MGT330

Report On Radhuni Turmeric Powder

Submitted To:
Rashid Anzoom
Faculty
School Of Business
Independent University, Bangladesh
Date of Submission: October 10th, 2019.
Section: 05
Semester: Autumn 2019.
Submitted By:

Name ID
Syed Rifat Ar Rahman 1631287
LETTER OF TRANSMITTAL

To: Rashid Anzoom, Faculty

School of Business

Independent University, Bangladesh

Plot 16, Block B, Aftabuddin Ahmed Road

Bashundhara R/A

Dhaka

Date: 10th October, 2019.

Subject: Submission Of Report On Radhuni Turmeric Powder

Dear Sir,

With due respect, it is my pleasure and honor to be your student and have this opportunity to
present this report on Radhuni Turmeric Powder. While preparing this report, I have given my all
to best focus thoroughly on the information regarding the product and product similar to this one,
the problem with this product, sources of quality cost and solution to the problem. I have
provided all relevant information. I believe and hope that this report will provide a clear
conception my product and its issues.

I gave my best to accumulate required information and I will be more than happy to answer any
question and clarify it fully to your understanding. Thank you for all your help and support
which helped me significantly in preparing this report.

Sincerely yours,

Syed Rifat Ar Rahman

In completing my assignment, I had to take the help and guideline of my respected faculty who
deserves my greatest gratitude. The completion of this assignment gives me much pleasure.

I would like to show my gratitude to Rashid Anzoom, Faculty, Independent University,

Thank you.
Table of Contents Page no.

Letter of transmittal_______________________________________________________ 1

Acknowledgment_________________________________________________________ 2

Executive Summary_______________________________________________________ 4

Introduction______________________________________________________________ 5

Comparison______________________________________________________________ 6

Problem_________________________________________________________________ 8

Fishbone Diagram_________________________________________________________ 8

Sources of Quality Cost____________________________________________________ 9

Prevention Cost_____________________________________________________ 9

Appraisal Cost______________________________________________________ 9

External Failure Cost________________________________________________ 9

Solution_________________________________________________________________ 9

Conclusion______________________________________________________________ 11

Bibliography_____________________________________________________________ 11

Appendix________________________________________________________________ 12
EXECUTIVE SUMMARY

This paper reflects on the problem and solution of Radhuni Turmeric Powder. In this report I
have discussed about the product’s quality and compared it to similar product. Then stated about
the problem and with the help of causes and effects/fishbone diagram I have shown the root
causes and effects of the problem. After that I have stated about the sources of quality cost and
gave some solution to the problem.
INTRODUCTION

Product

Radhuni Turmeric Powder

Radhuni Turmeric Powder guarantees the proper composition of curcumin. Their turmeric
selected for processing are finest of their kind for which it gives the dishes an attractive golden
color.

Apart from having excellent antiseptic and antibacterial properties, Radhuni Turmeric Powder
has the distinct flavor and fragrance for preparing delicious food items.

This basic spice product of Radhuni comes in different sizes with different pricing.
Available sizes (Either in pouch or inner carton form) and retail price range - Tk. 6 – Tk. 335
Square Consumer Products Ltd. (SCPL), a sister concern of Square Group, is one of the largest
manufacturers and marketing concerns in the powder spice arena in Bangladesh. After correctly
realizing the market demand of quality spices, in 2001 Square Consumer Products Limited
introduced “RADHUNI POWDERED SPICE” with a vision to provide quality “ready-to-cook”
food ingredients for the homemakers. Within a short span of time, the company was able to
create a strong foothold in the market through its quality products and customer services. Their
powdered spices are of international standards and their turmeric powder is being exported to 30
countries in the world.

Comparing Radhuni Turmeric Powder’s quality with PRAN Turmeric

The market leader - Radhuni pays a very keen and significant attention to ensure the best quality
of spices for its customers. Radhuni Turmeric Powder is manufactured and packed from
Radhuni’s factory located in Pabna, a northern district of Bangladesh. For the raw materials the
company usually depends on the local selected crops and seeds and collects them during the peak
season of harvest. In every step from selection of raw materials to the finished products Radhuni
complies with strict international quality standards. In order to create a reputed impression in the
customers‟ mind regarding the quality, Radhuni adopted the ISO 9001:2000 and approved all its
products from BSTI (Bangladesh Standards & Testing Institution). So Radhuni Turmeric Powder
is BSTI approved.

The main product benefits and strengths of Radhuni Turmeric Powder are as follows:

✓ Raw materials are selected from best varieties of quality raw materials
✓ Strictly maintain international quality standard.
✓ Assurance of quality, authentic taste, and flavor of home-ground spice.
✓ Finely pulverized and not musty.
✓ 100% free from adulteration.
✓ Full release of flavor during cooking.
PRAN Turmeric Powder

PRAN turmeric Powder is another similar product but there’s a significant difference in quality.
They have started to withdraw their product from the local markets and stopped making it after
getting a ban from Bangladesh Standards and Testing Institution (BSTI) due to their quality
control failure. Their turmeric powder contained high levels of lead between 40 parts per million
(ppm) and 55 ppm that far exceeds the permissible limit of 2.5 ppm set by BSTI. Bangladesh
Council of Scientific and Industrial Research (BCSIR) carried out tests and detected a presence
of high levels of lead. The director claims it is due to raw materials extracted from ground and
that Bangladeshi soil has too much lead.

Figure: Brand Map representing Radhuni and PRAN Turmeric Powder’s position in mind of their
customers.
PROBLEM

Mold Growth – Lumpiness and flavor losses are not the most troubling concerns in spices when
exposed to humidity. When it is warm like in kitchen, humid air promotes mold growth. As
humidity in turmeric rises, the possibility of self-heating increases. Spoiling spices is not the only
characteristic of mold it may also produce mycotoxins that are carcinogenic, genotoxic that leads
to food-borne illness. Consumption of these toxins causes health hazards and sometimes these
health issues could be fatal.

Turmeric is hygroscopic so it is best to store them in dark, cool and dry containers. Air-tight,
dark colored glass containers are best for preventing oxidation and degradation.

Fishbone Diagram

According to fishbone or cause and effect diagram, the effect ‘mold growth’ is caused due to
poor quality of raw materials, lack of storage facility, exposure to humid air and improper
supervision.
SOURCES OF QUALITY COST

Prevention Cost

Radhuni Turmeric Powder’s quality is considered as the best quality product among its
competitors but as it is hygroscopic, exposure to light, air and warm environment causes it to get
damaged. Some it is due to supply of poor quality raw materials which hampers the end product
and they need to make a new batch. This causes loss to the company. So in order to prevent this
cost from company must work more with suppliers to ensure they get better quality of raw
materials and maintain quality data analysis.

Appraisal Cost

The defected end products cause more loss to the company as it is realized by customers after
opening the packet of turmeric powder. Customers shift to their competitor’s product if they find
mold inside the packet. To ensure quality of both product and raw materials inspection is a
mandatory task carried out by supervisors.

External Failure Cost

Defect in the product is always discovered by their customers as it is not possible to check inside
the packet after packaging is done by the machine. When customers find mold growth in
turmeric powder, they return the product and take replacement. That is a loss of goodwill. The
batch of product inventoried needed to be replaced by new batch. This is a cost to the company.

SOULUTION

Kaizen implementation process is necessary to solve the problems. It helps to reduce the root
cause of the problem and improves productivity.

Solution for reducing supplies of poor raw materials:

Quality control is a set of steps or guidelines designed to guarantee that a product or service
meets certain performance standards. The goal of quality control is to ensure that an item meets
the needs and specifications of the consumer population. Good quality control also helps a
company to more efficiently navigate manufacturing and production processes to cut down on
mistakes and waste, and maximize profit. The basic and primary solution of this problem is Raw
Material Inspection.

Radhuni experience quality issues with their final products sometimes as a result of inadequate
raw materials passed down the production line. Therefore, quality management of raw materials
should be embedded in the development stage and is crucial for avoiding any costly quality
issues further down the line. Quality and compliance of raw materials are essential for decreasing
potential quality risks later during production. This can be done through implementing effective
quality management systems which will significantly improve performance, as well as save
valuable time and money leading to higher quality goods and increased profitability. Quality
management of the development stage is the most crucial step of the manufacturing process.
Ensuring that the right products are produced using high-quality materials will reduce quality
risks by as much as 70%.

A set of committee can be on the field at the very first stage of development and processing of
the product.

Solution for environment and storage facility:

It is necessary to keep turmeric powder in air-tight containers and store in dark and cool
warehouse to avoid any deterioration of the product. As Bangladesh’s humidity level is around
83%, it is tough to keep the product from growing mold. We cannot control the weather but we
can control the quality of the product by keeping it in a good storage facility. The turmeric
powder should be dried properly to prevent growth of mold and the material should be packed
into clean heavy-gauge plastic sacks to avoid any moisture pick-up. Workers should use clean
gloves and scoops while handling the spice. Sacks should be labeled and sample should be taken
for test. The store should be inspected and cleaned regularly. Company should build a warehouse
for their spice products which requires specific temperature and condition so that the products
are not exposed to light, air and other components in air. Producers need to decide on different
packs for different markets depending on the weather condition. Selection of packaging is
important as it represents the final defense for the product in the chain to the customer.
Solution for improper supervision:

All of the responsible persons involved with the production should be aware about the work
which is running in the production floor. There must be a monitoring and evaluation system in
order to check whether the system is running in right order or not; what are weakness,
insufficiency or lacking etc. If any problems arise in the production floor immediate step should
be taken to overcome the problem.

Special supervision is required at the start and end of production. Supervisors need to check with
their employees and ensure the quality of raw materials collected from suppliers which will
ensure the quality of the end product. Then after production storing the finished product is
another big challenge for the company as turmeric powder needs to be stored in specific
condition. Supervisors should ensure the condition of storage facility to avoid deterioration of the
finished products.

CONCLUSION

After doing this research, I have come to a conclusion that quality control is a major issue in
manufacturing industry. A business’s profitability depends on how good and distinct a product
is. To ensure good quality a business need to spend money on prevention cost and appraisal cost.
And supervisors should be careful about the supply of raw materials to ensure a high quality end
product. And if there’s a problem, with the help of fishbone diagram the causes should be figured
out and implement kaizen process to eliminate root causes to avoid further quality cost.

BIBLIOGRAPHY

Parvez, S. (2019, October 10). Pran starts recalling turmeric powder. Retrieved from The Daily Star:
https://www.thedailystar.net/news/pran-starts-recalling-turmeric-powder

POLYGON. (2019, October 10). Home / Blog / The Properties of Spices & Why Moisture Can Damage
Them. Retrieved from PolygonGroup: https://www.polygongroup.com/en-US/blog/the-
properties-of-spices--why-moisture-can-damage-them/

PRAN-RFL Group Ltd. (2019, October 10). Retrieved from

Square Food and Beverage Ltd. (2019, October 10). Retrieved from
https://www.sfbl.com.bd/our_brands.php?brand_id=1&category_id=5
APPENDIX