At the e
nd of the day, recalls are good for the consumer, the market and the manufacturer,” says Swami. Quality connoisseur Toyota has globally recalled more than three million cars in the last three years alone. And not just Nokia and Toyota, many globally respected (!?) MNCs are issuing recalls these days– among them auto majors like Ford and GM; IT biggies like Dell, Apple, IBM/Lenovo and Fujitsu; to even myriad toy, textile and food manufacturers. The reasons for rising recalls are not too tough to fathom. Of course, it entails a catastrophic failure of any company’s quality plan. Globalisation, outsourcing and cost-cutting are the obvious culprits! Despite quality and Six Sigmaprocesses being followed in most global MNCs, cheaper goods emanating from developing nations in the lower-half of the Equator, and the lure of their huge but price sensitive markets, is forcing MNCs in the developed world to out-source and cut costs. Further, with increasing number of channels in the production process, there is little surprise that something somewhere just goes wrong.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
nd of the day, recalls are good for the consumer, the market and the manufacturer,” says Swami. Quality connoisseur Toyota has globally recalled more than three million cars in the last three years alone. And not just Nokia and Toyota, many globally respected (!?) MNCs are issuing recalls these days– among them auto majors like Ford and GM; IT biggies like Dell, Apple, IBM/Lenovo and Fujitsu; to even myriad toy, textile and food manufacturers. The reasons for rising recalls are not too tough to fathom. Of course, it entails a catastrophic failure of any company’s quality plan. Globalisation, outsourcing and cost-cutting are the obvious culprits! Despite quality and Six Sigmaprocesses being followed in most global MNCs, cheaper goods emanating from developing nations in the lower-half of the Equator, and the lure of their huge but price sensitive markets, is forcing MNCs in the developed world to out-source and cut costs. Further, with increasing number of channels in the production process, there is little surprise that something somewhere just goes wrong.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
