Quality Control Analysis on

2008 Chinese Milk Crisis

Kan Yao, Ning Liu, Mengjun Liao , Wei Dai

11/02/2010

Outline

� Background� Timeline

� What is Melamine?

� Why add Melamine?

� Quality control analysis� Baby Formula Milk Production Process

� Cause & Effect Diagram

� FMEA

� Further Impact

Background

9 babies

Background

16 young

children

5 infants

What is Melamine?

� Toxic Organic Product

What is Melamine?

Why add Melamine?

� Melamine: rich in Nitrogen

� Standard Protein Test Method

� Kjeldahl Method

� Test Nitrogen content instead of direct

protein level

� Add water and Melamine for profits

Baby Formula Milk Production Process

Raw Milk

Inspection on

Raw milk

Pre-heating and

Homogenization

Flowchart

Analysis

Management

� Sanlu Inc. do not take complaints

seriously

� Management responsible for poor raw

milk inspector

� Do not set a safety standard

Man

� Raw milk inspectors

� Disciplines issues : bribery

� Inspectors

� Lack enough training

� Sanlu Inc. itself may add Melamine

Method

� The nature defects of Kjeldahl Method

� Inductive method

� Inspection of Sanlu Inc. itself

� Sampling instead of fraction conforming

� Necessary heating process

� Dairy farmers or collectors add urea

� Urea is rich in nitrogen

Environment

� Sanlu. Inc was “Inspection-free”

company in China

� Destructive competition on baby

formula market in China

� Compared with imported brand

� Melamine problem

� not only Sanlu Inc. single case

Material

� Dairy farmers

� add Melamine to raw milk

� Milk collectors

� add Melamine to raw milk

� Transportation or Storage process

� polluting raw milk

Analysis

Further Impact

Further Impact

� Industry� Sanlu Inc. bankrupted

� New food safety law

� Other dairy products companies

� Economy� Exports decreased

� Society� Consumer confidence dropped

� Concerns on food safety increased