Reducing Product Recalls Through Cross-Functional Engagement

Product recalls are a serious issue for automakers, leading to financial losses and damage to brand reputation. In 2021, the National Highway Traffic Safety Administration (NHTSA) reported over 31 million vehicles were recalled due to various issues. Below, we outline the causes of these recalls, explain cross-functional engagement, and provide strategies to implement it effectively in order to prevent future recalls.

Causes of Recalls

1. Design Flaws

Poor communication between design teams and manufacturing can result in vehicles being produced with faulty designs. Early-stage design flaws, if not caught, can affect thousands of units.

In 2020, Tesla recalled approximately 9,500 Model X and Model Y vehicles due to issues with roof trim and bolts in the front suspension. These design issues were identified only after vehicles were sold to consumers, leading to a costly recall.

2. Supplier Defects

Automakers rely on suppliers for various parts. Defective components supplied by third parties are a common cause of recalls, especially if there is limited oversight on the quality of those parts.

The 2014 General Motors recall of millions of vehicles was traced back to defective ignition switches supplied by an external vendor. This defect was not identified during early production, leading to dangerous safety issues.

3. Manufacturing Errors

Miscommunication between production and quality control teams often leads to production errors going unnoticed. Poorly calibrated machinery or unaddressed production line issues can result in defects.

In 2021, Ford recalled nearly 200,000 vehicles due to brake defects caused by manufacturing inconsistencies. These errors were linked to failures in the production line that were not identified early.

4. Software Failures

As cars become more complex with integrated software systems, faulty code or insufficient testing can cause significant safety hazards, leading to recalls.

In 2020, Fiat Chrysler recalled over 1 million vehicles due to software glitches that could disable airbags. These failures in software development and testing were not identified before vehicles hit the market.

What is Cross-Functional Engagement?

Cross-functional engagement refers to the collaboration between different departments within an organization, including design, manufacturing, quality control, and suppliers. It involves the active participation of all relevant teams throughout the product development lifecycle, ensuring that potential risks are identified and addressed early on. This method fosters clear communication and shared responsibility, allowing for faster identification and resolution of problems that could lead to recalls.

Benefits of Cross-Functional Engagement

1. Early Identification of Risks

Cross-functional teams can catch potential design or production flaws before the vehicle reaches the consumer. With all departments working together, issues are identified early, reducing the chance of expensive recalls.

Toyota’s Total Quality Management (TQM) system emphasizes teamwork across departments. By involving multiple teams from the beginning, Toyota has been able to detect and address design flaws early, reducing recalls over time.

2. Improved Supplier Coordination

Engaging suppliers as part of the product development process ensures they meet the automaker's quality standards. Regular communication helps reduce the risk of defective components.

General Motors, after facing recalls due to faulty ignition switches, has since improved its supplier engagement by conducting regular audits and maintaining continuous communication with its suppliers.

3. Enhanced Accountability and Transparency

Cross-functional engagement encourages teams to take ownership of their part in the process. Each department becomes accountable for the final product, fostering a more transparent workflow and reducing mistakes.

A 2019 study in the Journal of Manufacturing Science and Engineering found that companies with better collaboration across departments saw fewer errors and improved product quality.

4. Real-Time Feedback and Continuous Improvement

Continuous communication between teams allows for real-time feedback and adjustments during the development and production stages. This helps prevent small issues from growing into larger problems.

Platforms like Ascribe Software provide real-time collaboration tools, allowing teams to share updates quickly, which helps address potential risks immediately.

Strategies for Implementing Cross-Functional Engagement

1. Use of Integrated Software Solutions

Implementing software that integrates communication across departments allows teams to stay informed about the product’s progress and any potential risks. This ensures departments can work together efficiently and avoid errors.

Ford implemented enterprise resource planning (ERP) systems to improve communication between departments. This led to better collaboration and fewer design-related recalls.

2. Regular Cross-Functional Meetings

Scheduling regular meetings between representatives from different departments ensures that all teams stay aligned. These meetings provide opportunities to discuss challenges, share updates, and address risks early.

Regular cross-functional meetings at Toyota allow teams to discuss progress and identify issues before they become significant problems, helping reduce recall risks.

3. Supplier Audits and Continuous Evaluation

Automakers should conduct regular audits of their suppliers to ensure that they meet quality standards. Continuous evaluation helps prevent defective parts from entering the production process.

Toyota and General Motors have developed supplier audit programs to catch potential issues before they affect production. Regular audits ensure the quality of parts, reducing the risk of recalls due to defective components.

4. Training and Development Programs

Investing in training programs helps employees across departments improve their collaboration and problem-solving skills. Cross-functional engagement is most effective when employees understand how to communicate and work together.

Automakers can offer workshops on teamwork and communication, ensuring employees are equipped to handle cross-departmental challenges.

Contact Us to Improve Cross-Functional Engagement and Prevent Recalls

Product recalls can be minimized by adopting a cross-functional engagement strategy. By improving collaboration between design, manufacturing, quality control, and suppliers, automakers can identify risks early, address them quickly, and reduce the chances of costly recalls. Implementing integrated software solutions, holding regular meetings, conducting supplier audits, and investing in training programs are key strategies for fostering cross-functional engagement.

For automakers seeking to reduce product recalls and improve collaboration, Quality Resolution Systems offers tailored solutions. Contact us today to learn more about how we can help your team improve cross-functional engagement and prevent recalls.