SUPPLY CHAIN MANAGEMENT (SCM)

WITH APPROACH TO QUALITY CONTROL IN MILLING INDUSTRY

Mohamadreza Najafi
Industrial Engineer Industrial ProductionPETKUS & MMW GmbH IRAN Office CEO

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

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.

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

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

SCM stages in flour production

procurement of raw material (wheat)
Storage production and packaging delivery storage in independent silos local (out of plant) C2 A C5 A storage in prepared plant storage C6 produc t deliver y Flour cons umer

C1 A local wheat

by farmers or farmers union

C3 by the factory itself storage in plant silos C2 B flour ,Starch & Semolina production in plant

C4 Product transfer & packagin g

Wheat

C1 B imported wheat

C5 B storage at the point of consumption (Dealer)

by grain trade companies

storage in port silos (grain terminals)

C2 C

Risks in SCM of Flour production

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

C1 A local wheat High Wastages

storage in prepared plant storage

Wheat

C1 B imported wheat Poor Quality Control

by the factory itself

storage in plant silos

C2 B

C2 C

losses in unloadin g operation

Role of Each Chain in Flour Quality

Chain Code Title Probable percentage of waste Cause/Causes Results

C1A

Wheat locally produced

8.5 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

C1B

Wheat from import

4 To 5%

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

Storing in open At least 8 to C2A and non C2B 10% standard stores

Not having mechanized and standard storages Not paying attention to the importance of maintenance in the chain of flour

Every Chain Role in Flour Quality Continue

C2C

Storing in non-standard port stores

At least 3 to 4.5%

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 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.

C4

Product packaging (flour)

1 to 1.5%

Utilizing un proper packaging material Utilizing used and old packaging machinery

Every Chain Role in Flour Quality Continue

1 to 1.5% Secondary contamination Effect of environment like humidity on the product C5A C5B Ready to use storage at plant or point of consumption

Transfer of contamination to the product Wastage due to penetration of humidity

Qualitative and quantitative wastes due to improper transportation C6 Product delivery 0.5 1% Improper transportation

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

Finding local high quality wheat producers and signing long term contract 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

C1A

Locally produced wheat

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

Finding proper imported wheat providers 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

C1B

Imported wheat

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

Using standard silos , not using sole and open storage
C2A

C2B

Storing in silos

Silos to be equipped with safe temperature control system

Ventilation System to maintain wheat conditions during storage

C2C

Pre cleaning prior to wheat entrance to silos if necessary

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

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

Using packaging machine with proper technology Services from consultants and experts in packaging specially for flour with high added valve
To employ experienced and expert personal

C4

Packaging

Proper quality control after packaging

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

C5A

Storing End Product

C5B

Storing in good condition in terms of humidity and keeping the insects out Using scientific storage procedures on the basis of LIFO , FIFO

HOW TO RAISE THE QUALITY IN FLOUR PRODUCTION CHAIN

Quality Control Monitoring before Delivery Supervising transport and product delivery
C6

Product delivery

Monitoring the time, quantity and delivery conditions to customer Using customer feedback questioner forms to measure customer satisfaction

procurement of wheat

Storag e

production and packaging

delivery

farmers or farmers union

C2 A storage in local indigents silos (outside plant)

C1 A locally produced by the production plant itself

C5 A storage in end product plant storage

C6

C3 storage in plant silos C2 B flour , Starch & Semolina productio n in plant

C4
Product transfer & packagin g

Wheat

C5 B

productio n delivery

Flour cons umer

C1 B import

storage at the point of consumption (dealer)

by grain trading companies

storing in port silos

(grain terminals)

C2 C

Thank you for your attention

Najafi@Petkus.ir