Quality Management Systems: A Vision for Superiority and Satisfaction

1. Corporate Quality Mission - April 05 Corporate Quality General Management – May 05

2. QUALITY MANAGEMENT SYSTEMS Product Superiority Consumer Loyalty Consumer Satisfaction KPIs Product Excellence • Consumer Safety Product Safety Corporate Quality General Management – May 05

3. Nutritional Charter • 5 Principles • Balance Diet • Variety • Pleasure • Conviviality • Information Corporate Quality General Management – May 05

4. Alignment of our quality Policy / Organizations & Team Competencies with business needs Consumers’ Expectations • Safe & Good quality products • Reasonable price : Value for money • Responsibility to the community Business expectations Quality To date Appraisal • Quality vision • Strategies • Objectives • Key action plans GM Quality Staff • Organization • Contribution to business • Key missions & jobs • Understand GM’s current vision of quality and expectations • Enrich Quality vision with GM’s inputs • Understand the current "Quality" scope • Identify the existing strengths and weaknesses of organizations/managers Competencies / Behavior Corporate Quality General Management – May 05

5. ACTION PLAN 1 2 3 4 Corporate Quality General Management – May 05

6. Agenda • Quality Vision • Gap Analysis • To date status & Next Steps 1 Corporate Quality General Management – May 05

7. Quality Scope • Transversally – from design & development to the final product, throughout all stages in the supply chain – from the farm gate to the point of consumption • The quality team mission is to: • Guarantee that the consumer’ interests are taken into account and protected • Ensure that the consumers feedback are gathered and managed Corporate Quality General Management – May 05

8. Quality Vision Everyday and everywhere, our ambition is to provide consumers with superior and consistent quality products to continuously meet their needs and expectations • This vision is supported by key missions : • Ensure that the consumer is at the centre of our attentions • Guarantee that products and services through our processes (from conception to consumption) are continuously improved • Contribute to the economic performance and robustnessof the business • Adopt and develop continuously throughout the Danone Group a positive and challenging attitude • Develop best in class quality competencies • Build an efficient quality organisation throughout the world Corporate Quality General Management – May 05

9. Details of each key actions • Ensure that the consumer is at the centre of our attentions • Consumers' satisfaction is objectively defined and measured • Consumers' expectations are understood and monitored to continuously improve their satisfaction regarding Danone's products and services • Quality objectives are mainly driven by the consumers' needs • Feedback from customers are gathered and managed Corporate Quality General Management – May 05

10. Process Management QUALITYDANONE OPERATING MODELS« DOM BOOK Synthesis » Version 3.0 May 12th, 2005 Corporate Quality General Management – May 05

11. DANONE WAY / KEY PROCESSES • DANONE OPERATION MODELS • 8.8.7 - Customer & consumer feedback is systematically taken into consideration and used as a key source for product & service improvement • 8.8.10 - The Quality Director coordinates a Quality committee in the CBU chaired by the GM Corporate Quality General Management – May 05

12. Consumers’ satisfaction • Call Center optimization and modelling to be set as good practice: • The objective is to obtain, in an optimized way, information allowing measuring the consumer satisfaction in order to manage continuous improvements • And to initiate, according to a threshold to be determined, corrective actions. • Indicator of performance for the measurement of consumer satisfaction   • The objective is to deploy a KPI designed for performance improvement and dedicated to amplify weak signals.  • Consolidated by the Director Quality it must be used in Management committee as transverse communication tool. Corporate Quality General Management – May 05

13. KPIs Consumer Satisfaction Corporate Quality General Management – May 05

14. Definition and requirements of KPI • KPI’s show Business Unit how to: • Measure what is important to our consumers • Have a common understanding of perceived quality compared with quality of competitors • KPIs indicate • Where to take actions in order to meet Consumer expectations – & link them to operational targets Corporate Quality General Management – May 05

15. Definition & Goals of KPI’s • Key performance indicators must: • Be quantifiable measurements. • Reflect the Key Product Attributes – KPA of a product. • Key Performance Indicators help an organization to: • Define, measure and guide progress towards improvement goals Corporate Quality General Management – May 05

16. Consumer Satisfaction Radar 3° Feed-back Benchmarking Overall Trend Excellence in Implementation 2° 1° Conformity Excellence in Design Corporate Quality General Management – May 05

17. Call Center Re-engineering & modeling Corporate Quality General Management – May 05

18. Call Center • Mission du call Center est • Développer et entretenir de parfaites relations avec les consommateurs. • Il est l’outil d’information sur l’entreprise, de conseil, et recueille les remarques, suggestions, réactions des consommateurs. • Le centre de contacts est considéré comme • un lieu de fidélisation, • un service de proximité. • Il se doit de répondre vite aux demandes, • De créer de la valeur ajoutée pour la marque, à travers le service offert. • C’est l’interface privilégiée avec le consommateur. Corporate Quality General Management – May 05

19. Objectives • Call Center optimization and modelling to be set as good practice: • The objective is to obtain, in an optimized way, information allowing measuring the consumer satisfaction in order to manage continuous improvements • And to initiate, according to a threshold to be determined, corrective actions. • The contact center should no longer be a cost center but a center that contributes to Danone’s business. Corporate Quality General Management – May 05

20. Opportunities • Model the call center process to deploy it as best practice • Create a global World class CCC platform that all Danone countries could use “on demand” • Cross-market sharing and transfer of best practices • Economies of scale by leveraging a creative toolbox and related Danone CCC operating model – DOM • Record profitable growth through increased consumer loyalty and retention Corporate Quality General Management – May 05

21. CALL CENTRE OPERATIONS REENGINEERING • The call centre has been reengineered, with three aims: • To adapt the organisational set-up to reflect the volume and specific nature of contacts • -Whilst attempting to improve levels of satisfaction • And optimising costs. • With the aim in mind to • Continuously improve quality standards, adapting as consumers and markets evolve Corporate Quality General Management – May 05