Question

Assignment:

We need to record a 20-25 minute video on ZOOM where we debrief our "CEO" on Last Weeks GlucoGauge Crisis (i.e. information covered in our slide deck we turned in)

We need to cover the following

The situation

Any new developments

Background information

Our analysis of the situation

Findings

Solution and Recommendations

Answer 1

The situation: It is about the quality crisis faced by company on its medical device “GlucoGauge” for measuring sugar level of patients. From last few weeks the company is getting audio and video messages from users regarding faulty readings given by the device. It is been used by physicians in hospitals and by patients attendant or patients themselves at home on the basis of which the diet modifications and changes in doses of medication is done. It can cause life hazards and is a critical safety situation.

Any new developments: Competitors are trying to capitalize this opportunity by claiming their products have no issues, safety is significant for them and making efforts to further tarnish the company’s image. Users were having high expectations but have been utterly disappointed. Legal cases can also be filed against the company. It’s brand image is plummeting. Stakeholders are irked on this issue.

Background information: Before its launch extensive pre release testing was done. It had been compared with competition for ISO standards and it was found having lowest MARD (mean absolute relative deviation) when checked with the reference range.

Our analysis of the situation: On the basis of intelligence reports and the root cause analysis conducted by the committee formed of members from R&D, manufacturing, and logistics suggested that it is issue of microprocessors that has been procured from supplier. The supplier has supplied low quality processors that are not very sturdy under extreme humid weather and heat conditions. Our devices were not been checked for these simultaneously.

Findings: Microprocessor used in the device gets compromised and give erroneous reports when used in field.

Solution and Recommendations

• Additional testing is needed for microprocessor.
• As the cross team committee will not take blame, investigation need to be done in each department by independent team (may be external consultant). Company should do a quality analysis of their operations.
• Company should look for alternate supplier and talks with current supplier need to be initiated for resolving the issue and negotiations to be done with them for sharing losses / free replacements. Their product quality is required to be checked in future.
• Meanwhile their representative can visit major hospital client and give them immediate replacements with demonstrations and additional guidelines for use.
• More users’ instructions can be added in the manual in future regarding keeping strips, using monitor, optimum weather conditions.
• A product recall can be done, although there is heavy sunk cost but it’s for future long term company’s profitability.
• A press conference by CEO should be called for addressing the issue and for doing damage control.