Economics of Recalls

Recall

If you are having a massive number of recalls; you are not following Total Quality Management. Total Quality Management (TQM) allows workers to stop the assembly line when a defect is found, so a correction can be made.TQM wants no more than 1 defect per 1,000,000 units.

Recalls cost billions of dollars. Have you ever heard grandpa say, “It takes just as much time to do it right the first time.” Companies need to follow this policy.

Effects of recalls: Consumer deaths, National Highway Safety Board litigation, loss of brand trust, customer time, etc.

I have to include a picture of a ford vehicle. Ford seems to lead the auto industry in Recalls.