Page 1 Module Five: 7-2 Final Project Submission: Organizational Quality Plan Professor: Mark Butler Southern New Hampshire University February 25, 2024
Page 2 Company Background and History Founded in 1908, General Motors (GM) has established itself as a pioneering force in the global automotive industry. It has evolved from focusing on horse-drawn carriages to becoming a leader in automobile innovation and manufacturing. With its headquarters now in Detroit, GM has played a significant role in shaping the automotive landscape, introducing key brands such as GMC, Cadillac, Chevrolet, and Buick. These brands have become synonymous with quality, reliability, and American automotive heritage. Over the years, GM has expanded its reach, operating in over eight countries with a workforce exceeding 160,000. It has reported annual revenues of $156 billion, underscoring its significant impact on the global economy and the automotive sector. GM's commitment to innovation and quality has driven its growth and cemented its position as a critical player in the industry's evolution towards sustainable and technologically advanced mobility solutions (GM.com, n.d.). Description of the Quality Issue General Motors faced one of the most significant quality crises in the automotive industry due to faulty ignition switches. This defect led to the tragic loss of 124 lives and 275 injuries, prompting a massive recall of 30 million vehicles. The faulty switches could inadvertently turn off the engine during driving, turning off power steering and brakes and preventing airbags from deploying. GM's handling of the issue, including a delayed response and initial attempts to conceal the defect, led to federal safety oversight and a substantial penalty of $900 million. This crisis highlighted critical flaws in GM's quality culture, emphasizing the need for transparency and prioritizing safety over profitability (LaReau, 2019).
Page 3 Quality Culture The quality culture within General Motors has undergone significant transformation, particularly in light of the ignition switch crisis. This event underscored the consequences of prioritizing profitability over safety and integrity, revealing a culture that sometimes allowed economic considerations to overshadow the imperative of quality assurance. Initially, attempts to conceal the defect not only misled GM's clientele but also compromised the company's commitment to safety, leading to devastating outcomes, including the loss of 124 lives and numerous injuries. This crisis served as a pivotal moment for GM, prompting a reevaluation of its cultural values and practices related to quality. In response, GM has embarked on a journey to foster a culture where quality is ingrained in its operations. This involves a shift towards a grassroots, peer-driven approach to improvement, where leadership is crucial in emphasizing the importance of quality. By instilling a sense of ownership among employees and encouraging open communication, GM aims to create an environment where quality-focused actions are stimulated and become a natural part of daily operations. This transformation reflects the broader principles Srinivasan and Kurey (2014) outlined, emphasizing leadership emphasis, message credibility, peer involvement, and employee ownership as essential pillars of an authentic quality culture. Today, GM's quality culture is characterized by a more transparent and proactive