Business Ethics Now 3rd Edition by Andrew Ghillyer

Exercise 33

Scott Kelly, XYZ's marketing vice president, was shouting on the telephone to Tom Evers, director of new product development in XYZ's R D laboratories: "We're going to kick off a major ad campaign timed to make people want your new model appliance, just before we start delivering them to dealers, and I want to be sure your production date is firm and not one of those best estimates you've stuck us within the past." Taking a quick breath, he continued: "You people in R D don't have muchcredibility withmarketing! You don't tell us what you're up to until it's too late for us to advise you or interact in any way. I still remember the money you spent on that water purifier we didn't want. And it didn't help your credibility when you tried to keep the project alive after we told you to kill it!"
Tom assured Scott that the schedule for starting production was absolutely firm. "We've run extensive tests, including life tests, and everything definitely indicates 'go'! We're going to do a small pilot production run and test those pilot units in employee homes. That's a purely routine confirmation, so I can assure you that the production date is locked in. Go ahead withyour ad campaign-we're giving you a sure winner this time."

But Tom was wrong. A glitchappeared near the end of the pilot test and very close to the production date. In a hastily called engineering meeting, to whichmarketing was not invited, a quick-fix design change was approved. Another short pilot production run would be made, and the revised units would again be tested in employee homes. A delay of one to two months, perhaps longer, for start of production was indicated. Withthis schedule set, Tom arranged a meeting to apprise marketing of the problem and the new production schedule.
Scott exploded as soon as Tom began his account of the production delay. "You gave me a firm production date! We've got a major ad campaign under way, and its timing is critical. We'll have customers asking for these new models, and the dealers won't have them. We'll look silly to our customers, and our dealers will be upset."
"Now wait," Tom interrupted, "I didn't give you the production date as absolutely firm. I remember cautioning you that a problem could develop in the pilot run and suggested you allow for it in kicking off the ad campaign. I told you we'd do our best to make the date but that there's always an element of chance witha new machine. We're better off having customers asking dealers where the new models are than being out there witha big quality problem."
Given Scott's concerns over R D's credibility, should he have taken Tom's production date as being absolutely firm