Modelling the Effects of Statistical Process Control Implementation on Halal Cosmetics Products
Faculty of Business and Accountancy, Universiti Selangor
S.Sarifah Radiah Shariff
Malaysia Institute of Transport
Siti Meriam Zahari
Centre for Statistics and Decision Science Studies, Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA,
The demand for Halal cosmetics has witnessed a recent upsurge as Muslims around the world become more aware that a majority of products available in the market are non-permissible or haram. The trend is more pronounced in Asia Pacific, which is the home to nearly 60% of the world’s Muslim population. This phenomenon makes the global cosmetic industry becoming more cautious about the quality and halal status of their products as this will influence the revenue of the company in a greater scale. Statistical Process Control (SPC) is a method of quality control to monitor the production process using statistical measures. Its practice in halal cosmetics production process is intended to provide the assurance that the overall production process adheres to the shariah law. Accordingly, this study identifies the factors affecting SPC implementation in halal cosmetics companies. Partial Least Square Structural Equation Modelling (PLS-SEM) is used to model the effect of SPC implementation in selected halal cosmetics companies based on the identified factors. The results show that Management Commitment posed a significant effect on SPC implementation, along with other factors.
Keywords: Halal cosmetics, Management commitment, Partial least square structural equation modelling, Statistical process control