Statistical Process Control at Hi-Tech Surfactants

Abstract

Hi-Tech Surfactants Ltd (HTS), India, was a private limited company, operating as a supply chain partner (a contract manufacturer) of Hindustan Unilever Limited (HUL), the Indian subsidiary of Unilever, the global giant in the consumer products market. HTS manufactured and shipped assorted sizes of Wheel brand laundry detergent for fabric wash. HUL supplied the raw materials and sent production plans through the ERP (Enterprise Resource Planning) system - SAP. In late 2021 Harsh Bhardwaj led HTS since the early 90s, maintaining a growing relationship with HUL. Bhardwaj invited a management consultant, Professor Ravi Sharma, Conestoga School of Business, Ontario, Canada, to review the HTS operations and present recommendations for improvement. Sharma suggested processes to improve quality and productivity and reduce material usage. He proposed using statistical process control (SPC) and related concepts of process capability and target-oriented quality. HTS Team members were satisfied with their current level of quality and productivity. They operated within norms set by HUL and received no complaints. A recent audit by SGS on behalf of HUL and the British Retail Consortium gave HTS an AA rating. Bhardwaj was in a dilemma. He needed to decide whether to maintain the status quo or consider implementing the recommendations Sharma proposed.

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