SUPPLY CHAIN MANAGEMENT (SCM) WITH APPROACH TO QUALITY CONTROL IN MILLING INDUSTRY

Transcription

1 SUPPLY CHAIN MANAGEMENT (SCM) WITH APPROACH TO QUALITY CONTROL IN MILLING INDUSTRY Mohamadreza Najafi Industrial Engineer Industrial Production- PETKUS & MMW GmbH IRAN Office CEO

2 Contents Changes in FM Industry BE WINNER IN COMPETITIVE MARKET Defining a Supply Chain SCM stages in flour production Risks in SCM of Flour production Role of each chain in Flour Quality RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

3 Changes in FM Industry New competitors entering through establishment of new production plants. Basic changes in role of governments in flour market. Increase role of the importation of wheat for flour production plants and its price fluctuation.

4 BE WINNER IN COMPETITIVE MARKET The first victory in competitive market is to stay and survive Quality is a MUST to win Wrong Approach Only focused on increasing product quality and quantity only focusing in their plants. worldwide overview of quality for managers in of flour industry SC M

5 Defining Supply Chain Management A chain of activities that creates and delivers the products and services to customers. An integrated group of processes to source, make, and deliver products Quality management from farm to fork

6 SCM stages in flour production procurement of raw material (wheat) Storage production and packaging delivery Wheat C1 A local wheat C1 B imported wheat by farmers or farmers union by the factory itself by grain trade companies storage in independent silos local (out of plant) storage in plant silos storage in port silos (grain terminals) C2 A C2 B C2 C C3 flour,starch & Semolina production in plant C4 Product transfer & packagin g C5 A storage in prepared plant storage C5 B storage at the point of consumption (Dealer) C6 produc t deliver y Flour cons umer

7 Risks in SCM of Flour production procurement of (wheat) Storag e production and packaging delivery Wheat C1 A local wheat High Wastages C1 B imported wheat Poor Quality Control losses in unloadin g operation by farmers or farmers union Tradition al quality control by the factory itself by grain trade companies Difference in quality spec of imported wheat and agreed storage in independent silos local (out of plant) storage in plant silos storage in port silos (grain terminals) storage in out door stores C2 A C2 B C2 C C3 flour, Starch & Semolina productio n in plant old equipment High wastages Halts in production Missing Sanitation C4 Product transfer & packagin g C5 A storage in prepared plant storage C5 B storage at the point of consumptio n (Dealer) unsuitable transportation post contamination s poor quality packaging C6 produc t deliver y Flour cons umer

8 Chain Code Role of Each Chain in Flour Quality Title Probable percentage of waste Cause/Causes Results C1A C1B C2A C2B Wheat locally produced Wheat from import Storing in open and non standard stores 8.5 To 10% 4 To 5% At least 8 to 10% Not using optimum procedures in planting, growth and harvesting stages Utilizing traditional unloading equipment from ship or wagon Not taking samples and proper quality control after import Not having mechanized and standard storages Not paying attention to the importance of maintenance in the chain of flour As the most important input in the chain it will affect all the following stages Utilizing traditional equipment and procedures will damage the wheat and causes quality and quantity damages. The plant imports the wheat on the basis of quality inspection at original point. Increase of quality and quantity wastes because of environment and pests

9 C2C Every Chain Role in Flour Quality Storing in non-standard port stores At least 3 to 4.5% Continue Not having standard grain silos at importing and exporting ports. Not having mechanized handling equipment Increase in wastage because of environment condition insects and pests Increase in wastes due to storing adjacent to other bulk material and their contamination pollution like coke, cement,etc. C3 Flour production process Low productivity Production by old machinery Low technology (no optimized production diagram) Technical production problems Missing Sanitation Poor Quality management Production stoppages Decrease in capacity of production Decrease in output Increase in wastages Decrease in variety of products Damaging flour starch C4 Product packaging (flour) 1 to 1.5% Utilizing un proper packaging material Utilizing used and old packaging machinery Falling during distribution due to un proper bag sealing Low quality and attractiveness of packages of packages in case of added value flour like cakes.

10 C5A C5B Ready to use storage at plant or point of consumption Every Chain Role in Flour 1 to 1.5% Quality Continue Secondary contamination Effect of environment like humidity on the product Transfer of contamination to the product Wastage due to penetration of humidity C6 Product delivery 0.5 1% Improper transportation Qualitative and quantitative wastes due to improper transportation

11 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Finding local high quality wheat producers and signing long term contract C1A Locally produced wheat Using agriculture consultants to increase productivity and quality of the main local producers. Investment on agricultural machinery and procurement of the machinery instead of cash payment for local wheat

12 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Finding proper imported wheat providers C1B Imported wheat To evaluate the quality specs of the purchased wheat Unloading from the ship by automatic ship - unloader Secondary quality control at the time of delivery

13 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Using standard silos, not using sole and open storage C2A C2B C2C Storing in silos Silos to be equipped with safe temperature control system Ventilation System to maintain wheat conditions during storage Pre cleaning prior to wheat entrance to silos if necessary

14 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Improving production by optimizing proper diagram To utilize modern technology machinery and equipment C3 Flour production To employ experienced and expert personal Regular repairs and preventive maintenance (PM) Applying effective machines in pre-cleaning and cleaning To meet Sanitation requirements

15 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Using packaging machine with proper technology C4 Packaging Services from consultants and experts in packaging specially for flour with high added valve To employ experienced and expert personal Proper quality control after packaging

16 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN C5A C5B Storing End Product Storing in good condition in terms of humidity and keeping the insects out Using scientific storage procedures on the basis of LIFO, FIFO

17 HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN Quality Control Monitoring before Delivery C6 Product delivery Supervising transport and product delivery Monitoring the time, quantity and delivery conditions to customer Using customer feedback questioner forms to measure customer satisfaction

18 procurement of wheat Storag e production and packaging delivery Wheat C1 A locally produced C1 B import farmers or farmers union by the production plant itself by grain trading companies storage in local indigents silos (outside plant) storage in plant silos storing in port silos (grain terminals) C2 A C2 B C2 C C3 flour, Starch & Semolina productio n in plant C4 Product transfer & packagin g C5 A storage in end product plant storage C5 B storage at the point of consumption (dealer) C6 productio n delivery Flour cons umer

19 Thank you for your attention