Follow-on from your Issue chosen in Assignment Two -
Assignments two and three should result in a connected communication plan covering an organisation.
(You should base on methodologies presented in class – or alternative methodology with prior approval).
An organization can face crisis due to several factors. It is thereby important for the top-level management of the organization to consider different risk factors and accordingly prepare the risk management plan in the organization. The different risk factors that can pose challenges to the organization include - financial crisis, market risks, operational challenges, human resources issues, and even product problems in the organization (Akin & Platt, 2014).
In many of the cases, it is found that the instances of product recalls have increased. As a result, the organization not only face financial loss but also lose the trust of the customers in a given market. They first need to identify the gaps in their products, improve the respective technical deficiency, and thereby overcome the challenges associated for a given product in given market conditions.
The different product recalls refer to return of the product back to the organization once they find any issue or technical defect in the product (Akin & Platt, 2014). It is the responsibility of the top-level management to replace those defects and thereby provide another brand new product to the customers. However, it is more important to handle such issues with extra care to ensure credibility in the market scenario.
There are several companies that have recalled products for one or the different issues. This report will consider the product recall case of Johnson & Johnson in 2010. In this case, the company recalled around 43 over-the-counter children medicines after an inspection was conducted. The medicines included Benadryl, Zyrtec, Tylenol Plus, Motrin, and Tylenol. The products were recalled when it was found that these products did not meet the manufacturing specifications.
The entire recall affected nearly 12 nations around the world. It was during the routine investigation that found several manufacturing deficient at a McNeil manufacturing facility in Fort Washington, Pennsylvania, US.
As per the norms of Food and Drug Administration, the plan manufacturing location and the different processes were not in proper control conditions. Instead, there were flawed procedures followed that could lead to manufacturing errors. The products might contain a higher concentration of a particular active ingredient and can thereby damage the health of children. It was therefore important to take steps in this direction (Akin & Platt, 2014). The company also failed to meet the testing requirements; hence, it became necessary for the company to recall their products in a given scenario.
Crisis Management Plan
Crisis Management Plan refers to the plan installed or implemented by the organization for the purpose of product recall. It is noticed that the issue of product recall will have a direct effect on the sales of the organization. It will subsequently affect the profitability and total turnover of the organization.
Customers of these products will lose their trust in the company and will immediately switch to another company for obtaining similar products. It is thereby important to have a proper crisis management plan that will not only handle such incidents but ensure credibility of the firm in a given market environment (Cohn et al., 2013). The crisis management plan will cover issues that include - defects in the product, team that is responsible to handle this issue, action plan, recommendations for future improvement, media coverage, and press release for the customers to inform that the product is in better condition and is ready for the sale.
In this case, the Food and Drug Administration team found that the manufacturing plant of Johnson & Johnson did not met the criteria for manufacturing the medicines. There was a need to revise the product specifications and plant specifications to ensure that the product is in good condition and can be sold to the parents of the children.
The agency alerted about this issue to the management team of Johnson & Johnson. To this, the team first recalled the products for inspection purpose. The research team started conducting an internal assessment to make sure that rest of the medicines are meeting the production and manufacturing criteria (Cohn et al., 2013).
The recall affected nearly 12 nations around the world and more than 100,000 bottles of medicine were recalled. The top-level management thereby started taking steps for the crisis management. The company also ensured that there were no medical injuries found among the given community.
Also, the media team of the company declared a separate press release to inform customers, suppliers, and rest of the stakeholders about this incident. It will thereby bridge the communication gap and also make people aware of this issue. They will thereby prevent them from purchasing these medicines in the near future. On the other hand, the R&D team will be focusing on revising the product specifications and will be re-manufacturing the product so that the quality of the product does not get compromised.
Media Message Plan
The purpose of media plan is to inform the entire community about this product recall and also inform them about the negative consequences that might occur if consumed. It will thereby make the parents and other concerned stakeholders aware of this issue (Bar-Gill & Board, 2012). They can thereby consult appropriate physicians and carry out necessary treatment for the children if required.
It is important for the top-level management to ensure that they conduct product recall through standardized rules and procedures. In this case, The House Committee on Oversight and Government Reform launched an investigation to find out a major problem in this issue. The company can thereby revise their product specifications and also focus on improving the manufacturing plants (Bar-Gill & Board, 2012).
It will thereby make them adhere to the rules and regulations of the Food and Drug Administration Committee in a given operational environment. The company also informed in the press release that they had haled the production on a temporary basis to overcome the deficiencies detected in the production process (Bar-Gill & Board, 2012).
In a statement from one of the senior management officials, it was found that the team conducted comprehensive quality assessment across the manufacturing operations. They are making efforts to fix the problem and also will ensure deploying quality management practices in the organization.
The senior management recommended deploying six sigma methodology to improve the workplace efficiency and to achieve better effectiveness in the production activities of the organization (Bar-Gill & Board, 2012). The company will also make sure of following the legal regulations as mentioned and will thereby prevent them from conducting faulty practices in a given work environment. It is also the responsibility of the top-level management to overcome these challenges, monitor the new practices, and provide recommendations wherever required.
It will thereby ensure protecting the health of the children against such faulty medicines manufactured by Johnson & Johnson. The media plan will make sure of informing the respective stakeholders about the issue and the steps taken to overcome it (Kim, 2014).
Today, with increasing product recall issues, the first step of the top-level management of the organization is to determine the major defects in the product. They need to halt their manufacturing activities and identify the loopholes in the respective processes. It will thereby allow the operations team to detect the issue either in the processes or in the product developed by them.
It is thereby recommended to deploy the DMAIC model in such investigations to assist the project team to work on this given issue. During the product recall process, the team can first define the objectives of the plan so that they can allocate tasks and resources accordingly. Second, they will measure the intensity of the issue and will accordingly act on it with the help of a proper response plan (Kim, 2014).
Third, through analysis, the operations team will be able to detect the major issue in the process. The operations team can also implement six sigma methodology at this stage to streamline the business processes in a given daily work schedule.
The next stage will be to improve the current manufacturing processes that will assist the project team to optimize the current business scenario. And, finally, the operations team also need to exercise proper controls over all the processes in the organization. It will thereby help the project team to manage the defects in a proper way.
It is also important to manage the product recall process with the help of this model; it will subsequently ensure that there will be no crisis occurring within the organization. It will also make sure of the credibility of the organization. The customers will again make purchase of the same product when the product is improved and made free from flaws.
The operation team needs to implement performance analysis model to judge the different new processes and strategies implemented, monitor the quality management activities, and thereby make necessary modifications wherever required (Kim, 2014). They can then send the update report to the top-level management of the organization. It will allow them to get an update on the status of this issue and can thereby issue statement for the purpose of media coverage.
In this report, the focus is on developing a crisis management plan and a media management plan to make sure that the organization does not face any crisis situation in a given product recall situation. The case of Johnson & Johnson is discussed with an objective to overcome the product recall, ensure credibility in the market, follow strict guidelines of product recall, and inform media through a press release so that customers can get aware of it.
It is important for the operations team to work in close collaboration with the senior management to handle these procedures. Only then they will be able to carry out the entire product recall process in a proper way. The production environment needs to be improved and should adhere to the criteria of the regulatory agencies as discussed in this report. It will assist the organization to follow the legal norms and other regulations as required for the manufacturing operations in a given work environment.