Friday, February 12, 2010

Lessons from Toyota - Extending to REACh !!!!

Dear Friends,

Recently Toyota recalled some 2.3 million vehicles to correct an unintended acceleration caused by a software failure while switching between different means of break mechanism. To those who are not aware of it – In electric brand Toyota applies two types of breaks – while switching from mode of break mechanism to another system breaks hold for less than second, making the passenger feel momentarily that his engine breaks are failed.

Assume the similar challenge for REACh Compliance, when a SuperPaint manufacturer produces products, using substances which are not registered or for those there is not Use and Exposure is recorded? The historic recall of toys or recall of cell phones few years back is just a tip of the iceberg, as far as exceeding levels of restricted substances can do damage to the business. The recent extension of SAP REACh Compliance 1.1 to SAP Product and REACh Compliance 2.0 (called SPRC 2.0) will be of immense use for regulatory requirements like RoHS, China RoHA, AIAG, IMDS and REACh.

SPRC helps in automatically identify all substances that fall under the regulations using logistical, production and purchasing processes and continuous tracking for substance complianceOverview of Capabilities of SAP Product and REACh Compliance 2:

- Managing the specification Data
- Worklist based management of specification data
- Automatic / Manual Compliance checks against varous check processes
- Supply Chain communication for additional data - using Supplier portal and Campaigan management
- Compliance analysis and compliance reporting including electronic data exchange by means of various exchange formats, for example AIAG and IMDG.



  1. Hello Jayakumar,
    It's a classic case of "Brand Dilution" due to the very negligence of not-so-common features of a fool-proof car. The monetary loss of calling back the cars is nowhere as compared to the rare dint in the impeccable record of quality from Toyota.
    The anology finds very apt similarity of significance when it comes to "Product Compliances" which gets highlighted beautifully through the blog. Enterprises usually tend to comply with product compliance regulations out of governing laws , rather than corporate accountibility towards their social responsibility. And, thus some organizations finally end up incurring huge losses, both in monetary terms as well as eroding customer base. The case studies of these sorts very clearly highlights the significance of "Corporate Sustainability" for continual growth.


  2. Hello Pavan,

    Thanks for you comments.

    If look closely CSR reporting has increased substainabilly in past 1 year. Many companies which are listed in stocks are now going for Sustainabiity reporting.