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Created by : B V Krishnamurthy, Consultant  | 02 25 2010 04:58:43 +0000
Industry : Teaching/EducationFunctional Area : Business Policy(Strategy & Execution)
Keywords : strategy quality safety
Activity:  337 views;  last activity : 07 06 2010 20:18:09 +0000

Maruti and the A-Star

Even before the world could recover from the shock of hundreds of thousands of cars from venerable companies like Toyota and Honda being recalled, we have the announcement from Maruti that a hundred thousand A-Star cars are to be recalled due to a gasket problem that had the potential to cause serious damage.

Nearly six decades after Deming gave the clarion call for quality and the Japanese companies quickly embraced the concept and went on to transform Japan into an economic powerhouse, the wheel seems to have come full circle. Whatever happened to Kaizen, Zero Defects, Poka Yoke and all the rest of the jargon that Japan gave to the world? Why is quality apparently being relegated to the background? Does it have anything to do with the global economic crisis and the relentless drive to cut costs?

Public memory is short. In 1986, the Challenger space shuttle exploded a few seconds after take-off. Seven astronauts died. The damage to NASA’s credibility was immense. The financial costs have not been revealed in full. The Presidential Commission that went into the disaster was shown the real cause – a $10 “O” ring that failed to expand when the ambient temperature was below a critical level. On that fateful day, the temperature was much lower than prescribed. And yet the flight controllers gave the “go ahead” for the launch ostensibly because the weather was predicted to turn nasty and the window of opportunity and consequently vital funding for projects might have been delayed. It is not technology or machines or anything else that is the root cause of any problem. In most cases, people are the problem.

Or consider the automobile industry itself. One of the largest damages awarded to a family involved General Motors’ failure to see the danger of placing the gasoline tank in a manner that posed a potential hazard. As documents produced later in court showed, GM was fully aware of the problem and chose to ignore it with traumatic consequences for a family, financial loss and more importantly, loss of credibility.

Organizations need to recognize that quality has two great benefits. On the one hand, it can reduce costs by eliminating waste, rework etcetera. On the other, a perceived superior quality allows a firm to charge a premium price for its products or services. Such a unique and dual advantage should not be frittered away in the name of expediency or any other cause.

The Presidential Commission referred to above concluded with this famous statement: “Never Play with Nature.” It is time organizations tweaked this a little for the 21st century and affirmed: “We will never play with quality or safety.”

 
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The traditional notion of quality is that as defects come down, costs go up. This notion has now been replaced by the TQM philosophy in which costs come down as quality improves. It is shocking that leading companies are yet to realize the importance of quality and safety. Laptops with faulty batteries, Cellphones with glitches, fire alarm systems that don't work, elevators that do not stop at the first sign of trouble, the list is endless. We proclaim that the customer is at the centre of the marketing function. What we see in reality is something different. Organizations should realize that they can have superior performance just by focusing on the basics. It is time society metes out severe deterrents to any organization that tries to short-cut safety, reliability and quality.


By B V Krishnamurthy, Consultant  02 25 2010 04:58:43 +0000
 
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Very well said Mr. Kriswhnamurthi,you haven't left an iota of doubt to debate in against .Your take on the topic is well researched and to the point ,as expected by an intellectual.I think you could have ideated it instead of putting it to debate but I presume you might have been searching the other side of coin.Here I am for it.Nobody can deny the importance of quality,not even me but I would like to put forth few points for everyone of us to ponder.

1. Tata Nano is supposedly the most awaited car in the world

I don't want to say that TATAs have compromised safety and quality of the car,infact I am firm believer of their integrity but it has to do with our mentality.We don't want quality products we just want cheap products and Chinese products flooding the markets are live example of this.So as an old saying goes "Butchers are not sinners but the persons who consumes the meat is"

2.A new Car model is supposedly launched every quarter by one company or other.

I don't need to explain here that every new product has a gestation period which it needs to stablise ,however stringent be QA and QC of the company.There was a time when Toyota had just Corolla which it improved again and again and thats what positioned it as quality expert.You see today we just don't buy a Car because our neighbour owns the same.

3. Except for the logo of the company ,all other parts are outsourced.

Every body has heard of TATA,Maruti,GM,Honda etc. but barring few like Bharat Forge and Rane how many suppliers to these bigwigs are famous for their Quality Procedures or rather how many of them are capable of catering to the volume of exploding demand maintaning the same Quality standards.

You cannot just clap by one hand.If you want quality products ,you must be ready to pay the price for it.


By Amit Kumar, Design Engineer, Bharat Heavy Electricals Limited  02 25 2010 06:36:52 +0000
Arguments in: "Maruti and the A-Star"
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I agree with venky. Nice and interesting points.

:)


By Esha Johar, Risk Analyst, Irevna  | 02 25 2010 14:28:06 +0000
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Though the quality concepts remain the same, the ecosystem of manufacturing has changed dramatically since they have been formulated. The unfortunate part is that companies have been complacent in adapting these concepts to the modern environment. In this example of cars, we cannot even begin to imagine the number of hands, robots and companies that have toiled into finishing a car that we can walk away with by conveniently handing over a couple of cheque leaves. Right from the nuts and bolts to the most intricate engine parts, the companies who participate in the entire outsourcing process is mind bogling. In this complex ecosystem, the concepts have to be adapted to the present conditions than merely "going by the book". It is easier to play the blame game in such a scenario - no doubt when the smoke starts to clear Toyota will attempt to do some serious damage control by possibly inferring that the "problem" had more to do with the CTS (the gas pedal maker) manufacturing process than the "Toyota" design process. But companies must realize that quality is not to be viewed in isolation of their respective process alone, but as a cohesive whole. Even now, these companies are acting headstrong, immediately releasing press reports that "this incident will not have any material impact" on their future. But they seem to have forgotten the golden adage - it takes only a small leak to sink a big ship, given enough time....lets hope these corporations wake up before that because (sadly) the sufferer is the one who handed over the cheque leaves.


By venky , Freelancer, Freelancer  | 02 25 2010 07:26:46 +0000
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The real pain goes in to the people who put in their hard earned money only to find that the vehicle they have purchased has a faulty behaviour that can turn deadly. This creates a fear among the people who own even the top brands such as toyota,honda. The hidden fact is that though some problems has been identified and declared by the car manufactures, there could be even more issues in the existing vehicles that can lead to discomfort to the people using it.

Vehicle manufactures should focus more on quality of the vehicle being delivered to the client. The simple mechanisms should not be too much complicated that can read to future problems with the vehicles. The main features of a vehicle such as brake,acceleration,fuel,steering should be checked for continuous usage for say 1 year before the model is released to the public.


By karthik , Tester, Excelacom Technologies  | 02 25 2010 06:46:51 +0000
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Recall of vehicles is a global phenomenon until now - this being embraced in India shows the rise in level of customer expectations at one end and the manufacturers treating the indian market as an important and potential one. Quality consicousness and costs go hand in hand and developing a manufacturing practice with sustainable profits was the niche area in which Japanese companies are famous for - this showing a downward trend in recent times is serious issue which needs to be addressed


By Balaji Nagarajan, Sr Manager Marketing Services, Congruent Solutions Private Ltd  | 02 25 2010 06:05:51 +0000
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