Organizations are subject to numerous failures if new techniques are implemented poorly. In our organization, which deals with power installation, the company has been faced with a failure in purchasing poor quality products. In early next year, the company purchased faulty equipment that exploded immediately after it was installed and led to damage to property worth millions of dollars. Due to the property damage witnessed, the company had to halt its operations for six months to allow background checks and evaluate the reliability of the remaining equipment that was not destroyed during the explosion. In order to avoid experiencing future property damage due to outsourcing of faulty and low-quality machines, the company should always prioritize prior checks of the reliability of the machines they intend to purchase (ASQ, n.d.). To succeed in conducting prior checks of the machines the company intends to purchase, the company should employ experts who have adequate knowledge of the machines used by the company.
The company identified that machines made in Germany are of high quality and more durable than machines made in the Asian country. The machine that caused the property damage had been purchased from China, and adequate prior checks of the quality of the machine had not been conducted effectively. In total, the faulty machine caused a loss amounting to $10 million, which forced the company to be shut down for a period of six months because the company lacked enough funds to facilitate its operations. However, as a mitigation tactic, the company employed experts from Germany who have been tasked with ensuring that the machines purchased by the company are reliable and durable. The use of inadequate machinery drastically increases the likelihood and severity of the failure of operations. Due to prior experience, it can be estimated that one machine failure can lead to the loss of six months of profit and expenditure. The team of experts from Germany has impacted the company positively, and there is minimal possibility of the company purchasing faulty machines in the future. As such, this strategy is effective in preventing further machinery failure.
Reference
ASQ. (n.d.). Failure mode and effects analysis (FMEA). ASQ.