AKSUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY
CHAIN MANAGEMENT

ASSESSING FACTORS AFFECTING THE PRODUCT

QUALITY IN CASE OF ALTEXPLC

A RESEARCH PROPOSAL IS SUBMITTED TO THE

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT IN PARTIAL FULFILLMENT FOR THE
REQUIREMENT OF BA DEGREE IN LSCM

BY: FIROMSATAFASSE
ID: AKUR/0323/05

ADVISOR: INSTRUCTOR DAWIT.H (MBA)

DATE: 13/06/2007

AKSUM, ETHIOPIA
 Table of contents

1. Introduction ................................................................................................................... 1
1.1 Back ground of study .............................................................................................. 1
1.2 Statement of the problem ........................................................................................ 2
1.3 Object of study ........................................................................................................ 3
1.3.1 General objective of the study .................................................................... 3
1.3.2 Specific objective of the study .................................................................... 3
1.4 Significance of study ............................................................................................... 3
1.5 Scope of the study ................................................................................................... 3
1.6 Research methodolody ............................................................................................ 4
1.6.1 Research design ........................................................................................... 4
1.6.2 Sample and sampling techniques ................................................................ 4
1.6.3 Source of data and data collection method ................................................. 4
1.6.4 Procedure of data collection ........................................................................ 5
1.6.5 Method of data analysis .............................................................................. 5
1.7 Limitation of the study ........................................................................................................5
1.8 Time schedule .....................................................................................................................6
1.9 Budget schedule ..................................................................................................................6
1. Introduction

1.1 back ground of the study

A manufacturing industry has existed one form of other during most humans history,
however, for hundred years it was preemptive as way of life. During that time with occasional
advancement follow discoveries anew technologies growth has also registered in
manufacturing industries .peoples began to lives as a results of emergencies of practice such
as: textile, agricultural tools and leather goods as well as luxuries. Textile manufacturing was
first developed in Britain as result of inventing the spinning and weaving machine. Later it
was spread to other parts of crape to USA, Japan, China and etc. (P.Kottler, 2006, P -82)

Product can be defined either industrial or consumer products depends on buyers intention the
main classification between two types of products are their intended use business products are
used to manufacture other products goods and service to facilitate the organizations
operations or to sell other customers. Consumer products are bought to satisfied an
industrial’s personal wants(Arun Kumar N.mekshi 2006,p-174 ) and also product is any goods
services or ideas that can be offered to the market to satisfy want and needs its things
produced by labor effort result of act or process: products are the heart of marketing which
needs to exist for order element of mix has to happen (Boundeless,2014,P-66 ). The product
concept holds that consumer will favor these products that will offer the most quality,
performance and innovation of features. Managers in this organization focus on marketing
superior products and improving them overtime .However, these managers sometimes caught
up in allover affair with their products. The might count the better mouse trap fallacy belief
that a better mouse trap will had people to beat apathy to their door A new or improved
product will not provide successful unless product is priced,distributed,advertised and sold
properly(P.kottler,2006,P-15).

From this perspective we can also define production as the process of which combined and
transforms various used in production or operation system of organization in to value added
product in controlled manner as per policy of organization. Generally themanufacturing

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product called production. (R.planner selvan, 2005, P-2) and the product quality is ultimately
reflected in market share and service that consumers are willing to pay. The product
qualitystate to answer the question such as how good production is the product results from
developmenteffort? Does it satisfy the customer needs? And is it robust and reliable? (Karl
Ulrich, Steven D. Eppinger, 2008, P-2).

1.2 Statement of the problem

Manufacturing industry is the main economic set of the developed countries our country
which means Ethiopian has almost some progress in expanding manufacturing industries to
support repopulation and improve its economy. Among these industries, textile industries are
distributed in various part of the county. From these industries ALTEXPLC creating job
opportunity for many peoples and supplies the products to the society and also export to other
foreign countries. The main reason for the researcher conducting this study is because based
on information that will going to obtain through survey ALTEXPLC faced with many
problems in it is production produce and the valuable and high quality of products to satisfy
the consumer of the company.

Since researcher want to study on the company that produce high quality of product to explore
the factors affects product quality of the company. And also ALTEXPLC face challenge that
protect to produce high quality of products. The challenges might rise because different
department in the Company might have different perception to produce high quality of
product that satisfies the customers’ needs.

The researcher will address the following questions;

 What are the main factors affecting the product quality of the company?
 How these factors cause for affecting product quality?
 Does the company consider the factors and create means to solve the problem?
 What are the strategies of the organization to reduce the problem of the company’s?

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1.3 Objective of the study
1.3.1 General objective the study
The main objective of the study is to assess the factors that affecting product quality of
ALTEXPLC
1.3.2 The specific objective of the study

The specific objectives of the study are:

 To identify the factors that affects the product quality of the company.
 To examine the impacts of these factors on product quality.
 To provide some suggestion and recommendation to reduce the occurring problem of
the company.

1.4 Significance of the study

The study can contribute for the organization for the researcher and for other competitors. For
the organization it uses to make the product with high quality of the company efficient and
effective. It also use to have deep understanding of possible constraint of company and to
recommend the remedies for the problem. For the other competitors organization especially
textile factory can learn how to satisfy their customers and customer behavior towards the
textile products. Because the life of business organization is depend on the customer.
For the researcher to support to motive and gain confidence and knowledge by conduct this
study and also he/she might get the research profession and announcement as well as respect
from various aspects.

For the junior students it uses to provide the motive to conduct their study by using this study
as a model. It also uses to gain experience through reading this study and to conduct their
final research project very well.

1.5 Scope of the study

Even if there are many company in the country this study limited or bounded to assess the
factors that affect product quality of ALTEX PLC. When the study will going to conduct to

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make detail investigation these areas sample employees of the company are to take provide
reliable data and information .The data that will going to collect have only bound in the area
of product quality activities of ALTEX PLC. The study will use the information that will gain
from the employees of the company through questionnaires and interview.

1.6 Research Methodology

1.6.1 Research design
The study will have to use the descriptive research method to identify the influence that
affects the product quality of ALTEXPLC.Because descriptive research method is help to
show current events. The study is design to check the performance of the company to product
quality and to represent true information which is going to collect from sample of employees.

1.6.2 Sample and Sampling technique

The target population of ALTEXPLC is the employees of the company which is found in
Adwa town. Currently ALTEXPLC has 18 departments and these departments are grouped
into three main classification: namely production commercials and administration
departments. Each groups called stratum. But the total number of departments in those groups
is finding to be too many and the contribution of some department to the study is very low.
Hence by using judgmental sampling techniques two departments out of 20 departments will
select of 20 employees from spinning and 10 weaving department are finally take to
consideration by using simple random techniques. Since the total employees of spinning are
500 and weaving are 357 employees. The research will take 35% as sample size. Thus the
research will have use judgmental sampling technique to select sample department .It is
preferable due to the researcher belief that they are provide the best information to achieve the
study. And simple random sampling is preferable to select sample employees because it gives
equal chance to respondent and its simple to use or research conduct. Hence the target
population of the study is the employees.

1.6.3 Sources of data and data collection method

To conduct this research of study both primary and secondary sources are going to administer
carry out .The primary sources will have gather through interview questionnaire to the

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employees of the company .Whereas secondary sources will have to collect from annual
report of the company,HRM decision of the company, and also others are from books and
internets .The whole efforts of the study is depend on the data that will collect from the
employees of company .Therefore ,the study uses different types of data collection method to
conduct the study.These are questionnaire,interview and most important documentary
analysis.The study of questionnaire includes both close ended and open ended question. Close
ended questions are not to bias and open ended questions are use to collect suggestion of the
respondents .The interview is un structured which helps to get more information in detail and give
freedom for interviewer to the question and get the direct data

1.6.4 Procedure of data collection

1. The questionnaire will be designed
2. The questionnaire will be organized in properly manner.
3. Appointing the interviewee and informing the respondents thatthe questionnaire will be
distributed to them.
4. The responses of the questionnaire will be organized properly.
5. Having to take important points during interview and observation.
6. Analysis of the data that will be collected.

1.6.5 Method of data analysis

The data that will be collected by interview, questionnaire, and documents will be analysis
and interpret data presentation system.These will present and interpret through description
summary statement using tables and percentage techniques.

1.7 Limitation of the study

This study is more depend on the response that will provide from the questionnaire distribute
to the employees who are working the company. Since the study that regarding to the
fulfillment the questionnaires and other activities are influenced by:

 Shortage of finance and time to collect data.

 Lack of the experience to conduct the research.

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  Shortage of enough data which is to conduct literature review because of lack of
materials such as reference books and so on.

1.8 Time schedule

No Task description Jan. Feb. March April May June
1 Title selection 

2 Institution selection 
3 First draft proposal 
4 Proposal comparisons 
5 Data collection  
6 Data process and 
analysis
7 Report 
8 presentation 

1.9 Budget schedule

No Task description No of unit Unit cost Total cost

1 Pen 5 pieces 5 25 birr
2 Binder 1 28 28 birr
3 Paper 95 pages 0.25 cents 23.25 birr
4 Ruler 1 5 5 birr
5 Hater book 1 15 15 birr
6 Packet roper 1 95 95 birr
7 Transportation 3 40 120 birr
8 Printer 2 40 80 birr
9 Flash 1 150 150 birr
10 Mobile card 2 25 50 birr

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 Total cost 591.25 birr

Reference
Ulrich and Steven D.Eppinger,2004, Product design and development, Tata mc grow hill

Kotler, P2006,Principles of marketing, prentice hall of India

D.Boundless,2004,Marketing management, win mc grow hill

A Run Kumara and Nmeenekshi, 2006,Principle of marketing, prentice hall India

James pawl Pater,J.H,Donner JR,2004,Service marketing, Tata mc grow hill

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