A quality defect was detected in samples of Nutella spread and Kinder Bueno candy bars that led to a shut down of the Nutella factory in Normandy, France.
Despite the shut down of the factory, which produces one-quarter of the world’s chocolate-hazelnut spread, the supply of Nutella has not been interrupted. Ferrero, the parent company of Nutella in Italy simply wants to take extra precaution to maintain its high quality standard.
Video Spotlight: Nutella is the driving force of Italy’s richest man
This post is based on the Fortune article, World’s Biggest Nutella Factory Shut Down Over ‘Quality Issues’, by Grace Dobush, February 21, 2019, and the YouTube video, Nutella Driving Force of Italy’s Richest Man, by Bloomberg, May 19, 2014. Image source: lynx/iconotec.com/Glowimages
1. What are the costs related to the decision to shut down the Nutella factory when a quality defect was detected?
Guidance: The potential costs include production interruptions, production delay, quality investigation, scrap, rework, supply disruption, demand shortage, and customer dissatisfaction.
2. What kind of control chart will be appropriate to ensure Nutella’s production process is in control?
Guidance: This question can be used to prompt discussion of different charts. For example, a proportion chart could be appropriate. Nutella spread can be randomly sampled from the production process to collect data on the fraction of defective spread in a sample for a period of time. The data collected can then be used to construct the proportion chart to monitor any non-randomness in its process output.