American Society for Quality (ASQ) Sustainability Survey

ASQ Sustainability Survey

Scan the QR Code to benchmark your Sustainability & CSR performance against best practice within your industry 

https://www.surveymonkey.co.uk/r/ASQSustainabilitySurvey
 

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Quality and Essesntial Element of Sustainable Development - American Society for Quality EED Summer Newsletter 2020

 

American Society for Quality EED Sutstainability Committee Strategic Plan - ASQ EED Summer Newsletter 2020

 

 

 

Sustainability Footprint: A Case of Persception in Two SMEs - American Society for Quality EED Summer Newsletter 2020

 

UN Global Climate Action Summit Affiliate Event - How to Protect Your Business from Global Megaforces

How to Protect Your Business from Global Megaforces

Top Tools for Strategic Growth and Sustainable Wealth

 Register to join our webcasts on SCSRTV during the UN Global Climate Action Summit

Dates: 12th, 13th and 14th September 2018

11am -12.30pm PST

20:00 - 21.30 GMT

3pm - 4.30pm EST

The deadly cost of product recalls

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With all the news of the recent Takata air bag recall becoming one of the biggest recalls in US history, my colleague Scott Huntington put together a study of some of the most deadly and costly product recalls to find out just how big of a deal they are. He found that over 2000 recalls happen a year, including more than 6 a day!

Takata recall - Quality more than just an airbag of hot air

We often take it for granted in the 21^st 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 

French Railway System - a case of going nowhere fast

As a quality professional I champion the value of customer satisfaction and listening to the voice of the customer… but is the customer always right?

Earlier in my career as a lab technician in the manufacturing sector I was trained to adopt the concept of the “Next operation as customer” (NOAC) principle that highlighted external customer satisfaction as being unachievable unless internal customers are engaged in the decision making and operational processes of productive activity.

The unfortunate scenario that emerged this year in France where the rail infrastructure company RFF provided the rail operator SNCF with incorrect specifications for the purchase of 2000 trains at a cost of $20 billion (£12.1 billion). The specifications were derived from measurements taken from train platforms built within the last 30 years. The result being the new trains are too wide to fit train platforms that were built 50 years earlier requiring  the unnecessary refit of over 1000 of the 8700 platforms mostly located in regional areas of which initial early repairs were reported to cost $40 million.

SNCF has accused the French government of not investing in its conventional rail network which is finally being upgraded after years of neglect. The strategic focus being rather on the development of a high speed network despite a 50% rise in passenger numbers within Paris and a 40% increase in regional travel within the past decade.

This separation of the network company from the rail operators, a management structure that is instantly recognisable to British readers is a contributing factor to the mistake – business critical decisions being made by social actors not directly affected or intimately concerned with the consequences or outcomes of the activity, as evident by the company statement "It's a bit like buying a Ferrari that you want to fit into your garage, but then realizing your garage isn't quite Ferrari-sized, because up until now you didn't own a Ferrari," an ill-fitting analogy that suggests quality and corporate social responsibility are for Renault owners, ordinary taxpayers and commuters.

In a nutshell decisions were not made as close to the source. Project schedules and cost may have been given priority over quality. Therefore the risk i.e. the likelihood or consequence of the train not being able to fit each platform was unaccounted or became unconsciously acceptable to senior management.  

The consequences of poor quality, an astronomical engineering refit cost which is estimated at $110 billion, 2000 trains going nowhere fast and reputational damage to one of Europe’s fastest train networks.
“The customer is always right”… 66 million Frenchmen can't be wrong - one size does not fit all even though your garage can fit a Ferrari.

To learn more about quality, safety and environmental management view our website www.sustainabilitycsr.com 

Eurocopter - When Puma's fly

The tragic loss of life arising from the recent crash of a Eurocopter Super Puma AS332 L2 on the 23 August 2013 brings into sharp focus the dangers of North Sea Oil and Gas. This tragedy is personally poignant to me as I served in a Royal Navy search and rescue (SAR) unit based in Scotland that was resourced with ageing but superbly maintained Sea King helicopters.

Herein lies the case for quality – Ageing Design: the original design of the Super Puma came into production in 1981 with a series of product extensions in areas such as avionics, engine and gearbox power to meet the demands of the expanding commercial market. A focus on incremental improvement not continual improvement, to compete Eurocopter must invest an estimated €500m into research and development of a helicopter for civilian transport and search and rescue operations. This ageing theme extends to the Eurocopter helicopter product portfolio with new versions stymied by delays and cost overruns for potential replacements for the Super Puma in the form of the NH90 and Tiger military version helicopters.

Design issues aside the Eurocopter Super Puma and its variants have been involved in five accidents in the North Sea since 2009.

Specifically the Eurocopter Super Puma AS332 L2 has accounted for 20 fatalities in the North Sea over the past five years the worst being an accident occurring in waters off the coast of Peterhead, Scotland in April 2009 resulting in 16 fatalities. The investigation into the accident conducted by the UK Air Accidents Investigation Branch (AAIB) concluded gearbox failure that may have been diagnosed if the “metallic particle discovered on the epicyclic chip detector during maintenance on 25 March 2009, some 36 flying hours as an indication of second stage planet gear” failure.

As a result the UK Air Accidents Investigation Branch (AAIB) recommended that “Eurocopter, with the European Aviation Safety Agency (EASA), develop and implement an inspection of the internal components of the main rotor gearbox epicyclic module for all AS332 L2 and EC225LP helicopters as a matter of urgency to ensure the continued airworthiness of the main rotor gearbox”.

This recommendation contributed to the introduction of safety Directives by the European Aviation Safety Agency (EASA) and new pertinent maintenance guidance by Eurocopter. Surprisingly AAIB investigators highlighted parallels with an earlier accident in 1980 involving a SA330J Puma helicopter indicating a clear absence of a factual approach to decision making – an organisational failure to learn from past events that unfortunately led to deadly consequences. Subsequent two forced landings of albeit variants of the Super Puma led to a UK ban on sea flights which was only lifted in July 2013

Eurocopter the world’s largest commercial helicopter manufacturer saddled with excess inventory, poor cash position and under pressure from agile competitors such as Bell Helicopters, Augusta Westland who are keen to acquire a piece of its market share as energy operators opt for transport firms that use alternative helicopter supplier, may yet face Darwinian extinction if it does not evolve and focus on quality.

Findus - Strategy that lacks beef

Living in the UK I have always ridiculed my North American relatives for living in countries with a perceived "less than stringent" food supply chain. I guess now the "chickens have come home to roost" more aptly put "the horses have bolted out of the stable".

Its no laughing matter for Findus a company that in 2012 was rescued by a £60m purchase of its junior debt by  its shareholder Lion Capital as well as later debt restructuring of £220m that injected £20m in cash on the balance sheet and provided a cushion of a £70m overdraft facility. Analysts speculate that Findus is a victim of the markets with high raw material prices, demands buy its customers for lower prices and evil Eastern European criminal gangs trading in Romanian horse meat all conspiring against its success.

The facts reveal a different story - Findus was purchased by Lion Capital a private equity firm in 2008 for £1.1bn from its rival CapVest with the long term goal to divest at a premium after expanding the business which is currently second in Europe to Birds Eye Iglo. In 2011 under the watch of CEO Chris Britton a former Diageo Group Marketing Director the firm and its shareholder Lion Capital requested that the restrictive covenants preventing the firm's ability to raise capital be relaxed. The financial markets acquiesced, this enabled Findus to raise 1.1bn from lenders which was used to go on an acquisition spree acquiring continental food brands such as Frudesa and Salto a  from the french firm Bonduelle. Yet Chris Britton also aimed to focus the company on its core competencies.

Quality is a competency that has been overlooked in the company's pursuit of growth. In documents disclosed to their supermarket customers the firm admits since August 2012 horse meat may have been used in the production of its frozen Beef Lasagne product. Eagerly blaming suppliers like Comigel for product non conformance. Findus failed to accept its responsibility as a corporate entity to build mutually beneficial supplier arrangements within its supply chain. Also by its own admission the company had not been conducting inspection and testing of incoming products which is indicative of overall poor process management. As a result customer confidence is lost and with it potential market share, saddled by a burden of debt Findus may yet face the lash of fines from UK regulators which will be less severe than the backlash of angry consumers.

This scenario was avoidable if Findus had pursued its a strategy of quality and continuous improvement as own its corporate website states  "you’ll find the most consistent Findus ingredient is quality. A strong commitment to quality has long underpinned the continuing success of the Group and its brands in both the retail and foodservice sectors".
 Its time for Findus and the Food Sector to find the virtue of quality a key ingredient for strategic success...

To learn more about quality, safety and environmental management visit www.sustainabilitycsr.com 

The four swans of sustainability

 

On a recent visit to Edinburgh Napier Business School for a meeting with Dr. Ian Smith the sustainability program course leader. I noticed four origami swans on his desk. Upon enquiring further he intimated that the items were found at the end of one of his lectures on the seat vacated by an anonymous student.  Jokingly he suggested it is symbolic of the quality of his lecture which one of his students found origami more interesting!

But why swans?

Swans in mythology have helped Greek gods move across the sky and is considered by many ancient and indigenous peoples to symbolise transformation, balance and elegance. Swans depending on colour e.g. black swans symbolise mystery or uncertainty.

My own research into the phenomenon of sustainbility footprints (i.e. the use of carbon footprint, water footprint, ecological footprint and the emerging concept of social footprints to evaluate the present non-financial consequences and future risk implications of strategic decisions) - indicates Sustainability footprint methodology is at the nexus of three management theories:

·         Risk – sustainability footprint risk must incorporate environmental impact and its effect on cost structure and revenue streams

·         Natural Resource Based View – sustainability footprint measurement contributes to strategy through pollution prevention, product stewardship and sustainable development

·         Shared Value – as indicators sustainability footprint assists firms in the mitigation of environmental impacts arising from value chain activities

These theories reveal four key areas within which sustainability footprints can contribute to the success of the firm in terms of cost dimension, innovation dimension, environmental dimension and stakeholder dimension...... the four swans of sustainability

Results of our pilot case study suggest that sustainability footprints can transform stakeholder perceptions of waste from being a cost centre to a profit centre, reduce carbon emissions by diverting waste from landfill and stimulate innovation through the search for potential energy savings.

Firms that do not measure their carbon, social and water footprint expose themselves to uncertainty and risk especially within the context of climate change as they fail to adopt behaviours or make decisions which are expressly sustainable.

To learn more about quality, safety and environmental management visit www.sustainabilitycsr.com