OPERATION MANAGEMENT MIDTERM REPORT introduction about yakult

Minoru Shirota - the founder of Yakult in Japan Source: https://www.yakult.co.in/yakult-LCS.php Up to now, Yakult fermented milk has officially been available in a total of 38 countries,

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS AND FINANCE

OPERATION MANAGEMENT

MIDTERM REPORT

Lecturer: Mr Do Sy Hoang Course: MGT1127E

Tran Tam Nhu

Vo Nhu Quynh Nguyen Thao Phuong Nhi Hoang Thi Yen Nhi

Ho Chi Minh City, 2022MEMBERS’ EVALUATION

% contribution of the

Result

No Full name Student ID Tasks task to the overall

evaluationtask

1 Pham Thi Thanh My 195080461 Chapter 1 20 G

2 Tran Tam Nhu 195081746 Chapter 2 20 G

3 Vo Nhu Quynh 185080767 Chapter 2 20 G

4 Nguyen Thao Phuong Nhi 195082530 Chapter 3 20 G

5 Hoang Thi Yen Nhi 180090120 Chapter 4 20 G

TABLE OF FIGURES

1 Introduction about Yakult 1.1 History

Yakult fermented milk first appeared on the market in 1935, as a result ofresearch by Professor Minoru Shirota and colleagues on the transfer of Lactobacillus

casei Shirota (L.Casei) strain into a drink direct Combined with micronutrient

isoflavones in soy, this product brings many benefits to the human immune system,

and digestive system, preventing breast cancer

Figure 1.1: Dr Minoru Shirota - the founder of Yakult in Japan Source: https://www.yakult.co.in/yakult-LCS.php Up to now, Yakult fermented milk

has officially been available in a total of 38 countries, including Vietnam In 2007,Yakult Company started doing business in Vietnam and in 2008, the plant of Yakult

Group in Binh Duong has officially comeinto operation

Figure 1.2: Yakult’s overseas network

Source: https://www.yakult.co.in/worldwide.php

1.2 Products

Yakult Yogurt is a fermented milk drink made from skimmed milk powder,sugar, water, and a strain of Lactobacillus casei Shirota Each bottle of Yakult

contains more than 6.5 billion L.casei Shirota bacteria Unlike other strains of

bacteria; L.casei Shirota bacteria are resistant to gastric juice and bile entering the

intestine; supporting restoring the balance of intestinal microflora and increasing

resistance

1.3 Business philosophy

According to the Shirota theory of Professor Minoru Shirota - the father ofYakult, he emphasized "prevention is better than cure" and "a healthy gut leads to a

long life" With those two guidelines, Yakult is manufactured containing billions of

L.casei Shirota bacteria - becoming a product beneficial to everyone's health at a

reasonable price This is also the business philosophy and this still continues with

the aim of the Yakult Group to this day (Yakult Cooperate, 2020)

1.4 Distribution system

Currently, the company is distributing products through two main channels

The first channel is through supermarkets and retail stores The second one is

through the Yakult Lady system - a home delivery system that is currently available

in Ho Chi Minh City, Binh Duong, Bien Hoa, Hanoi, Hai Phong, and Da Nang

2 Departments in Yakult’s factory and functions of those departments

Yakult’s factory has 6 departments which are the seed room, culture mixingroom, quality control room, bottle-making room, filling room, and packing room

2.1 Seed room

The seed room is used to multiply and breed the bacteria Lactobacillus caseiShirota, which is an exclusive strain of Yakult imported directly from Japan every 1 to

2 years In order to ensure quality during transportation from Japan to Vietnam, the

bacterial strains will be in freeze-dried form Therefore, before the breeding process,

engineers need to recombine them in the quality control room and bring them back

to the seed room This step helps to increase the number of bacteria many times,

helping to serve the production process within 1 to 2 years

The ingredients used in the process of breeding are skimmed milk powderand Glucose First, milk and sugar will be dissolved and pasteurized at a

temperature of 120 degrees Celsius After being pasteurized, they will be put into a

tank to ferment at 37 degrees Celsius - equal to the temperature in the human body

The engineer then inoculates the bacteria from the outside into the fermentation

zones However, before transplanting, engineers will light an alcohol lamp flame on

the mouth of the tank to prevent other bacteria Bacterial fermentation will take place

within 24 hours, if the bacteria are in sufficient quantity as desired, the engineers will

lower the temperature (about 5 degrees Celsius)in the set to inhibit these bacteria

from fermenting

2.2 Culture mixing room

This department has an important role in the production of Yakult milk Theingredients used in this room are also skimmed milk powder and glucose Milk and

sugar first will be dissolved with water, then this mixture will be transferred to a UHT

sterilizer for high-temperature sterilization and then transferred into milk-fermentation

tanks After the milk is transferred, the temperature in these tanks is lowered to

about 37 degrees Celsius, the Lactobacillus casei Shirota bacteria from the first

room will be led into these tanks through a pipeline system In this stage, the

fermentation takes place Milk fermentation lasts for several days; and after fully

fermenting, the milky liquid will have a layering phenomenon, which is lumpy and

very sour to drink To overcome this issue, engineers will lead the liquid through a

homogenizer to finely grind the milk, then it is transferred to a tank containing white

sugar to create a natural sweetness for the fermented milk Finally, the milk will be

passed through the filling area

At the end of this stage, the engineers will conduct tests to check whether thenumber of microorganisms, acidity, sweetness, and solubility of the milk have met

the standards If the milk has met the standards, it will then be cooled in the cooling

system to be ready for the next step

2.3 Quality control room

The Yakult factory in Vietnam always maintains production with the highestquality standards, applying strict standards, ensuring to bring the best quality

products to consumers The quality control department is the place to check the

quality of Yakult milk from the input of raw materials to the finished milk in the most

strict manner, applying the HACCP quality management system standard, ISO

22000 A large number of tests will be conducted in this room to check the

Lactobacillus numbers, acidity, potential contaminants, and taste to make sure the

products have met the standards

In some cases of force majeure, if there is a problem with the production lineand it is forced to stop halfway, the last bottles and the first bottles that are being

produced will all be sampled by the quality control department to see if there are any

problems If the criteria are met, the engineers then proceed to pour it into the bottle

In this stage, each ingredient is weighed and measured in a certain ratio, ensuring

the similarity in taste between the products

2.4 Bottle-making room

The main material of Yakult milk bottles is polystyrene plastic imported fromJapan Each bottle-making machine will suck polystyrene plastic beads from storage

into the machine and melt at high temperature and form into squares and clamp into

Yakult bottle molds After that, it will automatically be transferred by conveyor belt

through a large sterile tank and then continue to move directly to the filling area

2.5 Filling room

The filling room has two operating lines with a guaranteed temperature from 20

to 25 degrees Celsius, after the bottle is transferred to this room, it will be printed on

the expiry date, the production date as well as the information of the product and

then filled with milk Normally, in one hour, about 45000 bottles of milk are filled, and

each bottle contains 65ml of milk These milk bottles are then capped and then

moved to the packing room In the filling system, there is a sensor to check if the lids

are carefully closed or not If an error happens, it will be pushed out of the production

line There will always be engineers in this room to check whether Yakult bottles are

printed and capped properly; the products that are not qualified will be removed from

the line

2.6 Packing room

In the packaging area, the products will be packed twice The first time themachine will pack 5 bottles in a batch, covered with a plastic film imported directly

from the Japanese company The batch is then moved through a dryer with a

temperature of 160 degrees For the second time, it will be transferred through a

scraper of 10 batches into a PE plastic carton of milk, then moved to cold storage

from 5 to 10 degrees Celsius Finally, the products will be kept for about a day or two

to check their quality before being distributed to consumers

Overall, we have the Yakult production process as below:

Figure 2.1: Yakult production process

Step 3: Use a high-temperature sterilizer to get pasteurized milk or pasteurized

sugar water

Step 4: Inoculate Yakult yeast into a pasteurized milk bath and ferment it for a few

days After the fermentation time, the fermentation tank contains billions of live

bacteria and at this time, the milk in the tank is thick This milk mixture is then

homogenized

Step 5: Yakult yeast culture tank: L.casei Shirota bacteria that were activated and

cultured in the experiment were inoculated into the tank and then incubated to form

Yakult yeast Next, Yakult yeast is used to inoculate the fermentation tank

Step 6: Homogenizer: The milk after being raised is passed through the

homogenizer to become homogenized fermented milk and then transferred to a

large tank containing sterilized sugar solution

Step 7: The storage tank contains the pasteurized sugar solution: Next, the

homogenized fermented milk is transferred to the storage tank and stirred with sugar

water to form semi-dairy products

Step 8: Water treatment system.

Step 9: Sterilized water tank.

Step 10: Mixing device: The task of this device is to neutralize the sour taste of the

product when fermenting, besides, sugar will be a source of nutrients to provide

L.cases Shirota bacteria and this bacteria will live for a long time use

Step 11: Polystyrene plastic bottles are produced at the factory by a bottle-making

machine, then the polystyrene resin particles imported directly from Nhat Ban are

heated and molded into Yakult bottles And then transferred to the bottle storage

tank to prepare for the next process

Step 12: Bottle making.

Step 13: Bottle storage.

Step 14: Bottle stacking.

Step 15: Expiry date and product information printing.

Step 16: Milk filling machine, aluminum capping.

Step 17: 5-bottle packing machine: The product is packed 5 bottles into 1 block of

polypropylene

Step 18: Complete packing machine: Pack 10 packs into 1 carton of polypropylene

Step 19: Cold storage is the place to store the final product within 1 to 2 days with a

temperature below 10 degrees Celsius Before the product is distributed to

consumers, the product quality will be re-checked

Step 20: The refrigerated truck will deliver the products to the distribution units.

3 Quality standards that Yakult aims to achieve

Quality standards are agreements that include requirements, characteristics,

or other specific criteria that can be applied consistently to ensure that materials,

products, and processes are fit for their intended purpose In general, they improve

the reliability and effectiveness of goods and services used around the world

Figure 1.1: Principle of Quality Standards

Source: Safetyculture.com

For a company competing in the food and beverage industry, the standardsand quality of a product are important factors as any defective product can severely

damage the reputation of the company Certification is effective to provide a

guideline for a manufacturing firm to build their standards Not only are they widely

proven, but it also helps create trust with customers

Yakult Vietnam manufactures its products under the quality control standardswhich are a harmonized integration of both BSI HACCP & GMP certification and a

set of the ISO quality management systems, including ISO 14001:2015, ISO

22000:2018, ISO 45001: 2018 Those certificates are reported to be re-evaluated

and updated periodically by a third-party organization

3.1 ISO 45001:2018

ISO 45001 is an international standard for workplace health and safety thatwas developed to protect employees from diseases and workplace accidents This

certification was created to reduce any factors that could cause irreparable harm to

employees and organizations Its standards are the result of a significant amount of

work by a technical committee of health and safety management experts who

carefully considered a variety of other approaches to system management, including

ISO 9001, ISO 22000, and ISO 14001 Furthermore, ISO 45001 was designed to

take into account other existing occupational health and safety standards, such as

OHSAS 18001, as well as the International Labor Organization's labor standards,

conventions, and safety guidelines (NQA, 2022) These are some criteria that ISO

45001 aims at:

- Improve Performance: ISO 45001 certification will improve the overall performance ofthe organization When a company decides to become ISO certified, it must be audited by a third party andsubject to ongoing internal audits Audits are not just for finding non-conformances, but also for activelyseeking to improve inefficiencies in order to make their organization more productive and perform better

- Improve Employee Health and Safety: ISO 45001 enables businesses and executives

to improve their OH&S management system in order to provide a safe and dependable environment fortheir employees and contractors Meeting the requirements ensures that businesses will monitor trendsand assess potential risks As an ISO 45001 certified organization, they will become proactive in order toreduce the possibility of serious risks

- Reduce Insurance Premiums: If the organization is ISO 45001 certified, insurancepremiums can be reduced Insurance costs will be reduced if a proactive system for reducing hazardousenvironments in the workplace is maintained

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- Employee Satisfaction: ISO 45001 improves the workplace, which increases employeesatisfaction When companies prioritize employee health and safety, it demonstrates that the organizationcares about their employees, which leads to a cultural shift and increased employee job satisfaction,knowledge, and participation.

Figure 1.2: The ISO 45001:2018 Certification of Yakult Vietnam

ISO 45001 has seen a 97.3 percent increase in worldwide certificates in 2020,demonstrating the recent growth and importance of UKAS accredited certification

(Statistics taken directly from the most recent ISO Survey) If a company has already

implemented a quality or environmental management system that adheres to the

Annex SL structure, ISO 45001 can be easily integrated