CREATING NEW FOODS
THE PRODUCT DEVELOPER'S GUIDE
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Contents
About the book
About the authors
Preface
1. The product
development project
in the company

2. The organisation of
the product
development project

3. Product strategy
development: idea
generation and
screening

4. Product strategy
development: product
concepts and design
specifications

5. Product design and
process development

6. Product
commercialisation

7. Product launch and
evaluation

8. Summary: bringing
it together

8.10 Textbooks in
product development

Index of Examples &
Problems

Useful links
Feedback (email link)
CHAPTER 6
Product Commercialisation


6.5 KNOWLEDGE REQUIRED FOR THE PRODUCTION PLAN

A production plan is developed along the same lines as the market plan to ensure that all the tasks are carried out and completed in time.

The main areas in production planning are:

      raw materials;
      processing;
      quality assurance.

6.5.1 Raw materials

The aim here is to ensure that the raw materials are delivered at the right time and in the right quantities and of the right quality and at the right cost so that the process runs successfully.

The factors to be considered when sourcing raw materials for both the product and the packaging are:

      location of the source relative to the plant;
      level of quality required for the raw material;
      price that the product can afford;
      reliability of the supplier regarding specifications and delivery;
      services provided by the supplier;
      uniqueness of the supplier for this raw material.

These factors are listed in order of importance. The most important factor is met first and so on down the list to determine the most suitable supplier(s) for each raw material. The raw material might need to be of a specified quality but as it is highly perishable it needs to be sourced near the plant. Therefore quality and location would be considered first when choosing suppliers. An important decision is to have either a long-term association with a supplier or to choose the supplier according to the factors as conditions change.

It is important to determine the timing and the quantities of ordering, arrival, storage and use of the raw materials. Some raw materials have very long lag times before delivery, especially packaging materials and imported ingredients, therefore a schedule for ordering materials is made out and followed so that all the materials arrive in time to start production. It is also important that the materials do not arrive too early as this can cost the manufacturer a great deal for inventory and also materials may deteriorate in storage. There has been a great deal of emphasis on ‘just-in-time’ production in recent years, but this can cause a great deal of trouble when starting production for a new product. It is easier to manage a less tight schedule as it is never certain what is going to happen. The quantity to be ordered and held in stock depends on the time from order to delivery, the costs of delivery and storage, the quantity required for a production run and the number of experimental runs planned. It is preferable to have the same raw materials for all runs so that the processing effects can be studied.

Another important factor in raw material planning is to study if alternative raw materials can be used and also if raw materials from different suppliers can be substituted for the first choice. Then if there are any problems in supply, there are alternatives which can be obtained quickly. If the product is a greater market success than predicted, it would be embarrassing and might even kill the product if production had to stop because of lack of a raw material.

The ways of handling, sorting and preparing raw materials are very important in the food industry. There is a need to study the materials handling so that it is not labour intensive and fits into the main process. Also in-line sorting equipment gives a tighter control and reduces human sorting and judgement.

6.5.2 Processing/manufacturing

The aim of processing/manufacturing is to produce the right quality and quantity of product at the right time and cost, not only for the launch but for the months ahead. After the production trial at the end of product design and process development, many problems will have been identified and discussed with production staff and hopefully solved in order to make 'start up' as trouble-free as possible. However, just because it works, it may not be the most efficient and effective way of producing the product. The factors which need to be studied in processing can be grouped under technical, economic and human reactions.

Technical factors to consider are the plant design and commissioning, and the process analysis and control. New plant or new equipment may be needed and this has to be designed and built or bought; in both cases there need to be engineering specifications based on the processing requirements, mechanical/electrical design and computer control. The plant layout and supply of services is important. Sometimes imaginative new thinking in this area can increase product quality and yields and improve the overall efficiency and conditions of the plant. It is too easy to be complacent, so look carefully at movement of materials, employment of staff and bottlenecks in production.


Economic factors in processing can be summarised as initially setting the lowest practicable capital and running costs and the required financial returns from the project, and then ensuring by constant monitoring and fine-tuning that the budget is implemented. Experience during the development may show a need for reconsideration of the budget; if a change is required then it is essential that all implications for prices, profits, predictions and so on are fully explored, understood and taken into account.

Human reactions in a processing line are critical both in getting a new development off the ground and in the evolving stages. Commitment is a most important ingredient in implementing change, and development always means change. If the staff want to make it work then they will, and often this means an extensive selling job to staff at all levels from the most senior manager to the floor operators. This needs to be done systematically and comprehensively, and the more effectively it is done the more smoothly the product development project will move.

In commissioning new plants, several points to remember are:

      Does the product meet specification in terms of quantity, quality, consistency?
      Can the plant be operated and controlled reliably, conveniently, without stress?
      Are the running costs for services, staffing and maintenance as planned?
      Do the plant components match the design stipulations, pricing schedules?
      Has adequate information material been prepared for the instruction of operating, quality
      assurance, trouble shooting and maintenance staff?
      Have arrangements been made to remove ‘out of spec' products and other waste materials from
      the plant without loss of secrecy?

Think Break 6.8
Knowledge required for the production plan: processing and manufacturing


In planning for production of the Chicken Hotpot in Example 6.1:

1. Identify the raw materials that could be used in the Chicken Hotpot, including a nutritional mix that is needed to give balanced nutrition.

2. Identify the unit operations in a processing flow sheet.

3. The present canning line is to be used, which includes washing equipment for vegetables, sorting belts, mixers, canning line, jacketed pans, stationary autoclave/sterilisers, water cooling stands, labelling machines.
Plan how you would use the equipment.

4. Develop a check list for all the activities needed before the trial runs.

5. How would you communicate your plans with the factory staff, engineers and quality assurance staff?


6.5.3 Quality assurance

The aim of quality assurance is to ensure a product correct for its intended use. Quality and safety are absolutely essential elements which must be built into new products. The first step in analysing product safety and quality is to set up systems for Hazard Analysis Critical Control Points (HACCP) or Hazard Analysis/Risk Assessment (HARA) or Hazard Analysis and Operability (HAZOP).

The steps in studying a process using HACCP are as follows:

      Establish full specifications for raw materials, processing, product, packaging and distribution.
      Identify and quantify risks.
      Prepare a full flow diagram for the process.
      Identify critical control points (CCPs) along the processing and distribution line using risk
      assessment techniques.
      Establish measurements and set points and limits necessary at each CCP for adequate and safe
      control.
      Establish and define criteria for tolerable departure from set points, and corrective action to be taken
      to maintain control.
      Establish a monitoring regime; review the procedures for the HACCP system.

HACCP was originally introduced to ensure the safety of food, but it is now also used to ensure product quality. Process control is based on the HACCP system, using computer controls, total process modelling systems and process optimisation, and in-line testing. Process control techniques are improving rapidly and will make this area of the product development process more quantitative and less empirical. The process study also needs to ensure that there is integration of the new process technology into the existing system with minimum disruption and cost.

From these studies a quality assurance plan is developed, which includes the controls and testing required during the process and the testing of the final product. Quality assurance includes the sampling, testing and control procedures, the targets for each, and the statistical control methods needed to study any changes that are occurring. Companies must decide how far to take these when choosing the quality assurance standard (ISO 9001, 9002, 9003) for their production. There may be a need for new testing equipment and certainly for the training of staff. Once the plant is running, tolerance limits will be finalised but they should be provisionally set well before then. Production as well as quality assurance staff need to know the new requirements as they are often the first to notice ‘out-of-specification' product. Quality assurance is integrated into the company's TQM (total quality management) which takes into consideration all aspects of the business that affect quality. Process analysis is one of the most important tools in TQM.

The most important factor in building quality into production is the staff and the communications between them. There is a need to have regular exchanges of information both verbal and written between production and marketing, but especially between the designers of the process and the production and quality assurance staff. There should be cooperation between staff. Nothing is more likely to be disastrous than the design team running the production trials. The production staff needs to run the production with back-up and technical advice from the designers. Accurate and timely information is not only crucial for effective management control, but it also improves staff commitment and morale across departments.

A set procedure is needed; the production trial will require details from the design and production managers on:

      quantity required, plant capacity/capability;
      reasons for trial;
      trial control methods;
      review methods for problems;
      personnel involved and contact methods.
      contingency plans;
      contamination and safety potential.

Other useful communication methods include factory trial requests, production sheets, quality assurance sheets, product costing and a planning schedule, as well as the production specifications and an outline marketing strategy. The regular critical decision points should be identified so that all understand when production development is to continue and when it is to stop. Staff education about the new process is important.

There are information security problems during these trials, as there is a need to keep information away from competitors, so there will be constraints on communication and staff must fully appreciate and respect the need for confidentiality.



THE PRODUCTION PLAN

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Creating New Foods. The Product Developer's Guide. Copyright © Chartered Inst. of Environmental Health.
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