Scenario

You and your classmates are working in a company that sold three (3) new types of digital watches (similar to Samsung or Apple Watch) to customers. However, during the manufacturing process, the watch CPU had an error that was not detected by any manufacturing staff. However, in less than a year, after the products were sold to more than 1,000 customers. This error was found by several customers. The repair and warranty department classifies it as a major defective error that requires replacement.

The board of directors and Chief executive officer have assigned the Chief operation officer (CCO) and other relevant parties to work on the program to recall all watches and provide a new replacement to customers. This is in accordance with the Australian Consumer Law where customers have the right to ask the company for compensation for damages and loss^3,4. The COO and other relevant parties are required to set up projects and program governance in order to work on this program and resolve this issue.

It has been 12 months after the CCO and other relevant parties were assigned to rectify the issue. However, you, as a Chief Executive Officer, still receive customers' severe complaints and, therefore, performed an audit with your team. You find that more than 400 customers have been affected (Refer to Customers' list) but there is no action performed by the company to remedy the situation. You are required to take an action immediately to remedy the situation.

Note: Watch Model A, B and C are no longer in the company's main product lines. Therefore, the production capability is only 35 in each type.

Assessment Instruction:

You are required to

Identify non-compliant behaviours.

Prepare actions to rectify non-compliant issues

Distribution schedule

Communication channel

A department that is responsible for rectifying non-compliant issues

Generate audit report to share with relevant parties

Write a letter to explain the compliance matter to the Australian Competition and Consumer Commission.

Generate the secure system to keep audit records, and present them to all relevant parties

Learner's Guideline:

In order for you to complete (i), you are expected to review:

the case scenario

list of customers

Australian consumer law https://consumer.gov.au/sites/consumer/files/2016/05/0553FT_ACL-guides_Guarantees_web.pdf

Australian Competition and Consumer Commission guideline (https://www.accc.gov.au/business/treating-customers-fairly/offering-warranties/warranties-against-defects)

Once you complete the review, you are required to identify non-compliance from the scenario. You are also required to provide the justification of why the company is not compliant. In the justification, you are required to provide specific details where the company breaches the requirements.

In order for you to complete (ii), you are expected to review the case scenario and list of customers. Then, you will provide rectification of non-compliant issues including the detailed processes of the Distribution schedule and Communication channel.

Distribution schedule: the detailed list of customers, items and time when the items will be sent and delivered. The department that will take responsibility should be specified.

Communication channel: This can include a detailed list of customers and the time when they will be communicated. The department that will take responsibility should be specified.

In order for you to complete (iii), you are expected to review Audit Report template v1.0. You are required to generate an audit report. The report must contain the information below:

Report Summary

Compliance finding

Detailed finding

Corrective Action & Recommendation

In order for you to complete (iv), you are expected to review Compliance letter template v1.0. You are required to create a letter to explain the compliance matter to ACCC. The letter must contain the information below:

Open the letter in an official manner.

Explain the purpose of your letter.

Summarize your understanding of the issue/decision being considered.

Explain your position on this issue.

Describe what any changes will mean to you and others.

In order for you to complete (v), you are required to create an online shared folder via Microsoft OneDrive. Once the online shared folder is created, you are expected to send an email to share it with your assessors who act as one of the key stakeholders in the company.

The following documents must be in the folder:

Non-compliance and rectification plan

Audit Report

Compliance letter

You will only grant view-only access to assessors to securely maintain the audit and compliance records. Additionally, in the email letter to assessors, you are expected to clearly explain what information contains inside the folder.

You will be assessed on:

Practical skills and knowledge are relevant to generate audit documentation, present information and distribute reports to key stakeholders.

Practical skills and knowledge relevant to consolidating and securely maintaining audit documentation.

Practical skills and knowledge relevant to report on compliance to relevant authorities and key stakeholders

Practical skills and knowledge relevant to identifying and implementing actions to rectify non-compliant behaviours, processes and products

After completing this task, you are required to submit the following documents to your assessor:

Audit records and compliance requirement report

non-compliant behaviours

Rectification of non-compliant issues

Audit report

A letter to explain the compliance matter to the Australian Competition and Consumer Commission

Secured share links containing audit reports and other relevant documents in Task 3.2.