Quality & Economics

The question of quality runs far deeper than business. When quality fails at the societal level, we fail each other. Then the real danger is that we fail to govern efficiently and fairly.


Books by Subir

The Power of LEO
The Ice Cream Maker
Next Generation Business Handbook
Taguchi's Quality Engineering Handbook
The Power of Design for Six
The Power of Six Sigma
Organization 21c

A Little Salmonella May Not Kill You, but it May Kill your Economy

Quality processes affect more than business. When it involves a country’s ability to maintain and regulate safety, poor quality management can damage the entire economic infrastructure of an industry, even a nation.

After salmonella was discovered in a flavor-enhancing ingredient, a wide range of processed foods were recalled including soups, snack foods, dips and dressings, the result of poor quality control.  Food and Drug Administration officials noted that the ingredient, hydrolyzed vegetable protein, was used in thousands of food products. The FDA and the Centers for Disease Control and Prevention said no illnesses or deaths have been reported – so far.

Currently the recall only involves Las Vegas-based Basic Food Flavors Inc.  The FDA collected and analyzed samples at the Las Vegas facility after one of the company’s customers discovered the salmonella, an organism that can cause serious and sometimes fatal infections in young children and others with weakened immune systems. The FDA confirmed the presence of a strain of salmonella in the company’s processing equipment.

While there are currently no deaths or even illnesses attributed to this recall, the economic impact can be felt in the millions of dollars Basic Food Flavors Inc. has to spend on the recall.

According to the FDA, hundreds of thousands of food recalls per year, again reflecting the impact of poor quality control.  While there are currently no deaths or even illnesses attributed to this recall, the economic impact can be felt in the millions of dollars Basic Food Flavors Inc. has to spend on the recall.

An impact like this leads to less spending in other areas, such as product development or workforce expansion.  The company’s reputation often takes a hit.  These all have a negative impact on the economy.

Add on the class action suits that generally result after a large recall like this and the impact becomes even greater.

More than 2.1 million drop-side cribs by Stork Craft Manufacturing were recalled, the biggest crib recall in U.S. history.  In a 2008 scare, milk from China laced with the industrial chemical melamine led to the deaths of six babies and sickened 300,000 others who had been fed baby formula made from the tainted dairy.  Lack of adequate quality programs led directly to these defects.

By paying attention to quality, fewer cases of food borne illnesses arise, and fewer injuries from defective consumer merchandise occur.  This means fewer dollars spent correcting problems, and more resources made available for product development.

More on Quality & Economics

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Subir Chowdhury Fellowship on Quality and Economics at Harvard University

Expanding the outreach of Subir Chowdhury's global call for quality throughout society - at all levels - a Fellowship on Quality and Economics has been established at Harvard University Graduate School of Arts and Sciences. The goal: to explore the impact of quality and economics in the United States.

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Whose political crisis is this, anyhow?

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A Tale of Two Countries

Two natural disasters reveal the difference of cultural and national expressions of quality in very profound ways.