OM in the News: Dealing with Manufacturing Quality Issues

“Imagine a world in which every product that leaves a factory is flawless, every time,” writes The Wall Street Journal (March 18, 2024).  What sounds like a plant manager’s dream is the end goal of zero-defect manufacturing, a term coined by Philip Crosby (and noted in Table 6.1 on page 217). Surging recalls have cast a harsh light on the quality of American manufacturing. But some companies say a combination of technology, training and focus can eliminate errors.

At Schneider Electric, employees are encouraged to speak up about product quality, anonymously if desired.

Ford’s CEO has said the automaker must reach “a zero defect destination,” and that the company has used assembly-line AI and extensive test drives to catch problems in its trucks. Stellantis, which is similarly targeting zero defects, said more than 100 new quality standards have led to a double-digit percentage drop in auto warranty claims. Companies in industries as varied as pharmaceuticals and snack foods have also announced zero-defect goals.

More manufacturers say they are aiming for perfection as quality-control problems have mounted. In 2022, auto makers spent record amounts on warranty claims. Recalls hit a six-year high in 2023, and jumped last year among pharmaceutical and food manufacturers. Undertrained workers, the increasing complexity of products and more sprawling supply chains were contributing to quality problems.

The zero-defects philosophy took shape in the early 1960s when defense contractor Martin-Marietta sought to eliminate errors from Pershing missiles. It had relied on inspections to find problems as small as a loose valve but refocused on prevention, exhorting workers with posters and rallies to do their jobs right the first time—followed by extensive audits. Errors at Martin plunged as hundreds of employees racked up long streaks of perfection. One worker made 500,000 solder connections without a mistake, while another put together 50,000 defect-free assemblies.

While quality programs helped U.S. companies improve their products considerably in the 1980s and 1990s, the effort stalled when businesses began outsourcing much of their work to low-cost regions.

This cost of poor quality can equate to at least 10% of sales once all factors, including the time spent dealing with problems, are taken into account. Human error is a perennial cause of defects, but it can be taken out of manufacturing systems. A machine can be built so it is impossible to load a tool backward, or an adhesive dispenser designed so it shuts off when it runs dry.

Classroom discussion questions:

  1. Why do we write in Chapter 6 that “quality cannot be inspected” into a product?
  2. How do “zero defects” and “six-sigma ” compare?

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