International Journal of Scientific Engineering and Research (IJSER) ISSN (Online): 2347-3878 Impact Factor (2018): 5.426 Volume 8 Issue 8, August 2020 www.ijser.in Licensed Under Creative Commons Attribution CC BY Application of Pareto Analysis and Ishikawa Diagram on Bottling Industry: A Case Study Ambo Mineral Water Share Company Refisa Wakshome Deressa 1 , Vighneswara Rao .K 2 , Dereje Geleta Oljira 3 1 & 3 Department of Mechanical Engineering (Industrial Systems Engineering), Wollega University, Shambu Campus, Oromia regional state, Ethiopia kotooraanwakshome[at]gmail.com, derejegeleta55[at]gmail.com 2 Department of Chemical Engineering, Faculty of Technology, Wollega University, Shambu Campus, Oromia regional state, Ethiopia vignesh.che[at]gmail.com Abstract: This research focuses on minimization of defects which causes for product packaging quality of control failure in AMWSC. The purpose of this research is to increase the quality and productivity improvement in the company by minimizing reworks that usually occur in the company product packaging process. Due to this qualitative method has been conducted to provide insights and understanding about the problems. Regarding to this important data was collected from PET production packaging line. In this process the identification of defects which causes failures for quality control product packaging has been conducted. Then, it was analyzed using Pareto Analysis and Ishikawa diagram. As the analysis made for 80/20 rule the production quality of PET on packaging section mostly affected defects by filler centering bell problem 11.3%, Labeler sensor fault 9.95%, Air filler leakage 8.4%, Air conveyor problem 7.79%, syrup ratio problem 7.34%, filler under fill and leakage 7.02%. Then, the root causes of PET product packaging process categorized by cause and effect diagram. Generally, based on the application of Pareto chart and Ishikawa diagram analysis the paper suggests how to handle these issues and minimize reworks or bring down defects rate. Keywords: AMWSC, PET, Defects, Pareto Analysis, Ishikawa diagram 1. Introduction In bottling Industry, it is usual that there will be few rejected products because of most of the manufacturers believed that industry are soft goods and non-repairable defect may occur due to low quality of raw materials or faulty process or employee casual behavior. Furthermore, many of the previous studies have found that consumers are ambiguous about the meaning and understanding of quality. According to Montgomery (2005), quality is one of the most important decision factors in the selection of products and services. Therefore, quality leads to business success, growth, and increases competitiveness, as well as improves the work environment. Thus, as (Gurnani, H. 1999) quality has been identified as the competitive strategy to improve business performance in a global market. However, high quality product is very demanding for the customers (Mc Daniel, C., Lamb, C. W., & Hair, J. F. 2011). Moreover, consumers are easily used to seeing the advertisement from branded companies and having their trust built on it where they think that their products are in better quality (Lew, S., & Sulaiman, Z. 2014). The Ethiopian process industries are facing serious weaknesses and constraints hindering their productivity and competitiveness. One of the processing industries that play an important role in the economic development, especially for developing countries like Ethiopia is Soft Drink Industry. A soft drink is a cold beverage, usually sweet drink, which does not contain alcohol. In Ethiopia, soft drinks are known by the Amharic word "leslassa”, by Afaan Oromoo “Lallaafaa”, meaning literally "smooth”. Soft drink bottling or manufacturing involves five major processes treating water, compounding ingredients, carbonating product, filling product, packaging. There are two Soft Drinks Industry Share Company exists in our country, Ethiopia. They are MOHA Soft Drinks Industry Share Company and East African Bottling Share Company. Ambo Mineral Water Factory is one of the East African Bottling Share Company. The mineral water bottling plant obtained its name from the town of Ambo where the factory was first established some seventy-five years ago. It is a popular drink in Ethiopia, and has been described as the "oldest modern mineral water" and Ethiopia's "oldest mineral water bottler." The general objective of the study is to Increase quality control, Productivity improvement, and assurance product Packaging of Ambo mineral water Share Company in order to identify specific problems cause defects by using the application of Pareto Analysis and Ishikawa diagram (Cause and Effect diagram). The major importance of the research is to provide concrete information to the reader about the quality engineering and management in production of bottling industry. It is also important to minimizing defects of product in the AMWSC. Moreover, the organization may benefit from this finding as well as gives them an idea what they need not to do in future for their improved productivity. In addition to that, it could also give a guideline for who is interested to conduct further study in this area. Paper ID: 29082003 DOI: 10.21275/29082003 1 of 7