5. From an ethical standpoint, 'Nhat does your group conclude is the most appropriate action that should have been taken by the company in this situation? Product quality and cost affect every firm's reputation and profitability, as well as the satisfaction of customers.

This exercise will expose you to some ethical considerations that pertain to certain cost and secvice decisions that must be made by operations managers.

The Dilemma As director of quality for a major appliance manufacturer, Ruth was reporting to the executive committee on the results of a program for correcting problems with a newly redesigned compressor that the company had recently begun putting in its refrigerators. Following several customer complaints, the quality lab had determined that some of the new compressor units ran more loudly than expected. One corrective option was simply waiting until customers complained and responding to each complaint if and when it occurred. Ruth, however, decided that this approach was inconsistent with the company's policy of being the high-quality leader in the industry. Insisting on a proactive, "pro-quality" approadl, Ruth Initiated a program for contacting all customers who had purchased refrigerators containing the new compressor.