Product Recall - PDF by liuqingyan


									Seminar on Achieving Total Quality in
         Product Recall

       August 29, 2009 / Saturday
               David H. Y. Lee
                 Vice Chairman
Institute of Purchasing & Supply of Hong Kong
Product Recall- Toys
July 23, 2009 / 3,700 pcs
Made in China
My Pal Scout Electronic Plush Toy Dogs
The decals on the paws of the plush
toy can be removed and ingested by
a child, posing a choking hazard
2 reports of children removing the
decals from this toy, including one
report of a child ingesting part of the
                     U.S. Consumer Product Safety Commission
               June 19, 2008
 Certification and Accreditation Administration
  of the People’s Republic of China (CNCA)
   Termination of 15 toys factories’
export license due to non-compliance to
         national quality standard.
     (Ningbo / Zhejiang Province)
Product Recall- Toys
August 13, 2009 / About 1.6 Million
Made 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.

Product Recall - Child Trailers
August 19, 2009 / About 2,700 pcs
Made in Philippines
The axle assembly’s internal
sleeve can loosen, causing
one wheel to separate
from the

Toys Recall Statistics
Jan 1 ~ June 30 (2008 / 2009)
Lead Content
- 67% (421,730 / 18,880 items)
No recalls (4,122,465 items)
Fire / Burns
No recalls (351,200 items)
- 10% (1,395,465 / 1,234,320 items)
               August 2009 / Toy Industry Association, Inc. - USA
Product Recall - Stainless Steel Coffee Maker
28th July 2009
Bialetti ‘Venus’
There is a potential for scald injuries.
The handle on some units has
Been incorrectly fitted and may
detach from the coffee maker

               Australian Product Recall Information /
Product Recall - One-Cup Coffeemakers
April 15, 2009 / About 155,000 pcs
Philips Consumer Lifestyle
An electrical fault and the
build-up of calcium from hard
or medium water can cause
an obstruction in the
If this happens, the boiler can burst,
posing a burn hazard to consumers.
Received 17 reports of incidents in
Europe, including six reports of minor
personal injury involving first degree
burns to the hands, arms and abdomen.
                                         CPSC / USA
Product Recall - Clothes Washers
July 30, 2009 / 35,000 sets
Made in USA
Crosley®, Frigidaire®, Kelvinator®,
Front & Top Loading Washers
An internal defect in the
washer’s drain pump can
cause heat to build up, posing
a fire hazard to the consumer.
                                      CPSC / USA
Product Recall – Women’s Shoes
April 9, 2009 / About 200,000 pairs
Made in China / Joyfair Footwear, of Taiwan
Importer: Wal-Mart Stores Inc.,
Heels on the shoes can easily detach,
posing a fall hazard to consumers.

                                       CPSC / USA
Product Recall- Baby's jacket
Week 30 2009 / 20~26 July
Made in Poland
The product poses a risk
of strangulation since there
is a functional draw cord
around the neck.
The product fails to meet
the requirements of the
relevant European standard
EN 14682.
Product Recall –
Boy’s Hooded Sweatshirts with Drawstrings
July 30, 2009 / About 13,300 pcs
Made in China
The sweatshirts and
jackets to the warm up
sets have drawstrings
through the hoods, posing
a strangulation hazard to

                                      CPSC / USA
Product Recall - Directors Chairs
Week 30 2009 / 20~26 July
U. K. – Tesco / Made in Vietnam
The product poses a risk of injuries
Because there is a risk of the
wooden chair collapsing under
certain load conditions.
Six incidents
Product Recall- Stud Sensors
April 7, 2009 / About 78,000 pcs
Made in Hong Kong
The 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 equipment
Week 30 2009 / 20~26 July
High visibility warning vest
Made in Germany
The product could lead
to injuries because the
reflective stripes on the
vest do not comply with
the relevant European          Marking: CE, EN 471

standard EN 471.
Product Recall - Personal equipment
Week 31 2009 / July 27 ~ Aug 1, 2009
Garden Glove
Made in Denamrk
The product poses a
chemical risk because
it contains excessive levels
of chromium VI:93.2 (+/- 8.3)
mg/kg. The product does
not comply with the Personal
Equipment Directive and relevant
European standard EN 420
Product Recall – Roman Shades
August 26, 2009 / 85,000 units
Made in China & Hong Kong
Six reports of
children becoming
entangled in the
exposed inner cord
on the back of the
                                 CPSC / USA
Product Recall - Roll-Up Blinds & Roman Shade
August 26, 2009 / 4.2 million roll-up blinds &
600,000 Roman shades
Made in China
Roll-up Blinds: Strangulations can
occur if the lifting loops slide off the
side of the blind and a child’s neck
becomes entangled on the free-
standing loop or if a child places
his/her neck between the lifting loop
and the roll-up blind material.

Roman Shades: Strangulations can
occur 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 Blinds
August 26, 2009 / 120,000 units
IKEA Home Furnishings
The Roman blind has a continuous
looped bead chain that when not
attached to the wall or floor, hangs
loosely by the blind, posing
a strangulation hazard to
A report of a 2-year-old boy
who suffered a near
strangulation. His mother
found him hanging from
the looped bead chain.
                                       CPSC / USA
Product Recall – Car
Week 35,2009 / August 24 ~ 30
Toyota Motor Corp – China / 688,314 cars
384,736 Camrys – Guangzhou Auto
22,767 Yaris
245,288 Corollas
35,523 Vios – FAW Tianjin
Faulty electrical window switches
Product Recall – Car
December 25, 2008 / 121,930 cars
Tianjin FAW - Toyota Motor
Crown & Reiz luxury sedans,
Manufacturing defects
could cause the
electric power
steering systems
to fail.

General Administration of Quality Supervision, Inspection & Quarantine / P.R. China
Product Recall – Car
August 6, 2009 / September 2005 ~ May 2009
Toyota Motor North America Inc.,
Rav4, Tacoma, Tundra, FJ Cruiser,
Land Cruiser, Highlander, Sienna, Yaris,
Potential number of units affected : 27,080
Incorrect load carrying capacity modification
labels 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 – Car
July 13, 2008 / 440,000 units
Honda USA
Accord, Civic & Acura
Defective airbag supplied by Takata Corp.,
world’s biggest maker of auto safety
One death and number
of serious injuries had
been linked to the defect.

Product Recall – Car
August 6, 2009 / 1,759 units
Harley-Davidson Motor Company, Inc.
H-D / FLTRSE 3 / 2009 motorcycles
Alcoa Wheel Products – MI/USA
Wheels equipped with blade rear wheel accessories
kits. Some wheels within the subject population
underwent a secondary
heat 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

U.S. Dept of Transportation/National Highway Traffic Safety Administration
Product Recall – Car
Week 31 2009 / July 27 ~ August 1
Citroen / Berlingo
(December 3 2008 ~ January 9, 2009)
Made in France
The 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 in
question may be inadequate. Secure
fastening of the seat is no longer
Product Recall – Car
Week 31 2009 / July 27 ~ August 1
Jaguar XJ (2003 ~ 2004)
Made in U.K.
Possible corrosion of the brake pipes
could lead to failure of one or both brake
circuits and hence
reduced braking
performance or
complete loss of
Product Recall – Car
Week 31 2009 / July 27 ~ August 1
Volvo V70 / S80 (2008 ~ 2009)
Made in Sweden
The 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 pressure
in 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 cans
Mushroom & creamy chicken soup
Made in Malaysia
Hong Kong & Macau
Campbell advised that
some of its soup had
failed to meet quality
control standards.
Hong Kong’s 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
Reduce operational cost


      Improve quality               Purchasing / August 2008
Supply Chain
Simplification Vs Complication
Common Interest - Profitable
Culture 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 Chain
Establish good communication channel to
allow supplier talk to multi-level.
Communication should be two way traffic
Communication is a critical component
of successful change ad the area where
things often go wrong
Supply Chain - Listen to your supplier

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

 Increase outsourcing
 Short product lifecycle
 Proliferation of product varieties
 Heightened customer expectations
Breaking through the barriers
  Culture of firms
  Trust-dramatically rising
  as organization rely more
  and more on external
  partners to create value
Internal Supply Chain
 Many organization realize the
 importance of managing external
 supplier relationship
 However, if our internal supplier
 do not co-operate with
 merchandiser, then how can the
 transaction be smooth?
Global Supply Chain Outsourcing

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

David Hannon - Purchasing / May 4, 2006
Product Recall
June 23, 2008
Nestlé Pure Life Purified Water
How to avoid a recall
Make sure the development of original
specification in detail in the native language
of the supplier to avoid misinterpretation.
Outline quality control process, if possible, to
guide 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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