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