Posts Please post questions that you have about the course. 37 14 The book discu

Question

Posts Please post questions that you have about the course. 37 14 The book discusses costs of quality in Chapter 4. One of the types of cost of quality discussed in the book is external failures. Please research the exploding Ford Pinto Controversy which occurred in the 1970's. Ford allegedly anticipated that the Pinto could burst into flames causing serious burns and death. Ford allegedly computed the possible liability costs and documented these costs and the associated analysis in writing. Based on this analysis, Ford allegedly took no action to modify the fire hazard. Please research this event and answer the following questions. Please also respond to someone else's post. Your answer is worth up to 30 points. Your response is worth up to 10 points. The first 5 students to post their answer get an extra 20 points. 1. Please explain and quantify what Ford's analysis of the issue was? 2. Please explain if Ford's analysis was consistent with the analysis discussed in the book? 3. Do you agree with Ford's analysis and decision to do nothing? Why? Displaying 1 to 2 of 2 items

Explanation / Answer

1. It was estimated that making the change would result in a total of 180 less burn deaths, 180 less serious burn injuries, and 2,100 less burned vehicles. The benifit would be of $ 49.50 million while the expenditure to alter design would be of $ 137 million.

2. Yes, as they have estimated the cost which they will have to incur because of the design failures in form of compensation

3. No, ethically it is one of the worst decision to let people die instead of altering the fault disclosed well in time.

For more reading:

https://users.wfu.edu/palmitar/Law&Valuation/Papers/1999/Leggett-pinto.html

Please support and give a like for the correct and quick explained answer, thanks !

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