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American Rubber Products Company
TO: Jeff Bernel
FROM: VP Manufacturing
Introduction
The tragic events of March 4, 1993 at the LaPorte, Indiana plant caused by
the explosion of the Marine Boiler are unfortunate and completely
unforeseen based on the preventative safety inspections and replacement of
the gash burner five years ago. In the midst of this tragedy American
Rubber Products Company must extend support, both financial and emotional,
to those families who lost a loved one in the explosion. That is by far
the most important action to take in the immediate term,
The responsibility of American Rubber products Company to our customers and
1rst tier auto manufacturers however needs to motivate us to pull together
in this time of crisis. Getting manufacturing back on track is critical
for us to also fulfil existing orders, generate revenue and keep
financially stable as well. As orders from our three major OEM customers
are now late due to the accident, we need to consider one of two options.
First, we need to consider increasing production in our Michigan, Kentucky
and New York immediately by adding production shifts in each location
immediately to get caught up on backorders. We have each OEMs' mould in
each of these production centers, so shifting production will include
paying overtime to our workers.
Second, we could consider outsourcing our orders offshore to get them
filled quickly and at a low cost, yet we will have to fly our quality
management teams to these offshore locations to ensure our standards are
kept. Already, our manufacturing partners in China have asked if we will
need their production capacity this week and we have an attractive quote
from them.
Of these two alternatives, the first will allow us to have greater control
over quality and also the ability to quickly ship finished goods to our OEM
customers globally, yet the Chinese option would give us an opportunity to
see how our quality management engineers worked in a rushed scenario with
our joint venture potential partners there.
Given the fact that our orders are starting to reach our production
capacity across the U.S. I suggest we divert all orders to the three
remaining plants immediately to ensure shipment date commitments to
customers are met.
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