Incomplete

1. Food Quality Systems and
Management
FST 506 Practical
Krishnegouda KS and Thiruchenduran S
Under the guidance of
Dr.K.Aparna, Assistant Professor

2. Practical Experience

3. Food Inc Movie
 Some of the issues/problems that were mentioned in the
movie, facing the food industry today include:
 Abuse of Animals
 Farmers rights are not respected
 Poor working conditions of factory workers
 Monopolization of the food industry by a few heavy
weight companies.
 Politics has also dominated the food industry.
 Regulatory Agencies are toothless with a weak system to
protect consumers.

4. Vision Mission and Objectives
 In drafting and determining the Vision and Mission
statement of a company, the statement should be as
simple as possible and easily understood by the staff,
customers and well-wishers.
 It should also portray the long term goals of the
business and future market. The mission statement
shows the steps to be taken in order to achieve the
vision statement. These two statements help defines the
pathway needed to be followed by the business to
achieve its goals and objectives.
 The location of the industry taught me practical factors
that are to be put into consideration before siting a food
establishment.

5. Organizational Flow Chart
 Organize the structure and hierarchy of employees, the
various department needed and organization of timings
for workers through shifts.

6. Roles and Responsibility
 Define roles, responsibilities and key duties of all
employees working in a food company.
 Also, to ensure that responsibilities of one staff do not
overlap with another negatively which can bring chaos
especially in a system where hierarchy is in place.

7. CTC
 I learnt how to properly define educational qualifications
needed for each position, salary package and no of
employees needed in each department.
 It also enabled me to understand the importance of
employing within the means of the company so that our
staff is motivated properly through a balanced salary
package at the end of the month, without bringing
financial loss to the company. Only the required numbers
of employees are recruited, consequently cutting
overhead cost and retaining more profit

8. Plant Layout
 This experiment taught me how to plan the layout of a
production plant exact required size and measurements
of each department.
 Departments so as to ensure a smooth flow work i.e
which department leads to the other and location.

9. Product Formulation
 I was able to formulate millet bar and also prepare a
process flow chart that will be utilized during the
production process. It will serve as a guide to help
ensure that the right steps are followed during
production

10. PSM Document
 Product Specific Manufacturing document showing the
formulation of the products and methodology used.
 It shows in the detail the entire process for the
manufacturing of the product including sanitation and
hygiene practices (Usually Referenced)
 The also shows the quality parameters used to test the
product’s conformance to specifications.

11. The Supplier Qualification
Program
 The supplier qualification form is very important so as to
ensure that only raw materials that conform to
specifications are delivered to the company. It enables
us know the reputation of the supplier and his ability to
meet expectations

12. Ingredient Specification
Document
 The ingredient qualification document shows the
physical, chemical and microbiological properties of the
raw materials. This document is important so that the
suppliers have a pre-informed knowledge of the
characteristics of raw materials that are utilized and the
desired quality.
 It also helps specify storage conditions and utilization of
the raw material

13. Unit Operations
 unit operations in millet bar processing, the
equipmentsused at each stage and the importance of
each operation involved

14. Sanitation
 Prepare documents to be followed for sanitary and
hygienic conditions in the company. Sanitary practices
are important to prevent contamination of products.

15. Company Profile
 Name : Nutri-Max
 Place : Phaltan, Maharashtra, India
 Established by : Thiru & Krishna
 Market Scope : Nutraceutical Market
 Product : Omega-3 Rich Millet Bar
 Brand : OM-Bar
 Scale : Medium Scale Industry
 Investment : 2 million INR

17. Reason To Select Nutraceutical
 Nutraceutical Market is on the Take off Period.
 Market growth is high
 Highly Profitable Period
 No market leaders yet

18. Background
 The functional food industry is growing immensely, with
annual growth rates of 8–14% and global market
estimates as high as $167 billion (Agriculture and Agri-
Food Canada, 2009)
 Visiongain predicts the world market for functional foods
and nutraceuticals will reach $241.25bn in 2015.

19. Indian Scenario
 Introduction
The Indian Nutraceutical Market Valued at $1480 Million
in 2011 to Grow to $2731 Million in 2016 – Finds Frost &
Sullivan

20. Selection of Location of the Industry
1. Availability of the Raw material
2. Access to the Markets
3. Access to the infrastructure
1. Industrial Electricity Line - continuous
2. Water Supply
3. Telephone line
4. Drainage facilities
5. Flood water removal
6. Roads, Railway tracks, Airports
7. 3G, 4G, Broadband connections
4. Availability of Skilled and other workforce
5. Accessibility to laboratories maintenance transport and other services
6. Climatic conditions
7. Disater prone or less prone area

21. The final Three options
 MIDC
 Pandurang Industrial Estate, Pune
 Phalthan
Advantages are: Plenty of millets industries like millers,
biscuit manufacturers, sweat sorghum syrup
manufacturers (One of our ingredients) etc

22. Availability of raw materials
 Maharashtra is a highest millet production
compare to other state so that abundant supplies
of raw material at chief price .The availability of good
quality raw materials in required quantity at close hand
is very crucial for the success of a new enterprise. The
region must have abundant supplies of atleast the chief
raw material required by the firm. Such a location helps
to ensure continuity of production and reduces the
transport costs. Few raw materials such as minerals,
perishable food, cotton etc. play a vital role in
influencing the location of the plant. For e.g, paper
manufacturing plants require a regular supply of a large
quantity of pure water and are, therefore, generally
located near river banks.

23. Supply of Labour
 Pune is the second largest city in maharastra is
near Phalthan which& population is also more is
about 50 lack people are there so that skilled semi
& un skilled labour is easily available The availability
of the required grade of labour i.e. skilled, semi-skilled
or unskilled is an important factor influencing the
location of the industry. Besides, the cost and
productivity of labour, attitude of trade unions and the
state of industrial relations in a particular region are also
important. This also explains concentration of certain
industries in certain states.

24. Proximity to the Product Market
Pune is an seventh popular city in india so that many
IT company is there in that city the main target
group of our company is it sector people so that
marketing is very easy. An industry should ideally be
located close to the market for the product produced by the
firm. This on one hand reduces the cost of transporting the
finished product to the market. On the other hand it
ensures maximization of profits by selling the goods at a
competitive price. Generally, in case of the industries
having national and international markets, plants are
spread over wide geographical areas to have close
proximity to all markets. In case of regional demand, plants
are located near to the immediate market.

25. Availability of transport facilities
 Maharashtra consists of a good transport facility such as
road rail & international airport the road mainly consists of a
national highway means (NH4) it connects to Mumbai
Bangalore & kolapur & NH9 it will be connected to
Hyderabad & NH50 it will connect to Nasik & also good rail &
airport facility is also there A factory requires transport facilities
both for getting its raw materials as well as for reaching its finished
products to the market. Hence, location is to be chosen in such a
way that its total transport cost is the lowest. Of the two elements
of transport cost, which one will have a decisive influence on the
decision of location will depend on the characteristics of the raw
materials and the nature of the manufacturing process. If the
factory requires bulky commodities like iron ore, limestone, etc., it
should be situated nearer to the source of these raw material. But,
if the manufacturing process is such that the raw materials loose a
substantial part of its weight like in the case of the chemical and
pharmaceutical products, the factory should be located nearer to
the market. Therefore, a region which provides adequate transport
facilities attracts industrialists.

26. Supply of Power
The state government provides a subsidized power
supply to industries at a chief price so that
production cost is less. With increased mechanisation, a
location which ensures a regular and adequate supply of
power and fuel for the business has become an
indispensable requirement.

27. Climatic factors
Our product is a millet based products so we should
require a dry climate Phalthan has a hot semi arid
climate with a average temperature is 20-28c
humidity is also high hence these climate is very well
suited for our products. Certain types of industries
require a particular type of climate. E.g. flour mills need a
dry climate while cotton mills require a humid climate.
Natural factors are particularly important in extractive
industries like plantations, fishing, agriculture, etc. Climate
influences even the capacity to work on the part of the
workers. But, the technological advancements like, artificial
humidification and air conditioning have reduced the
importance of climate as a factor.

28. Government Regulations and
Policies
 Central Government and the State Governments have
made several policy announcements from time to time in
order to encourage development of industries. Various
incentive schemes have been provided to attract
investment especially in backward areas. All this has
become an important factor while selecting a suitable
location.

29. Law and Order
 Every entrepreneur is concerned about law and order as
well as the political stability of the area around which he
wants to set up his industry. It is only natural for every
entrepreneur to locate his unit in those areas which are
not subject to riots and political disturbances. No
industrialist can ignore such national and strategic
considerations while selecting the location of the
industry.

30. Existence of complementary and
competitive industries
 Such a location on one hand provides backward and
forward linkages for the industries and on the other
hand it provides a competitive environment for them. It
increases the supply of the required raw materials and
enhances the demand for the goods produced. It
improves the labour market by attracting both skilled
and unskilled manpower. It also improves the banking,
credit and communication facilities in the area. It brings
into existence various commercial services like
warehousing, packing, forwarding, grading, appraising,
advertising, etc which helps in the growth and expansion
of all the business firms in the particular area.

31. Vision
Our vision is to become the number one high quality
functional food producer in India during the period of next
five years through innovation & development, production
marketing and distribution of organic functional food
products using millet grains by fulfilling the highest
standards for quality consistency, sustainability,
dependability, value added services and integrity in our
business and personal relationships with economically
viable means.

32. Mission
 Our mission is to exceed the needs and expectations of
all our stakeholders (Customers, associates, consumers
of functional foods, suppliers, shareholders and
community) through innovative, systematic, reliable and
trust-worthy operations with total commitment to
customer satisfaction, functionality, productivity, quality,
safety, environmental friendly and sustainability.

33. Goals and Objectives

34. Objectives
Our Objectves are
1. To do our part to bring a wide variety of appealing, wholesome quality Millet based
products at attractive values to the marketplace.
2. To build and sustain fair and honest relationships and be a trusted, dependable
distribution resource supported by innovative and effective sales and marketing
programs.

35. Objectives
1. To create partnering relationships of trust, integrity, customer satisfaction and
loyalty. To provide the widest selection of natural and organic, wellness, and
specialty food products of the highest quality, consistently high in-stock service
levels, dependable on-time deliveries, highly competitive pricing, and outstanding
marketing programs and services.
2. To create a nurturing work environment for our associates, by acknowledging the
value of each person's contribution to our company, entrusting them with
responsibility, treating them with respect, facilitating personal and professional
development, and by providing competitive, merit based compensation and
benefits.
3. To exceed the expectations of our shareholders by delivering commendable
returns on their investments, and by being an enduring, successful and profitable
company.
4. To be an outstanding partner in the communities where we work, supporting them
economically, and making meaningful contributions to the quality of life. To use
our strengths to support socially responsible initiatives that protect the
environment and foster stewardship of the land.

36. Departments
Shift Timings
General 9am-5pm
SINO
Department
s Shifts
1
HR, Admin and
Finance General
2
Production, QA
and QC General
3
Marketing Sales
and Distribution General

37. Organizational Flow Chart

38. Organizational Flow Chart

39. Chef Executive Officer
Qualification: BscMscMTech in food technology With 2Yr
experience in managerial position
Salary : 30000
Roles and Responsibilities:
• CEO is responsible for leading the development and
execution of the Company’s long term strategy with a view to
creating shareholder value.
• To lead and oversee the implementation of the Company’s
long and short term plans in accordance with its strategy;
• To ensure that expenditures of the Company are within the
authorized annual budget of the Company;
• To assess the principal risks of the Company and to ensure
that these risks are being monitored and managed;

40. Production Quality and SHE Manager
 Qualification: Minimum MSc Food Technology & 2yrs
managerial level experience in Production
Salary 20,000/=
 Production:-
Planning and organising production schedules; assessing
project and resources requirements; estimating, negotiating
and agreeing budgets and timescales with clients and
managers; determining quality control standards;
overseeing production processes; re-negotiating timescales
or schedules as necessary; selecting, ordering and
purchasing materials; organising the repair and routine
maintenance of production equipment; liaison with buyers,
marketing and sales staff; supervising the work of junior
staff.

41. Production Quality Manager
 Quality Management:-
 - Manage and implement the Food Safety and Quality Management System
in line with company strategy and regulatory and customer requirements
- In line with company strategy, develop and implement plans for
enhanced food safety and quality management
- Lead the resolution of product complaints, non-conformances, and
customer queries
- With plant management and group technical, develop the plant facilities
to constantly reduce food safety and non-conformance risks, and identify
and prioritise policies and objectives for continuous improvement
- Measure and report on quality performance within the quality structure
and to management
- Ensure the management of the customer audit schedule so that they are
effectively coordinated, hosted and administered. Ensure that the internal
systems audit schedule is equally effective.
- Support the introduction of new products and ensure that food safety and
quality aspects are raised in a timely fashion, and that system changes and
documentation are developed
- Develop and lead a plant QA team that will focus on compliance, issue
prevention, performance measurement, root cause problem solving,
attention to detail and team working
- Other activities as specified by the CEO

42. Sales Distribution and Marketing
Manager
 Qualification: MBA Marketing & 1yr managerial experience
Salary:20,000
 Responsible for a number of our brand with local distribution rights held by the company
 Implement a local and countrywide sales & distribution plan for all related products
 Implement effective sales & marketing strategies related to all product ranges
 Manage a team of sales Assistants and executives
 Build new client relationships offering the companies branded product range and approve terms of business
 Attend local trade shows & exhibitions – working with the Marketing team on new product launches and variety of
other market communications initiatives
 Develop pricing strategies, balancing firm objectives and customer satisfaction.
 Identify, develop, and evaluate marketing strategy, based on knowledge of establishment objectives, market
characteristics, and cost and markup factors.
 Evaluate the financial aspects of product development, such as budgets, expenditures, research and development
appropriations, and return-on-investment and profit-loss projections
 Formulate, direct and coordinate marketing activities and policies to promote products and services, working with
advertising and promotion managers.
 Direct the hiring, training, and performance evaluations of marketing and sales staff and oversee their daily
activities.
 Negotiate contracts with vendors and distributors to manage product distribution, establishing distribution networks
and developing distribution strategies.
Marketing, sales and distribution manager

43. Accountant
 Qualification: ACCA
Salary: 10,000
 1) Prepare, examine, and analyze accounting records, financial statements,
and other financial reports to assess accuracy, completeness, and conformance
to reporting and procedural standards.
2) Compute taxes owed and prepare tax returns, ensuring compliance with
payment, reporting and other tax requirements.
3) Analyze business operations, trends, costs, revenues, financial
commitments, and obligations, to project future revenues and expenses or to
provide advice.
4) Report to management regarding the finances of establishment.
5) Establish tables of accounts, and assign entries to proper accounts.
6) Develop, maintain, and analyze budgets, preparing periodic reports that
compare budgeted costs to actual costs.
Accountant

44. Administrative Office Assistant
Qualifiction : BBA + good communication skills
Salary: 10000
Relieve management of administrative detail, all projects Coordinate work flow Update and chase delegated tasks to ensure progress to deadlines
Take initiative in manager’s absence Keep projects on schedule Maintain procedures manual to ensure consistent performance of routines
 Communication
Compose correspondence/reports for own or manager’s signature Arrange essential mail in priority action order for boss
Check deadlines on incoming requests and put preliminary work in play Process replies on own initiative or from bosses’ dictation or notes
Research, draft or abstract reports Phone Handle all inquiries within capacity Arrange "callbacks" to protect boss’s time
Provide back-up materials for callbacks Route calls elsewhere as needed Do phone surveys/inquiries as needed Appointments/Meetings
Prepare agenda in advance Arrange meeting facilities Act as recording secretary; prepare action minutes Confidentiality Perform to earn boss’s full
confidence Assure discreet handling of all business
Visitors
Screen to control interruptions Provide back-up data as needed Arrange amenities as needed As arranged, "rescue" boss from laggards Schedule
visits away from boss’s area to protect priority/private tasks
 Production Supervisor
Qualification: BSc Food Technology Production experience is an advantage
Salary 10000
Manage and prioritize all production processes and implement all production plans.
Ensure compliance to all local policies to achieve all production objectives and provide appropriate feedback to all employees.
Analyze staffing requirements and ensure efficient compliance to production schedules and budget for all production process.
Ensure compliance to workplace policies according to safety objectives.
Identify all issues in team and provide continuous support to all members according to operating standards on everyday basis.
Supervise effective working of production personnel and prepare effective production schedules and ensure compliance to all company policies.
Administer all work according to safety principles and recommend strategies to improve processes and reduce goals.
Maintain records of all data attendance and provide effective training to all staff members.
Reports directly to the Production Manager

45. CTC
CEO CTC
Component of
salary Amount Taxable Amount
Basic 19047.62 19047.61905
House rent
allowance 6000 3000
OT allowance 1000-
Medical investing 1250-
Gross salary 27297.62 22047.61905
Medical insurance 416.6667
PF(12% of basic) 2285.714
Total benefit - 2702.381
CTC 30000
Take home salary
Deduction
Tax (10%) 2204.762
EPF(12%basic) 2285.714
Professional tax 2500
Total deduction 6990.476

46. Financial Statement
Employee Salary
Number of
Employee
Cost to
Company
CEO 30000 1 30000
Administrative Assistant 10000 1 10000
Production Quality MGR 20000 1 20000
Marketing, Sales and
Distribution Manager 20000 1 20000
Accountant 10000 1 10000
Production Supervisor 10000 1 10000
Sales and Distribution Assitant 10000 1 10000
Marketing Assistant 10000 1 10000
Lab Technician cum QC
Executive 8000 1 8000
QA & SHE Executive 8000 1 8000
Sales Executives 7000 1 7000
R&D Executives 7000 1 7000
Skilled Line Workers 6000 5 30000
Security 5000 1 5000
Helpers 5000 2 10000
Cleaners 3000 1 3000
198000

47. Ingredients
 Sorghum Rava
 Bajra Rava
 Flaxseed
 Almond/Peanuts
 Ghee
 Jaggery

48. Sorghum Rava
 Base of the product
 Gives the hardness to the product
 Imparts nice crunchiness to the product
 Rich in minerals Ca and Fe
 Gives bulk to the product

49. Bajra Rava
 Same as Sorghum
 Gives a dark Colour to the product

50. Flaxseed
 To enrich the product with Omega three
 Increases the health benefits of the product

51. Almond
 Imparts rich flavour
 Gives a nut cracking sensation when chewing
 Increases the health benefits of the product

52. Ghee
 Greasing the bottom of the pan when heating and
mixing of the product
 Imparts a rich flavour
 Increase the palatability of the product

53. Jaggery
 Sweetness Provider
 Binder of the ingredients
 Preservative property
 Flavour

54. Phool Makhana
 Increase the bulk

55. Honey

56. Amla

57. Cinnamon

58. Dates

59. Seasame Seeds

60. Fig

61. Sunflower seeds