Nissin – Monde Philippines Plant Analysis
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Transcript of Nissin – Monde Philippines Plant Analysis
Monde Nissin Philippines
BITARE, Reynaldo Jr.CUETO, Dean Paul
Introduction
Location: SE Asia
Monde Nissin Philippines
Location: Philippines
Monde Nissin Philippines
Location: Sta. Rosa, Laguna
Monde Nissin Philippines
Location: Balibago Rd., Sta. Rosa, Laguna 14°17’30.27”N 121°06’00”E
Monde Nissin Philippines
Monde Nissin Philippines President and CEO:
Mr. Koki Ando
Founder: Mr. Momofuku Ando (1910-2007)
Number of Employees (Balibago Plant): 250 employees; 216 of which are regular operators
(3 shifts/day) Products: wet noodles,
specialty noodles, dry noodles and dry specialty noodles
Balibago Plant: 4 storey; an area of 30,000 m2
Products
Monde Nissin Philippines
Country: Monde Nissin Corporation has been providing
Filipino consumers high quality products and excellent services for almost 29 years.
Supplies the country’s demand of instant noodles of 25.5 M units/year1
Its GDP equivalent is Php 7.34B
1 http://www.nissinfoods holdings.co.jp/english/inv/pdf/presentation_1012.pdf
Significance
Industry: Food manufacturing, including food and beverage
processing remains the Philippines' most dominant primary industry accounting for 40.1 percent of total output in manufacturing. About 40,000MT of instant noodles are produced per year.2
Monde Nissin Corp’s Lucky Me remained the leading brand in 2009, accounting for a 64% share of retail value sales. The company led both cups/bowl and pouch instant noodles with retail value shares of 48% and 71% respectively.
2
http://pdfcast.org/pdf/instant-noodles-a-potential-vehicle-for-micronutrient-fortification
Significance
Stockholders: A return of 40% payout ratio to investors3
8% Return on Equity3 Take advantage of new technologies; collectively
called Japan Technology, to raise worldwide market share of 14.4% to 20%4
Cash dividend of Php 0.30 per share was declared to shareholders for fiscal year 2005 5
3 http://www.nissinfoods-holdings.co.jp/english/inv/pdf/ar10_03.pdf4http://www.nissinfoods-holdings.co.jp/english/inv/pdf/ar10_04.pdf5http://www.jgsummit.com.ph/doc/urc-17a-200509.pdf
Significance
The Nissin Foods Group, as an Earth Food Creator, pursue the vision of originality to create tasty, convenient, healthy and thoroughly enjoyable food products from the bounty of nature’s goodness.
The Company aspires to develop market-leading brands across all our chosen food categories for new markets around the world.
-30 branch companies in 10 countries such as USA, Brazil, India, Hong kong, Philippines among others. With an overseas sales of 5% year on year sales ($462M) as of FY 2007
Supply the country’s demand of instant noodles of 25.5 M units/year
Company Objectives
Manufacturing Processes
Mixing Dough
Dough pads (Rollers)
Slitting Process
Curling
Compression
Description of manufacturing processes
Dough are mixed in a big mixer Then the dough are flattened Dough are cut into strips Then it is supplied to the lines (12 assembly
lines) Noodles go to the steamer (@ boiling temp) Then they are cut into shorter lengths and
folded
Description of manufacturing processes
Noodles are then fried; Then transported to the blowers where it is
cooled; Afterwards carried on to packaging section,
then weight inspection, Lastly, packed instant noodles are up for
distribution
Description of manufacturing processes
Description of manufacturing processes
Mixing → Flattening → Steaming → Cutting → Frying → Cooling → Packaging → Inspection → Distribution
Process flow chart
Equipment Flowchart
Automatic Horizontal Packing Machine (Instant)Maruyasu Kikai Co. Ltd
Main technical data: Capacity: 50 to 200 packs/minute Bag size: Length: 70 to 400mm Width: 30 to 150mm Height: 5 to 88mm Floor space (L x W x H): 5, 400 x 1, 020 x 1, 750mm Power consumption: 4.56kW Net weight: 1,000kg
Equipment specifications
Fully Automated 24 hours a day (Sunday – Friday) Half day (Saturday) Employees are only there to check if
something is stuck on the process At least 8 persons per assembly line
Operations
Chillers are controlled not to reach below 40°C so that moisture will not deteriorate.
Steamer: saturated pressure → 1 kg/cm2; saturated temp → 1 bar
Boiler → 8 to 9 bars Fryer → 140 - 145°C, noodles are fried for
about 1 min 30 s.
PPE is required when operating food plant to avoid noodle contamination.
Control
Saturday – allotted for preventive maintenance
Failure lies on mechanical parts: bearing, sprockets, chains and belts as well as PLC -> internal repair: maintenance crew -> technician( foreigner)
Damaged servo drive -> order parts in Italy. JEC: monthly preventive maintenance on
following air conditioning systems: AHU, chillers, air conditioning units.
Maintenance
Productivity assessment
Input raw materials:Wheat flour + palm oil + salt + sodium polyphosphate + sodium carbonate + potassium carbonate + tatrazine
Product: 60 grams instant noodles
Material Balance
CO2
Pollutants generated
92 cut/min (92 units/min)◦ Measures the production
About 132,500 packed instant noodles/day are produced
Efficiencies and productivity
day
units
day
hours
hour
units132480
24*
min60*
min92
Input rate per assembly line: 92/12= 7.67 cut/min
Output per assembly line: 11040 units/day = 7.63 units/min
Accounting mechanical efficiency: 0.85 Efficiency of Line: 84.5%
Efficiencies and productivity
Self sustaining (8.5 MW Diesel power plant) Scheduled shutdown on a Saturday for
maintenance Downtime on special holidays and in the
event of natural disasters
No accidents recorded yet
Downtime and safety record
In 2006, Monde-Nissin acquired a revenue of about Php 926M.
Net Profit of Php 48 Million 30% increase in profit from FY 2005 to FY 2006
About Php 8 – 10 per pillow type noodles (pancit canton)
Income , Profitability
Mechanical Engineering significance
Flour mill and seasoning mill situated near the food plant make the production time faster and more efficient; thus,
on the average, packed noodles stay for about 1.8 days before shipment from factory.
Make sure that assembly lines are functioning in good condition and with proper lubrication
Processes
The use of biodiesel as a diesel additive to reduce levels of CO2 emissions. This will yield to an about 20% reduction on emissions.
Provision of sensors at the assembly lines to monitor stuck up noodles thus immediately answering the problem by avoiding machine failure
Improvement
Comparison with a state-of-the-art company
Nissin New Kansai Plant-located at 124-1 Shikano-cho, Nishiwaki City, Hyogo, Japan
Area 28, 000 m2
Products: Instant noodles- pillow type 14 assembly lines Production capacity: about 160,000 units/day It can be inferred that plant is operating at
139 cut/min Capital investment JPY 4.0 Billion
Benchmarking
Conclusion and Recommendation
In the Philippines, as in neighboring countries, the demand for noodles continues to be on the rise. Instant noodles has indeed become the new staple of many poor Filipinos. This increased popularity of instant noodles can be due to the fact that it is cheaper and easier to prepare than rice. Pillow type products make up the 94% of the noodle industry in the market and expanded its market through the introduction of new products. Monde Nissin Corporation adheres to these market demands in providing the Filipinos with noodles in an instant by not compromising our health concerns.
Conclusion
Increase rate in cut/min, through PLC modifications and proper lubrication of assembly line, in production will yield to faster assembly line and increased productivity
Recommendation
Instant noodles are recognized as a “World Food” (Codex Alimentarius standard 2006); for it offers a balanced mix of food groups and also products of this type are micronutrient fortified. (micronutrients include Vitamin A, B1, B2, niacin, folic acid, iodine and iron)
Capital tie up with MYOJO Foods on March 31, 2007 produced synergy benefits for both companies summing up to an increase of 0.7% year on year net sales of pillow type noodles
Meeting the company objectives
Productivity (in cut/min) is directly proportional to the number of assembly lines operating at the plant
↑ # of assembly lines, ↑ cut/min
Recommended improvement
References
http://www.mondenissin.com/main.php/about_us http://www.mondenissin.com/main.php/careers/opportunities http://goliath.ecnext.com/coms2/product-compint-000094742
5-page.html http://investing.businessweek.com/research/stocks/private/sn
apshot.asp?privcapId=5577348 http://www.mondenissin.com/main.php/about_us/history http://wikimapia.org/604531/Monde-Nissin-Santa-Rosa-Plant http://en.wikipilipinas.org/index.php?title=Monde_Nissin_Corp
oration http://search.japantimes.co.jp/cgi-bin/nb20100423a1.html http://en.wikipedia.org/wiki/Instant_noodles http://www.list-of-companies.org/Food_Beverage/Fast_Food/In
stant_Noodles/ http://www.list-of-companies.org/Philippines/Keywords/Instant
_Noodle/ http://www.highbeam.com/doc/1G1-46561934.html http://www.ec51.com/company-directory-0-instant_noodle.ht
ml http://www.made-in-china.com/manufacturers-exporters/c5q0
nolimit/Instant_Noodle-1.html
references
http://nissinpacking.en.made-in-china.com/product-list-1.html http://nissinpacking.en.made-in-china.com/product/yoDxPLpGu
fYg/China-Automatic-Shrink-Packaging-Machine-QNF590-.html http://nissinpacking.en.made-in-china.com/product/JodnFxtGq
mrj/China-Automatic-Horizontal-Packing-Machine-QNS450-.html
http://www.mondenissin.com/main.php http://www.matconibc.com/casestudies/mondenissin.pdf http://www.jec.com http://www.ats.agr.gc.ca/ase/5689-eng.htm http://www.senate.gov.ph/lisdata/32082391!.pdf http://www.euromonitor.com/noodles-in-the-philippines/report
references
Thank you FIN