Influence of management in statistical process control success and its impact: case of halal cosmetics industries in Selangor

The demand for halal cosmetics products is rapidly increasing due to the high quality of the products. Hence, it is not surprising that halal cosmetics industry can be the next emerging sector for the Halal Industries in Malaysia. The halal cosmetic products in Malaysia are certified and control under JAKIM (Department of Islamic Development Malaysia) and follow the Malaysian Standard MS 2200:2008 requirement. According to the Standard MS2200: 2008, Halal Cosmetics products must be safe and not hazardous to be used by customers. It means the products should have high quality in the manufacturing process. Thus, the implementation of Quality Control method intended to improve the quality of the halal products has become a business strategy for organizations. Statistical Process Control (SPC) is known as a powerful technique which organizations can use in improving the quality of products or services and lead to the many benefits for companies. Therefore, the purpose of this study is to examine the influence of management commitment on SPC implementation and the impact of SPC implementation on company benefit. The study was conducted for 10 cosmetics companies in Selangor, and use self-administered questionnaires as data collection method. This study identifies the factors that affect the SPC implementation in the Halal cosmetics companies. Partial Least Square Structural Equation Modelling (PLSSEM) is used to model the effect of SPC implementation based on the identified factors. The results of the PLS analysis support the proposed model with all regression coefficients are significant at 0.05 (t-value > 1.97), i.e. the relationships among the constructs are statistically significant. The results show that Management Commitment has a significance effect on the SPC Implementation along with some other factors. Finding of the study also shows that, SPC Implementation is one of the factors that will contribute to the benefits to the companies if the management of the organization give a commitment on its implementations.