(ETQ: Burlington, MA) -- ETQ, part of Hexagon, has revealed results of its global survey “The Pulse of Quality in Manufacturing 2024.” The survey found that the vast majority of respondents (73%) have had a product recall in the past five years, with financial costs reaching $99.9 million in the United States alone for each recall. Respondents also cited additional negative consequences of product recalls, including damage to brand reputation, delayed product introductions, plant shutdowns, and personnel layoffs.
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The survey was conducted on behalf of ETQ by the research firm Censuswide. More than 750 quality leaders and related project managers at manufacturing firms across the U.S., U.K., and Germany were asked about quality trends, initiatives, and current status of quality in their organizations.
A more promising trend revealed in the survey is the overwhelming plans for AI adoption, with 47% of respondents planning to use AI in the next two years (and 33% already using it). The survey also indicated a growing role for frontline workers in the manufacturing decision-making process.
“We’re pleased to share results of our annual survey that get to the heart of what’s happening on the front lines, corner offices, and supply chains of manufacturers across the globe,” says Vick Vaishnavi, CEO at ETQ. “While we hear of product recalls almost daily—from food and beverage manufacturers to heavy industry, medical devices, life sciences, and electronics enterprises—our survey revealed just how troubling the trend is and the real impact on manufacturers.”
Key survey findings
Product recalls are on the rise
Along with the 73% percent of respondents who stated that they had a product recall in the last five years, 48% said they have experienced more recalls than they did five years ago, and 39% said that the cost to rectify one recall ranged from $10 million to $49.99 million.
Respondents indicated the following effects of product recalls:
• Brand reputation (35%)
• Delayed product introductions (32%)
• Weakened customer satisfaction (34%)
• Plant shutdowns (30%)
• Corporate layoffs (26%)
AI will play a greater role in manufacturing operations
47% of respondents say they plan to use AI in the next two years. All but 1% of respondents said they are using or plan to use AI for the following quality applications:
• Document processing (46%)
• Automating core processes (33%)
• Predicting future trends (39%)
• Spotting defects on the factory floor (38%)
Frontline workers play a strategic role in quality decisions
The majority of respondents (85%) said that “most” or “all” plant floor workers have access to electronic devices; 80% said “most” or “all” functions have access to relevant quality data.
Suppliers affect quality
Most respondents (61%) claim that up to half of product recalls can be attributed to supplier issues. Despite this number, 70% believe their organization has control over suppliers.
Safety issues remain
Almost half (48%) of the respondents said they have 11–20 safety incidents in an average year. Yet the majority of respondents (71%) also said they have “good” or “best-in-class” worker training.
Manufacturers believe they have a strategic approach to quality
Half the respondents (50%) felt that their organization is doing a good job at managing quality initiatives; most (60%) believe their cost of quality is “low.”
“While there seems to be some level of discrepancy in the perceived level of quality and actual quality issues, manufacturers are committed to taking a strategic approach to quality, leveraging new tools, technologies, and processes, as well as their most important asset, their employees, to meet and exceed their quality goals now and into the future,” says Vaishnavi.
About the survey methodology
Industries represented in the survey include heavy manufacturing, electronics, appliances, medical device, pharma and life sciences, food and beverage, chemicals and agritech, logistics and distribution, transportation, automotive, aerospace and defense, and manufacturing sectors. While the survey polled both midmarket ($100 million to $500 million) and enterprise-level organizations (above $500 million), the sample was weighted more heavily to larger, global manufacturers.
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