Quality Practices of Agile Electric

Agile Electric
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Agile Electric
Question 1: Recall/failure and Associated Costs
It is advisable to charge the associated costs to the tiered suppliers. The justification can be based on the contract between Agile and Automek, which specifies that (1) zero defects should be recorded from the suppliers, (2) the suppliers should be responsible for all the risks caused by the suppliers, and (3) a penalty can be levied whenever there are production stoppages (Ivey, 2012). Therefore, from the provided conditions, Automek can impose charges on Agile whenever there are instances of delays or losses that would jeopardize the working relationships. Consequently, it is recommended for Agile and Automek to divide the costs to maintain a mutual working relationship proportionally.
Question 2: Automek's Decision
Sourcing business from Agile was an appropriate decision for Automek. The decision is good since it increases Automek's profitability and reduces costs. For instance, the logistics will not exceed $0.8 for each piece (Ivey, 2012). It shows that Automek would record more profits. A decision is deemed suitable whenever it positively impacts the company. Lastly, the decision is good since it will promote quality. Automek is a company that considers high-quality delivery, and the decision would allow it to improve its quality and brand image. Therefore, the decision is appropriate since it will make Automek improve quality, increase profits and reduce logistics costs.
Agile and the Contract
Accepting a contract was the right move for Agile. The profits determine every business move. The contract is appropriate since it would allow Agile to make more profits. The case study shows that the projected units are 220,000 from 50,000, indicating more profits (Ivey, 2012). Besides, the contract is appropriate for Agile since it will enhance its technology and equally compete in the dynamic market. The technological advancement will be based on the key technology quality learned from Automek during the supplies.
Question 3: Internal Quality Practices
Internal quality practices have a significant role since different companies have unique quality requirements to achieve. For instance, since Automek is sourcing from Agile, quality monitoring and management are required. Automek must maintain its quality in the industry to avoid losing c...