Achieving Total Quality in Merchandising ppt 0829 … Total Quality in...Main strategic goals for supply chain to improve product quality – 49% Manage supply chain in different locations

Product Recall

August 29, 2009 / SaturdayDavid H. Y. Lee

Vice ChairmanInstitute of Purchasing & Supply of Hong Kong

Seminar on Achieving Total Quality inMerchandising

Product Recall- ToysJuly 23, 2009 / 3,700 pcsMade in ChinaMy Pal Scout Electronic Plush Toy DogsThe decals on the paws of the plush toy can be removed and ingested by a child, posing a choking hazard2 reports of children removing the decals from this toy, including one report of a child ingesting part of the decal.

U.S. Consumer Product Safety Commission

CommitmentJune 19, 2008

Certification and Accreditation Administration of the Peoples Republic of China (CNCA()Termination of 15 toys factories

export license due to non-compliance to national quality standard.

(Ningbo / Zhejiang Province)

Product Recall- ToysAugust 13, 2009 / About 1.6 MillionMade in United States & China Little Tikes Workshops Sets and Trucks Plastic toy nails that can pose a choking hazard to young children.One report of an 11-month old boy who choked when the toy nail become forcefully lodged in his throat. The child was hospitalized and made a full recovery.

CPSC / USA

Product Recall - Child TrailersAugust 19, 2009 / About 2,700 pcsMade in PhilippinesThe axle assemblys internal sleeve can loosen, causingone wheel to separate from the trailer.

CPSC / USA

Toys Recall StatisticsJan 1 ~ June 30 (2008 / 2009)Lead Content- 67% (421,730 / 18,880 items)MagnetsNo recalls (4,122,465 items)Fire / BurnsNo recalls (351,200 items)Choking - 10% (1,395,465 / 1,234,320 items)

August 2009 / Toy Industry Association, Inc. - USA

Product Recall - Stainless Steel Coffee Maker28th July 2009Bialetti VenusThere is a potential for scald injuries.The handle on some units has Been incorrectly fitted and may detach from the coffee maker body.

Australian Product Recall Information / www.recalls.gov.au

Product Recall - One-Cup CoffeemakersApril 15, 2009 / About 155,000 pcsPhilips Consumer LifestyleAn electrical fault and the build-up of calcium from hard or medium water can causean obstruction in the coffeemaker.If this happens, the boiler can burst,posing a burn hazard to consumers. Received 17 reports of incidents inEurope, including six reports of minor personal injury involving first degree burns to the hands, arms and abdomen.

CPSC / USA

Product Recall - Clothes WashersJuly 30, 2009 / 35,000 setsMade in USACrosley, Frigidaire, Kelvinator, Kenmore,Wascomat, White-WestinghouseFront & Top Loading WashersAn internal defect in the washers drain pump can cause heat to build up, posing a fire hazard to the consumer.

CPSC / USA

Product Recall Womens ShoesApril 9, 2009 / About 200,000 pairs Made in China / Joyfair Footwear, of TaiwanImporter: Wal-Mart Stores Inc., Heels on the shoes can easily detach, posing a fall hazard to consumers.

CPSC / USA

Product Recall- Baby's jacketWeek 30 2009 / 20~26 JulyMade in PolandThe product poses a risk of strangulation since thereis a functional draw cord around the neck.The product fails to meet the requirements of the relevant European standardEN 14682.

Product Recall Boys Hooded Sweatshirts with DrawstringsJuly 30, 2009 / About 13,300 pcsMade in ChinaThe sweatshirts and jackets to the warm up sets have drawstrings through the hoods, posinga strangulation hazard to children.

CPSC / USA

Product Recall - Directors Chairs

Week 30 2009 / 20~26 JulyU. K. Tesco / Made in VietnamThe product poses a risk of injuries Because there is a risk of the wooden chair collapsing under certain load conditions. Six incidents reported.

Product Recall- Stud SensorsApril 7, 2009 / About 78,000 pcs

Made in Hong KongThe Stanley stud sensor can fail to calibrate properly and detect AC electrical wires behind the wall, posing a shock hazard to the user.

CPSC / USA

Product Recall - Protective equipmentWeek 30 2009 / 20~26 JulyHigh visibility warning vest Made in GermanyThe product could leadto injuries because the reflective stripes on thevest do not comply withthe relevant European standard EN 471.

Marking: CE, EN 471

Product Recall - Personal equipment

Week 31 2009 / July 27 ~ Aug 1, 2009Garden Glove Made in DenamrkThe product poses a chemical risk because it contains excessive levelsof chromium VI:93.2 (+/- 8.3) mg/kg. The product does not comply with the PersonalEquipment Directive and relevantEuropean standard EN 420

Product Recall Roman ShadesAugust 26, 2009 / 85,000 unitsMade in China & Hong KongSix reports of children becoming entangled in the exposed inner cordon the back of the shade.

CPSC / USA

Product Recall - Roll-Up Blinds & Roman Shade

August 26, 2009 / 4.2 million roll-up blinds & 600,000 Roman shadesMade in ChinaRoll-up Blinds: Strangulations can occur if the lifting loops slide off the side of the blind and a childs neck becomes entangled on the free-standing loop or if a child places his/her neck between the lifting loopand the roll-up blind material.

Roman Shades: Strangulations canoccur when a child places his/her neck between the exposed inner cord and the fabric on the backside of the blind or when a child pulls the cord out and wraps it around his/her neck. CPSC / USA

Product Recall - Roman BlindsAugust 26, 2009 / 120,000 unitsIKEA Home FurnishingsThe Roman blind has a continuous looped bead chain that when not attached to the wall or floor, hangs loosely by the blind, posinga strangulation hazard to children.A report of a 2-year-old boy who suffered a near strangulation. His mother found him hanging fromthe looped bead chain.

CPSC / USA

Product Recall CarWeek 35,2009 / August 24 ~ 30Toyota Motor Corp China / 688,314 cars384,736 Camrys Guangzhou Auto22,767 Yaris245,288 Corollas35,523 Vios FAW TianjinFaulty electrical window switches

Product Recall CarDecember 25, 2008 / 121,930 carsTianjin FAW - Toyota MotorCrown & Reiz luxury sedans,LexusManufacturing defects could cause the electric power steering systems to fail.

General Administration of Quality Supervision, Inspection & Quarantine / P.R. China

Product Recall CarAugust 6, 2009 / September 2005 ~ May 2009

Toyota Motor North America Inc.,Rav4, Tacoma, Tundra, FJ Cruiser, Land Cruiser, Highlander, Sienna, Yaris, ScionPotential number of units affected : 27,080Incorrect load carrying capacity modificationlabels could result in the vehicle being overloaded, increasing the risk of a crash.

U.S. Dept of Transportation/National Highway Traffic Safety Administration

Product Recall CarJuly 13, 2008 / 440,000 unitsHonda USAAccord, Civic & AcuraDefective airbag supplied by Takata Corp.,worlds biggest maker of auto safety equipment.One death and number of serious injuries had been linked to the defect.

Bloomberg.com, wftv.com

Product Recall CarAugust 6, 2009 / 1,759 unitsHarley-Davidson Motor Company, Inc.H-D / FLTRSE 3 / 2009 motorcyclesAlcoa Wheel Products MI/USAWheels equipped with blade rear wheel accessories kits. Some wheels within the subject population underwent a secondaryheat treatment process. As a result of this secondary heat treatment, these wheels may have a crack, which could result in injury or death of the rider.

U.S. Dept of Transportation/National Highway Traffic Safety Administration

Product Recall CarWeek 31 2009 / July 27 ~ August 1Citroen / Berlingo (December 3 2008 ~ January 9, 2009)Made in FranceThe product poses a risk of injuries Because the welding on one of the fastening points on the single left-hand second-row seat in the cars inquestion may be inadequate. Securefastening of the seat is no longer

guaranteed.

Product Recall CarWeek 31 2009 / July 27 ~ August 1Jaguar XJ (2003 ~ 2004)Made in U.K.Possible corrosion of the brake pipescould lead to failure of one or both brakecircuits and hence reduced brakingperformance or complete loss of braking.

Product Recall Car

Week 31 2009 / July 27 ~ August 1Volvo V70 / S80 (2008 ~ 2009)Made in SwedenThe product poses a risk of injuries because the fuel pressure regulator may become detached from the spigot within the fuel pump at high ambient temperatures.This would lead to a loss of fuel pressurein the fuel system and the vehicle will stall with no warning to the driver, causing a risk of accident.

Product Recall Campbell Soup

September 12, 2008 / 330,000 cansMushroom & creamy chicken soupMade in MalaysiaHong Kong & MacauCampbell advised that some of its soup had failed to meet quality control standards.

Hong Kongs Centre for Food Safety

Global Supply Chain Outsourcing

Main strategic goals for supply chain to reduce costs 57%

Main strategic goals for supply chain to improve product quality 49%

Manage supply chain in different locations to share knowledge - 41%

Total resources to manage supply chain 18%

Supply Chain Risk increased significantly in past 5 years - 33%

McKinsey Global Survey Result / Aug 15, 2008

Global Supply Chain Outsourcing

89%

Reduce operational cost

Purchasing / August 2008Improve quality

42%

Supply ChainSimplification Vs Complication

Common Interest - ProfitableCulture of the Industry

- Sub-contractors- Supporting services- Secondary industries

Common Language- Communication / Channel

Common Understand - Area of Responsibility

Conformance of norms- Safety, Quality & Liability

Supply ChainEstablish good communication channel toallow supplier talk to multi-level.Communication should be two way trafficCommunication is a critical component of successful change ad the area wherethings often go wrong

Think of your suppliers as partners and not just simple commodity providersAre your suppliers willing to take time or give the opportunity to learn the details of the business or its vision for the future

Supply Chain - Listen to your supplier

Difficulty of communication

Increase outsourcingShort product lifecycleProliferation of product varietiesHeightened customer expectations

Breaking through the barriers

Culture of firmsTrust-dramatically rising as organization rely more and more on external partners to create value

Internal Supply ChainMany organization realize the importance of managing external supplier relationshipHowever, if our internal supplier do not co-operate with merchandiser, then how can the transaction be smooth?

Whether in New York or Beijing, even the best suppliers can have problems.

David Hannon - Purchasing / May 4, 2006

Global Supply Chain Outsourcing

Product RecallJune 23, 2008Nestl Pure Life Purified Water

How to avoid a recallMake sure the development of originalspecification in detail in the native language of the supplier to avoid misinterpretation.Outline quality control process, if possible, toguide the foreign step-by-step.Insist on periodic test.Know your suppliers subcontractors; need to have the same specification & quality manual.

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