HACCP Plan For Fresh Canned Mushrooms

HACCP Plan For Fresh Canned Mushrooms This project is based on the development of a generic model of a HACCP plan for fresh canned mushrooms by the usage of Canadian Food Inspection Agencys Food Safety Enhancement Program. The goal of this program is to indicate bare minimum requirements for an effective food safety management system. It is based on the principles of the Hazard Analysis and Critical Control Point (HACCP) system developed by the Codex Alimentarius Commission. FSEP has created 10 specific forms that can be used for the documentation of a HACCP plan. The 10 FSEP-HACCP Plan forms are: HACCP is an acronym for the Hazard Analysis Critical Control Point system, which is identical with food safety management. Basically it is a system which identifies, evaluates, and controls hazards which are significant for food safety. It gives confidence that food safety is being administered efficiently. The method looks for hazards, or anything that could go wrong regarding product safety, and implements controls subsequently to ensure that the product will not cause harm to the consumer. HACCP was developed originally as a microbiological safety system in the early days (1960s) of the US manned space programme, as it was vital to ensure the safety of food for astronauts. The Pillsbury Company working alongside the National Aeronautics and Space Administration (NASA) of the United States and the US Army Laboratories developed the original system (International trade centre December, 2002). PRINCIPLES OF HACCP:- There are seven discrete activities that are necessary to establish, implement and maintain a HACCP plan, and these are referred to as the seven principles in the Codex Guideline (1997). The seven principles are: Principle 1:- Conduct a hazard analysis. Identify hazards and assess the risks associated with them at each step in the commodity system. Describe possible control measures. Principle 2:- Determine the Critical Control Points (CCPs) A critical control point is a step at which control can be applied and is essential to prevent or eliminate a food safety hazard, or reduce it to an acceptable level. The determination of a CCP can be facilitated by the application of a decision tree, such as the one given in Appendix IV. Principle 3:- Establish critical limits. Each control measure associated with a CCP must have an associated critical limit which separates the acceptable from the unacceptable control parameter. Principle 4:- Establish a monitoring system Monitoring is the scheduled measurement or observation at a CCP to assess whether the step is under control, i.e. within the critical limit(s) specified in Principle 3. Principle 5:- Establish a procedure for corrective action, when monitoring at a CCP indicates a deviation from an established critical limit. Principle 6:- Establish procedures for verification to confirm the effectiveness of the HACCP plan. Such procedures include auditing of the HACCP plan to review deviations and product dispositions, and random sampling and checking to validate the whole plan. Principle 7:- Establish documentation concerning all procedures and records appropriate to these principles and their application (Food and Agricuture Organization 2003) BASIC TERMINOLOGY INVOLVED IN HACCP:- Corrective Action: Detection and eradication of the causes of a problem, thus preventing their recurrence. Critical Control Point: A point, step, or procedure at which control can be applied and as a result, a food safety hazard can be prevented, eliminated, or reduced to acceptable levels. Critical Limits:- The maximum or minimum value to which a physical biological, or chemical hazard must be controlled at a critical control point to prevent, eliminate, or reduce to an acceptable level the occurrence of the identified food safety hazard. Deviation: Failure to meet a critical limit. HACCP Plan: The written document that is based upon the principles of HACCP and delineates the procedures to be followed to ensure the control of a specific process or procedure. HACCP System: The HACCP plan in operation, including the HACCP plans itself. Hazard: Any biological, chemical, or physical property that may cause a food to be unsafe for human consumption. Hazard Analysis:- The identification of any hazardous biological, chemical, or physical properties in raw materials and processing steps, and an assessment of their likely occurrence and potential to cause food to be unsafe for consumption. Preventive Measure: Physical, chemical, or other means that can be used to control an identified food health hazard. Process:- A method consisting of any number of separate, distinct, and ordered operations that are directly under control of the establishment employed in the manufacture of a specific product, or a group of two or more products wherein all CCPs, such as packaging, may be applied to one or more of those products within the group. DEVELOPMENT OF PLANT SPECIFIC HACCP PLAN:- Some preliminary steps are required before development of a plant specific HACCP plan. These includes assembling of HACCP team, describing the food and its method of distribution, identifying the intended use and the consumers of the food, developing the flow diagram that describes the process and finally verifying the flow diagram. The following steps are all a part of developing your plant-specific plan. Description of the Product: The primary step in the development of the model for your process. To help you to progress through the remainder of your model development, it will assist you in describing your product. Process Flow Diagram: After completing product description, this form should be completed. This step consists of the course of the process as the product moves from receiving to finished products shipping. It is helpful to complete this portion of your plan while actually walking through your plant and following the production steps involved in the particular product or process. Hazard Analysis: This is a crucial step in the development of a plant specific HACCP plan. This portion must take into consideration the risk or likelihood of incident, and the rigorousness of each hazard. In order to be considered, an identified hazard must be of such a nature that its prevention, elimination, or reduction to an acceptable level is essential to the production of a safe food. Hazards that are not significant or not likely to occur will not require further consideration. According to its frequency, risk, and severity, the potential significance of each hazard should be assessed. Risk is an estimate of the likely occurrence of a hazard. The estimate of risk is usually based on a combination of experience, epidemiological data, and information in the technical literature. Pathogenic microorganisms of public health significance should be identified as a biological hazard with preventive measures to preclude their growth and propagation. In your hazard analysis there are three categories of hazards to considered: chemical, biological, and physical. Each process step will be evaluated to determine if significant hazards from one or more of these categories are present. The hazards will be listed at each process step along with the specific preventive measures that can control the hazard. Identify the processing steps that present significant hazards and any preventive measures on the Hazard Analysis/Preventive Measures Form. These will be derived from the process steps on your flow diagram. Critical Control Point (CCP) Determination: Detection and explanation of the CCP for each identified hazard is the next step in plan development. For the completion of this form we need the CCP determination and the information and data you recorded on the Hazard Analysis/Preventive Measures form. HACCP Plan Development: To ensure that your process is under control and adequate to produce a safe product, this portion of the plan development will be used to delegate the specific activities, frequencies, critical limits, and corrective actions. In addition, the HACCP plan will include specification of critical limits. These limits will be specified after the identification of the CCPs for the process and will be listed in the HACCP Plan. The critical limit must, at a minimum, meet the regulatory requirement for that specific process step if one exists. An equivalent limit based on a process or technology proven to render the product unadulterated may also be used. The following will be identified or described in the HACCP plan: the establishment monitoring procedure or device to be used; the corrective action to be taken if the limit is exceeded; the individual responsible for taking corrective action; the records that will be generated and maintained for each CCP; and the estab lishment verification activities and the frequency at which they will be conducted. (United States Department of Agriculture April, 1997) MODEL PLAN FOR FRESH CANNED MUSHROOMS:- Hazard Analysis: The foremost critical step in the effective development and implementation of the plant specific HACCP plan is conducting an analysis of the physical, chemical, and biological hazards associated with a process. The information gathered for the biological, chemical, or physical hazard will aid in determining where a hazard might happen in the process, what may possibly cause the hazard, how it can be prevented, and actions to be taken if conditions which could result in a hazard occur. Information on physical hazards may be more general and may consist simply of items found in foods that are injurious to human health such as glass, metal, broken needles, etc. The evaluation of physical hazards should include the suppliers utilized and their ability to provide products, ingredients, or materials that meet the food safety requirements of the plant. Past incidents of physical contamination occurring in the plant should also be a consideration when determining the significance of a hazard and the likely occurrence of a similar or related deviation. If specific chemical hazards exist that are associated with the process, these should also be considered at this point. Contamination from chemicals used for cleaning, equipment maintenance or upkeep is also of concern (United States Department of Agriculture April, 1997). Critical Control Point Decision Tree:- (http://www.fda.gov/ucm/groups/fdagov-public/documents/image/ucm054476.gif). PREPARING YOUR HACCP PLAN:- Assemble the HACCP team: Your HACCP team should be composed of a HACCP trained individual and/or other member(s) who are familiar with the product and the process as it is conducted in your plant. There is no set number of participants. This will be determined by each individual establishment. All team members should receive at least a basic introduction to HACCP. Training can be formal classroom training, correspondence, on-the-job training, information from college courses, and/or books or manuals. Product Description Form:- Form 1 Product Name(s) Canned mushrooms Important Product Characteristics (aw, pH, Salt, Preservatives,) pH 4.6 to 6.5 (low-acid) aw >0.85 (high moisture) How it is to be used Normally heated before serving or sometimes served unheated (salads, appetizers, etc) and can also be used for dressing Pizza etc. Packaging Hermetically sealed metal container Shelf Life Exactly Two years plus from the date of purchase, at normal retail shelf temperatures Where it will be sold Retail outlets, institutions, food service, and general public Labeling Instructions As per the ingredients added. Special Distribution Control No physical damage, excess humidity or temperature extremes Date: Approved by: (Canadian Food Inspection Agency 2009) List of Product Ingredient and Incoming Material:- This form is only needed if there is more than one ingredient. Form 2 Raw Material Mushrooms Packaging Materials Cans Ends Dry Ingredients Salt Ascorbic acid Citric acid Other Water Date: Approved by: (Canadian Food Inspection Agency 2009) Process Flow Diagram:- Plant Schematic:- A plant schematic should be prepared for the products or process groups covered by the HACCP plan. Plant schematic provides a basis for calculating prospective regions of cross-contamination. Plant schematic shall be clear, accurate and sufficiently detailed. Plant schematic shall at least include: the flow of raw products, ingredients and finished products, flow of packaging materials, employee traffic pattern throughout the establishment including change rooms, washrooms and lunchrooms, flow of the waste, inedible products and other non-food products that could cause cross-contamination and finally the hand/boot washing and sanitizing installations. The overall evaluation of potential areas of cross-contamination at the establishment should include any other plant schematic from other HACCP plans. The HACCP team shall verify the accuracy and completeness of the plant schematic by on-site checking. (Canadian Food Inspection Agency 2009). Biological Hazard Identification:- Form 5 Biological Hazards List all Biological Hazards related to Ingredients, Incoming Material, Processing, Product Flow, etc. Identified Biological Hazards (Bacteria, Parasites, Viruses) Incoming Materials Mushrooms: Could contain C. botulinum or other pathogenic bacteria, yeasts and moulds Could contain heat-stable staphylococcal enterotoxin from improper grower handling Empty cans/ends Cans could arrive with serious double seam, side seam, metal plate defects or physical damage which could result in leakage causing post-process contamination Ends could arrive with compound skips, metal plate defects, or damage, which could result in leakage causing post-process contamination Dry ingredients Could contain bacterial spores Could contain filth from insects, animals or the environment Water Could contain pathogens Process Steps Receiving Empty cans/ends received from suppliers without valid contract specifications could have serious defects or damage Dry ingredients received from suppliers without valid contract specifications could be contaminated with bacterial spores or filth from insects, animals or the environment Mushrooms (Raw) Storing Improper storage temperature humidity could result in an increased bacterial load Could be contaminated with filth from insects, animals or the environment Empty Cans/Ends Storing Physical damage could cause the formation of poor double seams, which could result in post process contamination with pathogenic bacteria Could be contaminated with filth from insects, animals or the environment Dry Ingredients Storing Could be contaminated with filth from insects, animals or the environment Depalletizing Using incorrect cans or damaged cans could result in leakage and subsequent post-process contamination with pathogenic bacteria Blanching Improper cleaning of blancher could result in the growth of thermophilic bacteria in mushroom accumulations Inadequate removal of gases could cause stressed double seams and leakage, which could result in post-process contamination with pathogenic bacteria Can conveying Physical damage could cause the formation of poor double seams, which could result in post process contamination with pathogenic bacteria Slicing/Dicing (If required) Slice thickness/clumping and percent fines could affect the heat penetration, which could result in underprocessing Filling Mushroom compaction during filling may result in underprocessing Weighing Cans not properly rejected for overweight could result in overfilled cans being underprocessed Water Filling Inadequate temperature could result in low initial temperature (IT) End Feeding/Closing/Inspecting Ends with damaged curls, compound skips or other serious defects could result in leakage and contamination with pathogenic bacteria Improperly formed double seams could result in leakage and contamination with pathogenic bacteria Thermal Processing (Still Steam Retorts) Non-validated process or vent schedule could result in underprocessing and survival of pathogenic bacteria Improper product flow procedures in retort area could result in retort baskets missing the retort allowing the survival and growth of pathogenic bacteria Excessive time lapse between closing and retorting could result in excessive build up of bacteria, some of which could survive the thermal process Lack of adherence to time, temperature and other critical factors of the scheduled process or vent schedule could result in inadequate heat treatment allowing the survival of pathogenic bacteria Cooling Insufficient bactericide in cooling water could result in contamination of product during vacuum creation in cans Excess bactericide in cooling water could eventually result in corrosion and subsequent leakage and contamination of product Insufficient contact time between the bactericide and water could result in contamination of product during vacuum creation in cans Insufficient cooling could result in thermophilic spoilage Excessive cooling could result in post-process contamination due to leakage of corroded cans Conveying/Drying Contaminated water from wet unclean post-process can handling equipment and general handling could contaminate product Container Integrity Evaluating/Labelling Failure to statistically sample and/or dud detect lots and reject and evaluate containers with no/low vacuum or serious defects could result in defective product going to market Physical damage to cans could result in leakage and contamination of product Storing Physical damage to cans could result in leakage and contamination of product High temperatures could result in growth of thermophilic bacteria Shipping Physical damage to cans could result in leakage and contamination of product Date: Approved by: (Canadian Food Inspection Agency 2009) Chemical Hazard Identification:- Form 6 Chemical Hazards List all Chemical Hazards Related to Ingredients, Incoming Material, Processing, Product Flow, etc. Identified Chemical Hazards Incoming Materials Mushrooms Could contain agricultural chemicals residues Empty cans/ends Could be contaminated with cleaning chemicals and lubricants Water Could be contaminated with dissolved heavy metals or toxic organic chemicals Process Steps Receiving Empty cans/ends received from suppliers without valid contract specifications could contain cleaning chemical residues and/or lubricants Empty Cans/Ends Storing Improper storage of cleaning compounds and other chemicals could lead to empty can/end contamination Dry Ingredients Storing Improper storage of cleaning compounds and other chemicals could lead to dry ingredient contamination Blanching Excessive cleaning chemical residues and/or lubricants could cause product contamination Mushroom Conveying/Inspecting Excessive cleaning chemical residues and/or lubricants could cause product contamination Slicing/Dicing (If required) Excessive cleaning chemical residues and/or lubricants could cause product contamination Filling Excessive cleaning chemical residues and/or lubricants could cause product contamination End Feeding/Closing/Inspecting Excessive cleaning chemical residues and/or lubricants could cause product contamination Date: Approved by: (Canadian Food Inspection Agency 2009) Physical Hazard Identification- Form 7 Physical Hazards with Controls List all Physical Hazards Related to Ingredients, Incoming Material, Processing, Product Flow, etc. Identified Physical Hazards Incoming Materials Mushrooms Could be contaminated with hazardous extraneous material, eg. glass, metal, plastic, stones and wood (slivers and fragments) Empty cans/ends Could contain hazardous extraneous material Dry ingredients Could be contaminated with hazardous extraneous material Process Steps Receiving Cans received from suppliers without valid contract specifications could contain hazardous extraneous material Dry ingredients received from suppliers without valid contract specifications could contain hazardous extraneous material Raw Mushroom Storing Inadequate protection against hazardous extraneous material could result in contamination of raw mushrooms Dry Ingredients Storing Inadequate protection against hazardous extraneous material could result in contamination of the food ingredients Can Conveying Inappropriate design and protection against hazardous extraneous material could result in contamination of the final food product Mushroom Conveying/Inspecting Inappropriate design and protection against hazardous extraneous material could result in contamination of the mushrooms Slicing/Dicing (If required) Product could become contaminated with metal fragments from plant equipment Foreign-Object Removing Inadequate monitoring and cleaning of foreign object remover could allow foreign objects to contaminate the product Filling Cans of filled mushrooms could become contaminated with metal fragments from filling equipment End Feeding/Closing/Inspecting Cans of filled mushrooms could become contaminated with metal fragments from closing machine during and after jam ups Date: Approved by: (Canadian Food Inspection Agency 2009) Critical Control Point Determination:- Form 8 Category and Identified Hazard Determine if fully controlled by Prerequisite Program(s) If YES, indicate Prerequisite Program and proceed to next identified hazard. If NO, proceed to question 1 (Q1) Q1. Could a control measure(s) be used by the operator at any process step? If NO = not a CCP + identification on how this hazard will be controlled before and after the process + proceed to the next identified hazard If YES = description + next question (Q2) Q2. Is it likely that contamination with the identified hazard could occur in excess of the acceptable level or could increase to an unacceptable level? If NO = not a CCP + proceed to the next identified hazard If YES = next question (Q3) Q3. Is this process step specifically designed to eliminate/reduce the likely occurrence of the identified hazard to an acceptable level? If NO = next question (Q4) If YES = CCP + go to last column Q4. Will a subsequent step eliminate the identified hazard or reduce likely occurrence to an acceptable level? If NO = CCP + go to last column If YES = not a CCP + identify subsequent step + proceed to the next identified hazard CCP Number + proceed to next identified hazard Process Step/Incoming Material: Mushrooms as delivered Biological Pathogens Yes Heat treatment Yes N/A Yes Thermal Processing Biological Heat stable toxins No Upstream programs (farms) Chemical Agricultural chemicals No Upstream programs (farms) Physical Hazardous extraneous material Yes Visual inspection Plant equipment No Process Step/Incoming Material: Empty cans/ends as delivered Biological Post process contamination from serious can defects and damage Yes Contract specifications Visual and can tear-down inspection Yes N/A Yes Receiving Biological Post process contamination from compound skips, plate defects and end damage Yes Contract specifications Visual end inspection Yes N/A Yes Receiving Chemical Cleaning chemical contaminants and lubricants Yes Contract specifications Yes N/A Yes Receiving Physical Hazardous extraneous material Yes Contract specifications Yes N/A Yes Receiving Process Step/Incoming Material: Dry ingredients as delivered Biological Bacterial spores Yes Contract specifications Yes N/A Yes Receiving Biological Filth Yes Contract specifications Yes N/A Yes Receiving Physical Hazardous extraneous material Yes Contract specifications Yes N/A Yes Receiving Process Step/Incoming Material: Water at intake Biological Pathogens Prerequisite programs Chemical Heavy metals other toxic chemicals Prerequisite programs Process Step Process Step/Incoming Material: Receiving Biological Empty cans/ends received from suppliers without contract specifications may contain serious defects, or damage Yes Contract specifications Yes Yes CCP-1 Biological Dry ingredients received from suppliers without contract specifications may contain bacterial spores or filth Yes Contract specifications Yes Yes CCP-1 Chemical Empty cans/ends received from suppliers without contract specifications may contain chemical residues or lubricants Yes Contract specifications Yes Yes CCP-1 Physical Empty cans/ends and dry ingredients received from suppliers without contract specifications may contain hazardous extraneous material Yes Contract specifications Yes Yes CCP-1 Process Step/Incoming Material: Mushrooms Refrigerated storing Biological Increased bacterial load Prerequisite programs Biological Filth Prerequisite Program Physical Hazardous extraneous material Prerequisite programs Process Step/Incoming Material: Cans/Ends Storing Biological Post process contamination due to cans/ends damaged during storage Prerequisite programs Biological Filth Prerequisite programs Chemical Cleaning chemical contamination Prerequisite programs Process Step/Incoming Material: Dry Ingredients Storing Biological Filth Prerequisite programs Chemical Cleaning chemical contamination Prerequisite programs Physical Hazardous extraneous material from storeroom Prerequisite programs Process Step/Incoming Material: Can Depalletizing Biological Post-process contamination due to incorrect or damaged cans Prerequisite programs Process Step/Incoming Material: Blanching Biological Growth of thermophiles Prerequisite programs Biological Inadequate removal of gases Prerequisite programs Chemical Cleaning chemical residues and/or lubricants Prerequisite programs Process Step/Incoming Material: Can Conveying Biological Post-process contamination due to damaged cans Prerequisite programs Physical Hazardous extraneous material from plant environment Prerequisite programs Process Step/Incoming Material: Mushroom / Conveying / Inspecting Chemical Cleaning chemical residues and/or lubricants Prerequisite programs Physical Hazardous extraneous material Prerequisite programs Process Step/Incoming Material: Slicing/Dicing (If required) Biological Improper slice thickness / clumping, and percent fines could result in under-processing Prerequisite programs Chemical Cleaning chemical residues and/or lubricants Prerequisite programs Physical Metal fragments from equipment Prerequisite programs Process Step/Incoming Material: Foreign Object Removing Physical Failure to remove foreign objects Prerequisite programs Process Step/Incoming Material: Filling Biological Mushroom compaction during filling resulting in under processing Prerequisite programs Chemical Cleaning chemical residues and/or lubricants Prerequisite programs Physical Metal fragments from equipment Prerequisite programs Process Step/Incoming Material: Weighing Biological Product heavier than maximum fill weight in scheduled process could result in under-processing Yes Weighing Yes Yes CCP-2 Process Step/Incoming Material: Water filling Biological Inadequate temperature resulting in low it Yes Take it just prior to thermal process Yes No Yes Thermal Processing Process Step/Incoming Material: End Feeding/Closing/ Inspecting Biological Post-process contamination due to damaged ends, compound ski

Diversity Essay -- essays research papers

Encounters between people of different cultural backgrounds have existed forever.People have always thought bout things that were unusual in other cultures. But, those encounters were relatively slim in early days today, they are almost part of everyday life, At the same time, the interchange between cultures has jeopardized their very existence, and the emergence of a diverse culture, a fixation often referred to as globalization.. Primarily, what makes cultures different from each other is it looks at the process of what an individual goes through in an intercultural races, and how it adapts to culture changes in its environment.The individual learns its culture from its environment more then from its family, or from its social relationships. People found, that over time the world market, would change character to adapt to production and consumption and in its material also in its intellectual process. The intellectual creation of individual nations become common property. From the numerous national and local books, there comes a world literature between all cultures.If the environment changes, our internal learning structure gets disturbed, and we have to adapt after a certain pressure occurs this can well be a small adaption to ajust our behavior so that is new. Cultures do come together and new identities do arise. There are real communities that are formed and dissolved. People do go through many cultures, and identities. But the underlying culture still determine...

Partnership and Norms Essay

Partner selection and dating is an imperative basis in an individual’s accomplishment of one of his psychosocial needs. Selecting a partner and the process of dating is crucial in determining the quality and nature of future relationships and marital decisions. According to Maslow’s hierarchy of needs, as represented by a pyramid which indicates the basic needs of man and its importance in self-actualization, the third most significant need of man is the need to belong and be loved by others (Huitt, 2004). An individual’s need to become an accepted and valuable part of society, and the need to affiliate with people of the opposite sex, is an innate characteristic of man. Therefore, selecting a partner becomes an important decision that one must make based on the most convenient choice. These choices, however, vary under various circumstances, as it is influenced by society, culture, priorities, experiences, etc. For instance, differing concepts and perceptions about love vary for individuals; therefore their decisions in selecting a partner also vary. One’s concept of love, dating, partner selection, relationship, marriage, etc. may be influenced by social factors. Society often dictates standards and norms of dating. For example, individuals who live in a society which values social status and the preservation of this particular position in society practices arranged marriages. This is usually true, especially during the age of kingdoms and monarchs. Partner selection and dating may also be influenced by culture. In ancient China, marrying individuals from different cultural backgrounds was forbidden. In this case, race and cultural compatibility becomes influential in choosing a partner. At present, however, choosing a partner and the rules of dating have changed and have evolved into a more liberal milieu. Individuals have acquired the freedom to choose partners and date, depending on their personal views and perceptions of love, relationship, and marriage as formed by their priorities and experience, such as emphasizing importance on educational attainment, occupational status, etc. These choices and priorities are backed up theories which explains once social and personal construct regarding the matter. For instance, idolizing a parent influences individuals to choose partners with characteristics similar to their parents, etc. There are a lot of significant information that pertains to partner selection and dating (Mohatta, 2006), however, the main point is that choices and decisions being made regarding an individual’s selection of a partner, setting up of dating rules and principles to live by, reasons for staying in or leaving a relationship, going into marriage, etc. vary depending on several factors, such as culture, environment, society, family, personal choices and experiences, priorities, etc. Similar to partner selection and dating, sexual norms and sexual relationships also vary depending on one’s culture and perceptions. Two different societies were mentioned and described in the lecture which greatly explains the variation between these two societies regarding sexual norms and practice. The main argument stated herein is that an individual’s concept and perception of sex is learned from the society where he belongs. This is proved by the obvious knowledge that children, as young as they are, do not understand nor have ideas and contributions pertaining to issues and discussions regarding sex. Therefore, individuals gather the idea, perception, meaning, and importance of sex from the environment. For instance, a family environment which is not open about the idea of talking about sex with their children because members of the family regard it as a wrong deed is passed on to their children. In contrast, a society open to sex education, especially in educational institutions, allows students to acquire knowledge about sexual norms and practices, leading them to become aware of all its aspects. This can be important in informing students about sexually transmitted diseases, teenage pregnancy, safe sex, etc. With these alarming issues, most especially the high rate of individuals who acquire AIDS from numerous sexual encounters, or teenagers facing the responsibility of motherhood and parenting, more societies are accepting and pushing for the administration of sexual education in educational institutions. On the other hand, religious institutions are battling this societal move by reiterating their disapproval of the use of contraceptives, as encouraged by sex education, based on religious teachings and principles (Villaviray-Giolagon, 2007). Therefore, students who absorb information learned from sexual education may start to become open-minded about sexual responsibility; while on the other hand, churchgoers strengthen their stand for abstinence and marriage before sexual interaction. These two opposing viewpoints from educational institution and the religious institutions illustrate how an individual’s idea and perception of sexual norms and sexual relationships vary depending on environment.

Inventory management in a business environment - Free Essay Example

Sample details Pages: 7 Words: 2097 Downloads: 10 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? In todays world every business tries to strike a balance in inventory between what is needed and what is demanded, considering the major factor of cost cutting/reduction. This control is called Inventory management or inventory control. Inventory is basically assets (goods and materials) which are stock of any business. Don’t waste time! Our writers will create an original "Inventory management in a business environment" essay for you Create order Inventory management focus on the capacity of the inventory, the place in which it is located so that one can use it when needed, the supply chain management of the raw materials and goods. Inventory management deals with the demand forecasting, asset management of the raw materials and goods, inventory carry cost, forecast, pricing of goods, validation of goods, to forecast the demand of future. This helps the top level manger to understand and coordinate with the supply chain management or production management, and quality management. The three important objectives of Inventory management are Satisfactory level of service Most company measures the ability to satisfy the customer by the following 3 factors / methods Number of order which act per schedule Number of order which are shipped as per schedule The idle time in inventory as well as shortage Minimizing inventory investments Most company try to minimize the money associated with inventory so as to improve profitability of the company. This is measured using inventory turnover ratio (Measures how quickly the inventory is getting out of system to the consumer) Its calculated using formula- Sales / inventory or cost of goods sold / average inventory [1] Efficient inventory control Efficient inventory control includes how the inventory are scheduled properly, no delays between sniffing of raw materials and goods. The amount of raw materials determines the workforce and other factors. Every company will incur fixed cost and vertical cost. There should be a balance between the fixed cost and variable cost. Necessity of inventory of a company JAN FEB MAR APR MAY JUN CUSTOMER DEMAND 500 500 0 1000 2000 2000 FINISHED GOODS PRODUCED 1000 1000 1000 1000 1000 1000 Inventory month end 500 1000 2000 2000 1000 0 Table 1- To illustrate how an inventory is used in end of month Factories which a company considers to get excess demand Fulfil demand- Consider an instant where a customer wants to buy 100 DVD disks from shop A. But the shop A has only 50. So the customer goes to Shop B. He gets the 100 DVD disks he wanted. So from next time onwards the customer may go only to shop B directly. Hence to avoid this the shop has to evaluate and forecast property how much is required 2) To have progress in operations: A company must have certain purchased items like the raw materials and goods sold in order to manufacture its product. Running out of only one item can prevent a manufacturer from completing the production of its finished goods. 3) Lead Time: the time that lapses between the order placing (production and purchase order issued in the factory floor) and actually receiving the ordered. The more and more the lead time, the more and more of the quantity of goods the company should must carry in stock. Illustration: Just-in-time manufacturing firm, like Nissan in Smyrna, Tennessee, maintain extremely low levels of inventory. 18 times per day it takes delivery on truck seats. But the steel mills may have a lead time of 3 months. That means to say a firm which uses steel produced at the mill must order minimum 3 months in advance.[2]. Requirements leveler: Inventory is mainly used to maintain a steady rate of output [mainly to avoid the hiring cost and training the new personnel], while determining the forecast of inventory , increase in demand is called anticipation inventory There are four types of inventory Raw materialsÂÂ   basic materials used for manufacturing of goods. Work in process- goods which have started to transformation to finished goods Finished goodsÂÂ  -final finished product for consumer. MRO goods- maintenance ,repair and operational goods RAW MATERIALS: The materials that are used in a conversion process of manufacturing to convert them into partly or completely finished goods. These items include commodities or materials extracted by the firm or its subsidiaries. They can also be bought by the firm. A partially completed item may be considered as finished goods by the supplier, but this could also be the raw material of the purchaser. Some examples of raw materials include Ore Grain Minerals Petroleum Chemicals Paper Wood Paint Examples of raw materials bought from outside the firm: Nuts and bolts Ball bearings Seats Wheels WORK IN PROCESS: This includes all the materials, components, assemblies, subassemblies, etc. which are being incorporated into the system. They include all the materials from the start till they are ready and are awaiting inspection before they form the completed product. CASE: At Dulux paint the total time taken to produce paint varies from 7 to 24 hrs. This time depends on the type of goods. FINISHED GOODS: Finished goods are those which have gone through the entire process of manufacturing and are completely ready to be sold to customers. Finished goods inventory is the collection of completed products. Finished goods also mandatorily have to pass all tests and inspections before they are sold to either retailers, distributors or directly to customers. Typically a manufacturer has a good stock of raw materials, work in process and finished products. A retailer or wholesaler has a big collection of finished goods ready to be sold. TYPES OF INVENTORIES: TRANSIT INVENTORY: Inventories many times have to be transported from one location to the other as they pass through the levels of manufacturing. These inventories are called transit or pipeline inventories as they are in transit from a location to another. Automobile manufactures make use of freight consolidators to pool in their inventories. CASE: HPCL handles the transportation from refineries to customers through various modes like roadways, shipping, pipelining etc. BUFFER INVENTORY: Inventories are sometimes used to counter attack the uncertainties of demand and supply. They could also be used to take care of unforeseen situations like poor transportation, poor quality etc. Buffer inventory or safety stock is the amount of stock which is in excess compared to the current demand of goods. The more safety stock a firm has very small is its probability of running into a stock out situation. ANTICIPATION INVENTORY: Firms often purchase and hold stock which is much higher than their present requirements in anticipation of a future event. These event can include Seasonal variations in demand Price variations An impending labour strike This method allows firms to build up their inventory reserves when the demand is declining and as the demand shoots up they can utilise the inventory. The firms need not increase their production capacity and overload their workers when there is a sudden rise in demand. DECOUPLING INVENTORY: The production time of each machine used in a manufacturing plant varies. Some systems produce more products in the same time duration. The faltering of any machine must not affect the entire production process. Thus decoupling inventory acts as a shock absorber and decouples the dependence on sequential process. CASE: Consider a book manufacturing firm. If it is known that the paper manufacturing machine is not working for few days then the manager forecasts the requirement and carries out other activities like binding so that the entire process is still intact. VARIOUS COSTS RELATED TO INVENTORY MANAGEMENT: Ordering cost and cost of acquisition: Large organisations have separate purchase offices which handle the purchasing of huge inventories. Demands are technically analysed and decisions about inquiries, tenders and orders are made. An additional cost is included for each step this is all summed up to arrive at the Ordering cost and cost of acquisition Carrying costs: holding inventory is an additional expense for every firm. Different elements of Carrying costs are Interest on capital / cost of capital / opportunity cost Obsolescence and depreciation Cost of storage, handling and stock verification Insurance cost The average carrying cost could be expressed as follows: Interest on capital / cost of capital / opportunity cost 15 to 25% Obsolescence and depreciation 2 to 5 % Cost of storage, handling and stock verification 3 to 5 % Insurance cost 1 to 2 % TOTAL 21 To 37 % Shortage or stock out cost: Whenever an item is not available when required then it causes delay to all the process which require that item. This causes a loss since the work at a stage is delayed or even stopped at times. Consider an example of a locomotive, if its production is held up due to lack of availability of spare parts then it causes loss due to delay in completion. If the part has to be bought from outside the firm the additional expense is incurred. Systems cost: These costs are related to the type of control mechanisms and systems being used to monitor the production process. INVENTORY MANAGEMENT TECHNIQUES: One of the vital objectives of a firm is to manage inventories efficiently in accordance with the shareholders. Optimum utilization of the inventories aids to achieve that objective, as well as reap profit. The inventories which are controlled efficiently make the firm flexible and avoid disasters like running out of stock and pilling up of unnecessary stock which increases the level of investment and does not bring the firm profit. The following questions help to manage the inventories properly. How much should be ordered? (economic order quantity) When should it be ordered? (re-order point ) ECONOMIC ORDER QUATITY Economic order quantity deals with problems like the amount of stock to be furnished on the depletion of stock, the planning of production. So the firm has established the economic lot size. This involves two types of costs: Ordering costs: it includes the cost of the following: Purchase Requisition Ordering Receiving Transporting Inspecting Storing Ordering cost differ according to the orders placed. The clerical and the staff costs remain the same as long as they are committed costs. On the other hand if the quantity of the order increases, the clerical and staff costs may increase. If the quantity is reduced the clerical and the staff force can be used in other departments hence the cost can be included to the ordering cost. As the ordering costs is proportionate with the number of orders placed a large inventory helps in reducing the order cost as the number of orders reduce. Carrying cost: it includes the cost of the following: Storage Insurance Taxes Deterioration Adolescence and to maintain the level of inventory. The storage costs include warehousing cost, stores handling cost and administrative cost. Carrying costs differ with inventory size and is in contrast with that of ordering cost which reduces with the increase in inventory level. Re-order point: it means the point at which the firm should restock its inventory. In order to be certain of the time of restock, the firm should know the following: Lead time (normal replenishing time i.e. reorder= lead*avg. usage) Average use Economic order quantity Safety stock: the actual delivery time might differ from the normal lead time. If there is an increase in actual usage or delay in delivery of stock it may prove to be expensive for the firm so in order to protect themselves from such mishaps they can maintain a safety or back-up stock JUST IN TIME: Just in time became famous because of the Japanese firm. It means that the materials arrive in time for production and hence maintenance of inventories is not needed but then the delivery and production have to be well co-ordinated. It also has its drawbacks like if the quality of the material is poor it will be a hindrance for production. The success of just in time depends on quality management and the relationship with the supplier. Example: One truck transportation company obtains much of its business by catering to companies that must deliver parts to other companies just in time. The Toyota Company in Japan has developed a scheduling discipline for internal control of in process material movement, called Kanban, which substantially reduces WIP. Inventories and hence reduces the associated costs. OUT SOURCING: As times are changing so are the practices of companies. Nowadays companies tend to outsource. That is buying components from some other firms. Example: Tata motors has developed number of ancillaries are able to maintain the high quality of the manufactured components. The car manufacturing company, Maruti, which is now controlled by Suzuki of Japan, has the similar system of supply. COMPUTRIZED INVENTORY CONTROL SYSTEM: Technology is made controlling of inventories easier by computerized inventory control that is everything from tracking, revising, counting. It also restocks the inventory by reordering when necessary that is possible because of the information system which is linked between the buyer and supplier. However it is not practical for large retail stores.