Paul Chessler, Director, Quality Assurance

CURRENT SITUATION

Six major problems are causing a decrease in the new product quality: Personnel, Marketing, Product Design, Manufacturing, Machine, and Inspection. Lack of quality control practices as well as undefined and unclear standards in production lead to final lack of product quality and high rejection rate.

SHORT-TERM ACTION PLAN

We recommend to firstly tackle the problems that have an immediate impact on production:

* Inspection program: analyze the critical inspection points and implement a reporting system. Inspections are required for raw materials quality, machinery functioning, finished goods, and delivery. In particular, implement a regular inspection process of the automated filling machine to avoid last minute maintenance and downtime.

* Training program: set up a formal training program to improve skills and effectiveness of employees engaged in materials handling and product assembly.

* Production planning: cooperates with Marketing Dept. to match the forecasted demand with current capacity.

* Change the nozzles: renegotiate the contract with the current nozzles vendor in order to ensure higher product reliability. Change vendor if necessary quality standards are still not met.

LONG-TERM ACTION PLAN

Secondly, we recommend to implement the following actions to set the Greasex product for success in the long-term:

* New products testing: ensure the Quality Dept. is involved since the early stages in the designing and testing of every new product (e.g. Quality Dept. shall test and approve new products before starting production and promotion).

* Quality control system: develop and implement standards, methods and procedures for inspecting, testing