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.
TABLE OF CONTENTS
TITLE PAGE ………………………………………………………………………………….. Error! Bookmark not defined.
DECLARATION ……………………………………………………………………………………………………………………….. ii
CERTIFICATION ……………………………………………………………………………………………………………………… iii
DEDICATION …………………………………………………………………………………………………………………………. iv
ACKNOWLEDGEMENT …………………………………………………………………………………………………………….. v
ABSTRACT …………………………………………………………………………………………………………………………….. vi
TABLE OF CONTENT ……………………………………………………………………………………………………………… vii
LIST OF FIGURES …………………………………………………………………………………………………………………….. x
LIST OF TABLES ……………………………………………………………………………………………………………………… xi
CHAPTER ONE ……………………………………………………………………………………………………………………….. 1
INTRODUCTION ……………………………………………………………………………………………………………………… 1
1.1 Background to the Study ………………………………………………………………………………………………… 1
1.2 Statement of the Problem ……………………………………………………………………………………………… 3
1.3 The Present Research Study …………………………………………………………………………………………… 3
1.4 Aim and Objectives of the Study ……………………………………………………………………………………… 4
1.5 Significance of the Study ………………………………………………………………………………………………… 4
1.6 Scope of the Study ………………………………………………………………………………………………………… 4
1.7 Limitation of the Study…………………………………………………………………………………………………… 5
1.8 Company Description at a Glance ……………………………………………………………………………………. 5
CHAPTER TWO ………………………………………………………………………………………………………………………. 7
REVIEW LITERATURE ………………………………………………………………………………………………………………. 7
2.1 Review of Related Literature ………………………………………………………………………………………….. 7
2.2 The Definition and Dimensions of Quality ………………………………………………………………………… 9
2.2.1 Performance: …………………………………………………………………………………………………………. 9
2.2.2. Reliability ………………………………………………………………………………………………………………. 9
2.2.3. Durability ………………………………………………………………………………………………………………. 9
2.2.4. Serviceability ……………………………………………………………………………………………………….. 10
2.2.5. Aesthetics ……………………………………………………………………………………………………………. 10
2.2.6. Features ……………………………………………………………………………………………………………… 10
2.2.7. Perceived Quality …………………………………………………………………………………………………. 10
2.2.8. Conformance to Standards ……………………………………………………………………………………. 10
2.3 Statistical Thinking for Quality ………………………………………………………………………………………. 11
2.3.1 Statistical Process Control (SPC) ……………………………………………………………………………… 12
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2.3.2. The Importance of SPC ………………………………………………………………………………………….. 12
2.1.1 The Concept of Quality ………………………………………………………………………………………….. 14
2.1.2 Quality Control and Quality Assurance …………………………………………………………………….. 15
2.4 The Role of Statistic in Quality ………………………………………………………………………………………. 15
2.4.1 The Statistical Quality Control Technique …………………………………………………………………. 16
2.4.2 Types of SQC Tools ………………………………………………………………………………………….. 17
2.5 Quality Control Charts …………………………………………………………………………………………….. 19
2.5.1 Types of Control Charts with their Applications ………………………………………………………… 21
2.5.2 Control Charts for Variables ……………………………………………………………………………… 21
2.5.3 Control Charts for Attributes: …………………………………………………………………………… 24
2.6 Distributions of data ………………………………………………………………………………………………. 25
2.7 Types and Causes of Variation in Sqc ………………………………………………………………………… 26
2.8 Process Capability (PC) ……………………………………………………………………………………………. 27
2.8.1 Measuring Process Capability …………………………………………………………………………………. 28
2.8.2 Process Capability Index (Cpk) …………………………………………………………………………………. 29
CHAPTER THREE …………………………………………………………………………………………………………………… 32
METHODOLOGY …………………………………………………………………………………………………………………… 32
3.1 Preview ………………………………………………………………………………………………………………… 32
3.2 Items Used ……………………………………………………………………………………………………………. 32
3.3 Data Collection ………………………………………………………………………………………………………. 32
3.3.1 Data extracted for Can filler Machines from appendix A ……………………………………… 32
3.3.2 Data extracted for Bottle filler Machines from appendix B …………………………………… 33
3.4 Establishing the Mean, Range and Standard Deviation (S.D) using Excel ……………………….. 34
3.4.1 The Mean, Range and S.D of Can fillers …………………………………………………………….. 35
3.4.2 Establishing Control Limits, Range and Standard Error for Can filler ……………………… 36
3.4.3 The Mean, Range and S.D of Bottle fillers using excel ………………………………………….. 37
3.4.4 Establishing Control Limits, Range and Standard Error for Bottle filler …………………… 38
3.5 Construction of Control Charts for both Can and Bottle filler ………………………………………. 40
3.5.1 The resulting X-bar Control Chart for Can filler …………………………………………………… 40
3.5.2 The resulting R-Chart Control for Can filler ………………………………………………………… 41
3.5.3 The resulting X-bar Control Chart for Bottle filler ………………………………………………… 42
3.5.4 The resulting R-Chart Control for Bottle filler ……………………………………………………… 42
3.6 Measuring the Process Capability (Cp) Of the Machine Fillers ……………………………………… 43
3.6.1 Determining the process capability for Can Filler: ……………………………………………….. 43
3.6.2 Determining the process capability for Bottle Filler: ……………………………………………. 44
3.7 Determining the Process Capability Index (Cpk) Of The Machine Fillers ………………………… 44
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3.7.1 Cpk for Can fillers …………………………………………………………………………………………….. 44
3.7.2 Cpk for Bottle fillers …………………………………………………………………………………………. 45
CHAPTER FOUR ……………………………………………………………………………………………………………………. 46
DISCUSSION OF RESULTs ……………………………………………………………………………………………………….. 46
4.1 Collected Data …………………………………………………………………………………………………………….. 46
4.2 Analyzing the Established Parameters ……………………………………………………………………………. 46
4.3 The Control Charts ………………………………………………………………………………………………… 47
4.4 Analyzing the Process Capability Values ……………………………………………………………………. 48
CHAPTER FIVE ……………………………………………………………………………………………………………………… 49
SUMMARY, CONCLUSION AND RECOMMENDATIONS ………………………………………………………………. 49
5.1 Summary ………………………………………………………………………………………………………………. 49
5.2 Conclusion …………………………………………………………………………………………………………….. 49
5.3 Recommendations …………………………………………………………………………………………………. 50
REFERENCES ………………………………………………………………………………………………………………………… 51
APPENDICES ………………………………………………………………………………………………………………………… 54
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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4. Does the company know when to perform preventive maintenance on machines?
These were some of the questions posed for this write up.
1.4 Aim and Objectives of the Study
The principal aim of this project work is to apply SPC as a QC tool to Habila food and beverages Nig. Ltd in order to monitor the volume dispersion in the filling process, thereby reducing the stress of final inspection of products produced. The specific objectives are;
1. To establish the upper and lower control limits of machines processing lines using SPC technique as QC tool
2. To construct the X – bar and R chart QC charts of the process and then use it to detect or identify the cause of variation (if any) in the production process before they result in defective products
3. To profound possible solution to causes of variation identified in (2) above
4. To determine and analyze the process capability of the filling process so as to ascertain which of them fills the bottles/containers according to specifications.
1.5 Significance of the Study
The important of this study cannot be over emphasized owing to the fact that applying SPC technique of QC to Habila Foods and Beverages Nig. Ltd would not only eliminates the need for final inspection, identify the causes of variation ( if any) but equally reduces the amount of inefficient production lines alone with direct and indirect labor costs. The result is a direct increase in bottom line profitability and to improve production processes.
1.6 Scope of the Study
The scope of this project report covers only the machines processing line i.e. its processes in fruit and juice section. This research area was limited to just production process line of the company. However, the technique could be extended and applied to other process lines and other divisions of the organization where it is necessary.
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1.7 Limitation of the Study
From the onset, some facts that are likely to hinder the full realization of the objective of the study must be made clear. In a country like Nigeria where the culture of reading is not well developed and imbibed by individuals and organizations, there is a strong tendency that information (data) collected will contain errors of misrepresentation especially in a study of this nature where the information (data) sought concerns the internal and operational issues of an organization as it might be rightly or wrongly thought that divulging such information will be inimical to public judgment. The above fact is further compounded by the following limitations:
1. The study lack sufficient access verify the given data
2. All efforts to access other quality control data so as to expand the scope of this study prove abortive; hence this study is limited to (machines) production process lines only.
1.8 Company Description ata Glance
Habila Foods & Beverages Nig. Ltd is a renowned organization in Lagos and Kano metropolis. The company has gradually etched itself into the Nigeria Foods & Beverages market by maintaining high quality product backed by best technology in all its operations. The company is fully into the manufacture and distribution of quality fruit juices and non – alcoholic beverages ranging from Pineapple juice, Orange juice, Bottle and Sachet water, Yogurt, Sobo, and many more. As part of its plans for expansion, the firm has procured a multi-million naira plant solely for the production of processed tomatoes and other food seasonings. This is aimed at lowering the cost of such products in the open market as well as offer new methods on food preservation.
Habila has nine (9) installed machines in fruit and juice section where this research work was carried out, well calibrated for filling bottles and cans drinks. Though, all the
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machines were not meant to be function at a time, most often, four (4) or five (5) normally in operation while the others were on stand-by mode. Hence, this project work was carried out on processing lines of the machines in fruit and juice section of the company in order to monitor the volume dispersion in the filling processes.
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