FACULTY OF ELECTRICAL AND ELECTRONIC
ENGINEERING
BEE30103: ENGINEERING MANAGEMENT
GROUP ASSIGNMENT 2:
PAU MANUFACTURING
SEKSYEN 11 – GROUP 12
GROUP
MEMBERS
1. NURKHAIRUL DANIEL BIN KHAIRUL YUSAINI
CE190139
2. MUHAMAD RIDZUAN BIN IDRUS
CE190219
3. MUHAMMAD AIMAN BIN RASHIDI
CE190191
4. MUHAMMAD SYARIFFUDIN BIN SAHANI
CE200205
SESSION
2020/2021
SUBMISSION
DATE
LECTURER’S
18 JANUARY 2021
DR. ROHAIDA BINTI MAT AKIR
Marks
/
1
ACKNOWLEDGEMENT
Bismillahirahmanirahim ...
Alhamdulillah, thanks to the divine with the overflow of grace and the blessings of time,
the life of energy bestowed on us can also help us complete this task successfully. First of all,
we would like to dedicate this word of appreciation to my beloved lecturer, Dr Rohaida Binti
Mat Akir because with the guidance and guidance from him it opens space for us to complete
this assignment successfully. We would also like to thank our parents for giving us the
facilitator to complete this course work. They have given us all the facilities and moral support
until we have successfully completed this assignment. We would also like to express our
appreciation to our group members and friends who have given us many reminders of
everything we have neglected. They helped us by answering every question we gave them.
Finally, we would like to thank those who are directly or indirectly involved in the making of
this course work.
Thank you.
2
ABSTARCT
Malaysians are famous for their variety of food, whether traditional or modern. The
culture and customs that are still practiced by all residents open the source of livelihood. In the
developing era, various types of food that were previously made manually have been assisted
by various sophisticated tools to increase production such as pau. Based on the instruction, we
have chosen to do a project related to pau processing business for implementation of IR4.0.
Finally, in this report has listed planning, costing and also standard to be compiled. with this,
it is hoped that pau business in Malaysia can grow worldwide with sales revenue can be
increased.
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TABLE OF CONTENT
ACKNOWLEDGEMENT…..…………………………….…………………
2
ABSTRACT ……………..……………………..…………………………….
3
TABLE OF CONTENT ……………...……………………………………...
4
CHAPTER 1: INTRODUCTION
1.1 Background study ……..……...………………..…………………………
5–6
CHAPTER 2: PLANNING
2.1 Company overview …………..…………………..……………………….
7
2.2 Problem statement ………….……..………………………………………
7
2.3 Objective ……………..……….…………………………………………..
7
2.4 Operation plan …………………………...……………………………….
8
2.5 Organization and management plan ……………………………………...
8–9
2.6 Implementation plan ……………………………………………………...
9
2.7 Challenges and Obstacle ………………………………………………….
9 – 10
CHAPTER 3: COSTING
3.1 Expense forecast and current sales ……………………………………….
11 – 12
3.2 Before and after implementation …………………………………………
13
3.3 Costing statement ……………………………..………………………......
14
CHAPTER 4:
4.1 Standards to be compiled …………………………………………………
15 – 16
CONCLUSION ………………….…………………………………………..
17 – 18
REFERENCE ………………………………………………………………..
19
4
CHAPTER 1:
INTRODUCTION
1.1 BACKGROUND STUDY
Small and medium-sized enterprises (SMEs) do not need to see big profits as a nuisance
to the implementation of Industry Revolution 4.0 (IR4.0) as they have the option to start up
small enterprises. Malaysia Digital Economy Corp Sdn. Bhd. (MDEC) Data Economy Director
Ir Dr Karl Ng stated, “Small and medium-sized enterprises might also take the priority
approach, which segment has the potential to transform first, in order to help generate better
productivity and efficiency. IR4.0 is the idea where machines are combined with wireless
networking and sensors, connecting to a device that can imagine the whole manufacturing line
and make choices on its own. Small and medium-sized enterprises (SMEs) are the foundation
of both economies and are a primary driver of economic growth, dynamism and flexibility in
advanced developed nations including in emerging and developing nations. Small and mediumsized enterprises are the major type of business organization. They account for more than 95
percent and up to 99 percent of enterprises vary across countries. They are responsible for
between 60% to 70% of net job implementation in OECD countries. Small enterprises are
especially critical for the marketing of innovative products or techniques. Our team has chosen
to pick Pau Mira Frozen Food as our SME project because this company got an
underdeveloped potential to broaden their business after the application of IR4.0 to the
company. This product is likely to be recognized across the world after IR4.0 has been
implemented, because people from around the world are now faced with an extremely serious
problem known as covid-19. Thus, they will be more likely to purchase even food only for their
daily struggle to avoid covid-19 spread before the government developed the vaccine.
Therefore, we identified our project as processing and manufacturing pau which is always
one of the favorite dishes especially when we stop at the R&R or Petrol Station . It is because
it is easy to carry and eat instantly with a variety of flavor such as chicken curry, beef black
pepper, kaya, carbonara, blueberry and many more . Pau is a type of cake made from flour and
yeast, kneaded and formed round with a core inside, either sweets or meat or vegetables, also
called baozi, bao, bau, hum bow, nunu, bausak, or pow. It comes from China, the root of this
cuisine. Using a steamer is a common method for cooking pau. Besides using steaming
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techniques, it is also possible to incorporate cooking techniques for frying and baking.
Typically, a drop of dye is put on the pau to signify the type of core found in the pau in order
to distinguish the types of pau that are cooked. Pau is typically served sweet, rendered fresh or
frozen in Malaysia.
Some new and smart technologies need to be adapted to overcome the production
bottlenecks that would result in sophisticated products in order to make the pau processing and
manufacturing industry remain relevant. So, in our project, we decided to implement IR4.0 to
make sure that our product continues to exist in this industry. IR4.0 is about manual
manufacturing and industrial automation using modern smart technology such as large-scale
communication between machine and machine (M2M) and the internet of things (IoT). In our
project, these techniques are very appropriate for us to use because these techniques are more
related to the IR4.0 technologies. The function of these techniques is to enhance selfmonitoring and communication, integrated for enhanced automation, as well as smart machine
manufacturing that can diagnose certain problems without human intervention.
Intense rivalry is created by the rapid expansion of new businessmen selling the same
goods. However, it aims to extend the distribution network by selling the goods to all major
supermarkets and hypermarkets in the country to make the company remain profitable. The
tactics are to add more machinery and labor to meet the rising demand for the goods in order
to succeed in the plans. The facilities of the building will also be extended and strengthened to
make it beneficial for workers and customers.
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CHAPTER 2:
PLANNING
2.1 COMPANY OVERVIEW
Pau Mira Frozen Food is a local manufacturing tradition food company. This company
supplies and sells pau to customers in attractive and good condition. Pau Mira Frozen Food
will provide a quality pau that comes with many flavours while maintaining traditional dessert
so that it will not be forgotten in the next generation.
2.2 PROBLEM STATEMENT
The production and packaging process of Pau was mainly performed using the
conventional method, which claims to have the most problems. The conventional process
system involved a lot of practices that required a lot of time and energy loss relative to the
current manufacturing process.
It is discovered that the pau enterprise was presented with the following problems:
i.
The process of raising the dough of the pau is done in a normal room and not in a
cleaned environment as such it will risk contamination of the pau itself.
ii.
The maximum cooling temperature of the freezer is 18℃ which takes about 1 day to
freeze the pau so with the increasing demand of the product it needs to require less time
to freeze the pau so it can be processed faster and commercially sold to the public.
iii.
The dough rising time of the pau is done for half an hour which requires a long time
and it needs to be reducing the time it takes for the dough to rise in order to speed up
the pau manufacturing process.
2.3 OBJECTIVES
i. Application of IR4.0, which is capable of changing the conventional food production
and manufacturing sector in the face of rising human lifestyle challenges.
ii.
To increase the quality of the product so more consumers are attracted to buy the
product.
iii.
To reduce the human labor cost substantially.
iv.
Increase revenue and profitability of the food products.
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2.4 OPERATION PLAN
The company's unique selling point is to watch pau processing in front of the buyers. This
also offers the clients a specific effect and clarifies any sort of uncertainty. With the regular
loyal customer base with the large amount of pau goods, the interest of the customers grew.
Great word of mouth (WOM) is a valuable investment for any small company, and the most
successful and effective form of marketing is hands-down word of mouth marketing (WOMM).
WOMM is genuinely strong. In reality, according to Nielsen, it is more successful than any
other form of marketing, which found that 84 percent of customers around the world trust
recommendations from friends and loved ones. As there are industrial areas and public higher
education institutions, our physical business location will be in Parit Raja, Batu Pahat, Johor
(IPTA). There will, therefore, be many individuals from different places.
2.5 ORGANIZATION AND MANAGEMENT PLAN
The roles and obligations of each member of the organization are as follows :
a. Financial Manager
-
Responsible for all financial matters relating to the business.
-
Ensures that proper accountability and accounting is established.
-
Collects and safe keeps any additional capital contributions from the partners.
-
Finds ways to generate more income for the company.
-
Initiates proposals for investing excess cash.
-
Maintains a set of books for accounting.
-
Prepares financial reports and budgets.
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b. Operations Manager
-
Oversees the business operations.
-
Manages logistics and inventory concerns.
-
Keeps production and product quality reasonably high and constant.
c. Operations Assistant Manager
-
Assists the operations manager in the management of the main business activity,
-
Prepares inventory lists.
d. Marketing Manager
-
Manages relationships with customers.
-
Develops marketing strategies and plans.
-
Responsible for advertising concern.
2.6 IMPLEMENTATION PLAN
SWOT Analysis
Strengths
-
Affordability
Expert manager
Weaknesses
-
Needs more employees
Unestablished retention
Opportunities
-
Online Advertising
Offering membership plans for returning client
Threats
-
Unestablished name
Economic crisis
2.7 CHALLENGES AND OBSTACLE
a. Marketing
-
Avoid over-reliance on customers or products.
-
Over the years, test market for new products.
-
Develop multiple distribution networks (consider putting other business in another
place).
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b. Operation
-
Quality and Assurance Control.
-
Hold spare capacity.
c. Finance
-
Financial manager will keep the financial records up-to-date.
-
Make sure payable are being paid before the deadline to avoid penalty or interest.
-
Practice investment appraisal technique.
d. People
Establish a background check before recruiting employees. In managing the company
every year, partners will take turns so that each partner has experience and knowledge
in operating the business (financial manager to operational manager, operational
manager to marketing manager). The control environment will be the outcome of
monthly meetings between staff and partners during which the latest marketing
activities, sales, promotional activities, and ideas that will contribute to change will be
addressed.
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CHAPTER 3:
COSTING
3.1 EXPENSE FORECASR AND CURRENT SALES
One Pau machine can produce a thousand or more than that, but the problem is the space
for Pau to keep in the freeze temperature and also during the fermentation process for dough
to rise. Sales and expense of producing “pau” per week with operating one Pau machine are:
Types
Cost
Ingredient Expenses “ only dough”
RM 465.00
Ingredient Expenses “ flavor”
RM 1413.00
Current price of “ pau ”
-
Pau mini = Rm7.00
Pau = Rm 13.00
Profit per week
-
Pau mini = Rm 2800
Pau = Rm 2600
Profit per month
-
Pau mini = Rm 11200
Pau = Rm 10400
Sales and expense of producing “pau” per week with operating 5 Pau machine are:
Types
Cost
Ingredient Expenses “ only dough”
RM 2325.00
Ingredient Expenses “ flavor”
RM 7065.00
Current price of “ pau ”
-
Pau mini = Rm7.00
Pau = Rm 13.00
Profit per week
-
Pau mini = Rm 14000
Pau = Rm 13000
Profit per month
-
Pau mini = Rm 56000
Pau = Rm 52000
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We propose to add more branches so that our Pau Mira Frozen Food branches that are
our enterprise pau can grow more advanced. Because of that we can see many places such as
R&R, university, petrol station and also a stall have their own steam pau machine as they make
money because people love to buy and enjoy the taste of the flavor and softness from our pau
company recipe.
Table below shows the proposed of the process manufacturing using machine:
Type of machines
Description
-
Name: Spiral Freezers SF-08-MB-300-NSUT
-
Control: Frozen machine
-
Maximum Infeed Temp: -45℃
-
Equalized Outfeed Temp: -18℃
-
Power /Supply:220-240 Volts
-
Machine Size: 4600 x 2760 x 2600 (mm)
-
Name: Black Garlic Machine HY-3000
-
Control: PLC automatic control
-
Material: Both inside and outside walls are
made of stainless steel
-
Capacity: 3000kg/batch
-
Power /Supply:220-240 Volts
-
Machine Size: 6560 x 2830 x 3300 (mm)
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3.2 BEFORE AND AFTER IMPLEMENTATION
Daily Cost:
Before Implementation
Item
Quantity
Price (RM)
Total (RM)
1. Pau Mini
400 Packs
7.00
2800.00
2. Pau
200 Packs
13.00
2600.00
600
0.20
120.00
3. Packaging
After Implementation
Item
Quantity
Price (RM)
Total (RM)
1. Pau Mini
1000 Packs
7.00
7000.00
2. Pau
600 Packs
13.00
7800.00
1800
0.20
360.00
3. Packaging
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3.3 COSTING STATEMENT
Pau Mira Frozen Food
Cost Statement for the month of December 2020
MATERIAL
DIRECT MATERIAL
RM
Flour 25KG
864
Yeast 5KG
1,744
Grade A Egg (5 boards)
1,120
Pau flavor filling 5KG per each
22,608
Baking Powder 5KG
RM
704
DIRECT LABOUR
Workers (RM1,200 x 10)
12,000
DIRECT EXPENSES
Operation Machine
30,000
69,040
PRIME COST
MANUFACURING OVERHEAD
INDIRECT MATERIAL
Cooking Oil 5KG
368
Fine Sugar
800
Salt 5KG
240
Sweet Concentrated Milk 10KG
1,076
INDIRECT EXPENSES
Cooking Gas (RM30 x 5)
150
Electrical
1,600
Water
900
5,134
PRODUCTION OVERHEAD
74,174
NON-MANUFACTURING OVERHEAD
Adverting Expenses
300
Transportation Expenses
250
Insurance
400
Store Rental Fee
1,500
2,450
TOTAL COST
76,624
MARKUP
31,376
SELLING PRICE
108,00
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CHAPTER 4:
4.1 STANDARDS TO BE COMPILED
Standardization is the process of identifying regulations, which are the specification for
competing companies on the market, particularly in the field of technological and scientific.
Standardization would provide gains without lowering rivalry between these companies. The
official use of metric in global measurement is an example of norms. The standardization is
also seen as a rule decided by all parties to do something, such as making a commodity in the
field of industry. The international organization responsible for and held accountable for
international standardization is ISO.
Food safety standards are any reference to the structure, consistency or other features
specifically referred to in the 1985 Food Regulations. Food standards are important for
ensuring the quality of food and for fighting irregularities in the processing and use of foodby-food producers. For all food requirements specified in the Food Regulations 1985, the Food
Quality Division performs research.
Recognition of the Food Manufacturing Practice (GMP) was developed to offer official
recognition to industries that achieve GMP components while meeting requirements for food
safety and customer needs, the GMP Certification Scheme was launched to give international
approval to food premises that successfully implement and sustain the GMP framework in food
premises. Applications for this credential are available to all categories of operators of food
premises engaged in the processing of food. All GMP elements found in Malaysia Norm 1514:
2009 must be applied and exercised by applicants. Appropriacy audit, enforcement and
monitoring by auditors appointed by the Food Safety and Quality Division are part of the
certification process (BKKM).
The National Halal Industry Standards Committee (ISC I), represented by different
organizations, including JAKIM, the Chairman of the Relevant Technical Committee, has
developed this standard for a summary of the standard system in Malaysia and the ISC in this
system. The scope of this norm includes practical guidance on the preparation and handling of
halal food for the food industry (including nutrient additives). It is intended to lay down
fundamental rules for food products, as well as for trade in foodstuffs or industry in Malaysia.
It's being used by JAKIM as a certification basis, but will be added to complete the certification
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process with many other specifications. Commonly used standards in food and beverages
industry which include:
-
MS ISO 22000 Food Safety Management Systems
-
MS 1722:2011 & OHSAS 18001:2007 - Occupational Health and Safety
Management System
-
MS 1500 on Halal Food - Production, Preparation, Handling and Storage – General
Guidelines
-
MS 1514 - Good Manufacturing Practice for Food
-
MS 1480 - Food Safety According to Hazards Analysis and Critical Control Point
(HACCP)
This present work has gone through a phase adapted to the specifications of International
Standards, that is the International Organization for Standardization (ISO), where the
framework for establishing international standards is the basis for the consensus of all parties,
such as the Government, the private sector, NGOs, academics and professional bodies.
Malaysia (DSM) has the same ISO policy.(Government Official Document) is supposed to be
promoted internationally in the future and accepted by other countries or blocs, such as in the
countries of America, Europe, China and ASEAN.
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CONCLUSION
In conclusion, small and medium-sized enterprises (SMEs) or small and medium-sized
businesses (SMBs) are businesses whose personnel numbers fall below certain limits. Small
medium enterprise (SME) is divided by two categories which are manufacturing and services
and other sectors. Therefore, we identified our project as processing and manufacturing Pau
Frozen Food which is a food that will always be one of the side dishes or breakfast. Pau is a
type of cake made from flour and yeast, kneaded and shaped round, which is found in sweets
or meat or vegetables.
Next, the achievement of our project by applying IR4.0 is that all the problems before are
being solved. As examples our problem statements are: The maximum cooling temperature of
the freezer is 18℃ which takes about 1 day to freeze the pau so with the increasing demand of
the product it needs to require less time to freeze the pau so it can be processed faster and
commercially sold to the public.
Besides, in this project we can see that before implementation it only can produce about
600 packs for a day and can be sold to the customers. After the implementation, it is much
better and able to produce as many as 1600 packs in a day. This can prove that the use of IR4.0
is able to increase the number of products.
For the cost statement, we can observe that the prime cost is about RM 69,040.00. The total of
production overhead is RM 74,174.00. When it is totaled up, we can get RM 76,624.00. Next
is the selling price for a month which is RM 108,000.00 where it has managed to make a profit
of RM 31,376.00. It is quite good because this business has led to excellent profit. The total
percentage of the profits is about approximately 29.05%.
Last but not least, we learnt that the use of standards in preparing food is quite complicated
as this can lead to health problems caused by poor food quality in MS 1480 on Food Safety
According to Hazards Analysis and Critical Control Point (HACCP). Apart from that, Halal
Certification is also very important and should be emphasized because this is one of the criteria
if we want to choose a food, especially for Muslims in MS 1500 on Halal Food – Production,
Preparation, Handling and Storage – General Guidelines. The welfare, safety and health of
employees also need to be taken into account where it is stated in MS 1722:2011 & OHSAS
18001:2007 – Occupational Health and Safety Management System.
17
As a very effective measure as well, Pau Mira Frozen Food wants to open branches in
states such as Kuala Lumpur, Selangor, Melaka, Negeri Sembilan and many more as a step in
expanding this pau business and as introducing Malaysian food from time immemorial so as
not to be swallowed up by the time. This can be seen if it maintains the quality of a product
that we produce well and consistently, then with the quality available in the pau is able to attract
many people to buy without feeling loss.
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REFERENCES
1. Black Garlic Machine HY-3000 - www.heyingmachinery.com
2. Industrial Scale Food - process-cooling.com/articles/89829-industrial-scale-foodfreezing
3. Small and Medium Food Enterprises in Malaysia: Institutional Support and Policy
Perspectives - https://journals.sagepub.com/
4. Why Industry 4.0 is important - https://www.machinemetrics.com
5. MALAYSIA'S INDUSTRY 4.0 JOURNEY - http://www.enterpriseitnews.com.my/
6. Small and Medium Enterprises - https://www.smecorp.gov.my/
7. THE MARKETING PLAN - https://jonnnnn21.wixsite.com/
8. Pau Mira Frozen HQ - https://www.facebook.com/paugebulembut/
9. Pau Mira Blog - https://paumirablog.wordpress.com/
10. How to make pau - https://whattocooktoday.com/
11. Food Standard - https://www.foodstandards.gov.au/
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