Panasonic Quality Risk

Management Manual

August 1st, 2015

1
1.0 Purpose
This manual defines Panasonics procedures in India/South Asia/Middle East
Africa (ISAMEA) region in the event of a product quality risk. Our first priority
for all quality risk is to ensure the personal safety of everyone involved and
thereafter to minimise the damage and losses to our customers and our reputation.
It is fundamental that all processes be carried out as quickly and precisely as possible.

2.0 Quality Risk Definition

Quality risk refers to any quality problem or violation involving a Panasonic
product that may cause a loss of social confidence or result in substantial damage to
the company unless appropriate measures are taken.
Any information (quality problem, violation) from the market that results in ANY
ONE of the following 4 consequences is categorized as a Quality Risk Problem,
and therefore must be reported (within 24 hours upon learning of occurrence)
and followed through with urgency.

Consequence (Report These)

1) Safety Issue*
-Injury, death
-Fire, smoke, electrification, poisoning, fall, explosion
-Property damage (water leakage etc.)

Quality problem
2) Involvement of Public Authority
-Governmental institution, police, fire brigade
-PL Center, consumer association, NGO

3) Publicity

Violation -Mass media (TV, newspaper, magazines, web site)

-Safety, EMC, telecommunication,
eco-design, environmental,
product marking/labelling etc.
4) Other
-Rework, frequent end-user claims, epidemic failure
garnering attention, or any other issue that may
potentially damage the Panasonic brand

2
3.0 Overall Handling of Quality Risk Problems
The following table describes:
1) Major steps in handling quality risk problems
2) Section/pages to refer to in this manual for further details

Steps Description Refer to

Establish processes and organization

for quality risk organization. Page 4 (Sales Company)
1. Identify Risk
Identify Quality Risks from the Page 10 (Regional HQ)
market.

Report identified Quality Risks

Page 4 (Sales Company)
2. Initial Reporting from the market to concerned
Page 10 (Regional HQ)
parties.

Investigate the Quality Risk and

3. Investigate & report result. Analyze the product Page 5 (Sales Company)
Analyze in question. Page 11 (Regional HQ)
Resolve issue with customer.

Assess the level of risk to determine

Pages 6-8 (Sales Company)
4. Assess Risk if market action is required (recall
Pages 12-13 (Regional HQ)
etc.).

5. Implement Market Conduct market action when Page 9 (Sales Company)

Action & Monitor required and monitor market. Page 13 (Regional HQ)

From here on in, handling of quality risks will be explained from the perspective of
the Sales Company and Regional HQ.

For details for Sales Company, please refer to section 4, pages 4 to 9.

For details for Regional HQ, please refer to section 5, pages 10 to 13.

For overall quality risk handling flow, please refer to Document 1.

3
 4.0 Sales Company
The following sections 4.1 through 4.5 describe the major roles and procedures
for the Sales Company in handling quality risk problems

4.1 Identify Risk

Sales Company will appoint a Quality Risk Manager for the Sales Company,
whom must establish processes and organization for management and handling
of quality risks. (Quality Risk Manager herein will be abbreviated as QRM).
Please refer to Document 2 for the list quality risk managers.
Once the framework has been established, constantly monitor the market for
any occurrences of quality risks.

4.2 Initial Reporting

Sales company must report any identified quality risk problem from the
market within 24 hours of learning the problem.
The following diagram describes this procedure:

Market Sales Company Regional HQ

Quality Risk
*Customer Other Dept. (2) Manager
Receive
*Dealer info Report Report
first info Company
*Authority Quality Risk
*Distributor (Factory/BD)
Etc.
Manager Report
first info ODM/OEM
(1) Company
(3)
QA Contractor

Procedure:
Sales Company QRM must first identify whether information received from
(1)
market corresponds with a quality risk (based on section 2.0).
Once identified, report the quality risk information to Regional HQ QRM and
(2) corresponding Factory/Business Division/Company (Business Division herein will be
abbreviated as BD).
If the product is a Sales Company ODM/OEM manufactured product, report the quality
(3) risk information to Regional HQ QRM, ODM/OEM Company, and when required, the
QA Contractor.
4
Please refer to Document 3 (Sheet 1) for a sample report form, Document 4 for contact information.
 4.3 Investigate & Analyze
Following the first report, Sales Company must follow up on the quality risk to get
details of the problem, recover the product for analysis and provide customer care.
The following diagram describes this procedure.

Market Sales Company

Regional HQ
(1)
Investigate Other Dept. Quality Risk Manager
*Customer & gather
*Dealer info Report
(2)
*Authority Company
Recover Quality Risk Report (Factory/BD)
*Distributor product
Etc.
Manager progress info
Send product
(3) ODM/OEM
Company
Customer care (4)
(5) QA Contractor

Procedure:
Sales Company is to communicate with the source of information to gather detailed
(1) information of the quality risk problem. For Safety Issues, visit the site, whenever
possible, to investigate the scene (take pictures, assess the product and situation).
Report this investigated information to Regional HQ QRM and corresponding
(2)
Factory/BD/Company.
Sales Company is to recover the product in question, whenever possible, to assess the
(3)
product, and to then send the product, to Factory/BD for cause analysis.
If the product is a Sales Company ODM/OEM manufactured product, report the
investigated information to Regional HQ QRM, corresponding ODM/OEM Company
(4)
and when required, the QA Contractor. Send the product to corresponding
ODM/OEM Company for cause analysis.
Sales Company is to resolve the issue with the customer
(5) accordingly (product exchange, refund, repair product etc.).

Please refer to Document 3 (Sheet 2) for a sample report form, Document 4 for contact information.

5
4.4 Assess Risk
The risk level must be assessed for each quality risk problem to determine
whether any market action (recall etc.) is required.
Assessment will be done in conjunction with the analysis result of the product.
This assessment procedure will vary depending on whether the product in
question is Panasonic manufactured or Sales Company ODM/OEM product

4.4.1 Panasonic Manufactured Products

Risk assessment will be conducted by the Company (factory, BD) at the
Quality Risk Committee. Sales Company will receive this result.
The following diagram describes this procedure.

(3) Regional
YES Level 1, 2
Company (Factory, BD) Regional Quality
HQ QRM Risk
Quality Committee
Market
Risk Action? Informed
Analysis Committee
result (1)
Sales Case closed
NO Level 0 Company & Monitor

(2)

Procedure:
Company will assess the risk level based on the product analysis result
(1)
and this outcome will be reported to the sales Company.
If market action is not required, Sales Company will proceed to close
(2)
the case and monitor the market.
If market action is required, Sales Company is to join the Regional Quality Risk
(3)
Committee organized by the Regional HQ to decide course of action.

6
 4.4.2 Sales Company ODM/OEM Products
Risk assessment to determine the necessity of a market action must be
conducted by the Sales Company based on the product analysis by the
ODM/OEM Company. The following diagram describes this procedure.

Level 3 Environment &

Quality Center
Sales Company (EQC)

Receive analysis result. YES YES Level 2

Share result. Quality Risk
Committee Regional HQ
(2) Market Quality Risk
ODM/OEM Quality Risk Product
(3) (4) action Manager
Company Manager Cause? required? Level 1

(1) Assess validness

of analysis result
NO NO
Regional
Level 0 Quality Risk
QA Committee
Close case
Contractor
/monitor
(5)

Procedure:
QRM of Sales Company receives analysis result from ODM/OEM Company.
(1) Share result with QRM of Region HQ, EQC, and QA Contractor
Whenever required, assess the validness of this result with QA Contractor.
Based on the analysis result and communication with QA Contractor, QRM of Sales
Company must make the decision of whether market action is necessary. This is to
made from the stand point of whether the product in question is at fault or not:
a) Product cause = NO

Close the case and monitor market.
(2) b) Product cause = YES or Uncertain

Organize Quality Risk Committee

This outcome is to be reported to QRM of Region HQ, EQC, ODM/OEM

Company, and QA Contractor.
The Quality Risk Committee is to be organized by the QRM of the Sales Company,
(3) where the committee members are to gather, discuss and assess the risk level to
determine the necessity of a market action.

7
Procedure (Cont.):

The committee members are to consist of the following:

Quality Risk Committee Members
Chairman: MD/President
Vice Chairman: Senior Executive
Secretariat QRM of Sales Company
(3)
Other Members: Legal Division Manager
Planning Division Manager
CS Division Manager
Marketing Division Manager
Sales Division Manager

The risk level is to be assessed in accordance with the Criteria for Assessing Quality Risk
Levels attached hereto as Document 5.

Risk Market
Definition Action taken by Sales Company QRM
Level Action
Emergency level : Report to Environment & Quality Center
3 1) Involving human life Yes (EQC) for establishment of
2) Major impact to society Corporate Emergency HQ
Voluntary recall involving Report to Regional HQ QRM for organizing
(4) 2 Yes
public notification Regional Quality Risk Committee
Market action not involving Report to Regional HQ QRM for organizing
1 Yes
voluntary recall Regional Quality Risk Committee

0 No market action No Close case and monitor market

Outcome of committee is to be reported to QRM of Region HQ, EQC, ODM/OEM Company

and QA Contractor.

If market action is required, Sales Company is to join the Regional Quality Risk Committee
organized by the Regional HQ and, for recall level issues, the Corporate Quality Policy
(5) organized by EQC to determine course of action

8
4.5 Market Action & Monitor
Sales Company is to conduct market action in accordance to the outcome from the
Regional Quality Risk Committee and/or the Corporate Quality Policy (Japan).
Recall decision from other regions/countries will also be informed by QRM or
Regional HQ.

Sales Company Market

(1) (2)
Receive final *Customer
Conduct
Regional HQ market action
action
*Dealer
decision
Quality Risk Quality Risk *Authority
Manager Manager *Distributor
Etc.
(2)
Support

ODM/OEM Company
Company (Factory/BD)

Sales Company Market

*Customer
Report market Monitor
action progress market action
*Dealer
Regional HQ QRM, Quality Risk *Authority
Company (factory, BD), Manager *Distributor
OEM/ODM Company, QA
(3) (3) Etc.
Contractor, EQC

Procedure:
Final market action decision will be received by the QRM of Sales Company
(1) from the QRM of Regional HQ.

Conduct market action based on this decision. Receive support from

(2) Company (factory/BD) or ODM/OEM Company. If there is a necessity, Inform
authority of market action.
Sales Company to monitor market action and report market action progress to
(3) Regional HQ QRM, Company (factory, BD), OEM/ODM Company, QA
Contractor, and EQC. Close case when market action is complete.

This ends explanation for Sales Company.

The following is explanation for Regional HQ.
9
5.0 Regional HQ
.
The following sections 6.1 through 6.5 describe the major roles and
procedures for the Regional HQ in handling quality risk problems

5.1 Identify Risk

Regional HQ will appoint a quality risk manager for the region, whom will
establish and maintain a quality risk management system for the region.
The quality risk manager of the Regional HQ will establish processes and
organizations to obtain quality risk information from the Sales Companies under
its control. The Quality Risk Manager of Regional HQ must also make sure each
Sales Company appoints a Quality Risk Manager and have him/her understand the
Quality Risk Management operation.

5.2 Initial Reporting

QRM of Regional HQ is required to have each Sales Company under its
control to understand the Quality Risk Definition and have the QRM of the
Sales Company report quality risks (based on section 5.2). Quality Risk
received from the Sales Company is to be reported to concerned parties.
The following diagram describes this procedure.

Receive first into. Forward first

into.
(1) (2) Environment &
Sales Regional HQ
Quality Center
Company Quality Risk Manager (EQC)

Regional Head
Urgent
issues

Procedure:
(1) QRM of Regional is to receive quality risk info from Sales Company
QRM or Regional HQ is to report this information to EQC and for urgent
(2)
issues, the Region Head.

10
5.3 Investigate & Analyze
QRM of Regional HQ is to receive investigation information (progress)
from the Sales Company and report this information to concerned parties.
At the same time, QRM of Regional HQ is to monitor the progress of and
assess the appropriateness of responses to quality risks by the Sales
Companies under its control. QRM of Regional HQ is to monitor for
similar occurrences in other countries within the region.
The following diagram describes this procedure.

Receive
investigation Forward
(progress) info. investigation
(1) (progress) info.

Sales
(2) Environment &
Regional HQ
Quality Center
Company Quality Risk Manager (EQC)

(3) Monitor progress

Urgent
Regional Head
and handling
issues

Procedure:
(1) QRM of Regional is to receive investigation (progress) info from Sales Company
QRM or Regional HQ is to report this information to EQC and for urgent
(2)
issues, the Region Head.
QRM of Regional HQ is to monitor the progress and handling of the quality risk
(3)
problem by the Sales Company.

11
 5.4 Assess Risk
QRM of Regional HQ is to confirm each quality risk problem. Based on the
risk level assessed by the Company (factory, BD) for Panasonic manufactured
products or Sales Company for Sales Company ODM/OEM products,

QRM of Regional HQ must organize the Regional Quality Risk Committee

for issues where market action is deemed necessary (Risk Level 1 or 2).

Regional HQ Level 2
(1) Market action
Environment
Sales & Quality
level?
Company Center (EQC)
Level 0, 1, 2
Quality Risk Quality Risk
Committee (3)
Manager
Factory/BD/ Sales
Level 1, 2 (2)
Company Company
Level 1

Procedure:
(1) QRM of Regional is to receive Risk Level for all Quality Risk issues.
For any issues where market action is required, QRM of Regional HQ is to
organize Quality Risk Committee, where the committee members are to gather,
discuss and assess the risk level for market action.
The committee members are to consist of the following:

Quality Risk Committee Members

Chairman: MD/President
Vice Chairman: Senior Executive
(2) Secretariat QRM of Regional HQ
Other Members: Legal Division Manager
Planning Division Manager
CS Division Manager
Marketing Division Manager
Sales Division Manager

12
Procedure (Cont.):
The risk level is to be assessed in accordance with the Criteria for Assessing
Quality Risk Levels attached hereto as Document 5.

Risk Market
Definition Action taken by Sales Company QRM
Level Action
Voluntary recall involving Report to EQC for organizing Corporate
(3) 2 Yes
public notification Quality Policy
Market action not involving Report to Sales Company QRM for
1 Yes
voluntary recall market action.

Outcome of committee is to be reported to QRM of Region HQ, EQC, ODM/OEM Company

and QA Contractor.

5.5 Market Action & Monitor

QRM of Regional HQ is to inform QRM of Sales Company of the decision for
market action and monitor the handling of market action by the Sales Company.
Recall action from other regions/countries is to be received from EQC and reported
to the QRM of Sales Company.

Receive Sales Company

recall (1) (2)
authorization Inform final
market action Conduct market
Environment & Regional HQ decision action
Quality Center Quality Risk Quality Risk
(EQC) Level 2 Manager Level 1, 2 Manager

(3) Monitor handling

Procedure:
(1) Receive recall decision/authorization from EQC.
(2) Inform final market action decision to QRM of Sales Company.
(3) Monitor market action handling by Sales Company

This ends explanation for Regional HQ. 13

6.0 Management of Information & Protection of Confidential Information
Information is to be logged, centralized and closely handled until its closure.
Members involved in quality risk management shall protect the secrecy of
information, materials, and other items which come to their knowledge at the
meetings of the Committee, in accordance with the Global ISM Standards.

7.0 Inquires
For any inquiries pertaining to this manual or quality risk in general, please
contact the following:

Name:
Division
Email Address:

Name:
Division:
Email Address:

14
 Quality Risk Management Manual Ver 1.0

Date of first edition: August 1, 2015

Date of publication: August 1, 2015

Revised:

Publishing department:

Publishing manager:

Editor:

15