1st Edition

Global Supply Chain Quality Management Product Recalls and Their Impact

Edited By Barbara B. Flynn, Xiande Zhao Copyright 2015
    432 Pages 42 B/W Illustrations
    by CRC Press

    While there is substantial research surrounding manufacturing and design-related product hazards, little has been written about supply chain product hazards and how they impact supply chain quality management. Filling this need, Global Supply Chain Quality Management: Product Recalls and Their Impact draws together key insights and research findings from a global research project on product safety and recalls.

    The book presents detailed case studies of six extended global supply chains within three industries: toys, food, and pharmaceuticals. These case studies cover U.S. companies with supply chains that extend into China and provide the perspectives of both U.S. and Chinese executives. It includes coverage of several highly publicized product recalls, including Ford Pinto, Extra Strength Tylenol, melamine-tainted milk, Mattel, and Toyota.

    Presenting detailed examples of both poor and best practices, the text supplies firsthand accounts from key players in well-known product recalls. It outlines an event study methodology that can help readers determine the true financial impact of a product recall announcement. It also describes how to conduct controlled experiments to determine the effect of various recall strategies on consumers.

    The book describes how alternative product recall strategies can influence consumers' perception of your organization's corporate social legitimacy as well as their future purchasing behaviors. Although the text focuses on product quality within the supply chain, it also sheds light on other sources of product hazards—sharing a wide-ranging perspectives and current methodologies.

    Introduction; Barbara B. Flynn and Xiande Zhao
    Importance of Product Recalls; John Z. Ni, Yina Li, and Barbara B. Flynn
    Consumer Protection in Developing Countries; TingTing Zhao and Barbara B. Flynn
    Quality Risk in Global Supply Networks; Kim Hua Tan, Ying Kei Tse, and Jie Chen

    Dark Side of Product Safety

    Chinese Toy Recalls; Dongming Ye, Stephen Ng, Thomas Kwan-Ho Yeung, and Barbara B. Flynn
    Chinese Milk Powder Crisis; Xiande Zhao, Yina Li, Barbara B. Flynn, and Stephen Ng
    Ford Pinto Recall; Dennis A. Gioia
    Conceptualization of Supply Chain Quality Management; Haiju Hu, Barbara B. Flynn, and Xiande Zhao

    Bright Side of Product Safety: Exemplar Cases
    Dongfeng-Peugeot-Citroen Automobile Co. Ltd; Xueyuan Liu
    Changan Ford Mazda Automobile Co., Ltd; Yong Long and Junfeng Li
    Bright Dairy; TingTing Zhao and Xiucheng Fan
    CHIC Group Global Co., Ltd; Li Luo, Xiande Zhao, and Barbara B. Flynn

    Financial Perspective on Product Recalls
    Impact of Product Recall Announcements on Shareholder Wealth in China; Xiande Zhao, Yina Li, Barbara B. Flynn, and Stephen Ng
    Impact of Toy Product Recalls on Shareholder Wealth in the United States; John Z. Ni, Barbara B. Flynn, and F. Robert Jacobs
    Impact of Recalls on Retailer Shareholder Wealth in the United States; John Z. Ni, F. Robert Jacobs, and Barbara B. Flynn

    Consumer Perspective on Product Recalls
    Effectiveness of Recall Strategies on Customer Perceptions; Haiju Hu, Xiande Zhao, and Barbara B. Flynn
    Customer Perceptions of a Product Recall: The Role of Panic; Jiangang Du

    Supply Chain Quality Management and Performance
    Relationship between Supply Chain Quality Integration and Performance; Baofeng Huo, Xiande Zhao, and Fujun Lai
    Effect of Supply Chain Integration on Product Quality and Innovation; Bochao Zhuang, Xiande Zhao, and Stephen Ng
    Effect of Supply Chain Quality Management on Performance; Haiju Hu and Barbara B. Flynn
    Concluding Thoughts; Barbara B. Flynn and Xiande Zhao



    Dr. Barbara B. Flynn is the Richard M. and Myra Louise Buskirk Professor of Manufacturing Management at the Kelley School of Management, Indiana University. She received a D.B.A. in operations management from Indiana University, a M.B.A., with an emphasis in operations management and managerial economics, from Marquette University and a B.A. in psychology from Ripon College. Her previous academic appointments have been at Wake Forest University, Iowa State University and Louisiana State University. She is a Fellow of the Decision Sciences Institute and recipient of the Distinguished Service Award from the Decision Sciences Institute and the Distinguished Scholar Award from the Operations Management division of the Academy of Management.Dr. Flynn has received over $1 million in research funding from the National Science Foundation, the U.S. Department of Education and the Center for Innovation Management Studies. She is director of the High Performance Manufacturing research group, which studies the relationship between manufacturing practices and performance in various organizational and national cultures. Other research interests include global supply chain management, quality management, operations strategy, JIT and group technology. She has published articles in Management Science, Decision Sciences, Journal of Operations Management, International Journal of Operations Management and other leading journals, as well as a book and numerous book chapters.Dr. Flynn is former Editor-in-Chief and founding editor of Decision Sciences Journal of Innovative Education, and former Editor-in-Chief of Quality Management Journal. She is an Associate Editor of Journal of Operations Management and Decision Sciences. She serves on the Editorial Review Board of International Journal of Applied Quality Management, Production and Operations Management, and Benchmarking for Qua