"The Pulse of Quality in Manufacturing 2024" Also
Reveals Overwhelming Plans for AI Adoption and the Changing Role of
Frontline Workers
BURLINGTON, Mass., Aug. 1, 2024
/PRNewswire/ -- ETQ, part of Hexagon, shared 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 $99.9M
in the U.S. 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 lay-offs.
The Pulse of Quality in Manufacturing 2024 survey was
conducted on behalf of ETQ by research firm Censuswide. More than
750 quality leaders and related project managers at manufacturing
firms across the U.S., the U.K. and Germany were asked about the quality trends,
initiatives and current status of quality in their enterprise
organizations.
In addition to the rise in product recalls, 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 gets
to the heart of what's happening on the frontlines, corner offices
and supply chains of manufacturers across the globe," said
Vick Vaishnavi, CEO, 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."
Below are key findings from The Pulse of Quality in
Manufacturing 2024:
Product Recalls are on the Rise
Seventy-three
percent of respondents stated that they had a product recall in the
last five years and 48% said they have experienced more recalls
than they did five years ago. Thirty-nine percent of respondents
said that the cost to rectify one recall ranged from $10M to $49.99M.
Respondents indicated the following impacts 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
Forty-seven percent of respondents say
they plan to use AI in the next two years. All but one percent 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 (85%) of respondents said
that "most" or "all" plant floor workers have access to electronic
devices; and 80 percent said "most" or "all" functions have access
to relevant quality data.
Suppliers Have an Impact on Quality
Sixty-one
percent of respondents claim that up to one-half of product recalls
can be attributed to supplier issues. Despite this number, 70%
believe their organization has control over suppliers.
Safety Issues Remain
Forty-eight percent of
respondents said they have 11-to-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.
Fifty percent of respondents felt that their
organization is doing a good job at managing quality initiatives;
and the majority (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," added Vaishnavi.
About the Survey Methodology
Industries represented in
the survey include firms in heavy manufacturing, electronics and
appliances, medical device, pharma and life sciences, food &
beverage, chemicals and agritech, logistics & distribution,
transportation, automotive, aerospace & defense and
manufacturing sectors. While the survey polled both mid-market
($100M – $500M) and enterprise-level organizations (above
$500M), the sample was weighted more
heavily to larger, global manufacturers.
About ETQ
ETQ, part of Hexagon, is a leading provider
of integrated quality management, health, safety, and environmental
solutions for manufacturers. Firms around the world rely on ETQ to
ensure optimal quality at scale, reduce costs and improve the
velocity of data-driven decisions. Learn more at etq.com.
Hexagon is a global leader in digital reality solutions,
combining sensor, software and autonomous technologies. Hexagon
(Nasdaq Stockholm: HEXA B) has approximately 24,000 employees in 50
countries and net sales of approximately 5.2bn EUR. Learn more at hexagon.com and follow
us @HexagonAB.
Click here to download your copy of the
report: "Taking the Pulse of Quality in Manufacturing
2024."
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SOURCE ETQ