Quality Progress - December 2017 - 10

Dinged and Dented
continued from
page 9

castings and forgings-all of which was shipped to
customers.11
In addition to the organization's shares dropping 22%
after the scandal was discovered, experts estimate it
could cost $133 million to replace the affected parts-
not to mention Kobe Steel could be held financially
responsible if its customers recall any of their products
containing Kobe Steel material.12
To remedy the issue, Kobe Steel is considering automating product data input and implementing a system
that requires at least two workers to double-check
data.13
But even if it can prevent further data falsification,
Kobe Steel CEO Hiroya Kawasaki admitted that the
scandal has severely damaged the organization's
reputation.
"The credibility of Kobe Steel has plunged to zero.
We will make efforts to regain trust as soon as possible," Kawasaki said.14

29. Three days later, Nissan President and
CEO, Hiroto Saikawa, said measures had
been implemented to prevent the issue
from recurring.
However, after those preventive measures were put in place, Nissan discovered
that unauthorized employees still were
performing inspections at three of its
assembly plants, which prompted Nissan
to stop production at six plants. 20
"I am deeply sorry for customers who
trusted our preventive measures," Saikawa
said. 21
During a third-party investigation of the
issue, misconduct in final inspector exams
also was discovered. In some cases, examiners provided examinees with answers to
test questions. 22

Unauthorized inspections

For a country that prides itself on the
quality of its products, the hits kept coming in 2017. Besides marring the "Made
in Japan" reputation, the recent scandals
revealed systemic problems in Japan's
manufacturing industry, according to Zhu
Yan, professor of economics at Takushoku
University in Japan. 23
Without serious change at many levels
within these organizations, deception and
mismanagement will continue to breed
and quality will suffer. That's worrisome.
"Ccorporate governance in Japan is
defective in supervision and lacks checks
and balances," said Jin Jianmin, a senior
fellow at Fujitsu Research Institute in
Tokyo. "Without an efficient supervision
mechanism and under huge pressure to
make a profit among fierce competition,
enterprises could easily turn to cheating,
and such misconduct is hard to uncover at
an early stage."24
-compiled by Lindsay Dal Porto,
assistant editor

Nissan and Subaru also have been in the spotlight
recently for using unauthorized employees to perform
the final safety checks of their vehicles. The checks are
required by Japanese regulations
before a vehicle can go on sale in the
Besides marring the "Made
country.15
in Japan" reputation, the
Although the issues were disrecent scandals revealed
covered earlier this year, they have
systemic problems in
existed for decades-since 1979 at
Japan's manufacturing
Nissan and for about 30 years at
industry.
Subaru.16
Both automakers performed
the required final safety inspections, but Nissan used
employees who weren't registered as final inspectors,
and Subaru's unauthorized inspectors borrowed seals
from registered safety inspectors.17
The result? Faulty inspections were performed on
vehicles sold only in Japan's domestic market, but the
number of vehicles affected is still significant: Nissan
already has recalled about 1.2 million vehicles, and Subaru is recalling 400,000 vehicles in Japan.18
According to reports, Subaru employees didn't fully
realize that what they were doing was actually violating
Japanese regulations.19 Nissan, however, is a different
story.
Nissan first admitted the inspection issue on Sept.

10 QP

December 2017 ❘ qualityprogress.com

Bad reputation

EDITOR'S NOTE
The references listed in this article can be
found on the Progress Report webpage at
qualityprogress.com.


http://www.qualityprogress.com http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - December 2017

Seen and Heard
Progress Report
Mr. Pareto Head
Expert Answers
Career Coach
The Next Rung
Titles and Take-Home
Certification Certainty
Six Sigma Satisfaction
Stay the Course
Maintenance Makeover
Confronting Confusion
Standard Issues
Statistics Spotlight
Marketplace
Footnotes
Try This Today
Quality Progress - December 2017 - intro
Quality Progress - December 2017 - cover1
Quality Progress - December 2017 - cover2
Quality Progress - December 2017 - 1
Quality Progress - December 2017 - 2
Quality Progress - December 2017 - 3
Quality Progress - December 2017 - 4
Quality Progress - December 2017 - 5
Quality Progress - December 2017 - Seen and Heard
Quality Progress - December 2017 - 7
Quality Progress - December 2017 - Progress Report
Quality Progress - December 2017 - 9
Quality Progress - December 2017 - 10
Quality Progress - December 2017 - 11
Quality Progress - December 2017 - 12
Quality Progress - December 2017 - Mr. Pareto Head
Quality Progress - December 2017 - Expert Answers
Quality Progress - December 2017 - 15
Quality Progress - December 2017 - Career Coach
Quality Progress - December 2017 - 17
Quality Progress - December 2017 - 18
Quality Progress - December 2017 - 19
Quality Progress - December 2017 - The Next Rung
Quality Progress - December 2017 - 21
Quality Progress - December 2017 - 22
Quality Progress - December 2017 - 23
Quality Progress - December 2017 - 24
Quality Progress - December 2017 - 25
Quality Progress - December 2017 - 26
Quality Progress - December 2017 - 27
Quality Progress - December 2017 - 28
Quality Progress - December 2017 - 29
Quality Progress - December 2017 - Titles and Take-Home
Quality Progress - December 2017 - 31
Quality Progress - December 2017 - 32
Quality Progress - December 2017 - 33
Quality Progress - December 2017 - 34
Quality Progress - December 2017 - 35
Quality Progress - December 2017 - Certification Certainty
Quality Progress - December 2017 - 37
Quality Progress - December 2017 - 38
Quality Progress - December 2017 - 39
Quality Progress - December 2017 - 40
Quality Progress - December 2017 - 41
Quality Progress - December 2017 - 42
Quality Progress - December 2017 - 43
Quality Progress - December 2017 - Six Sigma Satisfaction
Quality Progress - December 2017 - 45
Quality Progress - December 2017 - 46
Quality Progress - December 2017 - 47
Quality Progress - December 2017 - Stay the Course
Quality Progress - December 2017 - 49
Quality Progress - December 2017 - 50
Quality Progress - December 2017 - 51
Quality Progress - December 2017 - 52
Quality Progress - December 2017 - 53
Quality Progress - December 2017 - Maintenance Makeover
Quality Progress - December 2017 - 55
Quality Progress - December 2017 - 56
Quality Progress - December 2017 - 57
Quality Progress - December 2017 - 58
Quality Progress - December 2017 - 59
Quality Progress - December 2017 - Confronting Confusion
Quality Progress - December 2017 - 61
Quality Progress - December 2017 - 62
Quality Progress - December 2017 - 63
Quality Progress - December 2017 - 64
Quality Progress - December 2017 - 65
Quality Progress - December 2017 - Standard Issues
Quality Progress - December 2017 - 67
Quality Progress - December 2017 - 68
Quality Progress - December 2017 - 69
Quality Progress - December 2017 - Statistics Spotlight
Quality Progress - December 2017 - 71
Quality Progress - December 2017 - 72
Quality Progress - December 2017 - 73
Quality Progress - December 2017 - Marketplace
Quality Progress - December 2017 - 75
Quality Progress - December 2017 - Footnotes
Quality Progress - December 2017 - 77
Quality Progress - December 2017 - 78
Quality Progress - December 2017 - 79
Quality Progress - December 2017 - Try This Today
Quality Progress - December 2017 - cover3
Quality Progress - December 2017 - cover4
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