Ethical issues in Production and Operation department

Presented by

Names Roll No.

Neha Gupta 73

Durgesh Pandey 97

Syuog Pitale 99

Darshan Pujari 100

Kanchan Rajput 101

Krishna Rana 102

The basic concepts and fundamental principles of right human

conduct.

It includes study of universal values such as the:

Essential equality of all men and women,

Human or natural rights,

Obedience to the law of land, 

Concern for health and safety and,

Increasingly, also for the natural environment.

What is ethics ?

We live in an era of cut throat competition and competition breeds

enmity

This enmity reflects in business operations, code of conduct

Business houses with deeper pockets crush small operators and

markets are monopolized

In such a scenario certain standards are required to govern how

organizations go about their business operations, these standards

are called ethics

All of us want businesses to be fair, clean and beneficial to the

society

For that to happen, organizations need to abide by ethics or rule of

law, engage themselves in fair practices and competition; all of

which will benefit the consumer, the society and organization

It is the individual, the consumer, the employee or the human social

unit of the society who benefits from ethics

These ethics are meant to analyze problems that come up in day to

day course of business operations.

Satisfying Basic Human Needs

Creating Credibility

Long Term Gains

Improving Decision Making

Securing the Society

Importance of Ethics

Uniting People and Leadership

To retain the public image of the business

To take business operations seriously and direct towards missions

To reduce decision making dilemmas

To inculcate the fundamental and moral change

Production Department

Production is the functional area responsible for turning inputs into

finished outputs through a series of production processes.

Five production sub-functions:-

1. Production and planning department

2. Purchasing department

3. Stores department

4. Design and technical support department

5. Works department

Receiving raw materials

Storing materials at safe place

Supervising the movement of material in the whole plant

Ensuring that the employees produce the right quality

Ensuring proper health and safety for the workers

Motivate the staff and set high work performance.

Role of production manager

Systematic direction, control, and evaluation of the entire range of

processes that transform inputs into finished goods or services.

It deals with design and management of products, processes,

services and supply chains

Inputs-HR, capital, materials, land, energy, information, customer

Transformations-convert inputs into outputs

Outputs-goods or services, and waste

Operations Management

Make efficient use of materials, capacity, and knowledge to

achieve output

Has to follow certain specified codes to achieve the desired output

levels

Management of human, technology and system resources

He also does planning, organizing, directing, staffing, and

controlling

Role of the Operation Manager

Worker safety

Product safety

Quality

Hiring and firing workers

Workers’ rights

Ethical issues for operations manager

Ethics in production• Ethically produced goods are defined as goods produced under

conditions of progressive stakeholder relations, advanced

environmental practices and respect for human rights

• An ethical business has to be concerned with the behaviour of all

businesses that operate in the supply chain – i.e.

- Suppliers

- Contractors

- Distributors

- Sales agents

Ethics in production

Ethics in production is a subset of business ethic

Cost efficiency is sometimes achieved at the cost of quality

Poor processes and technology is used to keep the cost down, this

is especially true for small players who cannot afford economies of

scale

All the production functions are governed by production ethics but

there are certain that are severely harmful or deleterious which need

to be monitored continuously. The following are worth mentioning:

Less problems are more of dilemmas (advanced technology)

Defective services and products or products those are innately

deleterious

Animal testing and their rights or use of economically or socially

deprived people for testing or experimentation is another area of

production ethics

Ethics of transactions between the organization and the

environment

In certain products the danger is greater i.e. a slight error can

reduce the quality and increase the danger associated with

consumption or usage of the same exponentially

Eg. Johnson & Johnson

Social perceptions also create an impasse sometimes. Eg. Coco

cola.

Dilemma of Ethics in Production

Maintenance of standard procedure with supplier

Consistency in training process

Helps in auditing

Helps in increased brand value & trust of customer

ADVANTAGES OF ETHICAL PRACTICES IN PRODUCTIONS

Loss of customer

Loss of confidence

High rate of rejection

Stock-out, if unethical code of conduct

Problems in certification

DISADVANTAGES OF UNETHICAL PRACTICES IN PRODUCTIONS

LABOUR LAWS

Sections 11 to 20 of the Act deal with the provisions of health of workers in factory. These are: Sec 11 – Cleanliness Sec 12 – Disposal of wastes and effluents Sec 13 – Ventilation and Temperature Sec 14 – Dust and Fumes Sec 15 – Artificial humidification Sec 16 – Over crowding Sec 17 – Lighting Sec 18 – Drinking Water Sec 19 – Latrines and urinals Sec 20 – Spittoons

PROVISIONS OF HEALTH OF WORKERS

Sections 21 to 41

Sec 21 – Fencing of machinery

Sec 22 – Work on or near machinery in motion

Sec 23 – Employment of young children on dangerous machines

Sec 24 – Striking gear and devices for cutting off power

Sec 25 – Self acting machines

Sec 26 – Casing of new machines

PROVISIONS OF SAFETY TO THE WORKERS

Sec 27 – Prohibition of employment of women and children near

cotton openers

Sec 28 – Hoists and lifts

Sec 29 – Lifting machines, chains, ropes and lifting tackles

Sec 30 – Revolving machinery

Sec 31 – Pressure plant

Sec 32 – Floors, stairs and means of access

Sec 33 – Pits, sumps, openings in floors

Sec 34 - Excessive weights

Sec 35 – Protection to eyes

Sec 36 – Precautions against dangerous fumes, gases etc and use

of portable electric light

Sec 37– Precautions against explosives or inflammable dust, gas

etc.

Sec 38 – Precautions in case of fire

Sec 39 – Power to require specifications of defective parts or

tests of ability

Sec 40 – Safety of buildings and machinery/(A &B) SAFETY

OFFICERS -1000 workers

Sec 41 – Power to make rules to supplement the provisions.

Six factors are involved in ethical decision making:

1. Magnitude of consequence

2. Probability of the effect

3. Social Agreement

4. Time Interval

5. Proximity

6. Concentration of Effect

Analytical Framework for ethical issues in Operations Management

Case study

ETHICAL CASES

1. ENVIRONMENTALLY PC

2. SANYO RECALLING ITS

BATTERIES FOR

REPLACEMENT

3. JOHNSON AND JOHNSON TYLENOL CONROVERSY

UNETHICAL ISSUES

1. MC Donald's Beef Fries Controversy

2. OIL FUND FACES ETHICAL PROBE

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