A-1 Trailer

First thing to do is identify the potential problems of the trainer connections, the economical impact of not recalling the trailers, could the company maintain a sustainable level of business, and slowly pull the equipment out of services a few at a time. Secondly what effect will this have on the employees and their families if an accident occurs and the employee gets injured or death occurs? This would add additional cost to the company because insurance rates would start to rise. Knowing the problem is a weld that holds the trailer connection to the cab and consulting with the engineering team, the estimated total cost of towing and fixing the problem could cost around $18,000,000.

The question is, can the company afford to complete the task in a timely manner and keep their losses around the $18,000,000 range or will it take longer and exceed the estimated total cost. Exceeding the estimated cost could cause massive layoffs or company shut down. A determining factor would be the number of employees that depend on the company keeping its doors opened. On the other hand the equipment could remain in use by providing safety instructions for the few personnel using the equipment to minimize the number of accidents or injuries. Keeping the equipment in use could come with a price. If accidents start to rise than insurance rates will rise to cover medical expenses and losses or damages. The legal team has determined it would cost the company around 12,000,000 and 22 personnel could lose their lives.

Occupational Safety and Health Administration (OSHA) should be in place in the company to regulate a level of safety that companies must comply with to provide a workplace free of hazards. There are two paths the company could take. One, given knowing the company could go bankrupt if pulling the equipment in and fixing the problem could cost 18,000,000 or greater. Two, keeping the equipment in use could cost the company to lose around 12,000,000 and 22...