Project Context
Apex Home Systems is preparing to launch a new smart thermostat in 8 weeks. During incoming inspection, the contract manufacturer found that 18% of temperature sensor modules from your primary supplier failed calibration tolerance, exceeding the 2% maximum defect threshold. You are the program manager responsible for keeping the launch on track across hardware, operations, quality, and sales.
Key Stakeholders
The VP of Product wants to preserve the retail launch date already committed to two national distributors. The Head of Quality will not approve shipment unless all units meet spec. The Operations Director wants to avoid line stoppages and expedite costs, while the supplier account manager insists they can correct the issue within 3 weeks. Engineering believes a temporary software calibration workaround may reduce scrap, but it has not been validated at scale.
Constraints
- Launch date: 8 weeks from today
- Inventory needed for launch: 40,000 units
- Current usable inventory: 11,500 units
- Remaining project budget: $420,000
- Supplier lead time for replacement parts: 21 days minimum
- Manufacturing line downtime costs: $35,000 per day
- No second-source supplier is fully qualified today
Complications
- Two major retail customers have already scheduled promotional placements tied to the launch week.
- The supplier quality issue affects only one of three production lots, but traceability data is incomplete for 12,000 parts already delivered.
- A possible firmware-based calibration adjustment could recover some units, but validation would take 10 days and consume two firmware engineers who are also needed for launch readiness.
Deliverables
- Build an execution plan for the next 8 weeks, including immediate containment, decision points, and launch recommendation.
- Propose how you would manage supplier escalation, internal stakeholder communication, and customer expectations.
- Define the trade-offs between delaying launch, partial launch, rework, and accepting higher cost to protect quality.
- Identify the top risks, mitigation actions, and triggers for escalation.
- Specify success metrics and a contingency plan if replacement parts arrive late.
