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Optimum Resource Allocation and Eliminating Waste Inside the Food Industry

Author

Listed:
  • Chandru Nagarajan Sathiyabama
  • Pramod Dasan

Abstract

This article seeks to allocate optimum resources for the wrapping section and suggesting a suitable method that needs to be in place for successful elimination of waste inside the food industry's wrapping section. It also includes identifying the main reasons for various types of wastages inside the wrapping section and cost of all the wastages. The paper is based on observation and research using the approach of lean tools and techniques. The methodology used for evaluating data is value stream mapping and some statistical SPSS tools for analysis. Data are real and are gathered from three different production shifts inside a food industry wrapping section. The main reasons for wastages inside the wrapping section are highlighted. Finally, the paper was concluded by estimating total cost of wastages and recommending a suitable way to save wastage costs. The need to change the jaws inside the wrapping machines, regular maintenance of all machines throughout the industry and training of personnel are recommended. The possible methods along with their benefits to reduce waste, operators, improve productivity and business growth were also highlighted.

Suggested Citation

  • Chandru Nagarajan Sathiyabama & Pramod Dasan, 2013. "Optimum Resource Allocation and Eliminating Waste Inside the Food Industry," Central European Business Review, Prague University of Economics and Business, vol. 2013(2), pages 31-44.
    • Handle: RePEc:prg:jnlcbr:v:2013:y:2013:i:2:id:44:p:31-44
    DOI: 10.18267/j.cebr.44
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    References listed on IDEAS

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    1. Mark Young, S. & Shields, Michael D. & Wolf, Gerrit, 1988. "Manufacturing controls and performance: An experiment," Accounting, Organizations and Society, Elsevier, vol. 13(6), pages 607-618, October.
    2. Angra, Surjit & Sehgal, Rakesh & Samsudeen Noori, Z., 2008. "Cellular manufacturing--A time-based analysis to the layout problem," International Journal of Production Economics, Elsevier, vol. 112(1), pages 427-438, March.
    3. Kao, Chiang & Chen, Liang-Hsuan & Wang, Tai-Yue & Kuo, Shyanjaw & Horng, Shi-Dai, 1995. "Productivity improvement: Efficiency approach vs effectiveness approach," Omega, Elsevier, vol. 23(2), pages 197-204, April.
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    More about this item

    Keywords

    LEAN Methodology; Optimization in Food Logistics; Operations in Food lndustry;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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