Building a Culture for Zero Defects
Here are two examples on building a culture for Zero Defects that I had read about in a book by Konosuke Matsushita in the 1980s. Unfortunately, I am having difficulty remembering the title of the book.
Automobile Manufacturer
An automobile company in Japan apparently had a unique method of handling invoices the manufacturer received from suppliers. When it was time to pay, the manufacturer always deducted a certain amount from the total bill, claiming it is for telephone charges.
The automobile company would not charge for the initial telephone call to place the order. However, all subsequent calls made to speed up a late delivery, or to complain about defective items, were billed to the supplier.
Machinery Manufacturer
Another Japanese company, a manufacturer of machinery, deducted a certain amount as penalty for each defective part in the delivery. All defective parts were returned to the supplier.
The penalty charged had a correlation to the percentage of defects. Moreover, it informed the management of the supplying company, not the men in charge of delivery, about the defects and the deduction made.
Neither of these two manufacturing companies, I am sure, was concerned about the savings they made by charging for telephone calls or imposing penalties. I believe their aim was simply to eliminate all defects in the inputs to their respective manufacturing processes.
With ‘Zero Defect’ inputs, it is natural that the Cost Of Poor Quality of a manufacturer reduces by at least one-third of all wasteful costs. The gains go straight to the bottom-line (without capital investment). This, in turn, makes a company more competitive.
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About Suresh Lulla
SURESH LULLA is the Founder & Managing Director of Qimpro Consultants Pvt Ltd. The company offers a range of services that include: Process Management, Quality Life Cycle Management, Business Excellence, Benchmarking of Best Practices, Professional Certifications for Quality & Reliability, and Recognition of Excellence in Individuals, Teams, & Organizations. Under Mr Lulla’s leadership, Qimpro has saved its clients well over Rs 175 billion in terms of cost of poor quality, as well as significantly improved customer satisfaction levels in the manufacturing, service, and healthcare sectors. Apart from India, Qimpro has conducted assignments in Singapore, Indonesia, Malaysia, Thailand, Viet Nam, Pakistan, Sultanate of Oman, Bahrain, Iran, and Kenya.
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