HR Assignment

Rasha Salem

Saher Mohamed

M o h a m e d S a e e d t a w fi k

Ibrahim Amin

Ahmed Amin
Introduction

Global Mechanical Ventilators Industry

Mechanical Ventilators market worldwide is projected to grow by US$2. 5 Billion, driven by a

compounded growth of 6. 4%. Critical Care, one of the segments analyzed and sized in this
study, displays the potential to grow at over 5.

9%. The shifting dynamics supporting this growth makes it critical for businesses in this space
to keep abreast of the changing pulse of the market. Poised to reach over US$3.1 Billion by the
year 2025, Critical Care will bring in healthy gains adding significant momentum to global
growth.

- Representing the developed world, the United States will maintain a 5.5% growth momentum.
Within Europe, which continues to remain an important element in the world economy,
Germany will add over US$89.4 Million to the region’s size and clout in the next 5 to 6 years.
Over US$78.2 Million worth of projected demand in the region will come from Rest of Europe
markets. In Japan, Critical Care will reach a market size of US$152.8 Million by the close of the
analysis period. As the world’s second largest economy and the new game changer in global
markets, China exhibits the potential to grow at 9.4% over the next couple of years and add
approximately US$ 684.5 Million in terms of addressable opportunity for the picking by aspiring
businesses and their astute leaders. Presented in visually rich graphics are these and many
more need-to-know quantitative data important in ensuring quality of strategy decisions, be it
entry into new markets or allocation of resources within a portfolio. Several macroeconomic
factors and internal market forces will shape growth and development of demand patterns in
emerging countries in Asia-Pacific, Latin America and the Middle East. All research viewpoints
presented are based on validated engagements from influencers in the market, whose opinions
supersede all other research methodologies.
1- Competitors identified in this market include, among others,

Medtronic Plc.

Dräger Medical Canada Inc.

Fisher & Paykel Healthcare Corp. Ltd.

GE Healthcare

Breas Medical AB

Hamilton Medical AG

MAQUET GmbH & Co. KG

Philips Respironics Inc.

ResMed

Smiths Medical

Vyaire Medical Inc.

2 -Market overview :

Global Mechanical Ventilators Market Set to Register Strong Growth

Quick COPD Facts:

US Leads the Global Mechanical Ventilators Market

High Unmet Medical Needs Drive Developing Nations

Non-Invasive Ventilators - The New Standard of Care

Cost Benefits to Surge Growth of Non-Invasive Ventilators

HomeCare Ventilation Cuts Down on Rising Healthcare Costs

Increasing Popularity of Portable Ventilators

Aging Population to Spur Demand for Mechanical Ventilators

Competitive Landscape
3. MARKET TRENDS & DRIVERS

Neonatal Ventilators Market on a Rapid Growth Trend

Developed Regions - The Largest Markets for Neonatal Ventilators

Markets for Infant/Neonatal Ventilation

Neonatal Non-Invasive Ventilation - On the Rise

Hospitals Account for the Largest Use of Neonatal Ventilators

NICUs to Provide Lucrative Growth Opportunities

Lung Injury: A Major Challenge for Neonatal Ventilators Market Leading Players

Improved Patient Outcomes - The Force behind Mechanical Ventilator Innovations

Automation-Enabled Innovation Continues in Mechanical Ventilators Market

The Changing Face of Ventilator Design

Growing Urbanization Increases the Incidence of Respiratory Diseases

Ventilator Associated Pneumonia (VAP): A Major Menace

Innovations in Endotracheal Tube Design to Address VAP

Manufacturers Introduce New Features to Tackle Enduring Issue of Alarm Fatigue

Advances in Information Technology Enhance Monitoring Multiple Patients on Ventilation

Emerging Markets Experience Low-Cost Ventilator Boom

Non-Invasive Positive Pressure Ventilation (NIPPV) Market: Going Strong

Disposable Ventilator Masks to Record Strong Growth

Western Markets Lead in Combined Ventilator Uptake

High Potential for Automatic Transport Ventilators

Neurally-Adjusted Ventilatory Assist (NAVA) - A Novel Ventilation Technique

Respiratory Dialysis - An Alternative to Mechanical Ventilation

Covid 19 pandemic disease according to WHO worldometer affected 210 countries

and territories with total cases 3,500,000 & deaths 270,000 till now
Philips structure is a matrix structure ( Organic ) :-
 Executive committee

QC medical
5 Job vacancies
Engineering Manager

QC medical
Engineer
Philips Recruitment Process:
QC medical QC medical QC medical
Our interview process reflects our high standards, andEngineer
Engineer is intended to Engineer
attract the best and the brightest: passionate, talented people who share
our commitment to creating meaningful innovation that improves lives. 
A - Job Analysis:-

Job vacancies codes:

- QC Medical Engineer Manager (QCMEM1)

- QC Medical Engineer (QCME2)

1- Job Requirements for successful performance:

To succeed in this role, you should have the following skills and experience:

 A Bachelor degree in Medical Engineering

 Solid technical background in Ventilators devices
 Experience in QC Medical Engineering mananagement (3 – 5) years for the Job vacancy
code( QCMEM1)
 Experience in Qc medical Engineering of health care devices for 1 year for the job
vacancy code (QCME2)
 Experience in using Philips product will be an advantage
 Outspoken communication, presentation, selling and effective negotiating skills
 Excellent written and verbal communication skills in English in addition to local
language(s)
 Willingness and ability to travel up to 15% of the time outside of Egypt. Predominantly
in North East Africa and support in other Africa region from time to time.
 Ability to work independently while interacting within a (virtual) team with all levels of
the organization
 High level of integrity and result-oriented
2- Job description Form

Job Title: Quality control Medical Engineer

Reports to: Quality control Medical Engineer Manager
Scope of Supervision: none

Job code QCME2

EDUCATION, BUSINESS EXPERIENCE AND PHYSICAL REQUIREMENTS

• Minimum 1 years’ experience as a Quality Engineer in the medical device industry

• Bachelor degree in medical engineering.
• Medical Device Quality System Knowledge Including 21 CFR Part 820 (QSR) & ISO 13485
• Demonstrated skills in statistical analysis
• Strong computer skills
• Individual must have a hands-on approach
• Experience participating in internal and external audits (e.g., FDA, Notified Body, Supplier)
• Strong organizational and time management skills
• Experience with CAPA, complaint investigation, field action processes and risk management
• CQE, CQA preferred

REQUIRED COMPETENCIES
Leadership:
• Recognized as a technical leader within the company and engenders trust when working
with customers or suppliers
• working with a customer or supplier to resolve product quality issues
• Works effectively on cross functional teams to establish appropriate processes pertaining to
quality
Communication
• Excellent written and oral communication skills
• Ability to formulate responses to common inquiries or complaints from customers and
regulatory agencies

DESCRIPTION OF RESPONSIBILITIES
 The Quality Engineer is responsible for reviewing and analyzing complaint data .
 performing root-cause investigations to establish corrective action plans and implement
corrective actions .
 Developing and performing test methods for product testing and investigations .
 writing and updating procedures as required to ensure the quality system is compliant
with regulations including the FDA Quality System Requirements (QSR), ISO 13485,
Canadian Medical Device Regulations (CMDR), and the Medical Devices Directive (MDD).
 Perform all job duties while adhering to HIPAA requirements.
KEY RESULT AREAS:
Post Market Surveillance
• The Quality Engineer supports the Complaint Handling Unit and is responsible for investigating,
determining root cause and ultimate resolution of product failures. Will work closely with RA/QA,
Engineering, Operations, Clinical and other functional areas to evaluate actual of potential product
failures and update risk management files as needed
• Contributes to product safety, product quality, and customer satisfaction related decisions (both
databased and risk-assessment-based decisions)
• Leads or participates and supports internal and external supplier audits and inspections
• Develops improvement plans and tracks customer Quality Ratings
• Monitors and advises on how the product quality is performing and publishes data and reports
regarding the effectiveness of the quality management system in achieving the product performance
goals
Product Acceptance & Investigations
• Plans and conducts the analysis, inspection, design, tests, and/or integration of test methods to
assure the quality of assigned products or components
• Develops test methods and participates in the assessment of returned products, incoming, in-
process and final test/inspection.
• Applies statistical process control (SPC) methods for analyzing data to evaluate the current process
and process changes
• Coordinates the documentation review, inspection workflow, training, problem solving and
calibration for Tactile Medical products and test equipment
• Tracks and report quality metrics
• Advises on changes and their implementation and provides training, tools, and techniques to enable
others to achieve quality
• Utilizes statistical analysis techniques to determine product acceptance and AQL sampling plans,
evaluate process capabilities, and develop statistically sound tolerance limits
• Participates in the non-conformance reporting system, driving timely disposition and closure. Leads
and/or participates in MRB meetings. Identify non-conformance trends and develop and administer
technical investigation and corrective action programs to resolve recurring quality problems
Product Development & Operations
• Contributes to the development and implementation of product test plans including Verification and
Validation of products and processes
• Serves as liaison to design, procurement and manufacturing engineering
• Participates as a resource in validations applicable to processes and product
• Performs standard quality engineering reviews of design documentation for compliance with stated
requirements, including supplier quality and company quality records
• Works with Manufacturing Engineering to address supplier quality issues
This Job Description was last created on: April 15, 2020
Job Title: Quality control Medical Engineer Manager
Reports to: Vice President, Quality and Regulatory Affairs
Scope of Supervision: Quality control Medical Engineers

Job code QCMEM1

EDUCATION, BUSINESS EXPERIENCE AND PHYSICAL REQUIREMENTS

• Minimum 3-5 years’ experience as a Quality Engineer Manager in the medical device industry
• Bachelor degree in medical engineering.
• Medical Device Quality System Knowledge Including 21 CFR Part 820 (QSR) & ISO 13485
• Demonstrated skills in statistical analysis
• Strong computer skills
• Individual must have a hands-on approach
• Experience participating in internal and external audits (e.g., FDA, Notified Body, Supplier)
• Strong organizational and time management skills
• Experience with CAPA, complaint investigation, field action processes and risk management
• CQE, CQA preferred

REQUIRED COMPETENCIES
Leadership:
• Recognized as a team leader within the company.
• Capable of leading a Continuous Improvement Team, CAPA team, or working with a
customer or supplier to resolve product quality issues
• Works effectively on cross functional teams to establish appropriate processes pertaining to
quality
Communication
• Excellent written and oral communication skills
 • Ability to formulate responses to common inquiries or complaints from customers and
regulatory agencies
• Ability to review, analyze, summarize, and interpret data; draw conclusions and make
appropriate recommendations and decisions; write reports; and give oral presentations

DESCRIPTION OF RESPONSIBILITIES
 The Quality Engineer manager is responsible for building his own team and leading
them.
 Coaching and developing his subordinates.
 performing root-cause investigations to establish corrective action plans and implement
corrective actions,
 writing and updating procedures as required to ensure the quality system is compliant
with regulations including the FDA Quality System Requirements (QSR), ISO 13485,
Canadian Medical Device Regulations (CMDR), and the Medical Devices Directive (MDD).
Perform all job duties while adhering to HIPAA requirements.

3- MPP:

-Demand Forecast:

The forecast of company demand of production engineers is supposed to be increasing

for the next five years, by around 1 new engineer every year, considering the company
vision of expand and to maintain the growth sustainability

-Supply Forecast:

By searching the company data base for the candidates which have been submitted the
applications on the company’s vacancies web site, the social requirement web sites
(Wuzzuf, Glassdoor, LinkedIn and others..), we find that around 10 ready applicants are
normally close to the position are kept on the required positions up on request and to
be reviewed to select the best fit.

-Succession plan:

For the critical executive production positions, like Production manager, we list the
appraisal reports for the current 10 employees and we planned to assume a non-formal
position called assistant production manager, in which we select the more experience
production engineer which have a good appraisal and improving his tools by job
rotation during the next years to be normally ready for the position, also we have other
position for team leader under the assistance production manager as a successor plan B
4- Recruiting:

We have the following tools:

- External: we plan to have:

 Our online vacancies on the company web-site

 We will get account on Glassdoor, LinkedIn

 We have a talented center which keep the data of the talented candidate which
have been interviewed in the past and was listed in second accepted person

- Internal: We have a data base for the employee appraisals which give us good
vision on the promotions we can make to some good employees in a managerial levels,
and team leaders so we can build on the people which are familiar on our organization
as a loyal managers, then we can open the new position for the junior / senior
executive level instead.

E-Selection:

CV’s / Applications: To choose and hire the best candidates, we will use the following
method to filter the candidates which will attend the interview, we will use points
system on the following:

- Education level

- Grade required

- Years of experience

- Similar working environment

- Grade of Toefel Required

- If he have relatives in the company?

- Recommendations by current employee?

The best points we will have from the above steps of check list will be invited for
interview with the HR specialist which will include questions to fulfill the below check
list:

- Dress code capability

- Organization value understanding

- Clear reasoning

- Aware of the business environment

- Emotionally intelligence

- Reference check and achievements

Interview plan :

For job code (QCMEM1)

Hired 1

Offer made 2

Interviewed 4

Candidates invited 6

Targeted printed C.V. s 25

For job code (QCME2)

 Hired 4

Offer made 8

Interviewed 16

Candidates invited 24

Targeted printed C.V. s 100

Interview technical conference:

HR manager & vice president

How do you feel about the future of Philips?

What advice would you give the CEO of Philips about how to improve it?
Is it a nonprofit company?
What are the hours for first shift?
What questions did they ask during your interview at Philips?
What is the best part of working at Philips?
What is the work environment and culture like at Philips?
How long does the hiring process take? Is there a long time between interviews?
How often do raises occur at Philips?
What benefits does Philips offer?
What is the most stressful part about working at Philips?
How do you feel about the future of Medtronic?
What advice would you give the CEO of Philips about how to improve it?
Is it a nonprofit company?
What are the hours for first shift?
What questions did they ask during your interview at Philips?
What is the best part of working at Philips?
Training & Development Plan

The ROI Methodology Because of its appropriateness to the business setting, the evaluation
model that emerged from the work of Dr. Donald Kirkpatrick and Dr. Jack Phillips has become
the most credible and most widely used training and HRD evaluation methodology in the world.
In particular, the Phillips ROI MethodologyTM offers a practical way to forecast the potential
payoff—return on investment (ROI)—of a proposed training or human resources development
initiative before funds are committed.

The MCPCC ROI Forecasting Tool, based on the Phillips approach, is an easy-to-use decision
support tool that allows organizations to quickly develop and examine the business case for
investing in workforce development. While the tool itself is a selfcontained and self-explanatory
ROI calculator, the following is a brief overview of the ROI MethodologyTM underlying the
forecasting tool.

ROI and cost-benefit analysis are familiar decision-making tools used in business management
worldwide. They are used most commonly to analyze planned investment decisions for the
acquisition of capital equipment and technology. At its simplest, ROI is the ratio of the net
benefits of an investment compared to its total costs.

The formula for ROI is: ROI =(Net Program Benefits/ Total Program Costs) x 100%
 In order to conduct a training ROI analysis, the Phillips model recommends an 18-step process
that systematically progresses through the key evaluation/development steps from needs
assessment through program objectives development, evaluation strategy, evaluation
instrument design, data collection, analysis, return on investment calculating, and reporting.

The Phillips Model

The Phillips model measures training outcomes at five levels:

Level Brief Description

1.Reaction, Satisfaction, & Measures participant reaction to and satisfaction with the
Planned Action training program and participant’s plans for action
2. Learning Measures skills and knowledge gain
3. Application and Measures changes in on-the-job application, behaviour
Implementation change, and implementation.
4. Business Impact Measures business impact
5. Return on Investment (ROI) Compares the monetary value of the business outcomes
with the costs of the training program
Key Stages:

Two of the most critical stages in the Phillips ROI model are data collection and data analysis

Data Collection

A central challenge of the ROI process is data collection—selecting the most appropriate
method(s) and the time table for gathering outcomes data at each evaluation level. Depending
on the nature of the training program, hard data (representing output, quality, cost, and time)
or soft data (customer satisfaction and job satisfaction) may be collected in the course of the
evaluation. The following are some of the key data collection methods employed in the
Phillips/Kirkpatrick approaches.

 Follow-up surveys and questionnaires to measure stakeholder satisfaction and

reaction ƒ
 On-the-job observation to gauge application and use
 Tests and assessments to assess learning ƒ
 Interviews to record participant reaction and program implementation ƒ
 Focus groups to assess job application of the program ƒ
 Action plans to encourage application and record participants’ progress and impact
realized ƒ
 Business performance monitoring of performance records or operational data to
identify improvement
1- Data Analysis

One of the most critical steps in a training evaluation is Isolation. Many other factors (e.g.,
marketing programs, employee bonus programs, etc.) can impact business outcomes after a
new program is implemented. From the standpoint of credibility, therefore, it is important to
use one or more isolation strategies to separate the business impact of the training program
from the impact of other factors. The following are some of the most often used isolation
techniques: ƒ

 Control Groups: The outcomes of pilot group of participants in a program are

compared with the outcomes of a control group of participants who are not participating
in the program. This is the most effective way to isolate training’s impact. ƒ
 Trend lines: Trend lines are commonly used to project expected business impact data
into the future. Such projections are compared with the actual data after a major
corporate program or initiative has been implemented to determine if the training has
yielded improvement. ƒ
 Participants/stakeholders estimates: Participants are asked to estimate the
amount of improvement directly related to a training or HR program. Because
participants have received the training and are personally involved in applying the new
skills and

Training plan based on SWOT analysis :-

 Converting Data to Monetary Values

In order to calculate the ROI, the data collected in a Level 4 evaluation is converted to
monetary values and compared to program costs. To do this, a value must be placed on each
unit of improvement (output measure) impacted by the training program. Increases in output
measures (increased sales, units produced, etc.) are converted to monetary values based on
their unit contribution to profit. Often standard values are available for such measures in most
organizations. There are several alternative ways to arrive at monetary value such as converting
the value of quality improvements or using participants’ wages in those situations where the
training has resulted in saving employee time.

1- Design :-

The training program Chain of Impact

Ideally, when a training program is implemented, according to Phillips, it should create a

chain of impact at several levels beginning at Satisfaction/Planned Action and ending in ROI.
When business results and ROI are to be measured (Levels 4 & 5), it is also important to
evaluate the other levels. A chain of impact should occur through the levels as skills and
knowledge learned (Level 2) and are applied on the job (Level 3) to produce business
impact (Level 4). If measurements are not taken at each level, it is difficult in the end to
conclude that the business results achieved were actually caused by the program. On the
other hand, if a negative ROI results from the training investment, the evaluator should be
able to identify which link(s) in the chain was (were) broken (e.g., the participants did not
learn (Level 2), or they were unable to successfully apply the new learning on the job (Level
3). From the perspective of the organization, the value of the information gathered
increases with movement along the chain of impact from Level 1 (Reaction, Satisfaction,
and Planned Action) to Level 5 (ROI).

The following provides a summary of the five levels:

Level 1 - Reaction, Satisfaction, and Planned Action: Level 1 measures participants’

satisfaction with a program as well as their plans to use what they have learned. Although
most organizations evaluate at Level 1 exclusively, it should be noted that this level of
evaluation does not guarantee that participants have learned new skills or knowledge or will
use them on the job.

Level 2 – Learning: Using tests, skill practices, role playing, simulations, group
evaluations, and other assessment tools, level 2 evaluations assess how much participants
have learned. Again, although it is useful to know that participants have absorbed the new
skills and knowledge, a positive outcome here does not mean that participants will use the
new learning when they are back on the job.
Level 3 - Behaviour, Application and Implementation: Level 3 evaluation assesses
whether (and how much) participants applied the new knowledge and skills on the job. The
extent to which the new learning is applied in the workplace (or changes behaviours)
determines Level 3 success. Here too, it should be remembered, a favourable Level 3
evaluation does not guarantee that business outcomes will be positive.

Level 4 - Business Impact: Level 4 measures the extent to which business measures
have improved after training. Typical Level 4 measures are output, quality, costs, and time.
It is important to go beyond Level 4 business results, however, because even if the training
program results in substantial business improvement, there is still a concern that the
program’s costs may outweigh its business benefits.

Level 5 - Return on Investment (ROI): ROI is the ultimate level of evaluation. It

compares the monetary benefits from the program with the program costs. Although the
ROI can be expressed in several ways, it is usually presented as a percentage or
cost/benefit ratio. (Phillips 2005) The Phillips’ model evolves from, and can be distinguished
from, the earlier Kirkpatrick model by the adoption of return on investment to yield
additional, critical insight. ROI allows decision makers to compare the ultimate value of a
training investment with other potential investment opportunities. Isolation techniques:
Another key technique introduced by Phillips is ‘Isolation.’ In the past, a major barrier to
evaluating the business impact of training was the perception that it is all but impossible to
separate training’s impact from the many other potential factors driving bottom line results.
An important feature of the Dr. Phillips’ evaluation model, therefore, is the recognition that
credibility depends on the extent to which the evaluation accounts for these other factors.
The Phillips model uses ten techniques to isolate the business impact of training from other
potential sources of business improvement (interest rate changes, competitive environment,
marketing programs, employee bonus schemes, seasonal effects that temporarily contribute
to business improvements, etc.). Intangibles: A further refinement by Phillips to the
Kirkpatrick model is the addition of intangibles. According to the methodology, it is
important to recognize that some outcomes cannot be easily measured and converted to
monetary values. Attempting to put a dollar value on outcomes such as customer
satisfaction, a less stressful work environment, and employee satisfaction can be extremely
difficult, and the results may be of questionable value. Trying too hard to attach a business
value may call into question the credibility of the entire evaluation effort. As a result, the
Phillips methodology recommends that evaluators do not try to convert those “soft”
business measures, and instead report them as intangible benefits along with the “hard”
business improvement outcomes such as increase in sales, reduced defects, time savings,
etc. The ROI Evaluation Process

It worthwhile noting that evaluation may serve a number of key quality control functions in
addition to establishing training’s business value.

Some of the other objectives of evaluation are to: ƒ

 • improve the quality of learning programs ƒ

• determine if a program meet its objectives ƒ

• identify potential strengths and weaknesses in the learning program ƒ

• develop a cost/benefit analysis of training and an Human Resources Development (HRD)

investments ƒ

• support marketing of training or HRD programs ƒ

• determine a program’s appropriateness for the target audience ƒ

• assist in decision making about program investments and establish funding priorities

Implementation
Training method:-

Lectures for 3Days

Place (Grand conference hall in Fairmont nile city hotel)

The number of trainees (50)

Days Time Theoretical

9.00 - 11.00 Leadership skills
Day 1
11.00 - 1.00 Negotiation skills

1.30 - 3.30 Advanced selling skills

9.00 - 11.00 Operation management

11.00 - 1.00 HR Management

Day 2
Ultrasound-Guided RA and PM Education
1.30 - 3.30 View our extensive selection of free materials concerning
ultrasound-guided RA and PM.
9.00 - 11.00 Imaging systems
Day 3
11.00 - 1.00 Computed tomography machines & solutions
 1.30 - 3.30 Applying innovation to ECG workflow

Lecturers
Place of
Trainer Name Title Tele no. E-MAil
work
Cairo @--------
---------/Dr professor ----------01
university yahoo.com
Ainshams @------
---------/Dr professor ----------01
university gmail.com
Assistant
---------/Dr ----------01 Auc gmail.com@
professor

Tabulating Program Costs :In order to calculate the Benefit/Cost and the ROI, all of the costs involved in
the program must be tabulated. Among the typical cost components of training programs that should be
included are the needs assessment, cost to design and develop the program, the cost of all program
materials provided to each participant, travel and accommodation, and the fully loaded salaries (i.e.,
salaries plus benefits) of participants and facilitators.

Program cost:
lecturers 75000 LE
Conference hall 50000 LE
Accommodation 100000 LE
Lunch cost 25000 LE
Total cost 250000 LE

Evaluation

• improve the quality of learning programs ƒ( By Testing the trainees )

• determine if a program meet its objectives ƒ( By questionnaire)

• identify potential strengths and weaknesses in the learning program ƒƒ( By questionnaire)

• develop a cost/benefit analysis of training and an Human Resources Development (HRD) investments

( The ROI techniqueƒ )

• determine a program’s appropriateness for the target audience ƒ ƒƒ( By questionnaire)

• assist in decision making about program investments and establish funding priorities

refrences

Making training and development work: a best practice guide, Thomas N Garavan, Carole Hogan,
Amanda Cahir O’Donnell Cork: Oak Tree Press, 2003

Learning needs analysis and evaluation, 2nd ed., Francis Bee & Roland Bee London: Chartered Institute
of Personnel and Development, 2003

Training needs analysis in a week, Tom Holden London: Hodder & Stoughton, 2002

http://www.hr-guide.com/data/G510.htm

Instructional Design: The ADDIE Approach by Robert Maribe Branch

Active Training: A Handbook of Techniques, Designs, Case Examples, and Tips, 3rd Edition

Melvin L. Silberman, Carol Auerbach

Performance appraisal process
Our performance appraisal Methodology is MBO
The concept of MBO is very important in terms of its managerial implications.
Besides being a philosophy of management, it is a system which helps in
synchronizing the objectives of the individuals with the objectives of the
organization.

When implemented properly, systematically and consciously, the MBO has the
following advantages:
1. Improved Performance
MBO is basically a result-oriented process. Its main focus is on setting and
controlling goals. Managers are encouraged to do detailed planning. They
concentrate on the important task of improving performance by reducing the costs
and harnessing the opportunities. Improved planning will lead to improved
productivity arid more profits.

2. Greater Sense of Identification:

The individual members of the organization have a greater sense of identification
with the company goals. With MBO, the subordinates feel proud of being involved in
the organizational goals. This improves their morale and commitment to the
organizational objectives.

3. Maximum Utilization of Human Resources:

Since the goals are set in consultation with the subordinates, these are more difficult
to achieve and more challenging than if the superiors had imposed them. In
addition, since these goals are fixed according to the particular abilities of the
subordinates, it obtains maximum contribution from them and thus it leads to
maximum utilization of human resources.

4. No Role Ambiguity:
 There is no role ambiguity or confusion in the organization, because specific and
clear goals are set for the organization, for the division for the departments and for
the individual members. Both the managers and the subordinates know what they
have to do and what is expected of them.

5. Improved Communication:
In MBO, there is improved communication between the management and the
subordinates. This continuous two-way communication helps in clarifying any
ambiguities, refining and modifying any processes or any aspects of objectives.

6. Improved Organizational Structure:

In MBO, the whole of organizational structure is redesigned because of the revision
of job descriptions of various positions as a result of resetting of the individual goals.
All this helps in improving the organizational structure as a result of location of the
problem and weak areas of the organization.

7. Device for Organizational Control:

MBO serves as a device for organizational control and integration. If there are any
deviations discovered between the actual performance and the goals, these can be
regularly and systematically identified, evaluated and corrected.

8. Career Development of the Employees:

MBO provides a realistic means of analyzing training needs and opportunities for
growth for the employees. The management takes keen interest in the development
of skills and abilities of subordinates and provides an opportunity for strengthening
those areas which need further refinement, thus, leading to career development of
employees.

9. Result Based Performance Evaluation:

The system of periodic performance evaluation lets the subordinates know how well
they are doing. In MBO, strong emphasis is put on measurable and quantifiable
objectives. As a result, the appraisal tends to be more objective specific and
equitable. As these appraisal methods are based on result and not on some
intangible characteristics, there are considered to be superior to the trait evaluation
methods of appraisal.

10. Stimulating the Motivation of the Employees:

The system of MBO stimulates the employees motivation. First of all, they feel
motivated because of their participation in goal setting. They take keen interest in
the implementation of the goals which they themselves have set. Secondly the
appraisal system, being very objective and specific can be highly morale boosting.

Our organization Objectives:

  At Philips, we strive to make the world healthier and more sustainable through
innovation. Our goal is to improve the lives of 3 billion people a year by 2030.
We will be the best place to work for people who share our passion. Together we
will deliver superior value for our customers and shareholders.
 With our global reach, deep insights and leading innovations, we are uniquely
positioned in ‘the last yard’ to consumers and care providers, delivering:
- connected products and services supporting the health of people.
- integrated modalities and clinical informatics to deliver definitive diagnosis
- real-time guidance and smart devices for minimally invasive interventions
- connected therapeutic products and services for chronic care patients.
 Underpinning these solutions, and spanning the health continuum, our connected
care and health informatics solutions enable us to:
- connect patients and providers for more effective, coordinated, personalized
care.
- manage population health, leveraging clinical analytics.

Appraisal Period
From Jan 2020 to the end of June 2020

Employee should have a feedback about his appraisal within two weeks in a confidential
meeting with his direct supervisor to know his area of strength and area of
improvement in a professional manner and word of mouth that maintain our Employees
passion and enthusiasm

Employee Development plan

1- Depends on the appraisal evaluation that have discovered the area of strength and
the area of improvement for every Employee.
2-Then the direct and next managers with the HRD manager determine the critical
development courses, seminars, and workshops that the employee need urgently and
the mid-range courses that take a period from 1 to 3 year and the long-range
development that takes period more than three years.
3-Setting the description and duration of these courses.
4-Setting the Employee baseline score and the impact of these development plan on
the employee and the organization.
5-Setting the budget of these development courses.
6-Setting a monitoring plan to score the progress of each employee.
 Name EMP. NO Grade group Dept.
Confidential PA Form 2B

Excutives & supervisors

HRD Development -Performance Appraisal system

performanceananlysis and review
From 1/2020 to 6/2020
Name Date Segnature
Employee
Immediate superior
Next superior
personnel/ HRD Deprt.
Performance Against Objectives By Immediate superior

By Employee

Agreed objectives & Targets Results Achieved

1- •The Quality Engineer is responsible for reviewing and analyzing complaint data
2- •Developing and performing test methods for product testing and investigations
3- •performing root-cause investigations to establish corrective action plans and implement corrective actions .
4- •writing and updating procedures as required to ensure the quality system is compliant with regulations.
5-
Self Review By Employee
Significant controbuters( Job profession related) not covered above

important factors facilitating performance

important factors hindering performance
performance against Objectives( By Immediate superior)
90-100% 80-90% 70 - 80% 60 -70% 60%
 Appraisal of critical attributes ( By Immediate Superior )

critical attributes
Abilityto think new and better ways of doing things
1- Innovativeness that result in introduction of new ideas or
improvement of the systems and operations

2- Initiatve Ability to determineand initiate Actions without

waiting tobe told

3- Interpersonal & Ability to interact with people at all levels to gain

team relationship their confidence and respect

4- Resourcefulness Ability to muster resources to achieve desired results

and means of solving problems in difficult situations
Abilityto convey thoughts and feelings clearly by both
5- Communication skills
oral and writtin expressions for better understanding
Area of strengths& improvements ( By Immediate superior )
Major strengths :
Area of improvements :
potential Areas of growth

Recommendation for Training & Development

In the Company programmes out of the company programmes
Discription code duration Discription code duration

specific development plan :

proposed action :
Details of action required :
Next superior Comment :
FOR USE BY PERSONNEL/ HRD CO-ORDINATOR
 Employee Development plan
EmployeeName / ---------------------- Title /------------------------ Position code /---------------
Oganisation Code/---------------------- Direct Managername /
Appraisal Code /------------------------
Department Manager name/
Appraisal Date/------------ HRD Manager/

B
u
d
g
e
t
 Employee monitering development planimpact
EmployeeName / ---------------------- Title /------------------------ Position code /---------------
Oganisation Code/---------------------- Direct Managername /
Appraisal Code /------------------------
Department Manager name/

Appraisal Date/------------ HRD Manager/

No . area of improvement Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct Nov. Dec.
Baseline score
1 progress score
Baseline score
2 progress score
Baseline score
3 progress score
Baseline score
4 progress score
Baseline score
5 progress score
Baseline score
6 progress score
Baseline score
7 progress score
Baseline score
8 progress score
Baseline score
9 Baseline score
Baseline score
10 Baseline score
“At Philips, we fully embrace sustainability, because of its benefits for society, and
because we believe that it is a driver for innovation and economic growth. That’s
why sustainable development is an integral part of our company strategy.”

Frans van Houten, CEO Philips

Our approach

At Philips, we strive to make the world healthier and more sustainable through innovation. Our
goal is to improve the lives of 3 billion people a year by 2030.

This is reflected in our commitment to the United Nations’ Sustainable Development Goals:

SDG 3: Ensure healthy lives and promote well-being for all at all ages

SDG 12: Ensure sustainable consumption and production patterns

SDG 13: Take urgent action to combat climate change and its impacts

With its focus on access to care, circular economy and climate action, our ‘Healthy people,
Sustainable planet’ program will enable us to deliver on these commitments.

Healthy people, Sustainable planet

Philips recognizes the global challenges societies around the world are facing, and takes a dual
approach – social and ecological – to the way we operate and innovate as a company.

Our ‘Healthy people, Sustainable planet’ program, running from 2016-2020, will enable us
create value for our customers through sustainable products and services, leading by example
in our sustainable operations, and driving sustainability through our supply chain.

Aligned with the respective SDGs, the ‘Healthy people, Sustainable planet’ program focuses on
two streams:

Our contribution to Health and well-being for all (SDG 3)

We are committed to enabling financially sustainable care, e.g. by helping to drive value-based
healthcare, enhance the patient experience and improve the work life of care providers, as well as
extending access to care for the underserved, e.g. by means of locally relevant innovations and the
further roll-out of our Community Life Centers.

Our contribution to Sustainable consumption and production (SDG 12) and Climate action (SDG 13)

We are committed to the sustainable use of materials, e.g. through our Green portfolio and Circular
product and service design, and to the sustainable use of energy by becoming carbon-neutral in our
operations, e.g. by reducing emissions and increasing energy efficiency.
WWF Living Planet Report

In developing our approach, we adopted the WWF Living Planet Report. This report looks into the
United Nations Human Development Index (HDI) as well as the ecological footprint of each nation on
this planet.

Improve the lives of 400 million people a year in underserved healthcare communities by 2030

ustainable use of materials

Generate 15% of sales from circular products and services by 2020

Recycle 90% of operational waste and send zero waste to landfill by 2020

Close the loop on all large medical systems equipment that becomes available to us by 2020, and extend
circular practices to all medical equipment by 2025

Increase Green Revenues to 70% of sales by 2020

Sustainable use of energy

Become carbon-neutral in our operations, using 100% renewable electricity, by 2020

Supplier sustainability

Collaborative approach to drive structural improvements across our extended supply chain

Biodiversity

The Philips Biodiversity policy was issued in 2014 and progress was made on biodiversity management,
at sites (e.g. impact measurement), on natural capital valuation and on the management level. Most
initiatives were led by the Philips Leaders for Nature (LFN) team, site management, local sustainability
organizations worldwide and Group Sustainability in Eindhoven, the Netherlands. We continued our
global partnership with the International Union for the Conservation of Nature (IUCN) Netherlands
Committee and our participation in the IUCN LFN program which brings companies, NGOs and
governments together to work on the topic of business and biodiversity. Next, we made intensive use of
the internal company-wide social network platform to create and share activities and achievements
including training programs.

Philips recognizes the importance of healthy ecosystems and rich biodiversity for our company, our
employees, and society as a whole. We aim to minimize any negative impacts and actively promote
ecosystem restoration activities.

A biodiversity impact assessment was performed for all our industrial sites, using the geo-locations of
these sites and the Integrated Biodiversity Assessment Tool (IBAT). For every industrial site the nearest
Key Biodiversity Area or IUCN protected area was determined as well as the distance to such area. After
further validation with our industrial site staff, it appeared that only our Glemsford (UK) site is located
within a radius of 1 kilometer from such an area, the Glemsford Pits, but has no impact on its
biodiversity. The results of our assessment for all industrial sites can be found here ( hyperlink
https://www.philips.com/c-dam/corporate/about-philips/sustainability/downloads/ecovision-
methodologies/GRI-Biodiversity-2017.pdf ).

Philips participated in 2015 in the development of the Natural Capital Protocol and volunteered as a
pilot company. These activities continued in 2016.

In 2014, Philips worked with Trucost and performed an Environmental Profit and Loss (EP&L) analysis to
help identify natural capital dependency “hot spots” and place a financial value on Philips environmental
impacts. Next, Philips decided to implement the Ecochain software platform and performed an EP&L
using the 2016 data. The environmental impact of the Royal Philips sites is limited as they are not very
energy-intensive and do not emit large quantities of high-impact substances. The impact of our supply
chain however is significantly higher than our own impact. For this reason, we used the identified hot-
spots in our supply chain as input for our CDP Supply Chain program. Philips includes natural capital as a
source of value creation (https://www.results.philips.com/publications/ar17#/creating-value). Together
with the WBCSD and the Natural Capital Protocol we are further developing the EP&L concept and
methodology, including the environmental benefits.

Encouraging improvement, driving transparency, demanding integrity

We engage, support and collaborate with our suppliers in their pursuit of continuous improvement in
social and environmental performance. For example, we set clear targets and provide timely progress
updates. We provide tailor-made training and coaching on specific social, environmental and
governance issues. And we audit supplier performance, crucially providing proper support to help non-
compliant suppliers take corrective action.

The journey towards supply chain sustainability is a challenging one, often requiring an industry-wide
effort in collaboration with other societal stakeholders. That’s why we take a leading role in the
Responsible Business Alliance, RBA (formerly known as the Electronic Industry Citizenship Coalition,
EICC) and encourage our strategic suppliers to join the RBA too.

Integrity is fundamental to our sustainability efforts. We do not tolerate any form of unethical behavior
by our employees or business partners. And we encourage anyone who suspects a breach of ethical
standards in any of Philips’ business activities to report their concerns, in strictest confidence, via the
externally hosted Philips Ethics Line.

Our dedicated programs are driving improvements in social and environmental performance in our
supply chain

We have developed a number of strategic programs to help our suppliers improve their sustainability
performance, thus supporting our ambition to create a healthier, more sustainable world. These
programs cover the assessment of supplier sustainability performance, management of regulated
substances, conflict minerals, circular procurement, improvement of working conditions, and
responsible sourcing initiatives.

We have defined clear policies to help our suppliers meet the required standards in terms of
sustainability

Supplier Sustainability Policies

This list is our top 50 suppliers of Royal Philips, covering Philips HealthTech Public listed suppliers
excluding Philips Lighting and Philips Brand Licensees, providing materials, components and/or products
in 2016.

Supplier Sustainability Declaration

The declaration sets out the standards and behaviors we require from our suppliers – and their suppliers
– to improve conditions for workers and promote a cleaner environment for local communities.

Supplier Sustainability Declaration

Regulated Substances List

All suppliers and brand licensees must ensure that all products or parts and product packaging delivered
to Philips, as well as some manufacturing processes used to make Philips parts and brand license
products, comply with the applicable requirements in this list.

Regulated Substances List (English)

Sustainability Policies

Environmental policy

The Philips Global Environmental Policy is a core operating element for the operations of the entire
Philips organization. This living document is regularly reviewed and updated to ensure it meets the
needs of our stakeholders and the environment.

Long-standing commitment to sustainability

Our heritage in sustainability stretches all the way back to our founding fathers. Since our foundation
over 125 years ago, Philips has committed to sustainable business. Early on, we saw the importance of
schools, houses as well as sports clubs and training for the benefit of employees and the communities
they live in. We have focused on environmental sustainability since the 1970s by continuously looking
for ways to improve our operations, products and supply chains. And following the success of our
EcoVision sustainability approach in the period 1994 to 2015, we have now taken the next step: further
integrating sustainability into our core strategy.
Lives improved

To guide our efforts and measure our progress, we take a two-dimensional approach – social and
ecological – to improving people’s lives.

Products or solutions from our portfolio that directly support the curative or preventive side of people’s
health determine the contribution to the social dimension. This is also our contribution to UN
Sustainable Development Goal 3 (“to ensure healthy lives and promote well-being for all at all ages”).

The contribution to the ecological dimension is determined by means of our steadily growing Green
Products and Solutions portfolio, such as the energy-efficient products in our Personal Health
businesses. This is our contribution to Sustainable Development Goal 12 (“to ensure sustainable
consumption and production patterns”).

Finally, our program to become carbon-neutral in our operations by 2020 contributes to SDG 13 ("take
urgent action to combat climate change and its impacts").

In line with the Sustainable Development Goals’ time horizon, we aim to achieve our 3 billion Lives
Improved goal by 2030 (2019: 1.64 billion lives improved)

How we calculate Lives Improved?

We track the number of active products and solutions in the market and apply statistical data from
product experts and market intelligence on the number of people touched in a given year by those
products and solutions contributing to the social or ecological dimension. After elimination of double
counts – multiple different product and solutions touches per individual are only counted once – we
calculate the number of lives improved.

Measuring our environmental impact

We measure our environmental impact on society at large via a so-called Environmental Profit & Loss
(EP&L) account, which includes the hidden environmental costs associated with our activities and
products.

The EP&L account is based on Life Cycle Assessment methodology, in which the environmental impacts
are expressed in monetary terms using conversion factors developed by CE Delft.

In 2018, we reduced the environmental impact of Philips’ operations by 15% to EUR 175 million.

An increasing number of hospitals around the world are running green sustainability programs while
recognizing that public health and a healthy planet go hand-in-hand. In doing so they are acknowledging
that cutting back on waste and driving for responsible use of scarce resources can help achieve
significant cost savings.
Philips is supporting Rijnstate Hospital in Arnhem, the Netherlands with a green healthcare program.
One of the outcomes so-far is that Philips has been able to determine that Rijnstate is saving about
64,000 kWh of electricity annually by powering imaging systems off after hours.

The saving is the equivalent impact of a one-off 135,000 Euro* investment in solar panels.

With the global population expected to increase by more than 2 billion by 2050 new pressures are being
exerted on the world’s resources. Research suggests that Europe’s resource productivity could grow by
3% annually through the benefits of a circular economy.

Many hospitals have started to find ways to make adjustments which will enable them to function in a
long-term, sustainable way. A significant part of each hospital’s environmental footprint is the use and
upkeep of medical devices. Decision makers are now actively pursuing actions to limit waste and save
costs to their operations.

Green Healthcare collaboration

Rijnstate hospital in the Netherlands has partnered with Philips for 10 years. It runs an active
sustainability program and is the first fair trade hospital in the country, with an ambition to cut its CO2
emissions in half by 2020 compared to 2006.

Philips has expanded its service portfolio for Rijnstate with new Green Healthcare services: assessing
energy saving opportunities for medical imaging equipment; take-back and repurposing of medical
imaging equipment; and, sustainability project management. These services add a new dimension to a
10-year partnership agreement that Rijnstate and Philips started in 2010 for the delivery, installation
and implementation of imaging equipment.

In 2016 Rijnstate and Philips started a Green Healthcare collaboration with an analysis of possibilities for
reducing electricity consumption of medical imaging equipment.

Promoting medical device reuse

Back in 2001 Philips installed a Magnetic Resonance Imaging (MRI) system in the radiology department
at Rijnstate hospital. This advanced system was operational until early 2015, by which time it had been
used to examine more than 50,000 patients. Thanks to regular maintenance and interim upgrades
carried out by Philips, this system was in full use for approximately 14 years.

In 2015, Philips replaced the system with a new-generation system that is better suited to Rijnstate’s
present-day clinical needs. Philips took back the old system and, in accordance with the principles of the
circular economy, harvested as many parts as possible for reuse.

Philips has set up a systems refurbishment plant based in Best, the Netherlands, specifically designed for
this purpose, giving it a competitive advantage over its competitors. Some parts of the obsolete system
from Rijnstate will be used as spare parts, others have been used to build a refurbished MRI system that
is now in operation in a private clinic in Switzerland.

"Strategic partnerships between care providers and innovative health technology companies is key to
improve healthcare and to make it more affordable and sustainable. The collaboration with Philips is
giving a new boost to our sustainability program."

Carolien Kock

Environmental Advisor at Rijnstate

Focusing on energy savings

Philips supplies a large proportion of the imaging systems at Rijnstate hospital. As well as MRIs, the CT,
ultrasound and X-ray systems that the hospital deploys consume the same amount of electricity as
around 250 households per year.

As part of the Green Healthcare collaboration Rijnstate and Philips looked for ways to save energy when
using these systems, holding interviews with users and technical experts at the hospital. It became clear
that employees were willing and keen to focus more on saving energy, and that they are currently not
able to see how much energy is being consumed by the systems and the hospital. Philips is able to
provide insight in energy use of the systems, by combining technical specifications of the systems and
utilization data and also by temporary metering.

It is already common practice for medical systems to be switched off – where possible – at the end of
the working day, especially when these systems are used all day long by small, regular teams. The
investigations also showed that it is not always clear to employees how and when systems can be
switched off and that there is no attention devoted to this in training.

Real-time energy consumption

An evening control round showed that employees in the radiology department at Rijnstate are very
disciplined when it comes to switching systems off at the end of the working day.

If the findings of this control round are representative of the year as a whole, then switching the systems
off is saving the department about 64,000 kWh of electricity on an annual basis, which is an equivalent
impact of a one-off 135,000 Euro* investment in solar panels.

Philips has decided to devote more attention to energy savings in its operating manuals and to continue
implementing energy savings through its product designs.

Together with Rijnstate it will also be investigating smart ways to enable users to see in real time how
much energy is being consumed and will now explore possibilities for circular lighting in Rijnstate
hospital corridors, pay-for-use models for small equipment such as ultrasound transducers and IV
pumps and promoting the healthy use of escalators for visitors, patients and staff instead of energy
consuming elevators.
the circular imperative

Growing demand for healthcare from an expanding population, overconsumption of resources, waste,
pollution, climate – all these factors are putting unsustainable pressure on our ecosystems.

On the upside, a number of global trends – e.g. the shift to value-based care, changing consumption
patterns and the adoption of digital technology – are supporting the (essential) transition to a circular
economy.

our approach to recycling

Philips supports the principle of Individual Producer Responsibility (IPR) as introduced in article 12.3 of
the WEEE Directive. We therefore actively cooperate with our industry partners, the recycling
community and other stakeholders to further develop these systems and their supporting financial
mechanisms to create the boundary conditions to make IPR work. We see a transition to a Circular
Economy as a practical way to implement the Individual Producer Responsibility principle in reality.

Philips supports the setup of recycling infrastructures together with industry partners, where we share a
common strategy: creating sustainable financing schemes which guarantee the effective and
environmentally sound collection and recycling of WEEE. This approach has proven to be successful in
reducing environmental impact, minimizing the costs to society of these activities, raising consumer
awareness, and increasing effectiveness of recycling.

Philips recycles used products and related packaging materials in accordance with all environmental
laws. To get there, we work with various organizations. Depending on where you are around the globe,
retrieve detailed information on how to properly recycle Philips products by visiting our product
recycling services and recycling passport page.
Green Innovation

We define Green Innovation as innovation with the objective of developing green products and/or
technologies. Green Products are defined as products that offer a significant environmental
improvement in one or more Green Focal Areas: Energy, Packaging, Substances, Weight & Materials,
Circularity, and Lifetime.

EcoDesign process

We drive sustainability in all aspects of product creation through our EcoDesign process. This includes
life-cycle assessment to determine the environmental impact at each stage of a product's life from raw
material extraction through materials processing, manufacture, distribution, use, repair and
maintenance, and disposal or recycling.

The EcoDesign process led Philips to define six key Green Focal Areas for improved environmental
performance
Energy

Energy consumption is often the single most important factor in determining a product’s lifecycle
environmental impact. By improving the energy efficiency of a product, we can reduce its energy
consumption and carbon footprint.

Packaging

Lightweight and low volume packaging, use of recycled content and/or bio-based, biodegradable
content and improving recyclability of packaging help minimize the resource consumption and
environmental impact during the entire life cycle of packaging.

Substances

Products are made using a range of substances, some of which may have an impact on the environment.
By minimizing or eliminating the use of hazardous substances, we can reduce our products’
environmental impact.

Weight & Materials

By reducing the amount of materials we use, we can use fewer resources and less energy during
manufacturing and/or transportation. Also the choice of materials – e.g. precious metals, bio-based, bio-
degradable materials – can have a positive or negative environmental impact.

Circularity

Circularity refers to the potential of a system, product or component to contribute to the circular
economy. It is calculated by assessing environmental performance over multiple life cycles, taking into
account, for example, the recovery of materials and their reuse in new products. Upgrading,
serviceability, refurbishment, spare parts harvesting, increasing recycled content and recyclability – they
all help reduce the consumption of resources. Designing products for modularity, ease of disassembly,
component re-use and material purity also stimulates the circular economy.

Lifetime

Extending the useful lifetime of a product reduces the resource consumption and transportation
emissions associated with the introduction of new products.

Green Products and Green Revenues

Philips Green Products offer a significant environmental improvement in one or more Green Focal Areas:
Energy, Packaging, Substances, Weight & Materials, Circularity and Lifetime. This is done either by
meeting product-specific eco-performance requirements and/or being rewarded with a recognized eco-
performance label.

You can recognize a Philips Green Product by the Green Product mark, which is used on all eco passports
and Environmental Product Declarations for Green Products. Our Green Product process is subject to
external third-party auditor assurance from EY (previous years KPMG).

Philips reports its Green Revenues, which are comprised of revenue from products and solutions that
meet the Green Product definition.

For our Philips Green Products we use Life Cycle Analysis to set specific product requirements

For a representative PowerTouch Shaver, the two most impacting phases of the product's life cycle are
the use phase (due to the use of gel and cleaning of the device) and the production phase (including
materials). The contribution of the different phases to the product's total environmental impact is
shown on the following ‘ecoprofile’ graph. The packaging, transport, and end-of-life phases represent
respectively around 1% of the total environmental impact.

The ReCiPe methodology and the Netherlands’ environmental cost indicator* were used to assess and
calculate the environmental impacts of the product.

The LCA is based on a 7-year scenario in which an user buys one body and 3 to 4 spare head/cutter sets.

In this calculation, it is assumed that the end user has daily shaving sessions using gel and cleans the
device once a week with 32°C water.

*The environmental costs, also called “hidden” costs, are the environmental costs associated with a
product’s manufacture, use, and disposal (based on the cost of preventive measures that should be
taken to prevent the environmental impacts).

Ecoprofile graph
Eco MRI graph

Chemicals management

With our longstanding belief in the precautionary principle, eliminating and minimizing the use of
hazardous substances in our products and production processes has been one of our priorities since the
start of our environmental activities more than three decades ago. It’s also an important part of our
EcoDesign process.

Philips Regulated Substances List

Philips maintains a Regulated Substances List (RSL) for products which includes substances:

banned by law or by Philips that need to be monitored due to regulatory requirements or

that Philips wants to monitor from a precautionary point of view.

The Regulated Substances List (RSL) is part of the Philips Terms of Reference for suppliers. All suppliers
are required to comply with the RSL.

The RSL is updated regularly to ensure it captures the latest requirements and concerns, and includes
the substances listed in BOMcheck. Philips and a number of other large electronics companies
developed BOMcheck as an industry platform that standardizes the way in which companies collect
chemical composition information from their supplier. Philips also asks its suppliers to provide
compliance declarations to the RSL via BOMcheck. The list of restricted substances is available for
download at the right side of this page.

The RSL contains a number of substances that Philips wants to phase out from a precautionary point of
view, despite the fact that there is no regulation yet requiring Philips to do so. Below are some examples
of substances voluntarily phased out.
Polyvinyl chloride and brominated flame retardants

Polyvinyl chloride (PVC) is a polymer with properties that make it suitable for many applications.
Brominated flame retardants (BFR) are widely used in electronic products as a means of reducing the
flammability of the product. There are potential environmental side effects of both PVC and BFR due to
unsafe recycling and disposal causing widespread concern.

Therefore, Philips banned PVC from product packaging in the mid-1990s. In 1998, Philips began
proactively restricting the use of flame retardants polybrominated biphenyls (PBBs) and
polybrominatedbiphenyl ethers (PBDEs) in many product categories, anticipating the EU RoHS
legislation.

In 2008 Philips made a public commitment to phase out the use of PVC and BFR in consumer products,
starting with a number of pilot projects to replace these substances. In 2010, Philips launched the first
PVC and BFR free 42” Econova LED-TV (42PFL6805) awarded by EISA. In 2010, Philips also lauched a
more comprehensive PVC/BFR free policy, committing Philips phasing out these substances in new
consumer products placed on the market after January 2011. This has already led to a large number of
PVC/BFR free Oral Healthcare, vacuum cleaner, and shaver products.

The electronics industry relies on the use of PVC and BFR containing plastics. Sometimes their use is
mandated by technical, safety or regulatory standards. Despite these challenges, Philips remains
committed to its ambitious roadmaps to make PVC and BFR free consumer products across the entire
portfolio of electronics devices.

Phthalates and antimony

Philips is also phasing out the use of phthalates and antimony compounds in consumer products.
Phthalates are used as plasticizers in PVC and antimony trioxide is used as a synergistic flame retardant.
The phase out of PVC and BFR will contribute to the phase out of phthalates and antimony trioxide.

Arsenic and antimony in glass

Philips has restricted the use of arsenic and antimony in lamp glass from 2008 onwards.

Beryllium

Where technologically feasible, Philips has restricted the use of beryllium in our products.

Chemical used in Production

The production and use of chemical substances are increasingly controlled by global regulations due to
health, safety and environmental concerns. Although legal obligations may vary from country to
country, Philips assumes responsibility to comply with all legal requirements and responsible
management of chemical substances. Philips is committed to reduce the use and emission of
substances that are classified as hazardous by striving to use alternative substances and processes as
well as best available technologies, where possible. Philips has established documented procedure(s)
regarding the presence, introduction and use of substances in our manufacturing processes and has
created a Classified Substance List (CSL) reference tool. The CLS contains those chemical substances
that shall not be used withinPhilips manufacturing processes or shall be limited, monitored and/or
reported at Philips.

The Classified Substance List is compiled from the following lists as appropriate for production activities:

1. REACH Annex XIV (the “Authorization List”),

2. REACH Candidate List of Substances of Very High Concern,

3. REACH Annex XVII (Substances restricted on marketing and use),

4. Regulation (EC) No 1272/2008 of 16 December 2008 on Classification, Labeling and Packaging of

substances and mixtures (CLP table 3.1),

5. Guidelines for the Identification of PCBs and Materials containing PCBs,

6. The PBT (Persistent bio-accumulative toxic chemical) List,

7. PAH (Polycyclic Aromatic Hydrocarbons) list,

8. POP (Persistent organic pollutants) list, and

9. Handbook for the Montreal Protocol on Substances that deplete the Ozone layer-7th Ed (2006)

The CSL is reviewed and updated annually.

REACH

REACH deals with the Registration, Evaluation, Authorization and Restriction of Chemical substances,
and entered into force on June 1, 2007. The aim of REACH is to further improve the protection of human
health and the environment through the better and earlier identification of certain chemical substances.
It is legislation from the European Union, and applies to all suppliers (inside and outside Europe) that
want to sell, import or manufacture chemicals and/or products containing certain chemicals in the
European Union.

Philips supports the objective of REACH to further improve the European Union’s regulation on
chemicals, including the aim to advance public health and safety and to protect the environment.

We have requested our component or finished products suppliers to provide us information on the
relevant chemicals in their supplied products. This enables us to provide our customers and consumers
with information about so called substances of very high concern (SVHC) from the candidate SVHC list of
the REACH regulation, as required by article 33 of REACH.
At Philips, we see climate change as a serious threat. One that is expected to cause some 250,000
additional deaths per year globally. Therefore we have to take action to rethink our business models and
decouple economic growth from the impact we have on the environment. This will not only benefit the
environment, but will positively impact social and economic aspects as well.

Carbon performance

Carbon reduction targets

Towards 100% renewable electricity

Carbon offsetting

Carbon performance

As part of our company vision to make the world healthier and more sustainable through innovation, we
have already made significant advances in minimizing our impact on the environment. We’ve reduced
our operational carbon footprint, including emissions from our sites, business travel and logistics, by one
third since 2007. This is good progress, but we need to do more in order to become carbon-neutral by
2020.

Operational carbon footprint in kilotonnes CO2e

Carbon performance graph

Carbon reduction targets

Philips has set new long-term CO2 emission targets assessed and approved by the Science Based Targets
initiative (SBTi) – a collaboration between the CDP, the United Nations Global Compact (UNGC), the
World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) aimed at driving ambitious
corporate climate action across the value chain. The approval confirms that Philips’ targets are in line
with the level of decarbonization required to keep global temperature increase below 2°C.

Towards 100% renewable electricity by 2020

In 2018 we increased the proportion of our global energy requirement that is provided by renewable
electricity to 90%, up from 79% in 2017. With the opening of Windpark Krammer in the Netherlands in
May 2019, we took a big step towards reaching our climate reduction targets, with 100% of our Dutch
operations now being powered by renewable wind energy. Philips closed long-term contracts with the
Krammer and Bouwdokken windfarms in the province of Zeeland through its renewable electricity
purchasing consortium with Nouryon, DSM and Google. Combined with the 100% target already
achieved in the United States through the Los Mirasoles windfarm, Philips is now firmly on course to
achieve its global carbon neutrality ambition.

Carbon offsetting

Although reduction is key to carbon neutrality, unavoidable carbon emissions require offsetting in order
to drive down our emissions to zero by 2020. In 2018, we compensated 330 kilotonnes of carbon
emissions, equivalent to the annual uptake of approximately 9 million medium-sized oak trees. This
covers the sum total of the direct emissions from our sites, all our business travel emissions, and all our
ocean and parcel shipments within logistics.

We do this by financing carbon reduction projects in emerging regions that have a strong link with
health and well-being (UN Sustainable Development Goal 3) and sustainable consumption (UN
Sustainable Development Goal 12).

We have selected projects in emerging regions that, as well as reducing emissions, drive social,
economic and additional environmental progress for the communities in which they are rolled out. For
example, by financing high-efficiency cookstoves in Kenya and Uganda, less wood or coal will be
required for cooking, leading to lower carbon emissions, a reduction in diseases caused by indoor air
pollution and a lower deforestation rate in these regions. The local production of these cookstoves
provides jobs for hundreds of people.

Carbon reduction projects in Uganda and Ethiopia will provide millions of liters of safe drinking water
and will improve public health by reducing water-borne diseases and indoor air pollution. Clean water
does not require boiling for disinfection, reducing the need for wood from already degraded landscapes
and reducing carbon emissions.

In India a project in the Dewas region will reduce the demand-supply gap and provide renewable energy
to more than 50,000 households. It will also provide a mobile medical unit in 24 villages, giving diagnosis
and medicines free of charge twice a month. Additional funding will be provided to educational
programs and improving sanitation facilities in five local schools to maximize the social impact.

Sustainability Awards

Frans van Houten, CEO & Chairman, Royal Philips received the Fortune Award
for Circular Economy Leadership

Philips ranked #2 by scoring 82 out of 100 points overall in the Health Care
Equipment & Services industry group.

Philips for the sixth consecutive year been placed on the Carbon Disclosure
Project (CDP) Climate Change A List. Philips scored the CDP A rating for its engagement with suppliers on
climate change.
 Philips CEO Frans van Houten, as the co-chair of PACE (Platform for Accelerating
the Circular Economy) at the World Economic Forum launched a pledge to take back and repurpose all
the large medical systems that its customers are prepared to return to it.

Philips is the world’s first health technology company to have its CO2 targets
approved by the Science Based Targets initiative.