Reference no: EM131714826

In our discussion of the cost of quality? (COQ), we note the external costs that occur after delivery of defective products? (such as? rework, liabilities, lost? goodwill, etc.). Philip? Crosby, author of Quality is Free?, wrote that the cost of poor quality is understated and? "there is absolutely no reason for having errors or defects in any product or? service." This New York Times article detailing? Toyota's recently announced recall of 7.4 million vehicles worldwide? (including 2.5 million in the? U.S.), to repair? power-window switches that can break down and start a? fire, certainly brings? Crosby's ideas to the forefront. It was only? 2-3 years ago that the company recalled more than 11 million cars to replace floor mats and sticky accelerator pedals. It has been seeking to reassure consumers about the quality of its vehicles since then. The recall could surely set back its efforts. The vehicles affected in the U.S. include more than a million Camrys. Eight months? ago, the National Highway Traffic Safety Administration opened an investigation into reports of smoke and fire coming from doors. During its? investigation, the safety agency collected reports of 161 fires and of 9 injuries. In its news? release, Toyota said there were? "no crashes related to the? recall," but did not mention fires or injuries. Toyota said it originally wanted to conduct a? "customer satisfaction? campaign" but decided to pursue the recall after discussions with the agency. Toyota described the recall as? voluntary, but under federal regulations once a manufacturer learns of a safety problem it? must, within 5 business? days, tell the safety agency of its plan for a recall or face a civil fine.