A FAILURE

X

R&M Machinery had for years provided XYZ with sophisticated equipment and

reliable repair service. XYZ returned a failed piece of equipment. A meeting was held

which included Archie Hunter, a representative from XYZ; Norm Nash, R&M's returned

goods area representative, and, Walt Winters, an R&M engineer intimately acquainted with

the kind of equipment XYZ had returned.

Norm Nash represented R&M's "official position": the piece of equipment is all

right. However, during the course of the meeting it becomes apparent to Walt Winters that

the problem has to be R&M's. He suspects that the equipment was not properly tested out

by R&M, and that it failed because of an internal problem.

Should Walt say anything about this in the presence of the customer, or should he

wait until after the meeting to discuss this with Norm Nash?

II

Walt keeps silent during the meeting. After the meeting he talks with Norm about

his diagnosis. He suggests they tell XYZ that the problem is R&M's fault, and that R&M

will replace the defective equipment. Norm replies, "I don't think it's wise to acknowledge

that it's our fault. There's no need to hang out our wash and lessen XYZ's confidence in

the quality of our work. A 'good will' gesture to replace the equipment should suffice."

R&M management decides to tell XYZ that they will adjust to the customer's needs

"because you have been such a good customer all these years." Although R&M replaces

the equipment at its own exprense, it does not tell XYZ the real nature of the problem.

1

Discuss R&M resolution of the problem. Should R&M's way of handling the

problem be of any concern to Walt Winters at this point, or is it basically a "management

problem"?

III

Many engineers eventually move into management positions. If Walt Winters moves

into management, what lessons, if any, might he take with him from the above situation?

[Prepared with James Jaksa.]