SACAPANO, COLEEN JOY M.

BSBA4MM-1

1. Evaluate the ethical issues concerned with the operations management decisions of the IMC
plant.

ANSWER:
There are four (4) ethical issues that were addressed in the case study. First, there is a lack of
safety for employees. There are a lot of hazardous situations for every employee, and there is no
protection from IMC. As we notice in the case study, there is no possible exit once a calamity
like a fire or earthquake happens. Second, there is no working practice. They work overtime.
They didn’t pay attention to their employees, even though they worked 14 hours without a rest
day. As the case demonstrates, the IMC plant has encountered various ethical difficulties relating
to environmental degradation. The facility lacks effective pollution management, resulting in
excessive carbon dioxide and sulfur dioxide emissions. Furthermore, IMC's waste management
practices are inadequate. Waste was thrown in a landfill because no acceptable recycling
technique was available. Furthermore, the plant's inefficiency consumes additional energy,
resulting in the discharge of various pollutants into the atmosphere. Furthermore, the lead residue
is disposed of in the water, causing pollution and environmental damage. Pollution and waste
management are not high priority for IMC. Last, as we noticed, most of their employees are
women. They choose women because they will pay less if they hire women than skilled men. But
if we notice, they disregard human rights because they risk the health of their employees for a
possible profit.

2. Comment on the maintenance strategy at the plant. Are there any alternative methods that would
be suitable?
ANSWER:
There was a policy of the plant to run until something went wrong. It is estimated that the use of
these plants was as low as 50%. Instead of shutting down the facility, the leaders of the pre-
product, furnace, and refinery saw malfunctions as an opportunity to rebuild their own
equipment. It was supposed to be a power plant of its own, but it has never been built. The plant's
equipment had been affected by the process known as "Indianization". It is too explicit and
practical in the maintenance strategy of the plan. A low-cost, low-quality machine spare parts
maintenance strategy is now being used by the management of the plant. Only when there is
major disruption in the factory, like complete malfunction of a device or its component, shall
maintenance be carried out. It is considered a costly strategy to maintain regularly; therefore, it is
avoided. The paperwork necessary for approval of the maintenance procedure will take time, no
matter if the operational department has detected a problem at the plant. These delays lead to
mechanical failure, which in most cases leads to a reduction in production. Furthermore, the lack
of maintenance has exposed workers to potential hazardous situations and increased emissions
into the environment. Such an approach is adding to the plant's costs instead of being a cost
strategy. One of the options acceptable for a power plant is to introduce a 'preventive
maintenance policy'. Management will be able to carry out regular checks on plants and
equipment with this type of policy in place. Responsibility for the implementation of policies
may also be delegated by management to operational and maintenance departments. Another
alternative strategy offered for the power station is to adopt conditional maintenance. It also
involves training a group of people who have the necessary competence for dealing with
maintenance problems. However, such a strategy may conflict with an organizational culture in
which central decision making is heavily relied upon.