Brochure: Quality Transformation | Page 3

SICK SIGMA? PUTTING SUPERIOR QUALITY BACK ON MANAGEMENT’S AGENDA Quality methodologies and initiatives are being overwhelmed by the soaring complexities of the modern business – despite decades of emphasis on the virtues and practices of total quality management, Lean Six Sigma, and more. The problems are about to get far worse for companies that don’t act promptly. A five-part framework can help quality chiefs – and the executives to whom they report. It starts with a deeper understanding of quality’s core role. Samsung didn’t mean to mess up. But in 2016, when the batteries in its Galaxy Note 7 smartphone began catching fire, the company had a public-relations nightmare on its hands. In their rush to beat Apple’s latest iPhone to market, Samsung’s executives had put quality at risk. * THE CONSEQUENCES: A MASSIVE PRODUCT RECALL, UP TO $15 BILLION OF REVENUE LOST AND LASTING DAMAGE TO THE BRAND. Samsung’s error was surprising, considering how far quality disciplines have advanced in recent decades and how prevalent they have become. But it is not inconceivable, given that the incremental gains made by typical quality organizations have not kept pace with the soaring increase in complexities facing senior executives. ** Complexity is everywhere. Supply chain networks stretch around the globe, product portfolios are much broader, and downstream services, from maintenance to customer support, are proliferating. Uncertainty is on the rise; demand is volatile; government intervention looms larger; regulatory pressures require constant catch-up, and technology’s fast march requires businesses to keep pace. And as Samsung can attest, there is non-stop pressure to get to market as fast as possible. * The New York Times, Mozur, P., & Lee, S.-H. (2016, September 2): Samsung to Recall 2.5 Million Galaxy Note 7s Over Battery Fires. https://www.nytimes.com/2016/09/03/business/samsung-galaxy-note-battery.html ** The New York Times, Chen, B. X., & Sang-Hun, C. (2016, October 11): Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone. https://www.nytimes.com/2016/10/12/business/international/samsung-galaxy-note7-terminated.html?_r=0