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From: m/v MOJO (no email)
Date: Tue Jul 01 2003 - 09:18:30 EDT
snip>>
For the conventional manufacturer this is not all a good thing. While he
would like to minimize infant mortality that would impact warranty costs he
is not interesting in reducing failures after the warranty period. So
unless he can get a warranty payback he is not interested. Given limited
production runs he may even decide to take the warranty hits as cheaper than
the cost of functional test...any he may be correct in the straight
economics.
endsnip >>
Jim;
I have to take issue with your assessment of the "conventional manufacturer"
having a negative incentive to produce products that outlast the warranty
period. This is just plain and simple old style thinking! Enlightened
companies recognize that technological progress and/or the changing needs of
their customers often obsoletes products long before they break or wear out,
giving the company the opportunity for repeat sales to the same customer.
Additionally, given the speed information travels today via the internet,
etc., a handful of dissatisfied customers can negatively influence thousands
of potential sales opportunities. Customers expect performance,
reliability, competitive prices, on-time delivery, service before and after
the sale and more. Unless you build a quality product as seen from the eyes
of the customer, not the bean counters, you don't stand a chance of long
term survival. In today's globally competitive environment, keeping
customers happy is a necessity, if you don't, someone else will! As an
example, take a look at GE's "six sigma" program - an across the company
commitment to driving defects in every process, not just products, but
processes as well, to tolerances of six sigma or less - that's less than 3.4
defects per million! And all 300,000+ employees are trained in the
strategy, statistical tools and techniques of six sigma. They have a
saying, "Our Customers Feel the Variance, Not the Mean". I believe more and
more companies today are adopting this approach to quality. My personal
experience is that especially in the area of consumer electronics, we're
seeing quality far beyond what was available even 5 years ago. Of course
there are exceptions - from the reports on this list, RayMarine seems to be
struggling with a number of them. But unless they are corrected fairly
quickly RayMarine may not be a player in future. There have been some
comments that the never ending market demand for low price is one of the
causes of a reduction in quality. But, as consumers we have a right to
demand the highest quality products and the lowest possible prices.
Manufacturers can either accept this challenge and embrace the opportunity
to deliver or over time they will be replaced by other manufacturers who do.
As long as we avoid monopolistic practices, the consumer will continue to
benefit from this process.
Ranting and Raving!
Ray
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