Cost of Poor Quality in Sea Food Industry of Pakistan

2. Cost of Quality
Fishing Industry of Pakistan
Group Presentation by:
Mr. Atif Mumtaz
Mr. Muneer Ahmed
Ms. Rabia Haider
Zaid Kundan To: Commander (R) Azhar Nisar
Total Quality Management – BUKC

3. Theme of Presentation
Aims and Objective
Introduction of Fisheries Industry
Processing of Sea Food
Challenges to the Industry
Cost of Quality and Poor Quality
Recommendations to improve the Quality

4. Aims and Objective
• To gain knowledge with respect to the
importance of TQM in seafood sector and
how it can help to achieve quality across the
traditional functional lines.
• To know how the seafood sector is trying to
cope up with it flaws or deficiencies with
respect to quality and the area where it still
lacks.

5. Brief Introduction of the industry
• The role of fishing and fisheries industry is of paramount
importance in the economy of Pakistan. Coastline of
Arabian Sea is 814 kilometers along Pakistan therefore
there are abundant fishery resources.
• Fisheries as a sub-sector of agriculture, is considered as
one of the important economic activities along the
coastline of provinces of Sindh and Balochistan.
• Pakistan is ranked one of the leading exporters in the
fisheries sector (seafood) and fish processing plants are
gradually incrementing to contribute to employment
generation.
• Pakistan achieves on an average 352,056 tons fish every
year through fishing and fish farming valuing Rs. 57,000
million. Approximately 10 percent of total catch is
exported every year.

6. Processing of Sea Food
Raw Material
Sorting / Grading
Washing
Packaging
Freezing

7. OVERFISHING:
Shrimps overfishing for the whole year is the basic
problem of fishery industry due to which fish are
not given the chance to grow as they are caught in
the first stage of their growth. Moreover, fish are
caught during their breeding season.
LOSS OF MANGROVES:
Mangroves (oceanic forests) are the hurdles against
high and low tides. These mangroves play the role of
breeding ground of fish and shrimps. Mangroves
cannot grow and develop in polluted water.
Challenges to the Fishery Industry

8. WATER POLLUTION:
Karachi Fish Harbor faces different types of
pollution. Oil spillage from the vessels and domestic
and industrial wastes are the big threat.
Experiments proved the existence of various
chemicals, toxic and heavy materials in marine life.
These injurious and deadly elements are being
transferred to the humans through fish. Water
pollution is not confined to Karachi coastal areas
but rivers of Pakistan are also the victim of this
problem.
Challenges to the Fishery Industry

9. Cost of Quality and Poor Quality

10. Cost of Poor Quality
Internal Failure costs includes:
• High amount of scrap
• Reprocessing cost
• Low quality fish
• Unskilled workforce
• Lack of proper chilling facility
• Lack of Hygiene
• Lack of proper Sanitation
Facility
• Lack of Grading Skills
• Improper use of ice
External Failure costs includes:
• Supply of wrong order
• Supply of wrong quality and/or
quantity
• Late Delivery of Order
• Choice of unsuitable shipping line with
respect to voyage time
• Abnormal Packaging
• Incorrect Labeling
• Loss of confidence of Customer

11. Prevention Cost
• Costs involved in planning and documenting the Company's
quality system (including establishment of product specifications).
Quality planning is done by QC or QA personnel and involves
setting up programs for process control.
• Costs of directing, administrating, executing and auditing QA
activities (including salaries).
• Costs of planning and implementing training and motivational
programs in quality operations and attitudes.
• Costs of industrial safety programs and measures. This is very
important in the fishery industry, particularly onboard fishing
vessels and during fish handling and processing.
• Preventative maintenance on processing equipment. This includes
the cost associated with necessary repairs and adjustments.
Cost of Quality

12. Appraisal Cost
• Costs related to the in-plant (internal) inspection a control of
raw materials, purchased ingredients and packaging.
• Costs related to in-plant (internal) process inspection, such
as checking of semi-processed items and final products,
temperature inspection and recording, including costs of
compilation of quality records (cost of the forms and clerical
expenses).
• All the in-plant laboratory costs (including sampling and
testing) and any outside testing services that may be used.
• The salaries of quality control and inspection people
(professionals, technicians and workers) Costs related to
final inspection, in-plant or external.
Cost of Quality

13. Recommendation for quality improvement
• Freezing of good quality, cleaned and chilled fresh fish will help in reducing
spoilage and maintain quality. It will not make poor quality fish better.
• Fish storage compartments must be designed to avoid contamination of fish
and spoilage. The storage areas must be fitted with sealable doors to keep the
fish at a low temperature during transport. Fish temperatures should be
recorded at the start, during and at the end of transport.(i.e. -18 degree
Celsius should be maintained at all times)
• Hiring of trained personnel who not only supervise the whole process but also
trains the subordinates to ensure the quality of the fish from purchasing till
the packing.
• Availability of proper freezing and refrigeration facility at factory and on
transport vehicle.
• Accreditation and Quality Certification of factories will also help the factories
to not only ensure the quality but also improve the quality as much as
possible.

14. Thank You