Product Recall

1
Product Recall

• What?
• An incorrect combination of flat washer and
  serrated nut was used in the engine compartment
  to secure the starter power cable.
• When?
• August, 2010
• Why?
• The flat washer prevents the serrated nut from
  locking against the attaching bracket. Over time,
  the serrated nut may back off allowing the
  starter cable to fall and contact the fan hub
  while in operation. This could result in a direct
  short and potential vehicle fire
• http//www-odi.nhtsa.dot.gov/acms/docservlet/Artem
  is/Public/Recalls/2010/RCLMTY-082010-1234.pdf

2
Management Issues

• This problem was initially reported by a Blue
  Bird customer whose starter cable fell off the
  mount onto the fan hub.
• The report was filed in mid August, immediate
  actions were taken to investigate and formulate a
  solution.
• Engineering solution is to replace all serrated
  nuts used in engine and chassis cable mounting
  with lock nuts with nylon insert.
• The recall involves notifying the owners and
  repair free of charge
• The recall process began on September 24, 2010.

3
Impact of Recall

• Engineering impact eliminated serrated nuts
  applications from all products, replaced with
  nylon lock nuts
• Cost impact 0.0049 increase per application of
  nylon lock nut
• Sales impact minimal
• Reputation impact minimal

4
References

• http//www.usrecallnews.com/2010/09/nhtsa-10634.ht
  ml
• http//www.arfc.org//rvs/blue_bird/all_american/re
  calls/000036919000393650000000127/recall.aspx
• Safety Defection/Noncompliance Notices Received
  During August 2010. Item 10V-378.
• Lead engineer in investigation and solution of
  this issue Tie Duan