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.”