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Ethiopia is the 8th largest livestock in the world and the second largest in Africa

Ethiopia is the 8th largest livestock in the world and the second largest in Africa. The enormous livestock base is not currently fully exploited due to various reasons. The huge potential for investment in tannery industry as a value addition to the finished products is still at its infant stages. This sector is one of the “priority sectors” identified by the government. However, the Ethiopia Tannery industries suffers from a low penetration on the international market this is a result of many circumstances.
There are around 33 tanneries in Ethiopia. From those Awash Tanneries under Ethio-leather Industry PLC (ELICO) is one of finished leather processing company. The raw skin passes through various processes to produce finished leather and inspection is executed in the middle of the processes. Excessive defective outputs are found when inspection conducted in every stage and these defective products are rejected, this cause a high revenue loss for the company. Actually, the percentage of nonconforming to specifications or standards differs in each stage.
So, the researcher believes that the main problem of the factory that is excessive rejection will attain a solution by identifying the root causes of it. And then best solution will be found out by using Quality tools, problem analysis technique, and by process capability. Finally, a solution model will be recommended.