We often take it for granted in the 21st century
that if a product is presented in a “new box” or a service at “new location”
quality is inherent or explicit. The case of Takata airbag recall refutes this premise.
Takata supplies automotive safety systems controlling 22% of
the global automotive airbag market. The company’s mission statement emphasises
their commitment to quality which is to “Develop
innovative products and provide superlative quality and services to
achieve total customer satisfaction”.
This emphasis on quality is reinforced by an organisational
approach the “Takata Way” that supports open effective communication openly and
effectively and an adherence to Sangen-shugi
the exploration of three “realities” which is comprised of Gen-ba or going to the location of the activity/problem e.g. the
factory floor, Gen-butsu looking at problem
first hand and Gen-jitsu gathering
the facts to make a decision - realitybased decision making.
Despite this organisational philosophy Takata finds itself
asleep at the wheel. Its flagship automotive airbag has allegedly been linked
with the deaths of at least five motorists and over 139 injuries. The problem
being a product defect that is only realised
during the deployment of the airbag resulting in the rupturing of the inflator,
sending metal fragments that have fatally injured unsuspecting users it was intended
to protect. Potential causes for the airbag defects range from poor product
handling, incorrect gas specifications, humid conditions, faulty welding to
malfunctioning manufacturing equipment.
The company was fully aware of the potential for the airbag
to rupture during deployment 10 years prior to the recall but opted not to face
the “reality” subsequently requesting the destruction of in-house test results
and disposal of any evidence in essence creating a climate of fear amongst employees. Top management rather than implementing
corrective action chose a default strategy of “do nothing” focusing on the
bottom line not the triple bottom-line.
This strategic decision has resulted in the recall of over
14 million airbags from 11 different automakers and the allocation of over $655
million for quality costs. The reputational damage suffered by Takata is contributing
to investor unease arising from reduced profit outlook and customer dissatisfaction
with market share set to decline to 11% by 2020. Fortunately Takata has decided
to “wake up to reality” taking steps to refocus the organisation efforts on
quality by constituting an expert panel to examine the quality and safety
issues. Quality not perception is reality.
To learn more visit our website www.sustainabilitycsr.com
To learn more visit our website www.sustainabilitycsr.com
