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Read the following article and answer the question that follows 20 million KOO and Hugo's canned 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 Hugo's 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-recalled-20210726 Question: TQM is a philosophy, a way of thinking and working, that is concerned with meeting the needs and expectations of customers. It tries to move the focus of quality away from being a purely operations activity into a major concern for the entire organisation. Through TQM, quality becomes the responsibility of all departments and sections in the organisation. It also targets the costs of quality by trying to reduce particular failure costs. TQM also espouses the process of continuous improvement. TQM places the customer in the forefront of decision-making. It also looks at the concept of internal customer and supplier. It advocates that everyone in the organisation is a customer and consumes goods and services provided by other internal suppliers. Six Sigma, is a comprehensive and flexible system for achieving, sustaining and maximising business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes Evaluate how the six sigma methodology could have been used by Tiger Brands to prevent this error in their production process. Read the following article and answer the question that follows 20 million KOO and Hugo's canned 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 Hugo's 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-recalled-20210726 Question: TQM is a philosophy, a way of thinking and working, that is concerned with meeting the needs and expectations of customers. It tries to move the focus of quality away from being a purely operations activity into a major concern for the entire organisation. Through TQM, quality becomes the responsibility of all departments and sections in the organisation. It also targets the costs of quality by trying to reduce particular failure costs. TQM also espouses the process of continuous improvement. TQM places the customer in the forefront of decision-making. It also looks at the concept of internal customer and supplier. It advocates that everyone in the organisation is a customer and consumes goods and services provided by other internal suppliers. Six Sigma, is a comprehensive and flexible system for achieving, sustaining and maximising business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes Evaluate how the six sigma methodology could have been used by Tiger Brands to prevent this error in their production process.
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Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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