Product Management – Importance of Quality Control (Adulterated Petrol in Nigeria $52.7m loss)

Product management, a subset of project management provides a framework for a quality management plan (in accordance with PMI.org). The 8th of February 2022 has been one fraught with stories of loss for Nigerians. Fuel queues at petrol stations, panic buying and damage of vehicles is the present ache in the country. A break in the management and by extension supply chain of a product can lead to financial losses that are unprecedented. Quality management plan includes: requirements, standards, quality assurance processes, and a quality control plan for implementation of the product.

Checking the methanol and other metric levels is the main quality control in purchasing petrol. As in the aviation industry, water content and density have target values that must be conformed to otherwise the fuel is not purchased.”

See also:

Quality Assurance VS Quality Control and the Responsible Stakeholders

Quality VS Grade – What is the Difference?

Life-cycle Costing – Seeing the ‘a Bigger’ Picture

5 Ways to Make Outsourcing Work [Infographic]

Coordinating VS Substantive Manager

Source: https://www.templars-law.com/wp-content/uploads/2020/02/Templars-Newsletter-National-Policy-on-Methanol-Fuel

Standards for Petrol Quality

According to a report, the country accepts refined petrol and diesel based on 150ppm (parts per million) of sulfur. This value is in contention based on recommendations by AFRI Clean Fuel Specifications. The current issue with adulterated fuel is the methanol levels which has been observed to be higher (actual numbers not given).

Implications of Adulterated Petrol in Nigeria

The implications of this management error is both to the importer and the consumers. Financial ramifications forms a major part of this, while time related inconveniences will also lead to some form of financial loss.

For 100 million litres, the government will lose over $52.7 million, while the number of cars affected is uncertain, fuel scarcity will lead to inconveniences for minimum of 3 days. Which is a further loss in GDP.

Quality Management Plan

The input to analyzing product quality management are the requirements and purpose of the product. These data leads to standards documentation to form part of quality assurance and then towards use of quality control when quality assurance was not performed or other issues occurred. The main subtopics:

  • Plan product quality
  • Manage product quality
  • Control of product quality

Checking the methanol and other metric levels is the main quality control in purchasing petrol. As in the aviation industry, water content and density have target values that must be conformed to otherwise the fuel is not purchased. If this simple process was carried out, these losses will have been avoided.

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