Annual Report 2005/06 THE WORLD OF SOUND - Sonova

of new, innovative technologies that further improve the benefitsfor end users. Therefore, Phonak will invest significant R&Dresources to further enhance the quality of life of many hearingimpairedchildren and adults. Phonak will continue its closecollaboration with researchers and scientists worldwide in orderto drive innovation in these respective fields even further.kit and is based on a modular approach that allows a high degreeof reuse, resulting in further improvements in productquality. Every future product line will benefit from the learningcurve and improvements of its predecessor. Consequently, theinherent risk of introducing a new product decreases significantlyover time.The importance of product qualityOver several decades, Phonak has built up an excellentreputation for its high-quality and high-performance hearinginstruments. In the process, it has transformed itself from aniche provider of high-end hearing systems to a complete solutionsprovider. The current product portfolio covers all pricesegments and caters for a wide variety of user requirements.Common to all products are the high quality standards typicallyassociated with the name Phonak.Hearing instruments are subject to standards imposed bythe Medical Device Directive of the European Community, MDD93/42/EEC, and by ISO standards 9001:2000 and 13485:2003,respectively. In order to comply with these rules, Phonak has toensure biocompatibility of its products and must not usehazardous raw materials or operating supplies in its productionprocess.Unlike other medical devices, regulations allow a continuousproduct improvement process for previously introduced hearinginstruments. Based on customer feedback and inputs fromPhonak’s quality assurance team, all hearing instruments aresubject to continuous improvements during their product lifecycle.Ever shorter innovation cycles have fuelled a dramaticincrease in the number of new products launched. In the financialyear 2005/06 alone, the Phonak Group launched six new productfamilies. In addition to the responsible product teams, a specialquality assurance team has been set up to assure the qualityof every individual product line across its entire life cycle.The proprietary PALIO platform has been extended furtherduring the financial year and provides the foundation for manyother product lines, such as Indigo, the new Unitron Hearinginstrument in the premium segment. The PALIO platform is a toolClose partnership with our suppliersWe have built close relationships with our suppliers overmany years. Suppliers make a vital contribution to the developmentof new products: they provide the manufacturing equipment,raw materials, components, and operating supplies neededto make hearing systems. Innovation is based on effectivecollaboration between internal departments and several hightechcompanies delivering specific building blocks incorporatingtheir areas of expertise e.g. micro-electronics or electromechanics.Hearing instruments are miniaturized high-performancemedical devices and Phonak’s suppliers share the same challengesand quality requirements and, like Phonak, are also subjectto standards imposed by the Medical Device Directive of theEuropean Community and by ISO norms.In 2006/07, Phonak will continue to broaden and strengthenits cooperation with suppliers, which is key to keepinginnovation at the current high level and to further improve competitiveness.Sustainability39