Page 65 - FoodFocusThailand No.171 June 2020

SOURCE OF ENGINEER

machine, we can cut down the machine by Managing a Preventive Maintenance Program A good maintenance
half to achieve the same result. When we get program of machine in the production line prevents business disruption. A preventive
rid of the slow tools by half, we can cut worker 8maintenance is similar to taking a car to a service shop. Changing parts, filling with
cost, maintenance, and energy cost. Also, we lubricant, and cleaning dirt will slow down a wear and tear cause. That extends machine’s
will earn back a space in the plant which is up end-of-life longer. Thus, the machine replacement plan can be pushed forwards. When we
to our choice to reinvest to a new product line. push back such a big investment, we also improve our financial performance because we
Even we don’t invest to a new product, the are delaying all costs i.e. investment, depreciation, interest, principal, and so on.
extra space can be used as a stockpile area The optimization in process and a product improvement will help to reform a unit cost
to reduce cost of external storage.
structure to F&B business. Prolonging shelf life, redesigning a thinner package, speeding
Managing a Seasonal and sharing the production line will all result to lower cost of production and logistics. These
Demand Curve Getting to know a strategic applications can magnify the profit, even the sale is unchanged. Do pay attention
5seasonal demand curve is very crucial. in the process and product development. Those 8 optimized applications are the missions
When the sale performs a repeat demand which must not be overlooked.
curve every year, we will be able to predict
the similar pattern in the upcoming year. Thus,
projection of market demand can be done
precisely. Once we can project the demand,
we can scale back to production planning.
The visibility of seasonal demand helps us to
create two options between investing new
production line and running a stockpile to
serve a seasonal sale. Thus, we can calculate
a sweet spot between those options before
making decision. If we choose to run a
stockpile in surplus, there will be an extra
expense of warehouse and early material
costs. However, if we decide to go for a new
investment, cost of additional workers,
maintenance, depreciation, interest, and
insurance costs shall be included in the
consideration.
Managing Supply Chain When
we understand our seasonal demand
6followed by adjusting our production
plan, we need to control other production
factors as well. Those factors are such an
availability of raw material, their pricing, and
an availability of storage space. Managing the
supply chain is a pre-arrangement between
a buyer and a seller (or a service provider) to
freeze those variables. Managing supply
chain is a control mechanism to deal with an
availability and a cost issue in advance.

Managing Logistics Logistics is
another inevitable factor affecting F&B
7business costs. Logistics commonly
includes transportation, cartons, and
warehouse. The total cost relies on a package
volume and weight of product. In food
business, the volume of package normally
contributes on pricing more than the weight.
Thus, the volumetric lost reduction in
packaging must be done. Saying that when
the packaging is smaller, the unit cost of
transportation and warehouse will be lesser.
Logistics planning can affect in pricing.
We may be surprised to know that the night
shift transportation is more effective than the
day shift. The reason is the waste of time in
traffic and gas consumption during the day
time are much higher. Some of logistics
providers may offer a good deal on the night
shift to optimize their asset use. This is a
mutual benefit to us and a service provider.
Thus, the alteration of product shipment
schedule can play a big portion of saving with
a little adjustment in manpower and process.

JUN 2020 FOOD FOCUS THAILAND 65

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