The Application Of Statistical Quality Control Technique In Food And Beverage Industry

ABSTRACT

Controlling and improving Quality has become an important business strategy for many organizations, because a business that can delight customers by improving and controlling quality can dominate its competitors. Hence, this project work focused on the application of statistical quality control technique to Habila Food and Beverage Nigeria Limited, in order to control and improve the quality of their products so as to remain in the competitive market. To achieve the aim and objectives of this project work, quality control data were collected through the primary source (i.e. directly from the Quality Control Department of the company). Thereafter, the respective statistical parameters such as the Means, Ranges, Standard Deviations, Centre Line Control Limit, (CL), Upper Control Limit (UCL) and Lower Control Limit (LCL) were developed and analyzed for the company using statistical approach. The resulting Control Charts was also constructed using the parameters developed for better understanding and visibility. From the results, it was found that most of the process data collated and analyzed lies within the designed range of specifications, gives values implying that the process is capable of producing acceptable product. However, those ones out of control which are attributed to assignable causes such as lack of personal training, poor mix, mechanical fault, etc, are to be subjected to process monitoring and evaluation so as to better their products.

CHAPTER ONE

INTRODUCTION

1.1Background tothe Study

We have all had the experience of purchasing a product only to discover that it is defective in some waysor does not function the way it was designed to; drinks in cans or bottles not properly filled up as expected.Asconsumers, weexpect the products we purchase should be able to satisfy our needs. However, producers of products knowthat it is not always possible to inspect every product andevery aspect of the production process at all times. The challenge is to design ways tomaximize the ability to monitor the quality of products being produced and eliminatedefects.One way to ensure a quality product is to built-in quality into the production process (Akinnola, 2009).

Controlling and improving quality has become an important business strategy for many organizations, manufacturers, distributors, transportation companies, financial services organizations, health care providers, private and government agencies. Quality has become one of the most important consumer decision factors in the selection among competing products and services. The phenomenon is widespread, regardless of whether the consumer is an individual, an industrial organization, a retail store, a bank or financial institution, or a military defense program, manufacturer, designer to mention but a few. Consequently, understanding and improving quality are key factors leading to business success, growth, and enhanced competitiveness. There is a substantial return on investment from improved quality and from successfully employing quality as an integral part of overall business strategy. Quality is a competitive advantage and therefore any business that can delight customers by improving and controlling quality can dominate its competitors (Douglas,2009). Competition is one of the most important factors in running a business in the world economy today. For

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almost every product or service ever designed, there is more than one organization trying to make a sale. Price is, of course, one of the major issues in whether a sale is made or lost. If the cost of producing goods or services results in high prices, a firm may not be competitive. But another factor that a customer considers before buying a product is quality. In fact, a reputation for producing quality products is often a major marketing issue (Akinnola, 2009).

Douglas (2009) says, Quality is not just of concern in manufactured products, it is important in banking, hospital care, education, air travel, food industries, auto repair, postal delivery services and a host of other firms in the service industry.Quality management (QM) is the commonly used term for stressing quality within an organization. QM uses a systems perspective because it is not a program for one department, but a responsibility of everyone in the organization. To keep quality at the desirable levels, all firms employ the concept of quality control. Quality control (QC) is important not just in the production or transformation process, but earlier at the design stage and later at the service stage as well. One of the major roles of the operations manager is to make sure his or her firm can deliver a quality product to the right place at the right time and with a right price (Douglas, 2009).

Tamini and Sebastianelli (1996), says Quality can be a confusing concept, partly because people view quality in relation to differing criteria based on their individual roles in the production- marketing chain. In addition, the meaning of quality has evolved as the quality profession has grown and matured. Neither consultants nor business professionals agree on a universal definition. Accordingly, a study that asked managers of 86 firms in the eastern United States to define quality; several dozen of different responses such as: perfection, consistency, eliminating waste, speed of delivery, compliance with policies and procedures, providing a good usable product, doing it right the first time, delighting or pleasing customers, and total customer service and satisfaction were obtained. Thus, it is

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important tounderstand the various perspectives from which quality is viewed in order to fully appreciate the role it plays in the many parts of a business organization.

1.2 Statement of the Problem

It is not enough to focus on the finished products that customers received. How these products are produced i.e. the processes, also needs to be addressed most especially in this era of strain on the resources and rising costs of manufacturing/production. It becomes increasing apparent that decision must be made on facts, not just opinions; consequently, data must be gathered and analyzed in order to help guild the decision making process and as such SPC technique would help in analyzing the process quality of Habila Food and Beverages Nigeria Limited so as to monitor the volume dispersion in the filling process.

1.3 The Present Research Study

This research work title;“Application of Statistical Quality Control in Foods& Beverages Industry. Acase study of Habila Food and Beverages Nigeria. Limited”, aims to apply statistical process control (SPC) technique as a quality control (QC) tool to production processes of Habila Food and Beverages Nigeria. Limited. Since the best way to control quality in any manufacturing/production or non- manufacturing industry is to „built-in quality? during the production process stages. It is of this view that this project work be carry out to ascertain whether their machining processes falls within or outside the predetermined control limits of the manufacturing process. The basic research questions that prompted this write up are:

1. Can current data be used to improve the quality of machines processes, or is it just data for the sake of data?

2. Does both bottles and cans of the products properly filled as calibrated by the machines?

3. Is Company?s quality cost really known?

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