Manufacturers operate in a high-stakes environment. Quality systems, especially those such as ISO 9001:2008 are points of differentiation for companies like Shree Engineering. In today’s post, we’ll talk about how quality control systems, such as ISO 9001:2008, can help industrial manufacturers avoid legal action and other related liabilities. When threatened legal action happens, it’s generally not good news for an industrial manufacturing company like Shree Engineering. So how do we turn these situations into a positive outcome? As you might guess, the way that we do so is by utilizing our understanding of the law.
There’s a growing demand for industrial manufacturing companies to have an understanding of the law and how it applies to their operations. The reason is because quality and safety are top priorities everywhere. This is especially true for industries like aerospace and construction, all of which are under increased scrutiny as a whole. When uncle sam demands increased accountability, there’s only one reasonable response. Manufacturers need to have an understanding of the law and work with legal teams to ensure compliance.
As a certified ISO 9001:2008 manufacturing company, Shree Engineering keeps its systems, procedures and records in place and up-to-date. Having these compliance measures in place does two things. First, it verifies our commitment to quality. Second, it enables us to respond quickly when threatened legal action occurs. Threatened legal action doesn’t have to mean bad news for your company. At the first sign of a lawsuit, there are proactive steps that manufacturers can take to prevent litigation.
For instance, many manufacturers will already have had a legal team review their systems and quality assurance standards. A proactive audit leads to a highly documented approach to the legal issue with (hopefully) a signed agreement from both sides about how to proceed. The reason why this is so important for industrial manufacturers is because when threatened legal action occurs, product quality and safety measures often come under investigation.
Through litigation, we will discover if our product and safety measures will remain up-to-date or if they’ll need to be improved. For Shree Engineering, this means opening a line of communication with our legal counsel and working to determine solutions to the issue. We must then remedy the legal issue and respond quickly to keep the legal problem contained.
When it comes to options for preventing litigation, a good rule of thumb is to have your systems and procedures reviewed proactively. Make sure that they’re up-to-date and ready to go. Also, if raw materials, processes or safety procedures change, manufacturers will need to regularly verify that they’re not creating any problems. The best option is to head off the problem before litigation happens.
Many industrial manufacturers will revisit their systems, procedures and records monthly, quarterly and annually. The company will ideally reach out to a legal team or other outside advisor who will help them to stay ahead of the competition in terms of litigation. This forecast will also verify that the company will be ready to address any legal issues that might arise in the future.
Thorough documentation and record-keeping is a defense against litigation. Whatever form of documentation helps your company to verify your quality and safety systems, record those. When going through old paperwork, be ready to supply documentation to your legal team upon request. The more thorough the documentation, the better. Not only does this improve your compliance with ISO 9001:2008, it’s also defense against threatened legal action.
As with any industry, it’s critical that industrial manufacturers have contingency plans in place when it comes to a potential threat of legal action. In many instances, a company will require additional time to determine whether a proactive approach is still possible. For Shree Engineering, this means everything from establishing an internal product recall protocol to reaching out to the government to explain the situation.
If we could have done anything differently, what might that be? Manufacturers need to be ready to prove their commitment to quality and safety. Once we know the outcome of a legal issue, we can move forward. With a greater awareness of what to expect during a lawsuit, manufacturers will be better prepared to meet the challenge. Potential scenarios include everything from improved quality and safety to a costly settlement.
The key is to have an open door policy where bankers, stakeholders and managers are all ready to jump into action at the first sign of trouble. How should manufacturers respond when customers call for a product recall? First, be prepared to offer a recall on any suspect products. Second, make sure that you can inventory those products. Finally, verify that the recall will be effective at mitigating risk. This generally means training employees to recognize the potentially flawed product and to get back-to-business when a recall is issued.
Not every manufacturer will have to implement changes or adopt new procedures as a result of litigation. But when it does happen, it may be necessary. For instance, a manufacturer could find that raw materials are not living up to safety and quality standards. Or an existing procedure for tracking inventory may not be sufficient. In these situations, Shree Engineering will work with its legal advisors to determine the path of least resistance.
For instance, manufacturing facilities could be upgraded, replete with additional safeguards to prevent further issues or losses. In rare cases, manufacturers may be forced to change the design of their product entirely. Unless manufacturers are in a position where they’re initiating the litigation, it’s likely that they’ll be called upon to defend their investment in product quality and safety.
We recognize that compliance and quality control systems play an important role in preventing legal trouble. Even more, we recognize that it’s critical to maintain these systems to prevent risk moving forward.