ts_jg.ppt
TRANSCRIPT
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Nestlé’s Approach to Product Recalls
Johann GroszQuality Manager Africa, Asia, Oceania
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Presentation
Introduction
- Quality Products- Nestlé Quality Management System (Pro-active)
1. Crisis Preparedness (Pro-active)
2. Crisis Management (Reactive)
Product Recall (Presentation Title) is a possible action during Crisis Management
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Introduction
Nestlé sells around
1000 Million (1 Billion) Products/Day.
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Introduction
Consumers trust Nestlé daily and buy our products again and again.
Claim: Quality is our most successful product!
Quality: - safe products- legally compliant- sensory, preferred products- nutritional products- consistent quality- convenience aspects- good value for money
Consumer Satisfaction
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Introduction
Quality, as we all know, does not happen by chance.
We apply the Nestlé Quality Management System to achieve Quality & Consumer Satisfaction and to prevent Quality problems.
- ISO 9001 aligned, process focussed approach- Quality is everyone's commitment- ISO 22.000 in our factories (Food Safety)- Every function must contribute to Quality- Lean & TPM programs- Aim: Zero defects
Food Safety – our consumers trust Nestlé
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Consumer Trust
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Quality System
delivers Quality Products
- There is no perfect Quality System- Failures are rare events - Failures can lead to Quality Problems and
& Crisis Situations
What are possible reasons for Quality Problems ?
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Reasons for Quality Problems
- Contaminants in supplied materials- Foreign bodies- Packaging material issues- Allergen issues (hidden allergens)- GMO- Technical breakdowns, e.g. leakages- Human errors- Sampling- Criminal Acts- False analysis results & wrong interpretation- etc.
Wrong attitude: This cannot happen to me …
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Crisis Management: Good or Bad
Bad Crisis Management:
- Company image first - Not consumer focused!- Cost driven (Recall will cost money)- Delayed reaction- Ambiguous communication – different messages- No clear leadership; not managed by the Top
Management
Crisis must be managed
Consumer Trust built up over years can be lost.
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Crisis Management at Nestlé
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Nestlé Quality Management System
Management Process:
Crisis Management
Each Market, Business, Zone and the Centre implement an effective Crisis Management procedure in a manner that protects our consumers, our assets and Nestlé’s image and brand.
Key sentence:
… protect our consumers ….If something goes wrong for quality: “Put People First”:
The health and safety of our consumers, employees, customers and people in the local communities is our main concern.
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Crisis Management
Support Document:
Handbook for Crisis Preparedness and Crisis Management.
Part 1 = Crisis PreparednessPart 2 = Crisis Management
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1. Crisis Preparedness (Market)
1.1 Issue Round Table (Experts discuss possible forthcoming problems)
1.2 Monitor Media1.3 Relationship with Media1.4 Relationship with Authorities1.5 Set up a Crisis Committee
Crisis Manager, Crisis Coordinator & Other FunctionsCrisis contact list
1.6 Crisis Scenario Planning1.7 Identify your Stakeholders
Stakeholder list1.8 Internal communication rules1.9 Training & Simulation 1.10 Crisis Room & Resources 1.11 Verification - Preparedness
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2. Crisis Management (Market)
2.1 Information about a Quality Problem from
Suppliers, Customers, Factories, Consumer Service, Supply Chain, Authorities, Media etc.
2.2 Evaluation by the Technical Manager & Quality Manager+ collect relevant information: incident details,
traceability results (!), complaint history, scientific information etc.
Result can be: Activate the Crisis Committee
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2. Crisis Management (Market)
2.3. Crisis Committee
Crisis Manager (Top Manager) + Other Functions:
- Evaluate the situation based on facts(safety issue, legal problem, product quality problem not safety related, media issue etc.)
- Decision – fact based - e.g. in case of a food safety issue Public recall
- Decision about the communication strategyImportant: to speak with 1 voice
Progress Review and adjustment of the action plan if needed
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3. Crisis Management (Market)
3.4 After the Crisis
- Assessment: How was the Crisis Management ?
- Root Cause Analysis:
- What happened ?- Why did it happen ?- What were the damages ?- Review of the Action Plan- What are the learning's ?
- Root Cause Analysis Corrective Actions- Circular: Can this happen to you ?
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Summary
Things can go wrong and we saw in the past crisis situations & recalls for all types of products – cars, electronic hardware, toys, food etc.
- Pro-active Quality Management System in place
Prevent Quality Problems
- Be prepared – attitude: A crisis can also happen to me.
I. Crisis Preparedness
In case of a crisis
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Summary
II. Strong Crisis Management
- Consumer first - Quick reaction - Transparent, honest communication
If a crisis is well managed Limit the damage
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Summary
Maintain trust of the consumers!
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Thank You !