Allowing Defective Chips to go to Market

TitleAllowing Defective Chips to go to Market
Publication TypeCase Study
Year of Publication1995
AuthorsHanzlik, J, National Academy of Engineering, OEC
PublisherNational Academy of Engineering, Online Ethics Center
Keywordselectrical , Employer/Employee , product
AbstractShane, a production line engineer who works in a computer chip manufacturer, is finding defective chips once every 150 chips. The current practice is to discard defective chips, but his manager believes it would be more cost effective to let all the chips go out the door without checking, even though this means that some customers would receive defective chips. Includes numerical and ethical questions about the case.