In the Name of Allah the Most Gracious Most Merciful University of Khartoum Faculty of Agriculture Department of Agriculture Economics Case Study Blue Nile Company for Dairy Production (CAPO) By Adil Ahmed Ali Ebrahim B.Sc. (1993) University of Zagazig Supervisor Dr. Hasidim Ahamed Elobied A thesis Submitted in Partial fulfillment of the requirement for the Degree of Master Science (M.Sc.) in Agriculture Economics March 2003 1 To the Souls of my beloved Late Parent 2 I am very grateful to my supervisor Dr. Hashim Ahmed El Obied, for his persistently encouragement, continuing support, valuable advice and guidance. This study would not come out without his unlimited support and criticism. I owe indebt and express my warmest appreciation to Dr. Ali Abdel Aziz and Dr. Ali Adam Musa, for their crucial role at all progress of this study, they really provide me unlimited patience, responsibility and encouragement. My deepest gratitude are similarly extended to Hanan Hamed Magzoub and Intesar Abdel Rahman for their continuos supporting and help. I would like to express my appreciation to all staff of the University of Khartoum Faculty of Agriculture. To conclude, I am indebted to my family, sisters and brothers who had enable me to complete this work. At last all indebted and gratitude to the helpers. 3 Quality control measures on food and the others products required by world trade organization (wto) and domestic regulation. Especially after liberalization of global –market the high commercial competition between countries puts high –quality products with minimum prices as basic trade barrier. This study estimates different quality control measures in the field of dairy products at Blue Nile Company for dairy products (CAPO) calculation of cost –variance measured as the change in one factor of production. Testing 25 samples per day for 20 days. Also determined the probability of acceptance for these samples between the production department (as a producer) and marketing and sales departments (and a consumer) finally identified the effect of inspection cost (the cost of looking for the defective production by taking random samples of production for testing at the company investigation cost (the cost of knowing the reasons that cause the defective production)and cost of correction that defective production here on the number of defects- on calculating the cost –variance of quality –control operation .the percentage control chart had been used which reared the normal variance and the abnormal variance on production operation showed that the control operation ranged between 10.4%as lower control level (l.c.l) and 69.6%as upper control level (u.c.l) of production defective average to 40.2% two types of errors might have been made .the first type of error (when the system is in-control and the producer –decision is to investigate ) and the second type of error (when the system is out of control and the producer decision is not to investigate ).in this study the first type of error was found to have probability of 0.0027 and the second type of error to have probability of 0.792 the second type was greater than the first type of error the right decision of the producer was to investigate the causes of variance to be surer the decision was joined by cost benefit analysis the study showed that the expected cost of investigation was (2.310SD) per day less than the expected cost of no- investigation thereby supporting the producer-decision to investigate. To know the probability of acceptance between production department (as a producer) and marketing and sale department (as a consumer) for 25 samples allowable number of defect about 5( 20% of sample) and the average defect about 40%, the study used the acceptance sampling single plan for attributes 4 and obtained the probability of acceptance of about 0.067 indicating a low probability of acceptance. On the other hand, the probability of rejection was ( 1-0.067= 0.993) indicating need for investigation about variance. The multiple linear regression analysis was used to determine the effect of cost of inspection, cost of investigation and cost of correlation on the number of defects. The regression results revealed that the cost of inspection was insignificant while the cost of investigation and the cost of correlation were highly significant. However, the cost of investigation had a positive relationship while the cost of inspection and the cost of correlation had a negative relationship with the number of defects. The study recommended the importance of using quality statistical methods to diagnose quality problem, to choose acceptance sampling plan to discover producer and consumer risks more over, rigorous training to promote the skills of workers in quality field is highly needed in order to study consumer – complains their satisfaction with high quality products. 5 ﻪ(cid:1127)(cid:1127)ﺒﻠﻄﺘﻳ ﺎ(cid:1127)(cid:1127)ﻤﻣ ﻚ(cid:1127)(cid:1127)ﻟذو تﺎ(cid:1127)(cid:1127)ﺠﺘﻨﻤﻟا ﻦ(cid:1127)(cid:1127)ﻣ ﺎ(cid:1127)(cid:1127)هﺮﻴﻏو ﺔ(cid:1127)(cid:1127)ﻴﺋاﺬﻐﻟا تﺎ(cid:1127)(cid:1127)ﺠﺘﻨﻤﻟا ﻲ(cid:1127)(cid:1127)ﻠﻋ ﺮﺛﺆ(cid:1127)(cid:1127)ﺗ ةدﻮ(cid:1127)(cid:1127)ﺠﻟا ﻂﺒ(cid:1127)(cid:1127)ﺿ ﺔ(cid:1127)(cid:1127)ﻴﻠﻤﻋ ﺖﺤﺒ(cid:1127)(cid:1127)ﺻأ ﺮ(cid:1127)(cid:1127)ﻳﺮﺤﺗ ﺪ(cid:1127)(cid:1127)ﻌﺏ ﺔً (cid:1127)(cid:1127)ﺻﺎﺧ جﺎ(cid:1127)(cid:1127)ﺘﻥﻹا ﺪ(cid:1127)(cid:1127)ﻨﻋ ﺲﻴﻳﺎ(cid:1127)(cid:1127)ﻘﻤﻟا ﻩﺬ(cid:1127)(cid:1127)ه ةﺎ(cid:1127)(cid:1127)ﻋاﺮﻣ ﻦ(cid:1127)(cid:1127)ﻣ ﺎ(cid:1127)(cid:1127)هﺮﻴﻏ وأ ﺔ(cid:1127)(cid:1127)ﻴﺋاﺬﻐﻟا تﺎ(cid:1127)(cid:1127)ﺠﺘﻨﻤﻟا ﻩﺬ(cid:1127)(cid:1127)ه جﺎ(cid:1127)(cid:1127)ﺘﻥإ ﻞ(cid:1127)ﻗأ رﺎﻌ(cid:1127)ﺱﺄﺏ ةدﻮ(cid:1127)ﺠﻟا ﺔﻴﻟﺎﻋ ﺎﻬﺗﺎﺠﺘﻨﻣ حﺮﻄﺗ ﻲﺘﻟا لوﺪﻟا ﻦﻴ ﺏ ﺔﻳﻮﻗ ﺔﻳرﺎﺠﺗ ﺔﺴﻓﺎﻨﻣ دﻮﺝوو ﺔﻴﻤﻟﺎﻌﻟا قﻮﺴﻟا .تﺎﻋﺎﻨﺼﻟا ﻲﻓ ةدﻮﺠﻟا ﻂﺒﻀﺏ ﻢﺘﻬﺗ ﺔﻴﻠﺤﻣو ﺔﻴﻤﻟﺎﻋ ﺰآاﺮﻣو ﺔﻴﻤﻟﺎﻌﻟا ةرﺎﺠﺘﻟا ﺔﻤﻈﻨﻣ رﻮﻬﻇ ﺪﻌﺏو تﺎﻋﺎﻨﺼﻟا لﺎﺠﻣ ﻰﻓ ﺔﻴﺋاﺬﻐﻟا تﺎﻋﺎﻨﺼﻟا ﻲﻓ ةدﻮﺠﻟا ﺲﻴﻳﺎﻘﻤﺑ مﺎﻤﺘهﻼﻟ ﺔﺳارﺪﻟا ﻩﺬه تءﺎﺟ ﻖﻠﻄﻨﻤﻟا اﺬه ﻦﻣ ﻦﻳﺎﺒﺘﻟا ﻦﻋ ﺞﺘﻨﺕ ﻲﺘﻟﺁ ﺔﻔﻠﻜﺘﻟا فﻼﺘﺧا بﺎﺴﺡ فﺪﻬﺑ (ﻮﺑﺎآ) ةدوﺪﺤﻤﻟا نﺎﺒﻟﻸﻟ قرزﻷا ﻞﻴﻨﻟا ﺔآﺮﺷ ﻰﻓ ﺔﻴﻨﺒﻠﻟا جﺎﺘﻥﻹا ﻞﻣاﻮﻋ ﺪﺡأ ﻲﻓ ﺮﻴﻐﺘﻠﻟ ﺔﺠﻴﺘﻥ ثﺪﺤﻳ يﺬﻟا ﻲﻌﻴﺒﻃ ﺮﻴﻐﻟا جﺎﺘﻥﻹاو ﻲﻌﻴﺒﻄﻟا جﺎﺘﻥﻹا ﻦﻴﺑ فﻼﺘﺧﻻا وأ ﺪﻳﺪﺤﺘﻟو . ﻊﻨﺼﻤﻟا ﻲﻓ ﺎﻬﻴﻠﻋ ﺔﻴﻠﻤﻌﻤﻟا تارﺎﺒﺘﺧﻻا ءاﺮﺟﻹ ﺔﻨﻴﻋ 25 ﺬﺧﺄﺑو جﺎﺘﻥﻹا ﻦﻣ ﺎﻣﻮﻳ ﻦﻳﺮﺸﻋ رﺎﻴﺘﺧﺎﺑ (ﻚﻠﻬﺘﺴﻤآ) تﺎﻌﻴﺒﻤﻟاو ﻖﻳﻮﺴﺘﻟا ﻢﺴﻗو (ﺞﺘﻨﻤآ) جﺎﺘﻥﻹا ﻢﺴﻗ ﻦﻴﺑ ﻊﻨﺼﻤﻟا ﻞﺧاد جﺎﺘﻥﻹا تﺎﻨﻴﻋ لﻮﺒﻗ لﺎﻤﺘﺡا جﺎﺘﻥﻹا ﻦﻣ ﺔﻴﺋاﻮﺸﻋ تﺎﻨﻴﻋ ﺬﺧا ﺔﻄﺳاﻮﺑ جﺎﺘﻥﻹا ﻦﻋ ﺚﺤﺒﻟا ﺔﻔﻠﻜﺕ) ﺶﻴﺘﻔﺘﻟا ﺔﻔﻠﻜﺕ ﻦﻣ ﻼآ ﺮﺛا ﺔﻓﺮﻌﻤﻟو جﺎﺘﻥﻹا اﺬه بﺎﺒﺳأ ﺔﻓﺮﻌﻣ ﺔﻔﻠﻜﺕ) ﻖﻴﻘﺤﺘﻟا ﺔﻔﻠﻜﺕو (ﻊﻨﺼﻤﻟا ﺔﻄﺳاﻮﺑ ﺎﻬﻴﻠﻋ ﺔﻴﻠﻤﻌﻣ تارﺎﺒﺘﺧا ءاﺮﺟأو .ﺶﻴﺘﻔﺘﻟا ﺪﻨﻋ تﺬﺧأ ﻲﺘﻟﺁ ﺔﺒﻴﻌﻤﻟا تﺎﺠﺘﻨﻤﻟا ﺪﻋ ﻰﻠﻋ جﺎﺘﻥﻹا اﺬﻬﻟ ﺢﻴﺤﺼﺘﻟا ﺔﻔﻠﻜﺕو (ﺐﻴﻌﻤﻟا ﻥ ﻴﺎـﺒﺘﻟﺍ ﺢﻀﻭﺘ ﻲﺘﻟﺁ ﺓﺩﻭﺠﻟﺍ ﺔﺒﻗﺍﺭﻤﻟ ﺔﺒﺴﻨﻟﺍ ﺔﻁﻴﺭﺨ ﺕﻠﻤﻌﺘﺴﺍ ﺓﺩﻭﺠﻟﺍ ﻁﺒﻀ ﺔﻴﻠﻤﻋ ﺔﻔﻠﻜﺘ ﻑﻼﺘﺨﺍ ﺏﺎﺴﺤﻟ 10.4 % ﻥﻴـﺒ ﻁﺒـﻀﻟﺍ ﻭﺃ ﻡﻜﺤﺘﻟﺍ ﺔﻴﻠﻤﻋ ﻥﺃ ﺕﺤﻀﻭﺃ ﻲﺘﻟﺁﻭ ﺝﺎﺘﻨﻹﺍ ﺔﻴﻠﻤﻋ ﻲﻓ ﻲﻌﻴﺒﻁﻟﺍ ﺭﻴﻏﻭ ﻲﻌﻴﺒﻁﻟﺍ 69.6 ﻎ ـﻠﺒﻴ ﺏـﻴﻌﻤﻟﺍ ﺝﺎـﺘﻨﻹﺍ ﻁﺴﻭﺘﻤ ﺩﺠﻨﻭ ﺏﻴﻌﻤﻟﺍ ﺝﺎﺘﻨﻺﻟ ﻰﻠﻋﺃ ﺩﺤﻜ % ﻭ ﺏﻴﻌﻤﻟﺍ ﺝﺎﺘﻨﻺﻟ ﻲﻨﺩﺃ ﺩﺤﻜ 40.2 ﻥ ﻭـﻜﺘ ﺎﻤﺩﻨﻋ) لﻭﻷﺍ ﻉﻭﻨﻟﺍ ﻥﻤ ﺄﻁﺨ ﺞﺘﻨﻤﻟﺍ ﺎﻤﻬﻴﻓ ﻊﻘﻴ ﻥﺃ ﻥﻜﻤﻴ ﺄﻁﺨﻠﻟ ﻥﻻﺎﻤﺘﺤﺍ ﻙﻟﺎﻨﻫ ﻥﺎﻜﻭ % ﻥ ـﻤ ﺄﻁﺨ ( ﺝﺎﺘﻨﻹﺍ ﻑﻼﺘﺨﺍ ﻥﻤ ﻕﻘﺤﺘﻴ ﻥﺃ ﺞﺘﻨﻤﻟﺍ ﺭﺍﺭﻗ ﻥﻭﻜﻴﻭ ﻁﺒﻀﻟﺍ ﻭﺃ ﻡﻜﺤﺘﻟﺍ لﺨﺍﺩ ﺔﻴﺠﺎﺘﻨﻹﺍ ﺔﻴﻠﻤﻌﻟﺍ ﻕ ـﻘﺤﺘﻴ ﻻﺁ ﺞﺘﻨﻤﻟﺍ ﺭﺍﺭﻗ ﻥﻭﻜﻴﻭ ﻁﺒﻀﻟﺍ ﻭﺃ ﻡﻜﺤﺘﻟﺍ ﺝﺭﺎﺨ ﺔﻴﺠﺎﺘﻨﻹﺍ ﺔﻴﻠﻤﻌﻟﺍ ﻪﻴﻓ ﻥﻭﻜﺘ ﻱﺫﻟﺍ) ﻲﻨﺎﺜﻟﺍ ﻉﻭﻨﻟﺍ 25 ﺫـﺨﺄﺒ ﺝﺎﺘﻨﻹﺍ ﻥﻤ ﺎﻤﻭﻴ ﻥﻴﺭﺸﻋ ﺕﻨﺎﻜ ﻲﺘﻟﺍ ﺔﻴﻠﻤﻌﻟﺍ ﻩﺫﻫ ﻰﻓﻭ ( ﺝﺎﺘﻨﻹﺍ ﻲﻓ ﻥﻴﺎﺒﺘﻟﺍ ﻭﺃ ﻑﻼﺘﺨﻻﺍ ﻥﻋ 0.492 ﻪ ـﻟﺎﻤﺘﺤﺍ لﻭﻷﺍ ﻉﻭـﻨﻟﺍ ﻥـﻤ ﺄـﻁﺨﻟﺍﻭ ( ) ﻪﻟﺎﻤﺘﺤﺍ ﻲﻨﺎﺜﻟﺍ ﻉﻭﻨﻟﺍ ﻥﻤ ﺄﻁﺨﻟﺍ ﻥﺎﻜ ﺭﺎﺒﺘﺨﻼﻟ ﺔﻨﻴﻋ 0.0027 ﺭ ﺍﺭﻘﻟﺍ ﻥﺎﻓ لﻭﻷﺍ ﻉﻭﻨﻟﺍ ﻥﻤ ﺄﻁﺨﻟﺍ لﺎﻤﺘﺤﺍ ﻥﻤ ﺭﺒﻜﺃ ﻲﻨﺎﺜﻟﺍ ﻉﻭﻨﻟﺍ ﻥﻤ ﺄﻁﺨﻟﺍ لﺎﻤﺘﺤﺍ ﻥﺃ ﺎﻤﺒﻭ ( ) ﺔ ﻔﻠﻜﺘﻟﺍ ﺏﺎﺴﺤﺒ ﺏﺌﺎﺼﻟﺍ ﺭﺍﺭﻘﻟﺍ ﻁﺒﺭ ﻡﺘ ﻙﻟﺫﻟ ﺍﹰﺩﻴﻜﺄﺘﻭ ﺝﺎﺘﻨﻹﺍ ﻑﻼﺘﺨﺍ ﻥﻋ ﻕﻘﺤﺘﻴ ﻥﺃ ﻭﻫ ﺞﺘﻨﻤﻠﻟ ﺏﺌﺎﺼﻟﺍ 2.315 ﺭ ﺎـﻨﻴﺩ ﺏ ﻡﻭﻴ لﻜ ﻥﻋ ﻕﻴﻘﺤﺘﻟﺍ ﻡﺩﻋ ﻑﻠﻜﺘ ﻥﻤ لﻗﺃ ﻕﻴﻘﺤﺘﻟﺍ ﺔﻔﻠﻜﺘ ﻥﺃ ﺔﺴﺍﺭﺩﻟﺍ ﺕﺤﻀﻭﺃ ،ﺢﺒﺭﻟﺍﻭ . ﺝﺎـﺘﻨﻹﺍ ﻰـﻓ ﻥﻴﺎـﺒﺘﻟﺍ ﻭﺃ ﻑﻼﺘـﺨﻼﻟ ﺕﺩﺃ ﻲﺘﻟﺍ ﺏﺎﺒﺴﻷﺍ ﻥﻋ ﻕﻴﻘﺤﺘﻟﺍ ﺏﻭﺠﻭﺒ ﺞﺘﻨﻤﻟﺍ ﺭﺍﺭﻗ ﻡﻋﺩﻴ ﺎﻤﻤ ﺕ ﺎـﻨﻴﻋ ﺩﺩـﻌﻟ (ﻙﻠﻬﺘﺴﻤﻜ) ﺕﺎﻌﻴﺒﻤﻟﺍﻭ ﻕﻴﻭﺴﺘﻟﺍ ﻡﺴﻗﻭ ( ﺞﺘﻨﻤﻜ )ﺝﺎﺘﻨﻹﺍ ﻡﺴﻗ ﻥﻴﺒ لﻭﺒﻘﻟﺍ لﺎﻤﺘﺤﺍ ﺔﻓﺭﻌﻤﻟﻭ 20 5 25 ( ﺕﺎـﻨﻴﻌﻟﺍ ﺩﺩﻋ ﻥﻤ % ) ﺕﺍﺩﺤﻭ ﻯﻭﺎﺴﻴ ﺏﻴﻌﻤﻟﺍ ﺝﺎﺘﻨﻹﺍ ﻥﻤ ﺎﻬﻴﻓ ﺡﻭﻤﺴﻤ ﺩﺩﻌﻟﻭ ﺔﻨﻴﻋ ﻯﻭﺎﺴﻴ 40 ل ﺎـﻤﺘﺤﺍ ﻥﺎﻜﻭ ﺓﺩﺤﺍﻭﻟﺍ ﺔﻨﻴﻌﻠﻟ لﻭﺒﻘﻟﺍ ﺔﻨﻴﺎﻌﻤ ﺔﻁﻴﺭﺨ ﺔﺴﺍﺭﺩﻟﺍ ﺕﻤﺩﺨﺘﺴﺍ % ﻎﻠﺒﻴ ﺏﻴﻌﻤ ﺝﺎﺘﻨﺇ ﻁﺴﻭﺘﻤﻟ 1 0.067 - ) ﻭ ـﻫ ﺽﻓﺭـﻟﺍ لﺎـﻤﺘﺤﺍ ﻥﺍﻭ ﺕﺎـﻨﻴﻌﻟﺍ ﻩﺫـﻫ لﻭﺒﻘﻟ ﻑﻴﻌﻀ لﺎﻤﺘﺤﺍ ﻭﻫﻭ ﻯﻭﺎﺴﻴ لﻭﺒﻘﻟﺍ 0.993 0.067 ﺝﺎﺘﻨﻹﺍ ﻲﻓ ﻑﻼﺘﺨﻻﺍ ﺏﺎﺒﺴﺃ ﻥﻋ ﻕﻴﻘﺤﺘﻟﺍ ﻰﻨﻌﻴ ﺎﻤﻤ ( = 6 ﻦ(cid:1127)ﻋ ﻖ(cid:1127)ﻴﻘﺤﺘﻟا ﺔ(cid:1127)ﻔﻠﻜﺕو ﺶﻴ(cid:1127)ﺘﻔﺘﻟا ﺔ(cid:1127)ﻔﻠﻜﺕ ﻦ(cid:1127)ﻣ ﻞ(cid:1127)آ ﺮ(cid:1127)ﺛأ ﺪ(cid:1127)ﻳﺪﺤﺘﻟ ﻲ(cid:1127)ﻟﻵا ﺐ(cid:1127)ﺳﺎﺤﻟا ﺔﻄ(cid:1127)ﺳاﻮﺑ ﻢﺕ يداﺪﺕرﻻا ﻞﻴﻠﺤﺘﻟا ﻦ(cid:1127)ﻣ يﻮ(cid:1127)ﻨﻌﻣ ﺮ(cid:1127)ﺛا نأ ﺮﻬﻇﺎ(cid:1127)ﻓ ﺔ(cid:1127)ﺒﻴﻌﻤﻟا تاﺪ(cid:1127)ﺡﻮﻟا دﺪ(cid:1127)ﻋ ﻰﻠﻋ ﺐﻴﻌﻤﻟا جﺎﺘﻥﻹا اﺬه ﺢﻴﺤﺼﺕ ﺔﻔﻠﻜﺕو ﺐﻴﻌﻤﻟا جﺎﺘﻥﻹا ناو . ﺎ(cid:1127)ﻬﻴﻠﻋ ﺎ(cid:1127)ﻳﻮﻨﻌﻣ اﺮﻴﺛﺄ(cid:1127)ﺕ ﺢﻴﺤ(cid:1127)ﺼﺘﻟاو ﻖ(cid:1127)ﻴﻘﺤﺘﻟا ﺔ(cid:1127)ﻔﻠﻜﺕ ﺮﺛﺆ(cid:1127)ﺕ ﺎﻤﻨﻴﺑ ﺔﺒﻴﻌﻤﻟا جﺎﺘﻥﻹا تاﺪﺡو ﻰﻠﻋ ﺶﻴﺘﻔﺘﻟا ﺔﻔﻠﻜﺕ ﺢﻴﺤ(cid:1127)ﺼﺘﻟاو ﺶﻴﺘﻔﺘﻟا ﺔﻔﻠﻜﺕ ﻦﻴﺑ ﺔﻴﺴﻜﻋو ﺔﻨﻴﻌﻤﻟا جﺎﺘﻥﻹا تاﺪﺡو دﺪﻋو ﻖﻴﻘﺤﺘﻟا ﺔﻔﻠﻜﺕ ﻦﻴﺑ ﺔﻳدﺮﻃ ﺔﻗﻼﻋ كﺎﻨه . ﺔﺒﻴﻌﻤﻟا جﺎﺘﻥﻹا تاﺪﺡو دﺪﻋو ﺔ(cid:1127)(cid:1127)ﻨﻳﺎﻌﻣ ﻂﺋاﺮ(cid:1127)(cid:1127)ﺧ رﺎ(cid:1127)(cid:1127)ﻴﺘﺧاو ﺎﻬﻠآﺎ(cid:1127)(cid:1127)ﺸﻣ ﺺﻴﺨ(cid:1127)(cid:1127)ﺸﺘﻟ ةدﻮ(cid:1127)(cid:1127)ﺠﻟا تﺎﻴﺋﺎ(cid:1127)(cid:1127)ﺼﺡإ قﺮ(cid:1127)(cid:1127)ﻃ ماﺪﺨﺘ(cid:1127)(cid:1127)ﺳا ةروﺮ(cid:1127)(cid:1127)ﻀﺑ ﺔ(cid:1127)(cid:1127)ﺳارﺪﻟا ﺖ(cid:1127)(cid:1127)ﺹوأ تارﺎ(cid:1127)ﻬﻣ ﺔ(cid:1127)ﻴﻗﺮﺘﻟ ﺮﻤﺘ(cid:1127)ﺴﻤﻟا ﺐﻳرﺪ(cid:1127)ﺘﻟاو ﺞﺘﻨﻤﻟاو ﻚﻠﻬﺘﺴﻤﻟا ﻦﻣ ﻞﻜﻟ ةﺮﻃﺎﺨﻤﻟا تﻻﺎﻤﺘﺡا ﺔﻓﺮﻌﻤﻟ ﺔﺒﺳﺎﻨﻤﻟا لﻮﺒﻘﻟا .ﻢﻬﺕﺎﺒﻏر عﺎﺒﺷإ ﻰﻟإ لﻮﺹﻮﻠﻟ ﻦﻴﻜﻠﻬﺘﺴﻤﻟا ىوﺎﻜﺷ ﺔﺳاردو ةدﻮﺠﻟا ﻞﻘﺡ ﻲﻓ ﻦﻴﻠﻣﺎﻌﻟا TABLE OF CONTENTS Table No. Page Contents Dedication…………………………………………. i. - Acknowledgment………………………………….. ii. - Abstract in English………………………………... iii. - Abstract in Arabic…………………………………. iv. - Table of contents ………………………………….. v. - List of Tables…………………………………….... vi. - List of Figures……………………………………... vii. - 7 Table No. Page Contents - Appendix ………………………………………….. viii. 1. CHAPTER I INTRODUCTION …….…………. 1-7 1.1 General background ………………………………. 1 1.2 Research Problem .. ..……………………………... 5 1.3 Problem Justification ………………………… 5 1.4 The Objectives of the Study ……………………… 6 1.5 Hypotheses ………………………………………... 6 1.6 The organization of the Study ……………………. 7 2. CHAPTER II LITERATURE REVIEW…….….. 8-22 2.1 Globalization and the Quality Role …..………....... 8 2.2 Some Economic Aspects of Quality Decisions…… 9 2.3 Quality Definition…………………………………. 10 2.4 Total Quality Management Definition (TQM)...….. 12 2.5. Differentiation between (Q.A) and Quality Control 13 (Q.C)…………... ……………...………………….. 26 Quality Statistical Methods………………………... 15 2.7 Quality System and Legislation…………………… 19 2.7.1 ISO Series…………………………………………. 19 2.7.2 Advantages and Disadvantage of ISO 9000 Series.. 21 2.7.3 Codex aliminatiarius Commission……………….. 21 2.8 Improving Food Quality and Safety. ……………... 22 3. CHAPTER III APPLICABLE OF QUALITY 23-31 CONTROL TO DAIRY PRODUCTS …………. 3.1 Organization and Authority ………………………. 23 3.2 The Quality Assurance Department……………….. 23 3.3 Relationship with other Departments……………... 25 3.4 The Tools for the Job……………………………… 25 3.5 Quality Control System and Auditing ……………. 25 3.6 Hygiene …………………………………………… 27 3.7 Communication and Report……………………….. 27 3.7.1 Processing Chart…………………………………... 28 3.8 Company Experiment for Rewarding ISO 9002 …. 29 3.8.1 Problem and Difficulties of Application ………….. 29 3.8.2 Working Stages………………………………...….. 29 3.8.3 Documentation Stage……………………………… 29 3.8.4 Application and Auditing Stage…………………… 30 3.8.5 Final Evaluation and Rewarding Stage….………… 31 4. CHAPTER IV METHODOLOGY……..………. 32-48 4.1 Study Area …………………………..………...….. 32 4.2 Data Collection………………………………...….. 32 4.3 Sampling Design …………………….………...….. 32 8 Table No. Page Contents 4.4 Tools and Analysis ……………….…………...….. 32 4.5 The Control Chart for Fraction Rejected …….…… 33 4.5.1 Control Limits for the P Chart……………………. 33 4.6 Cost Variance Significant……………………...….. 35 4.6.1 Standard Costing and Variance Analysis ……….... 35 4.6.2 Decision to investigate Cost/ Benefit ………...…... 41 4.7 Accepting Sampling Plan ……………..............….. 44 4.7.1 Operating Characteristic Curve Definition ……….. 45 4.7.2 Single Sampling Plan by Attributes………………. 45 4.8 The Regression Analysis …………....................…. 46 4.8.1 Coefficient of Multiple Determination………....…. 47 4.8.2 T. Test ……………………………...…..............…. 47 4.8.3 F. Test ……………………………...…..............…. 47 4.8.4 Multi Collinearty and Auto Correlation………….. 48 5. CHAPTER V RESULTS AND DISCUSSIONS 49-59 5.1 Calculation of Quality Control Operation at Blue Nile Company ………………..…………………… 49 5.2 Determination of the Probability of Acceptance between Production Department and Marketing and Sale Department………………………………. 56 5.3 Determination of the Input of Cost Inspection, Cost of Investigation and Cost of Correction on No. of defects. ………………………………..……………. 57 5.3.1 The Impact of Inspection Cost…………...….……... 58 5.3.2 The Impact of Correction Cost ...…..……...……….. 58 5.3.3 The Impact of Investment Cost ………..…………... 58 6. CHAPTER VI SUMMARY, CONCLUSIONS 59-71 AND RECOMMENDATIONS…………....……... 6.1 Summary ………………………………………….. 60 6.2 Conclusions………..……………………………… 62 6.3 Recommendation………………………………….. 62 6.4 Suggestion for Future Study…….………………… 63 - References ………………………………………… 64 - Appendix………………………………………….. 67-71 9 LIST OF TABLES No. Tables contents Pages 4.1 Percentage Defects ( P-Chart) Design ……………….……….… 34 4.1 Decision Rules and States of the System……………….……….. 38 5-2 Decision Rules and States of the System (RESULT TS)……….. 51 5-1 Percentage Defect Chart ( P-Chart) ( RESULT TS)….. .………. 52 5-3 Decision Table (RESULT TS)…………………………..………. 53 5-4 Pearson Correlation …………………………………..…………. 57 5-5 Regression Coefficients for Linear Production. …….………….. 57 List of Figures Figure No. List of Figure Page 2-1 Ways of organizing a manufacturing control operation. …… 14 3-1 The hierarchy structure of the company ……………………. 24 3-2 Flow chart for plain yogurt processing …………………….. 28 10