Question: QUESTION FOUR [25] Read the following extract and answer the question that follows: Tiger Brands, South Africa's biggest food manufacturer, announced on Monday that it
QUESTION FOUR [25]
Read the following extract and answer the question that follows: Tiger Brands, South Africa's biggest food manufacturer, announced on Monday that it is immediately recalling about 20 million KOO and Hugo's canned vegetable products over safety concerns due to potentially defective cans. This amounts to a recall of 9% of annual production and the final impact is estimated to amount to up to R650 million. Tiger Brand's share price initially dropped 6.40% after the announcement on Monday morning. The issue with the cans, which is a deficient side seam weld that could cause the cans to leak, was initially discovered in May this year with 18 cans at one of Tiger Brand's facilities. The cans came from a supplier. While that batch and several others weren't released for trade, a probe determined that some cans from a defective batch did. It did a test and out of 287,040 cans inspected after a transport and handling test, a side seam leak had developed in two cans.
This prompted the recall. "A leak in a can presents a risk of secondary microbial contamination after the canned products are dispatched into the marketplace. Where such contamination occurs, it will present a low probability of illness and injury if the contaminated product is consumed," Tiger Brands said in an announcement. "Tiger Brands considers it appropriate that it institutes an immediate recall of all products that could potentially be affected. This involves the withdrawal of specific canned vegetable products manufactured under the KOO and Hugos brands between 1 May 2019 and 5 May 2021(both dates inclusive), amounting to approximately 20 million cans, which is [approximately] 9% of annual production. "The financial impact of the recall, including the cost of the potentially affected stock that may be written off, transport and storage costs, as well as the loss of margin on the returned stock, is estimated at between R500 million and R650 million."
KOO canned fruit and KOO canned pilchards are not affected. Affected canned vegetable products can be returned to any supermarket or wholesale outlet for a refund. Source: https://www.news24.com/fin24/companies/20-million-koo-and-hugos-canned-products-to-be-recalled20210726 Question: Six Sigma has two meanings in TQM. In a statistical sense, it describes a process, product, or service with an extremely high capability (99.9997% accuracy). To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. The second TQM definition of Six Sigma is a programme designed to decrease defects to help lower costs, save time, and improve customer satisfaction. Six Sigma refers to a strategy, a discipline, and a set of tools that is implemented for achieving and sustaining business success.
Using the five (5) steps in the six-sigma methodology, establish how Tiger Brands can prevent a similar event from occurring.
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