The product in the discussion is a boot walker. It did not meet the expected standards. This non-conforming condition is the failed plastic on the boot cover. This happened because the rod that was tying the link together was twisted through the plastic that retains the rod in the boot. This plastic does not appears to be made from a fine material. Hence the plastic to be selected for the boot has to be made up of a good material that is able to hold the rod. Also, the rod needs to be replaced in these boots with a sturdy rod so that it does not get twisted with the plastic.
Since, the company that manufactured it does not pursue the manufacturing anymore, for all the boots that have been sold off in the market, we are offering the money back to the customers. This is essential because the boot cannot be used as the rod that twisted and the plastic that failed could have been corrected by fitting the new rod deeper in the plastic. This would have increased the link size in the boot and made it erect and fit for proper use. Also, this would have resulted in the lesser loss than the repayment. But due to non-availability of the manufacturer, it would not be possible to replace it.
The steps that will be required to be put in place include the deployment of staff to announce the offer and then attend the customers who come for explanation and repayment. Also, funds would be required to be allocated for the disbursement. These funds will be from the contingency fund of the company.
The entire procedure will take time involved in spreading the news of the offer being made and then attending the customers. There would be time consumed in putting explanation across to them to advise the reason for the failure, the reason of non-replacement and then repay the paid amount after scrutinizing their invoices. In total, it should take 15 minutes per customer. The cost department will be able to give details of the cost due to staff employed We plan to put the unutilized capacity of laborers for this task. There will be 10 staff members deployed to attend to the customers when the customers approach. The customers will also be advised the date and time when these repayments will be made.
Since the product is opted to be scrapped now, the value of money to be returned to the customer will be the same price that the customer paid for the product.There will be no deductions made even if the boot is not in order or seems to be broken due to some other reason than the rod or the plastic. This step is taken to retain the customer's trust and confidence. If such deductions or negotiations are made, it will lead to dissatisfaction of the customer.
To ensure that such a condition does not recur in the future, the quality team shall deploy stricter measures of monitoring and control. It will ensure that the product is checked and verified at every stage of its manufacture and tested for a few days practically before floating it in the market. Also, the material used in the plastic and the fixture of the rod will be done in the best manner possible. The raw material team will be checking the sample with the new plastic before it is used in all the boots. This way, the problems can be avoided to occur in the future.