Audits as a Tool for Standardization and Improvement:

Colgate-Palmolive is the world’s number one seller of toothbrushes and its single largest
volume market is the subcontinent of India, where its market share there is in excess of
70%. Indian law classifies the toothbrush as a “light industry” product and imposes
limitations on the volume that can be produced at any one facility. Although this
measure is designed to aid employment by spreading business among a number of
smaller manufacturers, it ensures that Colgate-India, which is entirely dependent upon
contract manufacturers for its toothbrush production, has a large number of suppliers
to manage and control. To assist Colgate-India in managing its 20+ suppliers and to
support their operating at acceptable quality and manufacturing levels, a special audit
standard was created. Audit criteria were based on minimum requirements for product
quality, quality control and GMP (Good Manufacturing Practice), especially as they
pertain to fundamentals in cleanliness, sanitation and hygiene. Although the author
does not, as a rule, favour scoring audits it was useful to provide a scoring system for
this particular audit standard to establish a baseline for compliance and to measure
improvement for follow-up. Supplier quality engineers from India were trained in the US
at Colgate’s centre-of excellence facility in Puerto Rico. In July, 195 two engineers from
Colgate’s corporate engineering group went to India, and together with the afore-
mentioned CP-India personnel, they audited twelve key suppliers to the new standard. A
corporate person led each audit team and scores were reached by consensus. The
results showed a range of capabilities, but a number of common deficiencies were
noted across the supply base. Specific improvement initiatives were identified for each
supplier in particular, and for all suppliers in general. Follow-up audits by a CP-India
team and subsequent visits by US personnel have shown quantified improvement and
greater uniformity in approach and execution across the supply base.
QUESTIONS:

Q1.Suggest the suitable name for the above case study.

Q2. List out the main points discussed in the case study.