This is a new Topic Objective

This assignment examines the importance of the cost of quality to an organization in the form of a case study format.

The Story

In the summer of 2008, an incident dominated the media related to the Listeria outbreak caused by Maple Leaf Foods in Canada. Once the crisis was over, 22 people had died as a result of tainted meat. More information in these links:

Urgency. Accountability. Transparency: Lessons from Maple Leaf Foods

Listeriosis outbreak timeline

How Maple Leaf Foods is handling the Listeria outbreak

Maple Leaf Foods is one of Canada's leading food processing companies, where many of its processed meat brands are household names. The company also supplies meat ingredients to restaurants and hotels.

The Challenge

In August 2008, management became aware of a possible case of listeriosis contamination at one of its meat processing plants near Toronto. By August 23, the contamination had been confirmed, and by the end of September, more than 20 peoples deaths had been linked to the listeriosis outbreak associated with Maple Leaf Foods.

The Canadian press attacked the company, and several class-action lawsuits were launched on behalf of victims and their relatives. Consumers started to avoid Maple Leaf brands, and trade customers began switching to other suppliers.

The Response

Maple Leaf Foods responded swiftly. All products from the affected plant were recalled as soon as the presence of listeriosis was confirmed. Michael McCain, the chief executive, took personal charge. He later told the Toronto Globe & Mail that in his handling of the crisis, there are two advisers Ive paid no attention to. The first are the lawyers, and the second is the accountants. His public offer of a sincere apology on behalf of Maple Leaf Foods was respected by consumers. Mr. McCain accepted this risk: the point was to act first in the interest of public health and then to be open and transparent.

Deliverables

Your detailed analysis and report should reflect:

The root cause(s) of the issue

What should have been done to prevent the current situation?

What was done to turn the situation around?

How did Mr. McCain manage this crisis?

Use the 4 Costs of Quality categories in your analysis: Appraisal cost, Prevention cost, Internal failure cost, external failure cost