoes. How much of the potato are you really peeling? How much potato skin are you discarding? Leanpath can measure and put a dollar amount to all of these questions.

How does LeanPath help and what does it do exactly? Quite simply, LeanPath provides the means for establishments to track the food they are wasting. Employees can do this by weighing their waste on the scales provided by LeanPath.  The employees enter in the type of food, size of container, type of meal and the reason it is being discarded in to the LeanPath machines. The machine then calculates the waste into a dollar amount using their special software. All of this would cost the establishment about 5,000 dollars. Though the software doesn’t provide the employees with solutions to reduce food waste, it provides them with useful charts and graphs that help the employees make these decisions. The employees and their managers then meet up once a month and brainstorm best practices to reduce the waste they are calculating on the LeanPath scales.
How effective has this been? Specifically, the University of Massachusetts Amherst has saved $300,000 dollars after it has started using LeanPath’s methods. I think that this is a great start to saving a lot of waste in the food industry. I do think LeanPath would be more effective if they gave practical solutions to reuse food that is intended to waste rather than giving facts and charts. With LeanPath’s program now, it looks like only the institutions that are most dedicated to sustainability will benefit from LeanPath’s products. This is why more commercial institutions like restaurants and food courts are not using LeanPath. Anyone can weigh the food waste but there needs to be an active desire to come up with solutions to reduce food waste in order to make this program more effective.

Can LeanPath eventually reach more commercial industries? Do you think it needs to alter its program to do so? If so, how?

Links: http://www.businessweek.com/articles/2013-04-11/dont-throw-that-out-leanpath-harnesses-data-to-fight-food-waste

Be GREEN, or be SQUARE!

Posted on by suhanip301s12

More and more customers now are looking for companies to be transparent, but it’s kind of hard to be competitive and sustainable at the same time.  Companies are now using value chain processes to get the job done fast.  They are not only focusing on suppliers but also taking into account By-Product-Synergy, which is “taking waste from one part of the production process and using that waste in order to generate a new product.” But how can companies become more sustainable if only “80 percent of management uses just 20% of the available opportunities?!”  The remaining 80 percent is where management needs to focus the rest of their energy.

It’s crucial for management to set goals and assess their risks, thereafter they can easily seek out opportunities for future improvement.  The first step to become a transparent company is to implement a sustainability program, and of course to develop a strategy.  The next step is to identify the companies “main processes and map data throughout the value chain.”  By using life-cycle-assessment software, the companies will have a more clear idea of how to lower their costs.

A similar approach was taken by ThyssenKrupp (FWB: TKA), a German elevator company.  Since ThyssenKrupp uses a considerable amount of steel in the manufacturing process, they thought the operational aspect had the greatest environmental impact. To their surprise,  the “company’s elevators themselves left a greater carbon footprint then their manufacture or any of the company’s other operations.”

As a result, ThyssenKrupp dramatically changed their product line after implementing a sustainability program.  They made the following changes to their products and services:

  • Elevators use LED lights which reduce energy consumption by 80%, and automatic fan and light shutoff which reduces CO2 emissions by 193,000 tons per year.
  • Getting rid of harmful chemicals used to manufacture the elevator.
  • Using petroleum based biodegradable fluid, with a vegetable-based option called “enviromax.”
  • Elevators are equipped with regenerative technology, meaning that the energy generated from the braking system is put back into the building.

In a way the article gives motivation to other companies who are taking their first steps towards becoming a transparent company.  It gives them few ideas and pointers on “unlocking supply-chain opportunities.” It’s important for different industries to decipher various ways to be more environmental friendly.  After all, there is more to being sustainable than just showing off your environmental initiatives.

Do you think ThyssenKrupp can take additional measures to make their company more sustainable?  Or better yet, are there any companies that you want to see become transparent in the near future? How would they need to change there operations?

Links:

http://www.thyssenkruppelevator.com/Sustainability/products-services

http://www.greenbiz.com/blog/2013/04/26/whirlpool-thyssenkrupp-supply-chain-transparency?page=0%2C1

https://opsmgt.edublogs.org/2012/06/28/transforming-waste-into-profit/

 

Where is my phone?

Posted on by Dom

The HTC One, High Tech Computer Corporation’s leading phone is currently experiencing worldwide delays. As of April 24th, AT&T, Sprint, and T-Mobile are the sole wireless communications service providers that offer the cell phone for sale. Unfortunately, potential clients will be disappointed upon hearing that the phone will be delayed; potentially for several weeks. Originally the HTC One was scheduled to launch in mid-March, but supply issues have pushed back the release for over a month.

Over the prior year, HTC’s profits have dropped to a record low $2.83 million. This accounts for a 98% drop in profits. The HTC One is the paramount flagship model and in order to turn around the company, it must sell well. In March alone, HTC moved only 300,000 phones to nationwide retailers in three countries as supply bottleneck issues arose. HTC indicated a shortage of camera components as the problem responsible for the mass delays. By the end of April, J.P. Morgan Securities’ supply chain checks forecast 1.2 million phones shipping as well as 2.0 million in May.

Oddly enough, the main competitor of the HTC One, the Samsung Galaxy S4, will also be delayed until April 29th on T-Mobile. The Galaxy S4 will be launching on six carriers, however only T-Mobile has set a definitive launch date. In order to cope with the anticipated sales forecasts, Samsung is currently producing 10 million units monthly. T-Mobile will likely be the first carrier to launch with the Galaxy S4 but is already experiencing delays before pre-ordering is available. Once the five other carriers set their release dates, demand will go up and Samsung may not have enough available phones for the amount demanded.

Anticipated sales forecasts generated for both HTC and Samsung may not be realistic over the next several months as both corporations are struggling to produce enough inventory for the demand. This, however, brings up a question of quality. If HTC and Samsung are rushing to mass produce these phones to clear the backorders, will the quality of the phones suffer, or will crashing methods have to be implemented to speed up project length?

In our class we discussed bottleneck situations and how that may jeopardize the timeliness of the process but this article also brings up forecasting models. Unfortunately forecasts are just predictions. When unanticipated situations arise, these forecasts may not be accurate; as exemplified in HTC’s case. Stock markets also rely heavily on forecasts, thus a company may decrease or increase in value today pertaining an act that will be committed in the future. Only time will tell how long consumers will have to wait for their phones as both companies are working relentlessly to produce more phones.

Do you believe that HTC and Samsung should have prepared better for this problem and stockpiled phones ahead of time to avoid this situation?

Which company do you feel will tackle this issue most effectively?

 

References:

Brown, Justin. “HTC One US Bottleneck Won’t Clear Until After Galaxy S4 Is In Stores?” SidhTech RSS. N.p., 20 Apr. 2013. Web. 24 Apr. 2013. <http://www.sidhtech.com/news/htc-one-vs-samsung-galaxy-s4-us-release/1003194/>.

Davies, Chris. “HTC One Turnaround Tipped as Supply Bottleneck Loosens.” SlashGear. N.p., 15 Apr. 2013. Web. 24 Apr. 2013. <http://www.slashgear.com/htc-one-turnaround-tipped-as-supply-bottleneck-loosens-15277830/>.

Epstein, Zach. “BGR.” Samsung Galaxy S4 Deemed a Winner: Shipments Seen Topping Early Estimates. N.p., 5 Apr. 2013. Web. 24 Apr. 2013. <http://bgr.com/2013/04/05/samsung-galaxy-s4-sales-estimates-414846/>.

Harvey, Cynthia. “HTC Profits Drop 98%.” Datamation. N.p., 8 Apr. 2013. Web. 24 Apr. 2013. <http://www.datamation.com/news/htc-profits-drop-98.html>.

Kovach, Steve. “Samsung Galaxy S4 Delayed On T-Mobile Until April 29.” Business Insider. N.p., 23 Apr. 2013. Web. 24 Apr. 2013. <http://www.businessinsider.com/samsung-galaxy-s4-delayed-on-t-mobile-2013-4>.

Tofel, Kevin C. “HTC One Launch: Available at 2 Carriers; Web Orders for 1; Delays for Dev Edition — Tech News and Analysis.” GigaOM. N.p., 19 Apr. 2013. Web. 24 Apr. 2013. <http://gigaom.com/2013/04/19/htc-one-launch-available-at-2-carriers-web-orders-for-1-delays-for-dev-edition/

If Time Heals Wounds, Why Do We Still Use a 93-Year Old Band-aid?

Posted on by spr1332gfleytlikh

Band-Aids; we have all used them, from minor scrapes to cuts and even bug bites. We see them at the doctor’s office, the hospital, and the pharmacy. Generally, Band-Aids are the same: a piece of gauze surrounded by an adhesive strip. Though they do come in all shapes and sizes, we usually see and experience them looking like this:

That’s right! They were invented in 1920, which in turn makes the Band-Aid 93 years-old. They were created by Earle Dickinson and manufactured by Johnson & Johnson. What is interesting to look at is the innovation of the Band-Aid over its long life span. We have Band-Aids that are for large wounds, ones that wrap around, others with built in antiseptic on the gauze pad, and even little circle ones for small cuts. The product itself has undergone changes, but understandably, the process remains the same, attaching a gauze pad to a piece of tape (later a vinyl adhesive) and covering it in crinoline to keep it sterile. This process is done regardless of shape and size, and for the antiseptic ones, there is one extra step in the manufacturing process to add the disinfectant.

Enter Tsai Cheng-Yu and Hsu Hao-Ming. They have created the new Band-Aid, the AmoeBand. It claims to be more comfortable thanks to it being adjustable with perforated edges as well as a pH sensitive gauze pad which will tell the consumer whether or not the wound is infected. This design is a drastic change from the original that is mass produced. How could a company compete with this product, if it’s popular with consumers, if they have to change their whole process design of manufacturing?

AmoeBAND

Think of how much money would have to be spent either creating new manufacturing facilities or altering current ones. Even further, this process would have to be planned, designed, tested, and eventually perfected. The AmoeBAND adds the necessity to purchase pH sensitive gauze and add a manufacturing step to ensure the perforations. It is easy to understand from labs in class that a process is never perfect and differs. While each AmoeBand manufacturer may believe they have the fastest process, another may have a cheaper process. There are a lot of factors that will go into actual implementation of this product, if it were to become popular amongst consumers.

However, before all that, there will be the need to convince upper management of companies that this is the product of the future, a product that will reap larger reward, and could be easier to manufacture. That will take research, development, and sturdy planning. Band-Aids have not changed much since the 1920’s, so this could revolutionize the industry and push forward innovation.

Do you think a product like this could be produced by companies to net a positive gain? Would the AmoeBand even catch on with consumers?

 

Sources:

Mary Bellis: http://inventors.about.com/od/bstartinventions/a/bandaid.htm

Article:

Cristina Lindblad: http://www.businessweek.com/articles/2013-03-14/reinventions-band-aid

Can Self-Management Improve Quality?

Posted on by spr1332khendricks

As management students start to think about their career paths, especially for those graduating soon, one of the things on their minds is how they will differentiate themselves in the job market. Better yet, the opportunists’ who will be brave enough to tackle competitive markets, what kind of unfair advantages could these entrepreneurs come up with in their businesses? Well, one suggestion is how you actually structure the company through your business model and management style. This will determine how successful you will become in the long run, because the people you hire will indeed be the backbone of the company.

Morning Star’s founder, Chris Rufer has built a tomato processing empire that is like no other business model many have never heard of until now. He calls it a “bossless” model, which consists of no managers, no titles, so no one to report to, making everyone have mutual accountability of their work. They set their own goals and meet them, creating an extreme level of achievement.

When everyone having a high degree of accountability, the company strives; therefore you can focus in on the company’s core competency, in this case, the tomato process. In the video, Morning Star demonstrates their process from start to finish, and we can see the dedication from their employees; they take pride in their work every time. It shows how workers evaluate every single tomato for quality, before going on to the next process.  Innovation is also encouraged within the organization through everyone’s perspective of how to be more efficient in the process.

Consequently, when you have that amount of freedom in the workplace you can perfect a higher level of quality in your products and services, resulting in a greater profit margin or penetrating a larger market in the end. Why? There is no pressure of doing the job in just an autocratic way, unlike with the red bead Deming’s experiment; where there was no other approach  besides the way the boss wanted it to be done, which is impractical in today’s advanced technological age.

Rufer says that this model of doing business is “Quite good, high-performing people love it here, and they flourish,” and it is their competitive advantage in the market. So why don’t more companies follow this model? With traditional models becoming obsolete, our generation needs to figure out other ways to conduct business, in order to distinguish ourselves from the rest. This method of organizational structure is not fit for all businesses, but it is certainly a new and inventive system of increasing productivity, quality and overall well-being in the organization.

There is a saying that people don’t necessarily quit their jobs, but actually quit on their bosses. So, what if you worked at a company where there was no boss to quit on, do you think you would be happier? And therefore, be more productive, and result in products and services having better quality that could be beneficial to everyone?


http://www.inc.com/audacious-companies/leigh-buchanan/morning-star.html

http://morningstarco.com/index.cgi?Page=Self-Management

Video http://www.smithsonianmag.com/multimedia/videos/A-Tomato-Trail.html

 

 

 

 

Tepco Faces Decision to Dump Radioactive Water in Pacific

Posted on by spr1311sabraham

Are ethical dilemmas an issue for operational management? If your answer is no, you are wrong.  There are many ethical dilemmas that companies face each day regarding their operations.  This Bloomberg article regarding an ethical decision needed to be made by Tokyo Electric Power Company (or ‘TEPCO’) , a Japanese electric utility company, is ground shaking with the large implications that will result per their ultimate decision.

TEPCO has discovered leaking in water storage pits within the Fukushima atomic station- The station was destroyed in March 2011 from an earthquake and tsunami simultaneously (link to article —-> http://www.telegraph.co.uk/news/worldnews/asia/japan/8953574/Japan-earthquake-tsunami-and-Fukushima-nuclear-disaster-2011-review.html)

From within the seven pits, leaks were found in the basements from when the disaster teams were called in to cool down the reactors. The company is now under pressure because it may be forced to dump the radioactive water in the Pacific Ocean.

Time is of the essence due to the water busting through basement walls at roughly 400 tons per day.  This water is then becoming contaminated, thus a huge issue.

TEPCO has two operational decisions to make to pass down to its work crew:  reduce radiation levels from the water by pouring it into the Pacific Ocean or continue their production of “above-group storage tanks”.

Why such a tough decision for management?  It is essentially impossible to keep up with the inflow of water that is leaking. Even with production of 450,000 tons of the tanks above ground by September 2013 and 700,000 tons by the middle of 2015 this company clearly is fighting an uphill battle.

What are the effects of their decisions? Well, an important factor in this are human lives.  The United Nations Scientific Committee on the Effects of Atomic Radiation (or ‘UNSCEAR’ link to their website here –> http://www.unscear.org/) has remarked that humans can get cancer, such as leukemia, with moderate to high levels of exposure to the toxins.

Even though TEPCO is working on the removal of many of the radioactive substances, the purification system they have created continues to see operational issues in functioning properly.  The company’s image continues to be at stake, they face legal issues, disrupting the fishing industry, and their company’s attractiveness to investors in the future. Other than the business side, their obligated to think of their own people as in their workers and also those people that this could affect.

The original cause of the leaks could have potentially been a flaw in the staffs proper inspection of the equipment and additional tests before dumping toxic water into the leaking pits.

This is an operational nightmare for TEPCO.  I feel that this story directly related to what we have already learned within class.  Within the puppet making exercise the workers continued to feel pressured by upper management to just get the job done. Also, within the tower exercise having an effective team leader was crucial along with the planning phase of construction.

I am curious to hear your thoughts on what truly caused these leaks and what you would do in this situation.

Link to article –> http://www.bloomberg.com/news/2013-04-11/tepco-faces-decision-to-dump-radioactive-water-in-pacific-ocean.html