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Section 9 – Product Quality e-efficiency

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This document is part of the e-efficiency tool.

Section 9 – Product Quality

Product quality is a very important issue for every company. Sales opportunities, the
reputation of a company in the community and in the market depends on it. Product quality is
influenced by every stage of the product chain, from raw-material production, purchasing,
processing and distribution. Therefore, achieving high quality end products requires having a
look beyond the factory gates, considering influences caused in the whole supply chain. As
shown in the previous sections, an improved quality can decrease time and costs.

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Section 9 – Product Quality e-efficiency

Section 9 – Product Quality

Responsible Person:

Date Started:

Date Completed:

Increasing the quality of your products is a key-success factor for your businesses success
and should, therefore, be an overall guiding principle. Your products are the figurehead of
your company, having a significant impact on your companies’ reputation, in relation to your
business partners and to some extent even to your surrounding community. In various ways,
your product quality is a key determinant for your business success.

The quality management concept employed in this e-efficiency tool goes beyond obvious
quality criteria of a product. Achieving high quality end products requires having a look
beyond the factory gates, considering influences caused by the supply chain. In this context
all life cycle stages, including your supplier, your own procedures and even demands of
customers are of vital importance for the product quality and have to be analysed.

Increasing the product quality requires an integrated, structured and continuous approach,
encompassing various aspects and issues. Your work on the last sections has already made
an important contribution in this respect. For example optimising the materials used in
processing by reducing inefficiencies will reduce downtimes and repairs, leading to
undisturbed material and workflows. This will cut down production and delivery times,
increase the product quality leading to an increasing customer satisfaction and ultimately an
positive result for your profits.

Helping you to work on the objectives mentioned above, this efficiency programme provides
the basis for an integrated management system, ranging from quality-, risk- to environmental
and health and safety management. If available, existing management systems and
approaches should serve as an important information source and are to be included. It can
also be the departure point for acquiring a certified system.

Improving your product quality requires to look beyond the company gates at as many stages
of your products life cycle as possible. Raw material purchase, processing, storage and

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Section 9 – Product Quality e-efficiency

distribution all have an influence [for more information about the life-cycle approach check
the e-learning unit 3]. In this section you will therefore:

• Expand the view beyond your company gates


• Collect information about your most important raw-material suppliers and assess the
products they supply to you
• Assess the quality demands of your customers [see e-solutions measure 2039]
• Have a closer look at the life time and disposal of your product

Step 1 - Identify the quality-related product steps

Before having a closer look on quality, think about your products life cycle. In the past
sections you have focused on efficiency and quality aspects related to your production
processes and other activities. However, since you are part of a bigger system, it is important
to also look at other stages of your product's life cycle. Where do you think the main quality
problems associated with your products occur – in stages where you are the main actor or in
other stages such as agricultural production or final disposal? Mark these life cycle stages
with a cross. This will give you a first overview of the importance of this life cycle stage on
your products’ quality. If you do not have sufficient information to do this, insert a question
mark and try to learn more about that process while workin on this section. Did you know that
the quality of the water you use might has an impact on the quality of your end product?
Learn more about this at e-learning unit 5, section 2, chapter 4.0.

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Section 9 – Product Quality e-efficiency

Table 9.1: The influence of life cycle stages on product quality

Influences on product quality Important Moderate Unimportant Don´t


know

How important is the quality of the raw


materials?

How important is the performance of your


suppliers? (Condition of product, package [see
e-solutions measure 1027], delivery time,
storage, failure…)

How important is the technical processing in


your company (e.g. your machineries work)?

What influence do your employees have on


the quality?

How important is your storage conditions?

How important is your “internal transport”?

How important is the transporting and


delivery?

How important is the handling by the


purchasing organisation?

How important is the treatment by the end


customer?

Step 2 – “Upstream”. Take a closer look at your suppliers

In order to get a detailed overview of your suppliers, first list up each supplying company as
well as the type and amount of purchased materials in the following table. Knowing the
sources of your raw materials will help you to get a better understanding of your product’s life
cycle. Based on this, you will start to assess quality aspects for your main suppliers.

Special attention should be paid to your main raw materials. High-quality raw materials are
one key factor to produce quality products. Treatment and processing do play their role as
well, but starting with good quality raw materials is a key. E.g. if the cotton you are supplied
with already contains significant amounts of residues from pesticides or other hazardous
substances, it will be almost impossible to reduce their levels in the final product. Therefore,
retailers and customers worldwide increasingly pay attention to these issues, as the large
number of product specifications and labels shows.

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Section 9 – Product Quality e-efficiency

While the product quality should be motivation enough to work on these issues, the
environmental impacts caused by producing the raw materials should not be neglected.
Considering the environmental impacts of cotton farming, such as soil erosion, water
eutrophication and the contamination of the surrounding with pesticides and herbicides to
name a few, your suppliers should be carefully chosen. Understanding the energy
consumption involved in creating synthetic materials may prompt you to experiment with new
materials. These aspects are of relevance when producing for the increasingly important
market of eco-labelled textiles.

To encourage your material suppliers to become more efficient will help to reduce their
operating costs, which will be reflected in the material costs, and thus is in your own interest.
In the following steps you are asked to get to know the source of your raw materials and
consider several questions regarding raw materials.

Step 2.1 - Who are your agricultural raw material suppliers?


For a start, please list all your suppliers with all the agricultural based products (such as yarn
or fibre) you receive from each of them. From a quality management point of view it is
important to have a good overview of your suppliers and to establish good business
relationships. In this regard it might be worthwhile to consider reducing the total number of
suppliers. Being supplied by a smaller number of companies allows you to establish quality
standards, bargain for better prices and establish long lasting business relationships. When
assessing which of the options identified in this section you should go for (step 6), you should
consider reducing the number of suppliers as one option.

Table 9.2: Your agricultural suppliers

Agricultural supplier Type of product Amount

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Section 9 – Product Quality e-efficiency

Fill in forms 9.3 and 9.4 for your main suppliers. If you want to establish fixed quality
standards for your purchased materials, it is easier to bargain with a small amount of
suppliers with whom you have established a personal relationship [see e-solutions measure
2121]. Establish a dialogue with your suppliers to inform them about your quality demands
and to set up quality standards.

Table 9.3: Contact form

Company

Contact Name

Street Address

City/Town

Telephone Number

Distance to company (km): Transportation:

Purchased
Purchased product Alternative Supplier
amount/year

Total purchase:

Now, answer the following questions to the best of your knowledge. The questions answered
with “no” indicate priorities for action and should therefore be considered. If the answer is
“don’t know,” try to get more information while working on this product quality section so that
you can answer either “yes” or “no“.

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Section 9 – Product Quality e-efficiency

Table 9.4: Overview of possible improvements

Agricultural Material Supplier Yes No Don’t


know
Name of Supplier:

Do you know the suppliers and sourcing region of your agriculturally


raw materials?

Do you know which and how much pesticides and other agricultural
chemicals are used in the raw-material production?

Do you encourage your supplier to provide you with raw materials


that have been produced using only the minimum amount of
pesticides and herbicides necessary to the success of the crop.

Do you encourage your supplier to provide you with raw material


that have been produced using natural pesticides instead of
synthetic ones?

Do you encourage your supplier provide you with raw materials that
1
have been produced using drip irrigation?

Do you encourage your supplier to not provide you with raw


materials that have been produced using genetically modified
2
plants?

Have you established quality checks (e.g. reception inspections) for


your agricultural raw materials (e.g. the amount of impurities like
sand, dust and stalk or the percentage of very short fibres that need
to be eliminated in the carding process)?

Can you re-negotiate the contracts with your suppliers?

Are you satisfied with the contract conditions?

Do you regularly assess whether the conditions established in your


contract need to be re-negotiated?

Do the raw-materials delivered often not match your quality


expectations/standards?

Are low quality raw-materials taken back by your supplier?

Are low quality raw-materials replaced promptly by your supplier?

Is the exchange of low quality raw-materials for free?

Have you ever considered to receive more products from this


supplier (e.g. to enjoy better contract conditions)?

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Section 9 – Product Quality e-efficiency

Step 2.2 - Who is your synthetic raw material supplier?


Like you have done for your agricultural suppliers, now please list all your suppliers for
synthetic raw material with all the products you receive from each of them. From a quality
management point of view it is important to have a good overview about your suppliers and
to establish good business relationships. In this regard it might be worthwhile to consider
reducing the total number of suppliers. Being supplied by a smaller number of companies
allows you to establish quality standards, bargain for better prices and establish long lasting
business relationships. When assessing which of the options identifies in this section you
should go for (step 6), you should consider reducing the number of your suppliers.

Table 9.5: Your synthetic material suppliers

Synthetic material supplier Type of product Amount

In this step you should fill in the following forms 9.6 and 9.7 for your main synthetic raw
material suppliers. If you want to establish fixed quality standards for your purchased
materials, it is easier to bargain with a small amount of suppliers to which you can make
personal contact. Strike up a conversation with your suppliers for the possibility to determine
quality specifications and to tell them your demands.

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Section 9 – Product Quality e-efficiency

Table 9.6: Contact form

Company

Contact Name

Street Address

City/Town

Telephone Number

Distance to company (km): Transportation:

Purchased
Purchased product Alternative Supplier
amount/year

Total purchase:

Answer the following questions to the best of your knowledge. The questions answered with
“no” indicate priorities for action and should therefore be considered. If the answer is “don’t
know,” try to get more information while working on this product quality section so that you
can answer either “yes” or “no“.

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Section 9 – Product Quality e-efficiency

Table 9.7: Overview of possible improvements

Synthetic Material Supplier Yes No Don’t


know
Name of Supplier:

Do you know the suppliers of your synthetic raw materials?

Do you know if your supplier offers alternative materials which are e.g.
biodegradable, water solvent…?

Have you established reception inspections for your synthetic raw materials
(e.g. on the percentage of very short or partially damaged fibres that need to
be eliminated later on)?

Do you encourage your supplier to not use chemicals listed in a “negative


list”? Table 13.13 of the Appendix provides a number of banned chemicals.

Can you re-negotiate the contracts with your suppliers?

Are you satisfied with the contract conditions?

Do you regularly assess whether the conditions established in your contract


need to be re-negotiated?

Do the raw-materials delivered often not match your quality


expectations/standards?

Are low quality raw-materials taken back by your supplier?

Are low quality raw-materials replaced promptly by your supplier?

Is the exchange of low quality raw-materials for free?

Have you ever considered to receive more products from this supplier (e.g.
to enjoy better contract conditions)?

Step 2.3 - Who is your chemical supplier?


As last action in step 2, list up all your suppliers for chemical substances with a all the
products your receive from them. From a quality management point of view it is important, to
have a good overview about your suppliers and to establish good business relationships. In
this regard it might be worthwhile to consider reducing the total number of suppliers. Being
supplied by a smaller number of companies allows you to establish quality standards,
bargain for better prices and establish long lasting business relationships. When assessing
which of the options identified in this section you should go for (step 6), you should consider
reducing the number of suppliers as one option.

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Section 9 – Product Quality e-efficiency

Table 9.8: Your chemical suppliers

Chemical supplier Type of product Amount

In this step you should fill in the following forms 9.9 and 9.10 for your main chemical
suppliers. If you want to establish fixed quality standards for your purchased materials, it is
easier to bargain with a small amount of suppliers to which you can make personal contact.
Strike up a conversation with your suppliers for the possibility to determine quality
specifications and to tell them your demands.

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Section 9 – Product Quality e-efficiency

Table 9.9: Contact form

Company

Contact Name

Street Address

City/Town

Telephone Number

Distance to company (km): Transportation:

Purchased
Purchased product Alternative Supplier
amount/year

Total purchase:

Answer the following questions to the best of your knowledge. The questions answered with
“no” indicate priorities for action and should therefore be considered. If the answer is “don’t
know,” try to get more information while working on this product quality section so that you
can answer either “yes” or “no“.

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Section 9 – Product Quality e-efficiency

Table 9.10: Overview of possible improvements

Chemical Material Supplier Yes No Don’t


know
Name of Supplier:

Do you know the suppliers of your chemical inputs?

Have you talked to your supplier about the availability of less hazardous
chemicals?

Do you regularly check the quality of the chemicals, e.g. date of expiry or
contamination?

Have you contacted other chemical suppliers to see what “greener” product
lines they offer?

Have you discussed chemicals leasing (service contract) rather than


purchasing with your supplier?

Are the chemicals packed and labelled in an adequate way?

Can you re-negotiate the contracts with your suppliers?

Are you satisfied with the contract conditions?

Do you regularly assess whether the conditions established in your contract


need to be re-negotiated?

Do the raw-materials delivered often not match your quality


expectations/standards?

Are low quality raw-materials taken back by your supplier?

Are low quality raw-materials replaced promptly by your supplier?

Is the exchange of low quality raw-materials for free?

Do you know how the supplier disposes the complained chemicals?

Have you ever considered to receive more products from this supplier (e.g.
to enjoy better contract conditions)?

Step 3 – Your company

Processing has a significant influence on your product quality. Treatment and processing of
the materials, storage, maintenance and usage of adequate technology [see e-solutions
case study 161] and not to forget your employees' skills and motivation are key factors.

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Section 9 – Product Quality e-efficiency

During the last sections you have already worked extensively on improving the product
quality within your company. Questions such as:

• Is the material optimised for your machinery?


• Do you check the quality of semi-manufactured products, of chemicals, raw material ,.. ?
• Are your employees trained and encouraged to locate and fix malfunctions?
• Have you assessed the possibility to avoid or optimise production steps in your
processing? [see e-solutions measure 2021]

have already been answered. Working on this section you will have a closer look at failures3,
where and why they occur and the overall failure rates. With the help of the table below,
determine the most frequent failures. Try to gather as much information as possible and
answer to the best of your knowledge.

Table 9.11: Failure rates

Failure rates

Failure Process area Location Cause Failure / Failure /


1
(Spinning, wet (e.g. year [unit]*
processing…) machinery)

Total failure:

Comments

*1
Unit needs to be defined. E.g. take failure per 100 or 1000 manufactured products

During the last sections you tried to find improvement options, both in your production
processes as well as in other company activities. Knowing the most common failures is
another important basis to identify improvement possibilities [see e-solutions measure 2204].
Having identified these, it is important to communicate them both to the efficiency team and
company staff. It is essential to inform all people involved in producing your products about

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Section 9 – Product Quality e-efficiency

the necessity of quality. Providing information about the failures and malfunctions that occur
in your business activities is the first step to eliminate these problems. Update them about
your efforts to reduce the number of failures and publicise the results of your efforts to
ensure an ongoing support.

A further indicator for your product quality is your re-processing rate and the quality classes
of your product. Please fill out the following tables to the best of your knowledge.
Comparable to the failure rates it is usefull to determine these rates to get an overview about
the current status of product quality and productivity. Determine the rates for your main
products. Ratio b) overall material output has already been gathered in section 2, table 2.2.

Table9.12: Re-Processing rates

a) b) c)=a/b
Product Re-Processing share Overall material Re-processing rate
(%) output

Now fill out the following table about the quality of your main products. It is common to
categorised it in class 1 (high quality) -3 (low quality) or class A - C. Determine the share (in
%) of the different classes for your products.

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Section 9 – Product Quality e-efficiency

Table 9.13

Product a) b) c)
Class1 (A) Quality [%] Class2 (B) Quality [%] Class3 (C) Quality [%]

Total:

Step 4 – “Downstream”. Take a closer look at your customers

This step focuses on your company’s relationship to its customers, differentiated between
“company customers”, like other textile manufacturers, retailer or distributors and “end
customer”. So this step is about those that buy materials or products from you. Also, the final
life-cycle stage, the product disposal, will be looked at.

Step 4.1 - Company customers


To achieve a detailed overview of your company's customers, first list each of them as well
as the amount of delivered materials.

Table 9.14: Your company customers

Customer Product Number of products

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Section 9 – Product Quality e-efficiency

Now go on and collect more information for your main customers. For your main customers
you should try to establish a good business relationship, based on regular personal
communications [see e-solutions measure 2121]. Agreeing on product quality specifications
is a key aspect within this process and should lead to long-term co-operation with your main
customers.

Establishing fixed quality specifications for the delivered products is a possibility for you to
increase your product quality on special demands. If higher standards and quality
specifications are established based on your customers expectations, you can also negotiate
higher product prices or secure long-term business relationships.

Table 9.15: Contact form

Company

Contact Name

Street Address

City/Town

Telephone Number

Distance to company (km): Transportation:

Delivered product Delivered quantity / Price per unit Turnover per year
year

*
Total Delivery:

Alternative
Customer

*
This value will be reused in table 9.15 of this section

Answer the following questions for your main customers to the best of your knowledge. The
questions answered with “no” indicate priorities for action and should therefore be
considered. If the answer is “don’t know,” try to get more information while working on this
product quality section so that you can answer either “yes” or “no“.

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Section 9 – Product Quality e-efficiency

Table 9.16: Overview of possible improvements

Company customers Yes No Don’t


know
Name of Customer:

Do you know if your customers are satisfied with your products and
services?

Do you exactly know their demands?

Are you able to fulfil these demands?

Do you regularly check the satisfaction of your clients with your products by
using questionnaires or other means of communication?

Can you re-negotiate the contracts with your customer?

Do you regularly assess whether the conditions established in your contract


need to be re-negotiated?

Do the products delivered often not match your customer’s quality


expectations/standards?

Do you take back low quality products?

Do you replace low quality products promptly?

Have you ever considered to receive more products from this supplier (e.g.
to enjoy better contract conditions)?

To get a closer look at your failure rates, gather information about the most frequently
occurring reclamations, and their reasons and quantity with help of the following tables.

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Section 9 – Product Quality e-efficiency

Table 9.17: Reclamations

Customer name:
1 2
Reclamation Reason a) * b) *
Reclamations / year Quantity rejected/
Total delivery

Total quantity:

Comments

*1
Please insert the number of reclamations per year
*2
Please insert the quantity of rejected products. Please reuse the value “Total delivery” you already gathered in
table 9.13.

Step 4.2 - End customer


Even if your company is not directly in touch with the final customers, you
should nevertheless try to understand their demands and needs.
Expectations in terms of product quality should be considered. One
increasingly important aspect in this respect is the demand for
environmentally friendly produced products. Textiles are worn on the bare skin, which is why
consumer pay special attention to issues such as chemical and heavy metal residuals. An
ever-increasing part of the population is affected by allergies, which will further increase the
importance of this topic in the future. An overview of banned chemicals for the textile industry
can be found in table 13.13 of the Appendix. More information about the effects of chemicals
on human health can be found at e-learning unit 2, section 4.1. The general environmental
soundness of textile products is closely related to this, which explains the increasing

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Section 9 – Product Quality e-efficiency

importance of eco-labels. E.g. the Otto trading group, one of the largest mail-order
companies world-wide, decided to sell only textiles certified to not contain harmful
substances above certain threshold levels. For further information on textile labels check the
link-section of the e-textile tool available at www.e-textile.org.

Answer the following questions to the best of your knowledge. The questions answered with
“no” indicate priorities for action and should therefore be considered. If the answer is “don’t
know,” try to get more information while working on this product quality section so that you
can answer either “yes” or “no“.

Table 9.18: Overview of possible improvements

Yes No Don’t
End customers know

Do you know where the final customers of your products are located?

Are you aware of special requirements existing in their regions, such as


e.g. bans or threshold limits for certain substances?

Are you aware of the most relevant quality- or eco-labels available for your
products?

Do you know the exact specifications required to comply with the


specifications of the most relevant textile labels?

Are you able to fulfil these demands?

Are you aware of the latest developments regarding your products and
sector in the main exporting areas?

Do you get to know reclamations about your products?

Do you ensure that no special detergents or substances are required to


clean and maintain your product?

Is your product designed to be used for a long time?

Is it your product easy to repair?

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Section 9 – Product Quality e-efficiency

Step 4.3 - Disposal


At the end of your products life, it needs to be recycled or disposed of. In section 5, 6 and 7
you already gathered data about the material your product consist of. The following
questions apply to the end product and its disposal. Please answer the questions to the best
of your knowledge. The questions answered with “no” indicate priorities for action and should
therefore be considered. If the answer is “don’t know,” try to get more informationwhile
working on this section so that you can answer either “yes” or “no“.

Table 9.19: Overview of possible improvements

Yes No Don’t
Product end-of-life
know

Is your product biodegradable?

Is your product free of toxic residue?

Is your product recyclable?

Do you try to keep synthetic and natural fibres separate unless absolutely
necessary to the quality or desired performance of the product?

Step 5 – Your stakeholders

The relationship to some of your stakeholders, such as clients and suppliers or final
customers, has already been analysed in the previous steps. Now you should have a final
look at further stakeholders, like governments (both in the production and export countries),
non-governmental organisations (NGO’s) or banks and insurance companies and their role
within a quality management.

Fill out the following forms to identify the most relevant groups and their relation to your
company. Gather information about the latest laws, directives etc. and assess what this
means to the way you do your business. Being aware of your stakeholders’ demands is not
only an important risk-minimisation strategy, but could also turn out as good opportunity to be
ahead of your competitors. Answer the questions to the best of your knowledge. The
questions answered with “no” indicate priorities for action and should therefore be
considered. If the answer is “don’t know,” try to get more information while working on this
product quality section so that you can answer either “yes” or “no“.

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Section 9 – Product Quality e-efficiency

Table 9.20: Company stakeholder

Stakeholder Contact person Category (regulatory,


financial, insurance,
informational …)

Table 9.21: Overview of possible improvements

Yes No Don’t
Stakeholder know

Do you know the relevant laws and directives related to your business
activities and products both in your production and export countries?

Do you exactly know the contract conditions with your insurance company?

Have you check the possibilities to reduce insurance fees by providing


more information on the efficiency improvements you made?

Are you aware about potential penalties for e.g. pollution?

Do you try to be informed as soon as possible about new stakeholder


demands/directives?

Have you established structures and procedures to promptly react on


changing demands and expectations from your stakeholders?

Do you respond promptly when being contacted by one of the above-


mentioned stakeholders?

Do you take issues, brought forward by your stakeholders, seriously?

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Section 9 – Product Quality e-efficiency

Step 6 – Prepare an implementation plan and take action

In the previous steps you have identified options to optimise your product quality through
enhancing the processes. The questions you answered with “no” throughout this section will
show you possibilities how to increase your quality. Now you have to select options that are
easy to implement, are long-time beneficial, and have an acceptable pay-back period. The
rating done in table 9.1 might be of help to identify the life-cycle phase that have the biggest
influence on the product quality. Use tables 9.2, 9.5, 9.8 (suppliers), 9.12 (customers) and
9.18 (stakeholders) to reconsider your relationships with suppliers and customers and decide
if measure can be taken to improve them.

Form 2.5 presented in section 2 can be of help to list the actions you want to take. Assign
responsibilities and set target dates for each action. Do not forget to plan a regular
monitoring, on a daily, weekly, monthly or quarterly basis, as appropriate. After completing
this section don’t forget to fill out the "date completed" row at the very beginning of this
document.

If it should not be your preferred choice, it is possible to skip the remaining improvement
areas presented in sections 3 – 8. To successfully complete your activities concerning the
product quality, it is nevertheless recommended to monitor, evaluate and communicate your
measures and your success. For this to happen continue with sections 10-12.

1
Drip irrigation uses 30-50% less water than conventional irrigation, saving water and
money.
2
While bred to be more drought tolerant, genetically modified organisms (GMOs) are
more costly and could jeopardize the environment. Also, markets such as Europe tend to
favour non-GMO products.
3
Failures are understood in a brought sense, including disruption of operations,
material or product defects, etc.

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