CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Quality
control techniques has assumed a central position in the present day production
process. The reason for this is not far-fetched, the growing complexity of the
business environment coupled with the increase customers need satisfactions and
the considerable competition, the business has to contend with the customers
expectations as invaluable tools for business success.
Quality
control techniques as an important tool in the manufacturing therefore, cannot
be under scored because, it is the technique use in comparing the actual result
with the expected result that will meet the needs or satisfy the customers
needs. It has therefore become paramount that, quality control technique(s)
system is efficiently designed to enable manufacturing industries attained
optimization in their product standard. The heavy cost of operation and the
intense competition faced by manufacturing companies among others call for the
needs for quality standardization in order to remain relevant in the market
place. Indeed, it is of the above that, seven-up company plc, has quality
control technique(s) system to carry out full responsibility of quality control
of organization products.
Quality
means different things to different people in a layman term, quality entails
some degree of excellence or superiority. Excellence or superiority is a
relative word whereby what is qualified as excellence by one, may not be
excellence to another person. Juran J. M. one of the quality gurus who hailed
from Japan, views quality as fitness for use. Control takes the form of meeting
standard quality, according to specification. The technique through which we
established and meet standard is simply called “control”. When such process is
established and applied to problems of product quality, it is then called
quality control technique(s).
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1.2 STATEMENT
OF THE PROBLEM
This
project is focused to appraise the impact of quality control technique(s) in
manufacturing industry particularly seven-up Company Plc as a case study. This
is important because, quality of a product may be defined in terms of its
kinds, types, features, property, and degree of its goodness or excellence.
However, a lot of problems are faced by most manufacturing organization
including seven-up Bottling Company, Kaduna in their products. These problems
include:
i.
In ability of the product to meet a
required standard. If company products are to satisfy the customer’s
requirements, then it is necessary to establish a standard for the functional
and appearance aspect of their products as well as their durability
requirement. This aspect is essentially the general requirement for setting up
a quality control technique(s) system in order to ensure that standard is
strictly maintained.
ii.
Problem of meeting product specifications.
Often times, products fails to meet the specification required by customers
because of assignable causes like, defective materials used, improper setting
of equipment, manpower operational errors etc. It is note worthy to mention
that it cost the same amount of money to produce product units.
iii.
Problem of variation in quality of
product(s) most manufacturing industry including seven-up Bottling Company Plc,
that produce by mass production method on machines repeatedly, produce with
unconsciously varying quality of the product(s) because of lack of proper
quality control in place.
Emphasis
should therefore be on prevention rather than error detection. Consequently,
the attainment of sustainable quality, depends on appropriate human performance
or behavior when the products are being manufactured. It is a pity however,
that in the face of economic depression like our society, managers in
manufacturing industries go to any length to compromise standard for their
personal and selfish interests. To ameliorate this vice, quality control managers
should be adequately renumirates so that, they can perform their functions
effectively.
1.3 OBJECTIVES
OF THE STUDY
The
primary objective of this study is to critically appraise and analyze the
impact of quality control technique(s) in seven-up bottling company plc. It is
also aimed at achieving the following objectives.
1.
To understand the various production
control problem facing manufacturing industries, seven-up Company including, in
an effort to enhance its contribution to product quality as well as
profitability.
2.
To highlight the usefulness and importance
of quality control technique(s) to all other manufacturing firms within the
Industry who are involved directly or indirectly in the task of production as
regard to product standard.
3.
To expand the understanding and enriched
the writers knowledge of quality control technique(s) as an important tools for
greater performance in production sector.
1.4 STATEMENT
OF HYPOTHESIS
The
following hypotheses are put forward to guide the researcher in this study:
i.
Ho: Quality
control technique(s) is not an important tool for efficient performance in
manufacturing industry.
ii.
Hi: Quality
control technique(s) is an important tool for efficient performance in
manufacturing industry.
1.5 SIGNIFICANCE
OF THE STUDY
The
major significance of this study is for the partial fulfillment of the
requirement for the award of Higher National Diploma (HND) in Production and Operations
Management and to expand the understanding of the writer’s knowledge regarding
research study. Others significance are:
i.
To serve as a reference for further
research by students and other academicians.
ii.
To serve as an assets to management of soft
drinks industry, particularly seven-up Bottling Company plc.
iii.
To be used by manufacturing organizations in
carrying out their quality control activities.
1.6 SCOPE
OF THE STUDY
This
research work is only concerned with how quality control techniques has been on
Industrial performance and how it has helped and will continue to improve the
effective performance of quality control in the manufacturing industry. The
scope of the study, will cover all the techniques used by the quality control
department and their performance effectiveness as regard to organizational
productivity.
1.7 LIMITATION(S)
OF THE STUDY
The
limitation of this study shall be limited to seven-up bottling company plc,
kaduna particularly the production department. However, the researcher
encountered some difficulties in the course of carrying out this study. This
limitation include the following;-
1. Lack
of disclosure of some vital document to the researcher: Some vital document
that contained the organization vital information about their efficiency was
not disclosed to the researcher, this actually hampered the smoothness of the
study, in no small measure. This is because, such document they claim contains
some company trade secrets.
2. Time
constraints: This was another major problem because of the academic activities
in the school, the scope of cover was limited and owing to the security at the
gate of the company. The researcher could not get a feed back information
regarding the questionnaire on time.
3. Financial
constraints: The researcher was faced with financial constraints and lack of
cooperation on the part of these to be interviewed, and the manager was always
at the meeting and at a point, my visit were viewed as an interruption in the
production process as some technicalities had to be shown to me which as a
result slack the operating speed etc.
1.8 HISTORICAL
BACKGROUND OF THE CASE STUDY
Seven-up
bottling company plc, one of the country’s leading soft drinks manufacturers
was founded by Mr. Mohammed El-Khalil a Lebanese, in the year 1959. It
commenced bottling operations on October 1, 1960, which coincided with Nigerian
Independence day; with just one plant at Ijora-Lagos (now the administrative
head office). Records showed that, on that same day, a total of 14 cases of
seven-up flavor was sold. Although, the number did not put the Company in the
Guinness Book of Record, it certainly was a significant accomplishment for the
company. The Company was quoted in the Nigerian stock Exchange and went public
in 1984. Through hard work and determination the company has been able to
expand its plants and distribution (Depots) network to all part of the country.
Its greatest period of growth actually started in the early 80’s with the
Opening of Ibadan Plant in 1980. The acquisition of John Holt soft drinks
brought Kaduna Plant to light in 1989. Also, Ilorin Plant was established in
late 1989, although, presently closed down due to logistic reasons.
Seven-up
Bottling Company Plc are Producer of (7-up) “The difference is clear”, Pepsi
–cola, (Generation next), Mirinda, orange, Mirinda pineapple, team lemon and
mountain dew. They were formerly cased in 25cl but now in 35cl and 50cl
respectively. The Company has sister company known as “Sunglass” which
manufactures it bottles. The activities of Kaduna region (plant) is headed by
the General Manager, who coordinate the entire Company activities under the
following function.
i.
OPERATIONS
DEPARTMENT:
This can be seen as the
largest unit in the organization. Headed by the plant manager, the department
consist of the following sub-departments, quality control unit, production
unit, stores (purchasing) unit, engineering unit, warehouse unit as well as
computer unit.
ii.
MARKETING
DEPARTMENT:
This department is tasked
with the responsibilities of managing sales, merchandising, transport (Delivery
to depots) and other marketing issues of both the plant and its four depots
(Zaria, Jos, Suleja and Minna). It is headed by the area marketing manager.
iii.
PERSONNEL
DEPARTMENT:
Personnel department
handles, all personnel and administrative matters, security, canteen, clinic,
training, wages and time-keeping as well as other services in respect of
employee. It is headed by the personnel manager.
iv.
FINANCE
DEPARTMENT:
This department handles all accounting
tasks (costing/stock and revenue) banking matters, all other finance related
duty. It is headed by the plant accountant.
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1.9 DEFINITION
OF TERMS
These
are definitions of some words which might sound strange to the reader and which
will also makes the researcher work comprehensively readable. These are:
MATERIALS: These are component parts
or raw materials that are use to produce other goods that are kept in the store
houses.
SPECIFICATION: Specification is the
statement providing description list of characteristic or requirement laid down
for materials component or process service.
QUALITY CONTROL: Quality
control is the process of setting standard for acceptability of goods purchased
or goods manufactured where actual is compared with expected quality.
STANDARD: Standard is the level of
tense used as a test or measure for weight, length, quality test or for
required degree of excellence.
INSPECTION: Inspection is the logic
checking of conformance with specification or standard.
MONITORING: Monitoring is the process
of continuous inspection to see that test are carried out in accordance with
specification.
COST:
Cost is the monitory value of goods or services
purchased.
PRODUCT: These are bundles of an
item(s) that provides satisfaction, manufactured output or performed service.
RELIABILITY: These are products or
services that have all characteristics expected of them. In terms of functional
performance, taste etc.
ACCEPTABLE QUALITY LEVEL(AQL): Is that level of quality that is associated
with the lowest total costs.