When your company has a mission to improve the lives of others, it is important that every single aspect of your operations reflects your values. When a business model or process is no longer consistent with those values, it’s time for an intervention. That’s exactly what happened at Philips Respironics in February 2018 when they announced a voluntary recall of their REMstar Pro and Vantage XL CPAP machines. Read on to learn why and how this was not just the right thing to do ethically but also the smart thing to do operationally.
Philips Respironics Recalls REMstar Pro and Vantage XL Machines
The REMstar Pro and Vantage XL machines were recalled due to reports of an overheating issue with the humidifier. When the machine overheated, it could cause burns to the user. There were no reported injuries, but Philips Respironics decided to recall the machines as a precautionary measure. The company also recalled a batch of their DreamStation CPAP Machines in June 2018 when it was discovered that some of the humidifiers had been misassembled during the production process, causing water to leak out of the machines. In both cases, the machines were still in their warranty period, and the machines were replaced at no cost to patients.
Why Did Philips Respironics Recall Their CPAP Machines?
It is important to note that the overheating humidifier issue was not a result of a design flaw or defect. It was the result of a process that didn’t account for variability in the manufacturing process. In other words, when something goes wrong in production and a part doesn’t meet the standard, it can either be scrapped or sorted out and sold. In the case of the overheating humidifiers, Philips Respironics decided to sort them out and sell them. While that sounds like a purely economical decision, it is not. It is a decision that reflects the values of the company. These CPAP machines were safe to use, and Philips Respironics wanted to get them into the hands of patients who needed them as quickly as possible.
How Can a Company Know When a Recall is Necessary?
The decision to recall a product is a serious one and can be a costly one. The U.S. Food and Drug Administration (FDA) specifies that a product recall is an action taken by a manufacturer or government agency to remove a product from commerce. A product can be recalled for many reasons, including a defect in the product, a mistake in the labeling or packaging of the product, or a problem with the production or distribution of the product. Recalls are a last resort, used when a company has exhausted all other options and has determined that the product is a serious risk to the safety of its customers.
4 Reasons to Run an Operation-Led Recall
– A company-led recall is the best way to protect your brand from the potential of government intervention. The FDA has the authority to issue a mandatory recall, which means that they can force the recall of your product even if you don’t want to.
– An operation-led recall is the best way to get the products out of the hands of customers as quickly as possible, which is vital when the product is being used to treat a serious medical condition.
– An operation-led recall is the best way to demonstrate that you care about your customers enough to do the right thing even when it is costly. This can help build trust and loyalty among your customers.
– An operation-led recall is the best way to preserve your financial health. It can cost a company $10-15 million to get a product recalled, and since you are responsible for paying those costs, an operation-led recall can save your business millions of dollars.
2 Reasons to Lead with an Ethical Recall
– An ethical recall is the best way to set a new standard for excellence in your industry. The medical device industry has a reputation for being overly cautious, and an ethical approach to recalls can help set a new standard.
– An ethical recall is the best way to keep customers who already own your product happy. A company that shows that it values the safety and health of its customers above all is the kind of company that customers want to do business with.
A company’s reputation is a huge asset and one of the most important things that it owns. When a company acts ethically, that reputation grows stronger. When a company acts unethically, that reputation weakens. At the end of the day, a recall is just one more challenge that every business faces. How a company responds to that challenge, whether it be with an operation-led recall or an ethical recall, is what will set it apart from the competition.