Case 1

Ford owns about 25% of Mazda and asked Japanese company to build transmissions for a car it was selling in US. Both Ford and Mazda were supposed to build to identical specifications. Ford adopted zero defects as it standard.

Case Study 1

Contd.

Yet, after the cars had been on the road for a while, it became clear that Ford's transmissions were generating far higher warranty costs and customer complaints about the noise.

Case Study 1

Contd.

Ford disassembled and carefully measured samples of transmissions made by both companies.

Case Study 1

Contd.

At first, Ford engineers thought their gauges were malfunctioning. But, Fords parts were all in specs.

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Contd.

But Mazda transmission boxes betrayed no variability at all from the target.

Case Study 1

Result.

That is why Mazda incurred lower production cost, scrap, rework and warranty costs. Quality means the absence of variation.

Case Study 2.
An automobile battery is charged with an alternator. The alternator has a regulator that controls the charge to the battery. The alternator voltage regulator assembly must let out a charge of 13.2 volts to keep the batterys charge at 12 volts.

Case Study 2.Contd.

If the alternator produces a charge of less than 13.2 volts, the electrolyte (acid) in the battery will gradually turn into water, resulting the failure of the battery. The lower the alternator output, the more quickly this will happen.

Case Study 2.Contd.

If the alternator output is more than 13.2 volts, excessive heat will build up in the battery and will reduce longevity. As the alternator output increases, this effect will occur more quickly.

Case Study 2

Result.

Quality also means meeting or exceeding customer expectations all the time.

Thank you.