In 2009, Mohawk Industries—one of the largest makers of carpeting in the country—was forced to discontinue an entire line of carpet tiles when the tiles failed unexpectedly, costing the company millions. In 2010, Johnson & Johnson had to recall 93,000 artificial hips after their metal joints started failing—inside patients. In 2011, Southwest Airlines grounded 79 planes after one of its Boeing 737s tore open in midflight. And just this past summer, GE issued a recall of 1.3 million dishwashers due to a defective heating element that could cause fires. Unexpected failure happens to everything, and so every manufacturer lives with some amount of risk: the risk of recalls, the risk of outsize warranty claims, the risk that a misbehaving product could hurt or kill a customer.
