Procedure Reviews

Procedure Reviews

A.

As a result of the economic slowdown, businesses have laid off a large number of people. With decreasing revenues, many companies have been cutting costs to maintain a level of profitability, and in some cases drastic cuts are being made to keep the business open. It would be reasonable to assume that at many companies the reduced staffs have been required to take on additional duties, that employee training has been reduced or eliminated, and that marginal or sub-standard material is being shipped instead of those losses taken. It is most likely that outgoing quality suffered as a result of the economic slowdown.

1. Given that some of API's suppliers may feel forced (or more inclined to) ship substandard material:

-What procedures need to reviewed or strengthened to better identify incoming quality problems in critical materials

-What procedures need to be reviewed to help identify weak suppliers in the current environment

-What procedures should be reviewed or modified concerning supplier certification.

2. Given that API staffing has been reduced or changed as a result of the slowdown, what procedures need to be revised to reflect current responsibilities

B.

A recent study put out by the National Business Group on Health finds that 70 percent of the companies surveyed will have to eliminate lifetime dollar limits, or a cap on the amount an insurer will pay for covered expenses, while 13 percent will no longer be allowed to deny coverage for children with costly pre-existing medical conditions. These changes which go into effect 9/23/10 will necessarily increase large and small business health care spending. According to the same report, most of the companies surveyed also plan to shift more