Showing posts with label Quality. Show all posts
Showing posts with label Quality. Show all posts

Monday, 12 May 2014

Eurocamp Travel



Eurocamp Travel, which provides family camping holidays, has a reputation for the high-quality of its equipment and services, and has become market leader in this rapidly growing holiday sector. In recent years, sales offices have been opened in the Netherlands and Germany, and Eurocamp’s geographic coverage has been extended from its original French sites to include sites throughout Europe. As the business has become larger and more complex, the demands placed on the office systems have also become greater, reinforcing the need for functional specialization of staff, yet requiring more interdepartmental understanding and cooperation. When it became clear that Eurocamp’s service package could be copied by competitors eager to attract premium customers, the company decided to reinforce quality at every stage in their process. This was, they believed, the main criterion that already differentiated Eurocamp, and this was also potentially the most difficult for lower priced competitors to follow. A consultant was brought in to facilitate a major quality improvement programme. This was conceived as a ‘top-down’ approach, whereby important projects were identified and tackled by trained teams, but soon it became apparent that these early projects were not achieving the anticipated sustainable improvements. It also became clear that the failure was largely the result of only involving senior managers, who could not devote the time, required to projects, and did not fully understand the process concerned. Those employees who did have a very detailed understanding of the process had been excluded from problem definition, evaluation and implementation of changes. So, the company launched their quality management system (QMS) initiative. Each department established a quality steering committee which comprised at least one director, a trained facilitator and volunteers from every grade of employee. The emphasis at this stage was on the identification and improvement of internal processes with further emphasis on satisfying the internal customer. Early success demonstrated the validity of this approach and generated a high level of enthusiasm throughout the company.
Questions
1       Why are the differences between the first ‘top-down‘attempt, and the second attempt at establishing a quality initiative?
2       What do you think are the main advantages and problems with the more participative approach?



Answer
Eurocamp Travel

1.    What are the differences between the first ‘top-down’ attempt, and the second attempt at establishing a quality initiative?

There are two important points about this case.  Firstly that Eurocamp recognised one of the important aspects of a TQM approach, that all parts of an organisation have a role to play in ensuring high quality.  Second, like many organisations they try differing initiatives to improve quality, some work and some don’t.  This in itself can undermine TQM initiatives.  TQM has itself to be done right first time too!

The key differences between the first attempt and second attempt are as follows:


First attempt
Second attempt



Leadership
Used a consultant
Company-led
Overseen by
Senior managers
Departments
Team composition
Senior managers
All grades of employees
Team selection
Selected
Voluntary
Training
Used trained teams
Used trained facilitators
Understanding of processes
Little
Great
Focus
‘Important’ projects
Internal processes
Approach
‘top-down’
‘bottom-up’
Sustainability
Momentum not sustained
High level enthusiasm
Success
unsuccessful
successful

2.    What do you think are the main advantages and problems with the more participative approach?

Advantages:

·           involved all employees
·           included the people who knew most about the processes
·           it is in the interest of those employees to have the internal process problems resolved
·           non-threatening and inclusive
·           sustainable and successful

Problems:

·           the problems may not be solvable by ‘low level’ teams
·           employees will be demoralized if changes do not take place
·           spending time on the projects will reduce the time spent on actual jobs
·           employees may choose to work on inappropriate or unimportant issues.



Uncovering Pharmaceutical Manufacturing Problems


Increasingly, federal investigators have been turning their attention to manufacturing deficiencies at some of the world’s largest drug makers. According to one industry report, the number of FDA inspection reports has skyrocketed to an all-time high. This focused attention comes on the heels of a report from the US General Accountability Office, which found that the FDA failed to adequately inspect a number of manufacturing facilities around the globe.
The added governmental exposure has shed the light on a number of problems, likely encouraging a weekly parade of drug recalls from pharmaceutical companies. For some companies, they have led the parade of FDA warnings and recalls on a number of occasions. For example, Johnson & Johnson has repeatedly tangled with the FDA, most recently when it was warned by the FDA about problems at its Cordis stent facility. Last year, this same company temporarily closed a large Pennsylvania facility and recalled an estimated 136 million bottles of liquid children’s Tylenol and other pediatric products, after quality controls failed.
However, the real driving force behind this surge of pharmaceutical mea culpas probably has less to do with federal investigators and more to do with pharmaceutical industry’s concerns about potential False Claims Act qui tam actions. The simple fact is that drug makers are now on notice that employees can bring successful whistle-blower suits involving current Good Manufacturing Practices (cGMP) violations.
The extended reach of whistle-blowers was made crystal clear last year, when the U.S. Department of Justice joined in a whistle-blower action against GlaxoSmithKline, exposing systemic manufacturing deficiencies at the company’s Puerto Rico facility. Ultimately, the company settled the action for $750 million, and the whistle-blower was handsomely rewarded to the tune of $96 million.
In a very real sense, the GlaxoSmithKline settlement has encouraged other potential whistle-blowers to step forward and uncover other instances of cGMP violations. More importantly, because the False Claims Act provides incentives and protections for these whistle-blowers, drug companies cannot simply disregard their concerns. The lasting impact is that, whether through recalls or False Claims Act settlements, drug companies are forced to fess up to unsafe manufacturing practices.
1.      Explain the role of Whistle-blowers in Pharma Industry
2.      How to identify unsafe manufacturing practices and how to solve it.
(http://pharmaceutical-kickbacks.com/uncovering-pharmaceutical-manufacturing-problems/)


Indian pharma deals with quality problem


"With the stringency in regulations, there is a clear distinction between companies with good systems and those with not-so-good systems. While those who have robust systems in place will certainly benefit from this, others should use this as an opportunity to make themselves aware and invest more in compliance systems," says Biocon Chairperson & Managing Director Kiran Mazumdar Shaw. Experts point out that indigenously manufactured medicines are not "sub-standard" in quality. "You must note that product quality is not in question because US FDA has not advised recall of products while imposing import alerts," says industry veteran Ramesh Adige who is also a former employee and director of Ranbaxy.
Industry analysts say the reason for concern is not so much with the enforcements, which are common in the pharmaceutical business, but the failure of companies to take adequate corrective measures. For instance, during inspections if US FDA inspectors find a problem, they issue Form 483 highlighting the deviations. The company is given a chance to take corrective measures and inform the regulator about them within a specified period. However, if the company fails to satisfy US FDA with its measures, it may attract a warning letter. The import alert, which bars a company from supplying medicines to the US from the ailing facility, is the last step in the process. According to Adige, the problem is with systems and procedures of compliance. "Form 483s will come to any company but you have to correct the observations highlighted in it and convince US FDA," he opines.
Ranbaxy, which was recently issued an import alert for its Mohali manufacturing facility barring all supplies from there to the US, was already undergoing a consent decree with the US regulator for its two key facilities in India-at Paonta Sahib and Dewas. The company is also learnt to have got a Form 483 at its US-based Ohm Laboratories, which is now probably its last resort for supplying to the US market. Industry officials, investors and other stakeholders are now questioning Ranbaxy's managing prowess. Adige says it is worrisome that even after Daiichi Sankyo took charge of the company in 2008, such systemic problems continue to exist. "Let us not forget that Daiichi Sankyo is in charge of the company now and it must do some introspection because there is a huge reputational risk now," he says. Even in the case of Wockhardt, the company failed to resolve issues with US FDA despite receiving Form 483, warning letter and import alert.
"Lapses such as unlabeled test tubes, batches of drugs or no supply of water in washrooms are nothing but a casual approach. It is a problem of mindset and culture, which needs to be changed philosophically," points out an official working with a pharmaceutical company. He insists that with the changing compliance scenario, when governments across the globe have become very particular about quality and Indian drug makers are already under the focus of regulators worldwide, companies cannot be so ignorant of the protocols. Analysts and regulatory experts also view the strategy of companies to handle such crisis as crucial. "This is not for the first time that a company is getting a warning letter. In fact, companies in the US have been receiving such alerts and signing consent decrees all this while. The industry is worried because in India it is a new thing and we are still struggling to deal with it," says an analyst. However, experts say that few companies such as Lupin and Sun Pharma have done a fair job so far by quickly putting things right and reaching a resolution with the regulator at an early stage.
While time and cost are crucial to the generic drug business, industry sources suggest that companies often tend to bypass or take a casual approach towards various processes and procedures leading to systemic lapses. "Companies are in a rush to apply for first-to-files (it gives them six-month exclusive marketing rights in the US) and they want to be cost-competitive at the same time to gain a larger market share. In the process, compliance is compromised," says a regulatory expert. However, such lapses are often not permissible with international regulators such as US FDA and even the European regulators which are considered the strictest.
The rising penetration of generic medicines worldwide and the growing market share of Indian manufacturers are seen as primary reasons for Indian companies increasingly coming under the scanner. "With increasing penetration of generic drugs in the global market, the competition is also getting tougher and hence the changing compliance and stricter quality standards. Indian companies, which command a major share of this market, will certainly be subject to tight scrutiny," says ChrysCapital Managing Director Sanjiv D Kaul who has earlier worked with Ranbaxy.

Pharmaceutical exports grew 10.55 per cent year-on-year to $14.6 billion during 2012-13, according to the Pharmaceuticals Export Promotion Council. During 2011-12, the exports stood at $13.2 billion. However, industry experts are worried that with increasing global enforcements, the industry may miss its ambitious target of achieving exports worth $25 billion by 2014-15. India, with almost 200 US FDA-approved drug manufacturing facilities, is the biggest foreign supplier of medicines to the US. Pharmaceutical exports from India to the US rose nearly 32 per cent last year to $4.23 billion. India accounts for nearly 40 per cent of generic drugs and over-the-counter products and 10 per cent of finished dosages used in the US.

Kaul says that under the Obama regime, which promotes low-cost generic drugs to keep healthcare cost low, US FDA is also under pressure to ensure that the quality of medicines given to patients is not compromised. According to Praful Bohra, senior pharmaceutical analyst, Nirmal Bang, the domestic industry must invest in regulatory compliance procedures and systems to ensure that its future is secured. "This sector is running a major risk and investors are watching this sector very cautiously as are regulators. Companies need to focus on their investments on compliance process so that they do not lose market share in international markets," says Bohra.
1.      If you were in Quality Assurance team, how will you deal with quality of Pharma Products?

2.      Explain the compliance procedure for Pharma industry to solve the quality issues.