CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

Product quality and price constitute vital factors that consumers consider in the choice of product. Unfortunately however, the qualities of products continue to decline due to a number of factors. First and foremost, the production cost and other considerations have placed a heavy burden on product quality since as the economy weakens, the quality of a products is being sacrificed for quality at a relatively lower price. Secondly, most manufacturer have a realization that to survive in a recessionary economy such as ours, there is the need to review prices downwards to induce patronage from the low income groups all these are threats to quality.

In the seven-up Bottling company industry the nature of the existing completion where by foreign manufactures dominates the markets in Nigeria provides serious challenge to the indigenous manufacturers. Foreign products are often preferred by most Nigerians on the basis of quality, durability, price, colours, etc. this constitute an important competitive advantage to the foreign manufacturers and a threats to the indigenous company.

This calls for effective quality control in our seven-up industry to enhance product standardization and to favourably compete with other producers.

This study is an attempt to provide a realistic approach to quality control in seven-up bottling company.

Quality control is the comparison of products and services with a set standard. Total quality involves customer satisfaction by building in and ensuring quality from product planning to production, purchasing sales and services. In total Quality Management (TQM), everybody is involved and not just the quality control staff alone.

1.2      STATEMENT OF THE PROBLEM

The quality of product may be defined in terms of its kinds, type, character, property, degree of goodness or excellence.

However, most present day, goods including seven-up company are produced or manufactured by massive production method on machines which repeatedly produce almost identical units owning to the uncontrollable variation in the quality of the processing machines, variation of the manufactured product are bound to occur.  

If a company’s product is to satisfying the customer’s requirement, then it is necessary for the company to establish standard for the functions and appearance aspects of its products as well as for the durability requirement, then this is the general requirement for setting up an quality control department to ensure that standards is adhere to.

Quality of seven-up products some times fail to meet specification because of some assignable causes, defective materials, improper setting of equipments, operation errors, manpower and many others unassignable causes because it cost the same amount to produce goods unit, emphasis should be on prevention rather than error detection.

Thus, the attainment of suitable quality depends upon the appropriate human performance or behavior when the product is being made. Consequently, conflict arises between quality control personnel and production personnel, when this happens, it is the managers responsibility to resolve the conflict. In the economic depression in our society today, man becomes corrupt and can go at any length to compromise standard for their personal benefits.

1.3      OBJECTIVES OF THE STUDY

Against the background of the enumerated of the organization, the following are the objective of the study.

1.     To examine the process of quality control technique in printing industries in particular to Seven Up Bottling Company.

2.     To also highlight it importance in reducing the cost of correcting effective product in printing industries in particular to 7Up Bottling Company.

3.     To also determine the impact of quality control techniques on profitability in printing industries in particular 7Up Bottling Company.

4.     To preset impartial fulfillment of the requirements for the award of Higher National Diploma in productions and operation management.

1.4      STATEMENT OF HYPOTHESIS

Hypothesis is a statement of facts that has not being practically tested. It is an opinion or suggestion put for ward as a starting point for investigation leading to some findings.

To guide this study, the null hypothesis (Ho) and the working hypothesis (Hi) are developed by the researcher to be tested and a decision in either to accept or reject any of the hypothesis will be taken.

Ho - Null Hypothesis

H1 -Working Hypothesis

H0:   Quality control techniques does not have significant impact on product standardization of an organization.

H1:Quality control techniques have significant impact on product standardization of an organization.

1.5      SIGNIFICANCE OF THE STUDY

The significance of the study is to enlighten corporate bodies, individuals and numerous organization on the need for quality control and product standardization of both money and capital markets and to facilitate their understanding of how they can mobilize capital with minimum difficulty.

Therefore, the study will have a stimulating significance to students and scholars intending to enhance their acknowledge in this filed.

1.6      SCOPE OF THE STUDY

This study of quality control as an effective tool in product standardization is the aim of research to beyond the elementary understand the subject at hand. To enlighten the reader and given deep insight or illumination on quality control in product standardization and their interaction, relationship, quality connection, influences and enhancement that occur.

1.7      LIMITATION OF THE STUDY

Actually, this piece of work ought to be voluminous than what it is not but, due to the factors encountered by the researcher during the period which are beyond my control.

The seven-up company plc-Kaduna, it is hoped that this write up will bring about desired and improved change in their quality control process and habit. Therefore, the project is aimed at examining the term quality control as it affects the standard of a product.

Inadequate finance brought delay, time wasting and access to total comprehensive information and data, hence, that is clearly understand or financial crisis is part and Persil of student. The crash academic programme of the researcher couple with lecturer combining service with supervising of project pose problem or threat in its way.

Lack of prompt innovation and initiative ability by company staff and new product failure. Financial deficiency by the company, all the process of new quality product development involves money (huge amount). It is never done over night, it takes time, labour.

Another factor that limiting the scope of this study was financial constraint, since movement involved transportation. The researcher has to reduce the number of times on contact with the company used as a case study.

There was also a problem of response from questionnaires distributed, most of the customers and distributor of seven-up plc, products requested for explanation before filling the questionnaire those who could not get explanation return their questionnaire unfilled, while some did not complete theirs, this provided inadequate information as to testing hypothesis.  

More so, lack of adequate text book was another problem the researchers work faced, since the researcher major work faced, since the researcher major source information was from secondary source most of the text books required to derive information, from were not available with all this problems, the researcher has to rely on the few information gotten to carry out the research work.

1.8      HISTORICAL BACKGROUND OF THE CASE STUDY

Seven-up Bottling company Plc, one of Nigeria’s leading carbonated soft drinks (CSD) manufacturers, was founded by Mr. Mohammed El-Khalil, a  

Lebanese, in the year 1959. The company commenced operation on October 1st 1960, which conceded with Nigeria’s independence day, with just one plant in Ijora-Lagos (now the administrative Head Office). Records showed that, on that same day, a total of 14 cases of seven-up flavor were produced.

The company was quoted in the Nigerian stock exchange and went into public offered in 1984. Through hard work and determination, the company has been able to expand its plants and distributions network to all parts of the country. Its greatest period of growth actually started in the early 80’s with the opening of Ibadan plants (1980), Ikeja plant in 1981, Kano plant in 1985, and Aba plant in 1989.

The acquisition of John Holt soft drinks brought Kaduna plant to lime light in late 1989. The company later opened Benin plant in 1996, Ilorin plant in year 2002, and Enugu plant in year 2002.

The company’s vision statement is to be most admired and innovative company in Nigerian by year 2010”, the mission statement is to fresh and inspire a youthful life style.

The company produces 7-up, pepsi, mirinda orange, mirinda soda, mirinda lemon, mirinda apple, mirinda fruity, mirinda tonic, mirinda tropical, teem lemon, and mountain dew.

1.9      DEFINITION OF TERMS

Quality:     Anything that confirms with ones predetermined standard or specification.

Materials:  These are components parts of raw materials that are kept in the store house.

Specification:     Is the statement of providing description or list of characteristics or requirement laid down for materials component or process of services.

Quality Control:  The process of setting standards for acceptability for goods purchase and produced by the organization base on the acceptance or rejection of materials upon the standard.

Standard:  Level often used as a test or measure for weight, length, qualities or for the require degrees of excellence.

Standardization: This is to make one size, shape, quality etc, according to fixed standards.

Cost: This is the monetary value of goods purchase.

Reliability:  Products or services that can be relied upon as a result of its quality, performing up to expected standard

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