Topics

Kraft Foods Supplier Quality & Food

Safety Overview
&
Kraft Foods Supplier Audit Program
Kraft Foods Supplier Quality and Food Safety
Forum
Forum Dates
June 2009 NA
July 2009 EU/CEEMA
Presentation Updated March 2010
2
Agenda Topics
Kraft Foods Supplier Quality and Food Safety
Overview (20min)
Detailed Review of Kraft Foods Supplier Audit Program
(20min)
Q&A All (20min)
3
~140,000 employees
Sales in ~160 countries
Operations in 70+ countries
~ 180 manufacturing and processing facilities
11 Research and Development centers
~ $50 billion in revenue
Kraft Foods
4
11 Brands with Revenues of $1 Billion
5
The safety and quality of our products is of the highest
importance
Consumer Protection & Trust
Consumers trust Kraft Foods
Trust begins with excellence in food safety and quality
Business Survival
Our people and our brands are our important assets
Industry Responsibility
Committed to food safety and quality across the food chain
Now more than ever
6
Design Procure Convert Distribute Trade Consumer
Specifications
HACCP
Allergens
Supplier QA
Plant Design
Plant Equipment
Process
Capability
Supplier
Quality
Management
SQM Policy
Contracts
Selection/
Approval
Monitoring
Continuous
I mprovement
Specifications
HACCP
Allergens
Supplier QA
PRPS
Traceability
Sanitation
Pest Control
Environment
Compliant
Reduction
Process Control
Process
Capabilities
Traceability
Sanitation
Pest Control
Environment
Warehouse
Controls
Complaints
Warehouse
Control
Specification
PCPS
Allergens
Consumer
Response
Complaint
Handling
Process
Capabilities
Applies to internal & external plants
Integrated Quality Chain Management Focus
on Preventative Systems
7
Monitoring
Policy/ Contract Requirements
Continuous
Improvement
Selection/ Approval
A comprehensive approach to managing supplier quality A comprehensive approach to managing supplier quality
Supplier Quality Management
Risk Assessments Risk Assessments
Supplier Pre Supplier Pre- -Assessment Assessment
Quality Audit Approval Quality Audit Approval
Quality Policy Quality Policy
WW Supplier Quality WW Supplier Quality
Expectations Expectations
Supplier HACCP Manual Supplier HACCP Manual
Material Specifications Material Specifications
Supplier QI Program Supplier QI Program
Supplier Quality Supplier Quality
Partnerships Partnerships
Supplier Development Supplier Development
Industry Benchmarking Industry Benchmarking
WW Quality Audit Program WW Quality Audit Program
Materials Monitoring Program Materials Monitoring Program
COA Verification COA Verification
Supplier Performance Monitoring Supplier Performance Monitoring
Certificate of Conformance (COC) Certificate of Conformance (COC)
8
Policy & Contract Requirements
Quality policy on Supplier Quality Management key
elements:
World wide supplier quality expectations
World wide supplier quality audits
Approval of materials & suppliers
Supplier monitoring and corrective actions
Disapproval of a supplier
Contract requirements on quality & food safety
Raw Material Specifications & COA requirements
World wide Supplier Quality Expectations
HACCP Standard Manual
9
Supplier Selection & Approval
Food Safety & Quality audits are used to assure proper
food safety and quality controls are in place at each
supplier facility
Food safety systems and controls
Management systems
Audits are performed at each plant by trained auditors
Auditors include Kraft Foods employees and third party
agencies
Audits must thoroughly evaluate the elements of the food
safety and quality requirements
Suppliers MUST demonstrate proper knowledge and control
of food safety, and proven effectiveness
10
Supplier Monitoring
Global Quality & Food Safety Audit Program
Assessment of quality and food safety systems every 18-36 months
Each supplier plant that produces materials for Kraft Foods must meet
the audit requirements to remain approved.
Material Monitoring Program
Testing materials for chemical contaminants
Risk based approach determines sampling frequency & chemical analysis
COA Verification
Testing materials for pathogens to verify COA data
COC (Certificate of Conformance) Program
Certification of selected supplier facilities that exempts pathogen COAs
Supplier Performance
Monitoring of incoming material non-conformances
11
Continuous Improvement / Supplier
Relationship Management
Supplier QI Programs
Supplier performance data used to identify issues
Joint supplier / Kraft Foods teams drive improvement
Supplier Quality Partnerships
Joint supplier/Kraft Foods business unit quality reviews
Leverage knowledge and capabilities to enable new ideas and
opportunities
Influence quality and food safety system design
Supplier Development
Quality and Food Safety Seminars world wide
On site quality technical visits by Kraft Foods resources
Sharing food safety training modules
Participating in industry working groups
12
In summary, the safety and quality of our products is
of the highest importance
Critical elements to assure the safety of our products:
Integrated quality chain management from design to
distribution that is focused on preventative systems
Comprehensive approach to Supplier Quality
Management

Rigorous supplier selection and approval process

Disciplined risk assessment and supplier performance
monitoring

Skilled network of internal and external resources
Ongoing supplier relationships to drive continuous
improvement and leverage capabilities
13
Topics
Brief History of Kraft Foods Supplier Audit Program
Risk Based Approach to Audits
Material Hazard Analysis and Classification
Kraft Foods Audit matrix
Supplier Audit Management Process
Detailed Review of Kraft Foods Supplier Audit
Program
Detailed Review of Kraft Foods Supplier Audit
Program
14
Kraft Foods auditors conducted all audits (80s &
90s)
Supplement Kraft Foods audits by utilizing 3
rd
party
audits
SAFE audits in North America (2003)
SAFE audits globally (2005)
GFSI certifications (2007)
Optimize Supplier Audit Management Activities by
leveraging 3
rd
Party resources (2008)
Kraft Foods Supplier Audit History
Kraft Foods Supplier Audit History
15
Pr ocur ement
Pr ocur ement
Categor y
Ingr edient
Type Detail Tier
Level 1 Level 2 Level 3
H P Risk H P Risk H P Risk
Meat and Meat
Products Meats
Beef -
Prepared/
Processed
Ready To Eat
(RTE) Beef
Products 1 5 5 25 2 1 2 3 3 9 36
Cocoa and
Chocolate
Confectionery,
Carob
Cocoa and
Cocoa Products Solid
Chocolate
Chips, Drops,
Liquor Used As
An Ingredient 2 4 4 16 5 2 10 2 2 4 30
Hydrocolloids &
Gums Hydrocolloids Cellulose Cellulose 3 3 3 9 1 1 1 2 2 4 14
Grain and Grain
Products Starch Rice Rice Starch 4 2 1 2 1 1 1 2 2 4 7
Food Additives Indirect Addition Gases
Food Grade
Compressed
and Liquid
Gases 5 1 1 1 1 1 1 1 1 1 3
Micro Chemical Physical
Total risk
Kraft Foods Material Hazard Analysis Example
Kraft Foods Material Hazard Analysis Example
16
Kraft Foods Audit Matrix (2010)
Matrix subject to change without notice.
Additional or more frequent audits may be
required based on particular circumstances
Tier
Ingredient Categories
( List is not all inclusive)
Qualification
Process
(new)
Accepted Audits &
Certifications
(ongoing)
Target
Freq.
(years)
1 RTE Meats, Cheeses, RTE Raw Fruits/Vegetables Kraft Foods Audit Kraft Foods Audit 1.5
2
RTE Nuts/Seeds/Coconut, Retorted & Aseptic Products (Low Acid
Canned Foods), RTE Dried Fruits & Vegetables,
Cocoa/Chocolate/Confectionary, Herbs/Spices/Seasoning, Tea & Tea
Products
Kraft Foods Audit
1
Certifications or 3
rd
Party SQE
+ Technical
Validation (optional)
2
3
Egg & Egg Products; Fruit & Fruit Products; Dairy Products &
Substitutes; Hydrocolloids & Gums, wafers
Kraft Foods Audit
3
rd
Party SQE or
1
Certifications
2.5
4
4
Grain & Grain Products, Emulsifiers; Prepared
Sauces/Spreads/Condiments, Coffee &Coffee Products, Bread &
Bakery Products; Sugars & Sweeteners; Flavoring Ingredients;
Cultures/Enzymes/Yeast/Starter Culture; Fats & Oils; Food Additives;
3
Raw Meat & Raw Meat Products,
1
Food Chemicals & Alcohols
3
rd
Party SQE or
1
Certifications
3
rd
Party SQE or
1
Certifications
3
5
Raw Milk & Cream, Nationally Branded Confections; Green Coffee
Beans; Compressed Gases; Raw Grains; Raw Nuts/Seeds/Coconut;
Raw earthen materials (e.g., unprocessed materials mined from the
earth)
Audits may be required as result of a risk
assessment
NA
Notes: 1. Certifications include GFSI (SQF, BRC, IFS, Dutch HACCP, FSSC22000), and ISO22000 for year 2010 only
2. GMA-SAFE accepted for tiers 2, 3, 4 until further notice
3. NSF Cook & Thurber and Silliker audits accepted for raw meat & raw meat products
4. AIB under review for grain& grain products
5. Where local regulatory considerations make a higher tier rating necessary, this must be documented in local procedures
and notified to auditing a lower tier rating cannot be applied.
17
Blend of Third Party and Kraft Foods Resourced
Audits
Kraft Foods determination based on risk
assessment
Program covers 4000+ ingredient supplier
plants globally
Audit Management Process
Audit Management Process
18
Notification to
Existing
Suppliers
(Tier 1, 2, 3, 4)
Supplier
Engagement
Notification of audit due
date, list of acceptable
audits/certifications and
auditing firms.
Respond confirming that
acceptable audit will be
conducted and submitted
on time
Compliance Verification
Audit or Certification
Completed
Supplier submits
completed audit report /
certification
Kraft Foods reviews
audit/certification.
3rd Party SQE Audit
Corrective
Actions
Next Audit
Cycle
Certifications
SAFE Audit
Supplier meets
Kraft Foods audit
requirements and
remains approved
Follow up on next
audit cycle.
Escalation &
Disapproval
Process
Supplier selects audit type and
auditing firm (tiers 2, 3, 4 only).
Management Reports
The Quality Audit Process
The Quality Audit Process