Chapter One: 1.1. Back Ground of The Study

[Statistical Quality Control Tools and Techniques Implementation in ELICO/Awash Tannery ] [2016/17]
CHAPTER ONE
1 INTRODUCTION
1.1. Back ground of the study

Globalization has made manufacturing organizations moving towards three major competitive
areas: quality, cost, and responsiveness. Quality is a universal value and has become a global
issue. In order to survive and be able to provide customers with good products, manufacturing
organizations are required to ensure that their processes are continuously monitored and
product qualities are improved. Manufacturing organization applies various quality control
techniques to improve the quality of the process by reducing its variability. A range of
techniques are available to control product or process quality. These include seven statistical
process control (SPC) tools, acceptance sampling, quality function deployment (QFD), failure
mode and effects analysis (FMEA), six sigma, and design of experiments (DoE).
These papers explore the existing quality control practice of ELICO (Ethio-Leather Industry
PLC) and identify the factors that influence the selection of quality control techniques. The
paper also discusses the reasons for applying quality control techniques, the techniques used,
and problems faced by them during the implementation.
1.2. Statement of the Problem
It is required to identify and analysis the statistical quality control method of the ELICO in
terms of the issue discussed in statistical quality control. And also to find out problems in
taking measurement and recording data while monitoring a quality of products using statistical
quality control techniques.
1.3. Basic Research Questions
In this paper, the research questions will be focused on the following key points:-
 What are the basic quality characteristics?
 Which is the basic process to determine these quality characteristics?
 What are the causes of variation between products?
 What are the factors that affect the quality of the product?
 What are the quality control techniques that the company used?
 How the company achieves quality improvement?
1.4. Objective of the Research
General objective
 To study the quality control methods of ELICO/Awash Tannery/ in terms of the topic
discussed in statistical quality control tools & Techniques Implementation.
PREPARED BY Masresha , Solomon & Yonatan Page 1

Specific objectives
 To analyze the existing quality control techniques of the company.
 To identify problems on product quality.
 To propose solution and recommendation for identified quality problems.
1.5. Significance of the Study
ELICO is one of the largest leather and leather product Producer Company in the country for
both local and export market, since the product sold throughout the world the computation will
be very high, in order to stay in this highly competitive market quality will be the basic issue.
This research will analyze the quality control methods that the company used and, propose
solutions and recommendation for identified problems in order to attempt customer’s
satisfactions.
1.6. Scope of the paper
The scope of this study is limited to the area of identification and analysis of statistical quality
control methods of ELICO/Awash Tannery factory/.
1.7. Research Methodology
In order to identify and analyze the statistical quality control methods of ELICO, the following
methodologies are used: -
Literature survey: Studying and analyzing the different relevant literature dealing with the
subject matter.
Data Collection: The method that used for data collection includes:
 Collecting all the available documents.

 Gathering necessary information and data from stakeholders (concerned personnel) of the
factory through interviews.
 Observing the methods of measurements carried out based on visits to the factory.
Data Analysis: the collected data are analyzed in order to identify and examine the existing
practices of the factory.

CHAPTER TWO
2. LITERATURE REVIEW
2.1. Quality
Different meaning could be attached to the word quality under different circumstances. The
word quality does not mean the quality of manufactured product only. It may refer to the
quality of the process (i.e., men, material, and machines) and even that of management. Where
the quality manufactured product referred as or defined as “Quality of product as the degree in
which it fulfills the requirement of the customer. It is not absolute but it judged or realized by
comparing it with some standards”.
Quality begins with the design of a product in accordance with the customer specification
further it involved the established measurement standards, the use of proper material, selection
of suitable manufacturing process etc., quality is a relative term and it is generally used with
reference to the end use of the product.
Crosby defined as “Quality is conformance to requirement or specifications”. Juran defined as
“Quality is fitness for use”. “The Quality of a product or service is the fitness of that product or
service for meeting or exceeding its intended use as required by the customer.”
Quality is a measure of how closely a good or service conforms to specified standard. Quality
standards may be any one or a combination of attributes and variables of the product being
manufactured. The attributes will include performance, reliability, appearance, commitment to
delivery time, etc., variables may be some measurement variables like, length, width, height,
diameter, surface finish, etc.
2.2. Statistical quality Control (SQC)
Statistical Quality Control is the process of inspecting enough products from given lots to
probabilistically ensure a specified quality level. The underlying concept of statistical quality
control is to ensure, in a cost efficient manner, that the product shipped to customers meets
their specifications. Inspecting every product is costly and inefficient, but the consequences of
shipping non-conforming product can be significant in terms of customer dissatisfaction. The
first contribution to SQC was made by W.A. Shewhart in his book “Economic Control of
Quality of Manufactured Product” published in 1931. Shewhart gave a precise and measurable
definition of manufacturing control; developed powerful techniques for monitoring and
evaluating day-to-day production and suggested a variety of ways of improving quality.

2.3. Statistical Quality Control Techniques

The phrase “statistical quality control” (SQC) refers to the application of statistical methods
to monitor and evaluate systems and to determine whether changing key input variable (KIV)
settings is appropriate. In otherworld, statistical quality control provides the statistical
techniques or tools which are used by quality professionals to assure and improve the quality of
products and services.
Statistical quality control can be divided into three broad categories that provide different types
of information for use in analyzing quality: -
I. Descriptive Statistics: - are used to describe quality characteristics such as the central
tendency and variability of observed data and relationships. Included are statistics such
as the mean, standard deviation, the range, and a measure of the distribution of data.
II. Acceptance Sampling: - is the process of randomly inspecting a sample of goods and
deciding whether to accept or reject the entire lot based on the results.
III. Statistical Process Control (SPC): - involves inspecting a random sample of the
output from a process and deciding whether the process is producing products with
characteristics that fall within a predetermined range. SPC answers the question of
whether the process is functioning properly or not. Therefore, statistical process control
(SPC) tools are used most frequently because they identify quality problems during the
production process.
The major tools of statistical process control are: -
A. Histograms: - are effective and simple graphic tools for the comprehension and
analysis of a process behavior with regards to the target value and the specification
limits. The histograms illustrate the frequency distribution of variable data.
B. Pareto Chart (Diagram): - This graphical tool derives its name from the Italian
economist Pareto, and was introduced for quality control by Dr. Juran, a famous quality
Guru. Juran found that a vital few causes lead to a large number of quality problems,
while a trivial many cause only a few problems. First the causes are ordered in
descending order of interest. The characteristic of interest may be the percentage cause
of nonconforming items, economic losses, etc. The ranked causes are then shown as
bars where the bar height represents the characteristic of interest.
C. Cause and Effect Diagram: -This diagram, also called a fish-bone diagram, was
introduced by the Japanese Professor Dr. Kaoru Ishikawa (hence it is also known as an
Ishikawa diagram). The cause and effect diagram provides a graphical representation of
the relationship between the probable causes leading to an effect. The effects are often

the vital few noted in a Pareto chart. The causes are generally due to machines,
materials, methods, measurement, people and environment. The diagram can also be
drawn to represent the flow of the production process and the associated quality related
problems during and between each stage of production. The main advantage of a cause
and effect diagram is that it leads to early detection of a quality problem. Often, a
brainstorming session is required to identify the sub-causes. The disadvantage of the
cause and effect diagram is its inability to show the interactions between the problem
causes or factors.
D. Defect Concentration Diagram: - A defect concentration diagram, also known as a
location check sheet, is picture of a unit, showing all relevant views and the various
types of (apparent) defects. It helps to analyze whether the location of the defects on the
unit (such as position of oil leakage in a container) gives any useful information about
the causes of defects.
E. Control Chart: - was introduced by W.A. Shewhart in 1924, are effective tools for the
analysis of the variation of repetitive processes. They are able to identify possible
sources of process variation in order to control and eventually eliminate them. In a
generic process, two different kinds of variations can be distinguished: -
a) Common causes variations: - They are the noise of a production system and are
uncontrollable variations.
b) Assignable (or special) cause’s variations: - They can be properly identified and
controlled. Some examples are turnover in workman load, breakdowns, machine or
tool wear out, and tool change.
Control charts are a family of tools for detecting the existence of special cause’s variations in
order to avoid them, i.e., eliminate all anomalous controllable patterns, and bring the process
into a state called “of statistical control,” or simply “in control,” whose random behavior is
justified by the existence of common cause’s variations.
Control charts may be classified into two general types.
a) Variables control charts
b) Attributes control charts.
Control charts have had a long history of use in industry. There are at least five reasons for
their popularity:-
a. Control charts are a proven technique for improving productivity.
b. Control charts are effective in defect prevention.
c. Control charts prevent unnecessary process adjustments.

d. Control charts provide diagnostic information.

e. Control charts provide information about process capability.
F. Scatter Diagram: - is a graph that shows the relationship between two quantitative
variables measured on the same individual. Each individual in the data set is
represented by a point in the scatter diagram.
G. Check Sheet: - A check sheet is a simple device for data collection, and summarizing
all (historical) defect data on the quality characteristic(s) against time, machine,
operatives, etc. It helps one identify trends or meaningful results in addition to its role
in proper record keeping.
2.4. Variables Control Charts
Variables control charts are used when the quality characteristic is measurable on a continuous
scale. For example, the dimension of a piston ring is measurable as a continuous variable. In a
typical process, there may be several hundred variables, and only key performance or use
characteristics are considered for control charting using variables charts. The control statistic
M for variables charts is usually the mean of the quality characteristic. That is, the intention of
control charting is to monitor the process level. For example, the true mean dimension of the
piston ring may change either upward or downward during the production. Hence the subgroup
means are used to monitor the process level, and the resulting chart is known as the mean chart
(x̅-charts). This chart will be accompanied by either the range (R) chart or standard deviation
(S) chart which will monitor the increase in (within subgroup) variability over time.
2.5. Attribute Control Charts
By the attribute method we mean the measurement of quality through noting the presence or
absence of some characteristic or property in each of the units, and counting how many units
do not possess the quality characteristic or property or simply counting how many times
predefined events of nonconformance occurred. The advantage of the attribute method is that a
single chart can be set up for several characteristics, whereas a variables chart must be set up
for each of the characteristics with an accompanying chart for controlling variability.
2.5.1. p-Chart for Fraction Nonconforming
This chart is also known as the proportion chart. Instead of proportions, if percents are used,
then the p-chart will stand for percent chart. The p-chart configuration is intended to evaluate
the process in terms of the proportion or fraction of the nonconforming units. A unit may be
classified as nonconforming based on predefined classification events such as the breach of a
specification, go or not-go gauge, judgment, etc.

2.5.2. np-Chart
The np-chart is essentially a p-chart, the only difference being the observed number of
defectives is directly plotted instead of the observed proportion defective.
2.5.3. c-Chart for Counts
The c-chart or count chart is a configuration designed to evaluate the process in terms of such
count of events (e.g. count of defects or nonconformities occurred in a sample). Note that no
classification of units as conforming or not occurs while counting the events. If so, the relevant
chart is the p-chart.
2.5.4. u-Chart
The u-chart or count per unit chart is a configuration to evaluate the process in terms of
average number of predefined events per unit area of opportunity. The u-chart is convenient for
a product composed of units whose inspection covers more than one characteristic such as
dimension checked by gauges, other physical characteristics noted by tests, and visual defects
observed by eye.
2.6. Time-weighted Charts (Shewhart control chart)
Shewhart control charts are useful to quickly detect sudden big shifts occurring in a production
process.
2.7. Process Capability
Process capability is also another important concept in statistical quality control. Being in
control of a manufacturing process using statistical process control is not enough. An "in-
control" process can produce bad or out-of-spec product. Manufacturing processes must meet
or be able to achieve product specifications. Further, product specifications must be based on
customers’ requirements. Process capability is the repeatability and consistency of a
manufacturing process relative to the customer requirements in terms of specification limits of
a product parameter.
2.8. Elements of a Successful Statistical Process Control Program
Five elements usually present in a successful statistical process control program can be
identified as follows in their order of importance, based on
a. Management Commitment and Leadership.
b. Team Approach to Problem Solving.
c. Statistical Process Control Training for All Employees.
d. Emphasis on Continuous improvement.
e. A recognition and Communication System.

CHAPTER THREE
3. ABOUT THE ELICO/AWASH TANNERY/
3.1 ELICO/Awash Tannery/ profile
Ethio-Leather Industry PLC (ELICO) was established in August 1997 as the leather
manufacturing wing of MIDROC Ethiopia, which is owned by a prominent investor and tycoon
Sheikh Mohammed H. Ali Al-Amoudi. ELICO was established through the unifying of the late
three state owned tanning and finished leather goods factories (i.e. Awash Tannery, Abyssinia
Tannery and Universal Leather Products Factory) in which after its transfer to the MIDROC
Group during in the inception of privatizing the companies to the private sectors to manufacture
and provide high-quality leather products to the global leather market. As of July, 2013,
Fontanina Shoe Factory has also become fully operational. These study focus on Awash Tannery.
Awash Tannery started manufacturing pickle as Darmar Tannery in Addis Ababa in 1957. The
company was nationalized in 1975 by the military government and then privatized again and took
its current name under ELICO after having been acquired by MIDROC Ethiopia. Awash Tannery
is the largest and perhaps the second oldest factory in Ethiopia. The capacity of the factory is
7,875,000 sq.ft of hides and 10,000,002 sq.ft of skins and the numbers of workers is 585.
3.2 Vision of the Company
The vision of Awash Tannery is to become world class and branded quality name, by producing
quality finished leather and leather products from skins and hides for domestic and export
markets, and by employing modern environmentally friendly technology.
3.3 Mission of the Company
The mission of Awash Tannery is production and marketing of environmentally sustainable
finished leather for export and local markets.
3.4 Value of the company
Awash Tannery values are ELICO’s values that include employees’ commitment, integrity,
transparency, team work, productivity, competence, corporate social responsibility, customer
satisfaction, good governance.
3.5 Types of Production
Due to the nature of the production operations, the company is categorized under manufacturing
industries.
3.6 Type of Products
Currently the factory produces and distributes the following products:-
Table 3.1 Type of inputs and output products produced in Awash tannery.

No Type of Inputs Output Product Annual production capacity

1 Hide / cow skin/ Hide leather 7,875,000 sq.ft of hides
 Dry salted hide  Dyed plain box (major product)
 Wet salted hide  Softy cow
 Fresh hide  Nampa
 Patent
 Pull up
 Wax dyed plain box
 Lining
 Embossed
2 Skin /sheep skin/ Skin leather 10,000,002 sq.ft of skins
 Wet salted skin  Sheep lining
 Dry salted skin  Sheep upper
 Fresh skin  Garment
 Golf glove
 Dress glove(major product)
In this research the study will focus on dyed plain box export hide leather because the company
export 70% this product throughout the world. Therefore focusing on the export product will
provide a huge benefit for the company as well as the country.
3.7 Process flow
The leather process can be basically divided into: Tanning, Re tanning and Finishing.
A. Tanning :- operation starting from preserved raw materials, may be divided as follows:
i. Leather soaking: Once cured, the skins are then soaked in water for several hours to
several days to remove salt, dirt, debris, blood and excess animal fats.
ii. Leather fleshing: subcutaneous material is removed.
iii. Leather un haring: the majority of hair is removed.
iv. Liming is used to loosen the fibers allowing the skin to absorb chemicals that will be used
later in the tanning processes.
v. De liming: this process brings to removal of alkali from the pelt with the consequent de
swelling of the fibers and lowering of the PH to the values used in the bating process.
vi. Bating: is an operation to complete the de liming process, by eliminating residues of
other substances and loosen the fibers to get soft and flexible leather.
vii. Degreasing: is carried out to remove and to reduce the natural fatty acids from the skin,
which could lead to difficulties in the absorption of chemicals.
viii. Tanning is the process which converts the protein of the raw skin into a stable material
which will not putrefy and it is suitable for a wide variety of end applications of leather.

There are several types of tanning: Chrome tanning, Vegetable tanning, slow tanning and
Rapid tanning. In Awash tannery they mostly use Chrome tanning which is the most
widespread. The duration of the Chromium tanning is around 2 or 3 hours for small and thin
skins, up to a maximum of 24 hours for thicker ones. At the end of the tanning the skins appear
blue-green. This is called wet-blue and at this stage it can be sold.
B. Re tanning: The tanned leather is not yet usable to produce articles. It is still wet and even
if dry; it would be too rigid and colored with the typical color of tanning used. To turn it into a
marketable product it must be treated with chemical and mechanical processes in the drums.
i. Drying process: is a mechanical operation which eliminates most of the water soaked by
the tanned leather.
ii. Shaving: smoothens the thickness of the whole surface of the skin and eliminates the
residues of fleshing. This operation is carried out with a cylinder machine where the top
one is provided with helical blades.
iii. Splitting - the leather is split into one or more horizontal layers.
iv. Re tanning - additional tanning agents are added to impart properties and change the
features of the main tanning.
v. Dyeing is the process which gives the leather the requested color.
vi. Stuffing - fats/oils and waxes are added between the fibers, thus giving the leather the
flexibility and the softness needed for the various products.
vii. Drying: all above mentioned processes are carried out with water so leather needs to be
dried.
C. FINISHING: It's the final stage and the most complex process, which includes all operations
to be, carried out on dried skins, to change the surface effect, both for aesthetic and
functional aims. Finishing can be mechanical or chemical.
i. Mechanical finishing operations may include:
• Polishing : to create a shiny surface by rubbing it with a velvety wheel
• Ironing and Plating: to obtain a flat and smooth surface
• Embossing :to obtain a three-dimensional print
• Tumbling by rotating the drum quickly to create a more evident grain and a
smooth surface
ii. Chemical finishing involves the application of a film, natural or synthetic by using
curtain coaters, roller coatings and spraying.

Fig: 3.1 Hide leather Process Flow Chart [As per ELICO/Awash tannery/ Lay out

3.8 Existing quality control technique of ELICO/Awash Tannery

Depending on the end-use and types of leather, the quality department performs different visual,
physical and chemical testes from rawhide to finished leather. Different quality parameters may
require from the customer, but the quality department controls the quality of the product against
leather quality parameter standards at the stage of raw hide, during process and finally at the
finishing section besides the customer requirement. This study will focuses on these basic
standard quality parameters.
Table 3.8.1 One week working days dyed plain box leather quality data for local market
Product:- dyed plain box (local market)

Required quality standards :- Grade TRR/ 4th grade/ size normal thickness 1.6/1.8
No Lot Sample size Inspection result Remark
days size (10% of the No defect
lot) for local Grade Thickness Folding Deform Hair Ribs Total no
market root of defect
Above below Above below
1 336 34 2 2 4 3 1 0 1 1 14
2 1251 125 2 3 7 6 1 1 2 2 24
3 484 48 2 2 4 4 2 1 1 1 17
4 2669 267 2 1 10 11 2 0 2 2 30
5 3198 320 4 4 17 13 1 2 2 1 44
6 992 99 2 4 5 5 2 1 0 2 21
∑
8930 893 14 16 47 42 9 5 8 9 150
Remark
** TRR /4th grade/ are ELICO standard grading system for the hide which has minor defects on two out of the
four quadrants.
Table 3.8.1 One week working days dyed plain box leather quality data for export market
Product:- dyed plain box (Export market)

Required quality standards :- Grade TR/1-3/ size normal thickness 1.6/1.8
No Lot Sample size Inspection result No defect Remark
days size (25% of the
lot) for local Grade Thickness Folding Deform Hair Ribs
market root
Above below Above below
1 523 131 1 1 3 4 0 1 1 0 11

2 368 92 0 0 3 3 1 1 0 1 9
3 1449 362 2 1 9 10 1 0 1 0 24
4 1107 277 1 1 7 5 0 1 1 2 18
5 527 132 1 1 5 7 2 1 0 0 17
6 1251 313 2 2 10 9 1 0 1 1 26
∑
5225 1307 7 6 37 38 5 4 4 4 105
Remark
** TR /1-3 grade/ are ELICO standard grading system for the hide which has minor defects on one out of the
four quadrants.
3.9 Data analysis

From the above quality inspection data it’s clearly shown that the company has facing a thickness
and grade variation problem. To clearly indicate this problem pareto chart will be used. Also to
address the root cause of the problems weather to decide it’s assignable or variable cause,
Ishikawa or fish bon diagram will be presented below.
3.9.1 Pareto Diagram
Pareto Chart for local market quality leather Data

100.0%
96.7%
140
91.3% 90.0% Defects
85.3%
120 79.3% 80.0%
1. Above thickness
70.0% 70.0%
2. Below thickness
100 3. Above grade
Number of defects
59.3% 60.0% 4. Below grade

80 5. Folding
50.0%
6. Deforming
60 40.0% 7. Hair root
47 8. Ribs
42
31.3% 30.0%
40
20.0%
20 16 14
9 9 8 10.0%
5
0 0.0%
1 2 3 4 5 6 7 8
Defects
Fig 3.9.1 pareto chart for local market quality leather data

Pareto Chart for export market quality leathe data
100.0%
100 96.2%
92.4%
88.6% 90.0%
Defects
83.8%
80.0%
80 78.1% 1. Above thickness
71.4% 70.0% 2. Below thickness
3. Above grade
60.0% 4. Below grade
60
5. Folding
Number of defect
50.0% 6. Deforming
7. Hair root
38 37 40.0%
40 8. Ribs
36.2%
30.0%
20 20.0%
7 6 10.0%
5 4 4 4
0 0.0%
1 2 3 4 Defects 5 6 7 8
Fig 3.9.2 Pareto chart for export market quality leather data
According to the pareto diagram, Among the recorded eight different defects thickness and grade
variation are the major quality defects(79% on local product and 83% on export product) those
affects the company overall product quality problem. The company invests extra cost to reprocess
or reselect this defective product in order to attempt their customer satisfaction and to sustain on
competitive global leather market.
.

CHAPTER FOUR
4 DATA ANALYSIS AND INTERPRETATION
4.1 Data Analysis for Export Dyed Plain Box Leather
The quality control department of Awash Tannery has been checking the quality of different types
leather products produced per customers order by developing “Quality Control Check List Form”
[Annex 1] before handover to the customers. The data analysis is based on the result obtained
from the thickness quality test carried out on Jan 18, 2017.
Table 4.1 Thickness test result of dyed plan box leather

Type of product: Dyed plain Box Date of inspection: Jan 18, 2017 Customer name : XXX
Lot size : 125 Sample size (25% of lot) : 31 Thickness 1.6/1.8
Sample X1 X2 X3 X4 X5
1 1.6 1.4 1.7 1.8 1.5
2 1.9 1.7 1.6 1.8 1.7
3 1.6 1.8 1.6 1.7 1.8
4 1.5 1.6 1.4 1.6 1.5
5 1.3 1.5 1.6 1.4 1.5
6 1.6 1.7 1.6 1.8 1.6
7 1.8 1.6 1.7 1.8 1.7
8 1.2 1.4 1.5 1.4 1.6
9 1.7 1.8 1.7 1.6 1.8
10 1.8 1.8 1.6 1.8 1.6
11 1.6 1.8 1.6 1.6 1.8
12 1.7 1.9 1.6 1.8 1.7
13 1.4 1.4 1.6 1.5 1.6
14 1.6 1.6 1.5 1.7 1.8
15 1.7 1.7 1.8 1.6 1.6
16 1.5 1.7 1.4 1.6 1.5
17 1.8 1.6 1.6 1.8 1.8
18 1.7 1.5 1.8 1.7 1.5
19 1.6 1.8 1.6 1.8 1.6
20 1.8 1.6 1,8 1.6 1.7
21 1.9 1.6 1.7 1.7 1.8
22 1.6 1.4 1.4 1.2 1.5
23 1.5 1.8 1.6 1.6 1.5
24 1.6 1.8 1.8 1.8 1.6
25 1.6 1.7 1.5 1.6 1.5
26 1.4 1.3 1.6 1.5 1.4
27 1.9 1.7 1.7 1.9 1.8
28 1.8 1.8 1.6 1.7 1.7
29 1.6 1.5 1.7 1.6 1.6
30 1.6 1.8 1.6 1.8 1.9
31 1.5 1.4 1.5 1.5 1.6
In order to assess the stability of the process test result of an export dyed plain box leather we
select variable control chart with x̅-chart and (R) chart because the data are measured on a
continuous scale that means thickness in mm.

X Chart
1.9
1.8
UCL 1.78
1.8
XAve
1.7
+2 Sigma
Average
1.7
CL 1.63
1.6 +1 Sigma
1.6 Average
1.5 LCL 1.49 -1 Sigma
1.5 -2 Sigma
1.4
UCL
1.4
LCL
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Period
R Chart
0.6
UCL 0.52
0.5
0.4
Range
0.3
0.2
0.1
0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Period
Fig 4.1 x̅-chart and (R) Chart for the collected data
4.2 Data Interpretation
From the above x̅ -chart out of 31 samples six samples are out of control which indicates that the
process is out of control. This implies that the products doesn’t pass for export market due to this
they will be shifted to local market and other leather products like for light shoes upper, for ladies
and children shoes, leather articles as an input material(wallet, bags and belts etc.). In order to
check the process that are out of control in the upper control limit they are going to be
reprocessed with the correct standard and they will be a part of export standard.
4.3 Assignable cause analysis
From the data gathered from the quality control department of ELICO/Awash tannery/, the x̅ &R
chart (six out of control sample point) and the pareto analysis. The few vital defects those affects
the company productivity dominantly is thickness variation. By minimizing/eliminating/this
defect, the company will save extra cost and increase productivity & product quality. To do so the
company must find the root causes of this defect. The different causes for these defects will be
presented by cause and effect /Ishikawa/ diagram here under.

Fig: 4.2 Cause and Effect diagram for thickness variation

CHAPTER FIVE
5 CONCLUSION AND RECOMMENDATION
5.1 Conclusion
As we have seen, statistical quality control in industries is contributes numerous advantages. In
other words, by applying suitable SQC techniques in ELICO/Awash Tannery/can achieve the
quality characteristics of the customer requirement. Thus to meet the best quality characteristics
the company should have the proper quality concept and principles. Managers should create
awareness about SQC for all supervisors and operators, who do have the direct and indirect
responsibility in the quality of the product, by providing appropriate short and medium term
training. (i.e.) Give training to the workers about:
SQC principle
Use of control charts and interpretation of control charts
Frequency of sampling
Selection of quality characteristics
Identifying critical or major defects
Assignable causes and common (inherent) causes so that they can easily reach on a
conclusion and to take action to correct problems.
5.2 Recommendation
Hence, generally recommend the following basic points for ELICO (Ethio-Leather Industry
PLC) to implement SPC:
Training for all employees: Employees at all levels in the organization must be
knowledgeable in the tools of SQC so that they can be applied in all departments of the
factory.
Team approach to problem solving: Quality problems in production usually require the
attention and expertise of more than one person for their solution.
Recognition and communication system: Finally, to make a better mechanism for
recognizing successful SPC efforts and communicating them throughout the organization.
Emphasis on continuous improvement: By the commitment and example of
management, the process of continues improvement is pervasive though the organization.
Management commitment and leader ship: This is the most important element. All
Managers, in any line of production should have awareness and give due considerations
to SPC as it can result in large cost saving and quality improvement.

6 Bibliography
[1] Grant, E.L., and R.S. Leaven Worth (1998) ; Statistical Quality Control; 6th ed. MC
graw Hill, New York.
[2] R manzini, A. Regattieri, H.Pham and E. Ferrari (2010); Quality Management System
and Statistical Quality Control; Springer.
[3] Douglas C. Montagomery,(2005); Introduction to statistical Quality Control; 5th

edition; John wiley & Sons, Inc, New York
[4] Mekell P. Groover (2001); Automation, Production systems, and Computer Integrated
manufacturing; 2nd edition prentice Hall international, Inc. ; United States of America,
2001.
[5] fredenall,L.D.and Lea,B.R. (1997). Improving the production mix heuristic in the
theory of constraints.International Journal production research,32(6),1232-1244

Annex
1 Company Quality Control Check List Form

Chapter One: 1.1. Back Ground of The Study

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[Statistical Quality Control Tools and Techniques Implementation in ELICO/Awash Tannery ] [2016/17]

1.1. Back ground of the study

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 Collecting all the available documents.

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2.3. Statistical Quality Control Techniques

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d. Control charts provide diagnostic information.

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No Type of Inputs Output Product Annual production capacity

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3.8 Existing quality control technique of ELICO/Awash Tannery

Product:- dyed plain box (local market)

Product:- dyed plain box (Export market)

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3.9 Data analysis

Pareto Chart for local market quality leather Data

59.3% 60.0% 4. Below grade

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Pareto Chart for export market quality leathe data

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Table 4.1 Thickness test result of dyed plan box leather

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Fig: 4.2 Cause and Effect diagram for thickness variation

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[3] Douglas C. Montagomery,(2005); Introduction to statistical Quality Control; 5th

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