Takata Corporation Recall Case Study

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The Takata Corporation Recall is the largest in human history. The problem (more often than not) originates in the steering wheel, more specifically the airbag. An airbag is like a really cool balloon, instead of someone blowing it up, or inflating it with a helium tank; an explosion takes care of that. The idea is that the explosion fills the balloon with nitrogen and a wave of concussion, but only for the moment of a crash then the airbag generally deflates. For the most part, airbags are a great safety feature. A nose broken by a balloon beats hitting the steering wheel face first at 30 miles per hour. I, by the way, am assuming that is average crash speed, that is not based in fact. Though apparently about half fatal crashes happen at or …show more content…
The tests were conducted off hours by only need-to-know individuals. The results were frightening. After only a few short years out in the elements, the inflators were compromised. As a consequence more covert actions were taken, mainly the design of remedies and/or replacements. However, due to liability, all of the R&D (research and development) and evidence against plausible deniability was scrapped and erased.

A big factor in the whole ordeal was demand, Takata Corporation had grown… substantially; in 1995 they were making about 650 million a year by 1999 they were projected to make a Billion annually despite being involved in a lesser recall. This was before their big break through, aluminum nitrate, which allowed them to undercut other producers. During the time in question they were supplying a fifth of all cars made with airbags.

The Japanese company was struggling to keep up with demand. Major automakers had started a policy of just-in-time production, to maximize profits by minimizing waste. This means that the deadlines are solid. If any one part is late the production line shuts down completely. Automakers like Toyota and Honda started issuing strict fines for tardiness. 5 digits per minute or a minimum of 600,000 per hour late. The deadlines were so harsh, Takata Corporation could hardly keep

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