Bottom Line: Food & beverage manufacturing’s future is being defined by the over 60 customer quality audit requests a typical manufacturer receives every year, combined with the need to excel at FDA audits and compliance to stay competitive.
Food and beverage manufacturers need to find new ways to scale auditing if they’re going to keep growing and attracting new customers. Audits are one of the most powerful catalysts driving continuous improvement, contributing to greater customer satisfaction, and ultimately more revenue. Market leaders can take quick action on quality data gained from these audits and modify customer outcomes immediately.
- Excelling at audits is one of the most overlooked yet powerful ways to increase sales by correlating organization-wide quality initiatives to increase customer satisfaction across food and beverage manufacturing.
- ISO 9001 certification generates an
initial sales bump that can be turned into long-term sales acceleration if
combined with new products and programs.
- Food and Beverage manufacturing quality initiatives have reached an inflection point where audits need to be automated to scale more efficiently, providing more valuable data than in the past.
These and many other fascinating insights are from the Harvard Business
School Working Paper, Quality
Management and Job Quality: How the ISO 9001 Standard for Quality Management
Systems Affects Employees and Employers by David I. Levine
and Michael W. Toffel. As the first large-scale study to determine how employee
outcomes such as employment, earnings, health, and safety change when employers
adopt ISO 9001, the researchers underscored how periodic internal audits drive continual
improvement. The study focused on single-plant firms across an array of
industries with Dun & Bradstreet finding nearly 1,000 companies in
California meet the criteria of being a single plant firm. The study has direct
implications for the food and beverage industry as it reflects the need to
scale customer and regulatory audits to retain existing customers and attract new
Quality Audits Need
To Become Routine For Food & Beverage Manufacturers
Getting into a regular cadence of quality audits creates
the intelligence and urgency needed to keep improving every aspect of product quality. Presented below are five reasons
why quality audits need to become routine in food & beverage manufacturing:
accurately track major and minor non-conformances by a given food or beverage
product, prioritizing them, and what action is needed to resolve each faster.
Product quality problems can turn into customer and public relations problems
incredibly quick. Completing periodic internal audits to track major and minor non-conformances by product is essential for staying on top of any potential major product non-conformances.
Capturing trending data based on noncompliance/corrective
action (NC/CA), Corrective Action/Preventative
Action (CAPA) and customer requests, then scoring nonconformances using a
quality management system can help in defining
which quality issue gets addressed first. Having a fresh set of data on these
areas every month to 60 days in invaluable in solving quality challenges on the
- Audits are indispensable in building a knowledge base capable of tracking and predicting quality performance. An MES designed to capture, aggregate, and provide predictive analytics is invaluable to any food & beverage manufacturer today. The more detailed and robust the data captured in audits, the better. With reliable quality data, an MES and Quality Management system can provide insights into points of product and process weakness not visible before. Every new insight discovered adds to the knowledge base available for solving future quality challenges too.
a high health and safety level plant-wide while keeping injuries down by using audits to
track conditions and improve. A globally-known food products manufacturer uses audits every 60
days to evaluate the health and safety compliance of their lead production
facility in the Midwestern U.S. Using
periodic audits the quality management team found that work instructions often
required workers to perform preventative maintenance on machines to keep
production running including spraying WD-40 on presses if they appeared to lock
up periodically. The audit found that preventative maintenance on machines
needed to be stepped up in addition to tool calibration. The overall quality
and production yield rates improved based on the audit and a more systematic approach
to preventative maintenance planning.
- Providing improvement recommendations based on recent audit
data to senior executive quality champions get results. Make the most of the
time communicating with senior executives and leadership by providing clear recommendations
for quality improvement based on actual data. By anchoring recommendations on
audit data, the senior execs who are championing quality have what they need to
take action. The Harvard Business School study also found that by doing audits regularly,
manufacturers learn how to make cost reductions permanent at the process level.
customer-based metrics and Key Performance Indicators
(KPIs) at the center of audits and track how operations plant-wide are
performing versus plan. Often the most valuable audits find
where internal disconnects are causing customers
lost time, orders, and the potential to generate more revenue on their own.
Audits need to track and trend order entry accuracy, warehouse pick accuracy,
on-time delivery percentage, orders shipped without damage (% of orders shipped
damage-free) and percentage of orders invoiced correctly. These five factors define perfect order
performance. Excelling at perfect order performance is the first step to
driving up customer trust and the opportunity to sell to them again.