Elliot presents an interesting aspect of operations management in her 2019 article, “PG&E Denies Neglect of High-Voltage Lines in Response to Journal Article.” The article reports operations management challenge that PG&E is currently facing. As a result, PG&E is facing a tough legal battle. The reality of the gravity of the operational challenge was highlighted by the judge’s instruction that PG&E’s legal team reacts to allegations that the Wall Street Journal leveled against it, paragraph by paragraph. This paper discusses the operation challenge reported in the article and its impact on the company operation management.
The challenge presented on standard operations management practices and touches on scheduling of equipment maintenance. It is crucial to understand why in spite of acknowledging Wallstreet’s main finding that the company was aware that its aging power lines could spark wildfires, the firm took no action to address this vulnerability. Interestingly, the enterprise disputed accusations of neglecting maintenance thus eliciting curiosity as to its justification for what could easily pass as a neglect that put both property and life at risk. Acknowledging awareness of the mentioned danger raises importance questions regarding the corporation’s standard management procedures in relation to not just scheduling maintenance but also budget allocation, and prioritization of maintenance works.
As far as working standards are concerned, a lean company must define its working standards on the best practice listed and set up a system to improve these standards with the aim of increasing profits. Balance must be struck and where risks are enormous, working standards and safety of operating environments must take precedence over profit-making. These aspects are important to operational challenge that the company faces.
Elliott, R. (July 31, 2019). PG&E denies neglect of high-voltage lines in response to journal article. Wall Street Journal. Retrieved fromhttps://www.wsj.com/articles/pg-e-denies-neglect-of-high-voltage-lines-in-response-to-journal-article-11564615441