A People-First

APPROACH to

Quality and

Risk Management

Smart companies like Magna know quality and risk management go hand-in-hand – and start with dedicated people.

Lina Bucci, Magna’s vice president of quality, scoured the globe and came up with dozens of examples of Magna employees who are so committed to quality that nothing escapes their notice. She’ll introduce you to some of them from Magna’s Dortec division.

You’ll also meet Caiping Zhao, one of Magna’s best production operators in China, who safeguards the company’s reputation with her approach to quality.

Another must-read: Peter Elliot, Magna’s cybersecurity guru, explains how “little steps” can reduce or eliminate attacks at home and at work.

Cybersecurity and risk management start at home for Peter Elliot, where regular dinner- table conversations with his kids, Alexandra, 14, and Carter, 12, involve ways to stay safe and thwart attacks.

“My kids know about my job, and they expect me to talk about this,” said Elliot, Magna’s global information security officer. “They are increasingly savvy about cybersecurity. They’ve had friends who have had issues, so it’s not just me being overprotective. I tell them the same things I tell Magna employees. There are very simple things an individual can do to protect themselves.”

Elliot’s “little steps” to bolster defenses include:

-Don’t use the same password across multiple sites or applications

-Consider using “password manager,” software that will store and protect passwords

-When creating a password, use a long phrase that means something to you, but isn’t easy to guess

-Use multifactor authentication

-Keep devices up to date; don’t ignore security updates

-Never trust who is on the other end of a message

-Assume the whole world will view what you post on social media, regardless of the number of connections or friends you have on these platforms

-Be aware of what is visible in the background when you share video

“You can’t change the fact there is risk, but you can limit it to a reasonable level,” he said.

Cybersecurity by the Numbers

66%

Educating employees about cybersecurity awareness and providing them with the skills to reduce or eliminate attacks are top priorities for Peter Elliot, Magna’s global information security officer.

Manufacturing has become a key target for attackers, he notes.

“Years ago, a hacker was the nerd in the basement playing in the digital sandbox,” he said. “Today, cyberattacks have morphed into a multi-billion-dollar business. It’s important for our employees to understand the scope of our vulnerability.”

To Elliot, the 2021 Verizon Data Breach Investigation Report is a wake-up call for corporations:

of attacks involve personal information about employees and customers

of malware-associated breaches in manufacturing are caused by Ransomware, or locking up a company’s data until a ransom is paid

61.2%

82%

involve employee credentials and/or user names and passwords

of breaches originate from outside the company

42%

While we have a layered defense at Magna, and prevent many attacks, we can’t just rely on technology to protect us,” he said. “There is always a human component.”

of motives for attacks are financial, as opposed to state-sponsored espionage or the work of a disgruntled employee

92%

A Maternal Approach to Quality

Caiping Zhao is one of the best production operators at Magna’s Changzhou division in China because of her quality focus and determination to never settle for less than the best.

“Every month, we select our division’s Quality Excellence Employee, and Caiping has won three times this year,” said Sunny Wang, the plant’s quality manager. “We post her photo and story on the bulletin board and in the meeting room, so she can inspire others.”

Zhao’s impressive quality record isn’t limited to 2021. She has been named Quality Excellence Employee three times in 2020.  In 2019, she won one of the plant’s annual quality prizes that recognize top performers.

Her secret is simple: “I treat every part on the assembly line the way I would treat my son Chen Ke,” she said. “Like a child, each part requires care. So I always pay great attention.”

Zhao is responsible for checking 600 to 700 transmission parts per day for the BMW X3, BMW X5 and Ford Focus. The BMW SUVs are exported to Germany and the Focus is produced for the China market.

In September, Zhao stopped the line because she noticed a problem with the one- way clutch for the Focus after rotating a part and seeing a misalignment. She realized this could lead to a problem putting the car into reverse, so she immediately notified her team leader, and the problem was swiftly corrected. Her quick thinking prevented larger issues, ranging from customer complaints to a vehicle recall or crash.

“I go beyond the written instructions and the photographs of what to look for,” Zhao explained. “I rely on my senses, especially sight and touch. I’m the last person making the quality check, so what I do is critical for our reputation.”

She credits the Magna culture for instilling a dedication to quality and risk management in every employee.

“I worked in the electronics industry before coming to Magna in 2014,” Zhao said. “The atmosphere is different here. Our team leaders set a great example, and we are rewarded for maintaining the quality of the product. That makes us care about what we do. It’s why we are passionate about quality.”