Introduction to Food Industrial Management STKM4612

Introduction to Food Industrial Management (STKM4612)

• Course objective: Understand activities in food production industries.
• Production activities create change, transforming raw materials into finished goods and services that meet consumer desires.

Production Management

• Production involves planning, organization, leadership, and control over input transformation (raw materials, labor, machinery) to produce valuable output (goods/services) satisfying consumer needs.

Production Methods

• Mass production: Designed for identical products in high volume; utilizing specialized machinery and equipment. Examples include washing machines, radios, light bulbs, pens, newspapers, snacks.
• Batch production: Processes a few items in groups/lots. Often used for diverse products to fulfill varied needs or demand. Examples include furniture and textbooks.
• Continuous production: Runs 24/7 for high-volume production of a single product type. High standardization makes changing product lines difficult. Examples include chemical material, photographic, printing, paper, and oil refining plants.

Differences between Mass, Batch, and Continuous Production

Flow Diagram (PFD)

• Documents a process for better understanding, quality control, and employee training.
• Standardizes a process for optimal efficiency and repeatability.
• Studies a process for efficiency and improvement, highlighting unnecessary steps, bottlenecks, and inefficiencies.
• Models a better process or creates a brand-new process.
• Communicates and collaborates with diagrams useful for all roles within the organization.
• Examples include Microsoft Visio, Superpro, process flow diagrams (PFD), and Piping and Instrument Diagrams (P&ID).

Production Planning

• Design Planning: Plans and arranges the factory’s design and internal layout considering factors like plant area, worker volume, machine types, and environment to minimize material handling.
• Objective: Space utilization, labor effectiveness, communication facilitation between employees, supervisors, and customers; facilitating material flow.
• Considered factors: Size of the space, number of employees, machine types, production process, subsequent operations, factory site/environment, and position of the factory.
• Site Location Planning: Careful selection of the site minimizes future losses (water, electricity, supply, etc.). Minimized operating costs (transportation, labor, raw material, distribution). Includes expanding existing facilities, providing facilities in new locations while maintaining existing ones, or moving to a new location. Factors considered are labor, raw materials, transportation facilities, distance to markets/consumers, infrastructure, financial institutions, security, and medical services.

Production Planning - Scheduling

• Preparation of detailed schedules for the production process of required goods/services.
• Methods include Gantt charts and PERT/CPM charts.

Inventories

• Inventory is a stock of raw materials, semi-finished goods, and finished goods used for production and meeting customer demand.
• Inventory Control: Managing receipt, storage, material handling, and calculations for raw materials, in-process, and finished goods to maintain smooth workflow. Also includes handling quantities at optimal levels according to cost, profitability, and service quality criteria.

Inventory control Objectives

• Reduce delay time in production process: Proper inventory control reduces delays.
• Identify the number/order of materials/goods at optimum price for cost saving: Inventory control optimizes pricing and minimizes costs.
• Increase production volume: Increased efficiency increases productivity.
• As a safety measure protect from uncertainty of demand at some point/avoid excess offer: Inventory acts as a buffer against uncertainties in demand

Inventory control Importance

• Protection from inflation and supply deficiencies: Inventory protects against inflation and supply shortages.
• Bulk purchase discount: Purchasing in bulk allows for cost savings.
• Smooth production process: Inventory ensures smooth production flow.
• Avoid deficiency inventories: Prevents shortages in the process.
• Cost saving: Reduces overall costs.

Quality Control

• Definition: Process designed to produce affordable goods/services meeting quality standards. Quality judged by tangible and implicit product/service characteristics that satisfy customers.
• Factors: Cost, market share, company reputation, international implications, and product liability affect quality.
• Process: Manufacturing steps that control quality include purchasing raw materials and distributing the resultant goods to customers.

Total Quality Management (TQM)

• Definition: Customer-oriented process, continuously involving all aspects of the organization to bring about a comprehensive change toward an excellent organizational culture.
• TQM Objectives: Provide good quality to all customers, satisfy customers with quality outputs meeting needs, and maintain continuous improvement of the process system to run smoothly.

International Standard Organization (ISO)

• Definition: A written standard explaining the basic elements necessary for a quality system to ensure customer needs are met, creating a quality assurance system that establishes standards for prevention over corrections to avoid mistakes.
• ISO Principles: Quality standards for quality systems, as opposed to standards for individual products or services, are applied universally based on documentation. Emphasizing prevention over remedial action.
• ISO 9000 series: Guidelines introducing quality-related terms and concepts. Quality standards for various aspects, including design, production, and post-production services, production processes in the factory, and final inspection and testing, and guidelines to implement quality control systems.

ISO 14001

• ISO 14001 covers environmental management systems. The components include environmental policy, environmental plan, management review, monitoring and corrective actions, and implementations.

Food Safety Management Systems

• Guidelines for food safety, such as recognized schemes like FSSC 22000, BRC, ISO 22000, MS 1480:2019 HACCP, and MS 1514:2009 GMP, ensuring food safety throughout the system's operations.