Production

Objectives:	To gain experience of the methods used for selection and preparation of raw materials, processing, quality control and packaging of the products selected.
	To gain experience of organisational and scheduling problems associated with the production of these products.
	To undertake preliminary costing of production.
	To assess variability in the quality of food produced at different times.
Duration:	6-8 hours

Session Guide:

You should distribute order forms and production schedules summarised from the Technology Manual when the participants return from their field study and counsel them on the requirements for the production session. Trainers should ensure that materials and equipment are available.

Give participants Handout 6 and with one observer for each group, supervise production of individual foods to ensure that procedures for raw material selection, processing and quality control in the preparation of three batches of their selected food are taken into account during the practical studies and fully recorded in participants' workbooks.

Organisation of the production sessions is described in Handout 6.

Ensure that all actions and results are recorded by observers for discussion of managerial capability, production technologies and product quality for 15 minutes after each session.

Ask participants to evaluate the three batches of product from each person's practical work in their group using a score sheet (Handout 7).

Ask participants to note where variation for production costs (and hence profitability) and product quality took place.

Use the observations for a roundup discussion of the technological requirements for small scale food processing.

SUMMARY HANDOUT

In this session you gained experience of the methods used for selection and preparation of raw materials, processing, quality control and packaging of the products selected; you gained experience of organisational and scheduling problems associated with the production of these products; and you undertook preliminary costing of production and assessed variability in the quality of food produced at different times.

HANDOUT 6

The purposes of the session are as follows:

· To gain experience of the methods used for selection and preparation of raw materials, processing, quality control and packaging of the product you have selected

· To gain experience of organisational and scheduling problems associated with the production of your product

· To undertake preliminary costing of production

· To assess variability in the quality of food produced at different times

Outline of the sessions:

You are asked to work in groups of 4 with one person as the group manager who is responsible for all work undertaken and for the reporting of results.

90 minutes are allowed for the group to produce 3 batches (each of 1 kg) of the food selected by the manager as the product she wishes to manufacture. A review of the successes and failures of the 5 managers then takes place for 15 minutes, conducted by the observer for each group.

After this rime a second person from the group then becomes manager and the group produces her product for 90 minutes.

The third and fourth members of the group each become managers in turn, with each supervising production of their products within 90 minutes and a 15 minute review after each session.

Each manager is responsible for ensuring that all equipment, materials and facilities are available for the session by discussion with the trainer.

YOU SHOULD THEREFORE PLAN YOUR REQUIREMENTS AND INFORM THE TRAINER AS SOON AS POSSIBLE AFTER YOU RETURN TO THE COURSE AFTER THE FIELD STUDY.

Use the attached order form to request materials and equipment from the trainer.

Summary of manager's responsibilities:

1. Before the session

· Plan the production process (including quality control and packaging procedures) to produce 3 batches, each of 1 kg of food, within 90 minutes;

· Determine material and equipment requirements and note all costs;

· Plan the work for each member of the group;

· Determine the expected quality specification for the raw materials and final products.

2. During the session

· Supervise the work of the group and record all production data.

3. After the session

· Complete a finance report to indicate your expected sale price for the product and profitability of production;

· Report back to the whole group on the problems and successes of the session;

· Evaluate products from the group using Handout 7.

PRODUCTION SESSION

ORDER FORM
Equipment	Quantity
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Materials	........................................
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FINANCIAL REPORT

CALCULATION OF PRODUCTION COSTS
Fixed Costs		(Kw)
Rent (room with electricity and water about 3 metres square) per month divided by 20		..................
Equipment loan repayment (cost of equipment divided by 250 - assuming loan will be repaid within one year)		..................
Maintenance (10% of equipment cost divided by 250)		..................
Depreciation (cost of equipment divided by 250 - assuming it will last for one year)		..................
Owners Wage		..................
Variable Costs
Raw material(s) (Cost per kg x weight used)
Other ingredients		..................
	1. Cost per kg x weight used	..................
	2. Cost per kg x weight used	..................
	3. Cost per kg x weight used	..................
Labour: (two workers @......... per hour x number of hours to process)		..................
Fuel (cost of fuel per unit x number of units per hour x the time used)		..................
Electricity (monthly bill divided by 20)		..................
Packaging (cost per pack x number of units packed)		..................
Transport/distribution (cost per journey each week divided by 5 - assuming production each working day)		..................
TOTAL		..................

Income

Selling price per unit		..................
Number of units per day		..................
Total		..................
Profit		..................
Planned total cost		...............Kw
Unplanned costs
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Subtotal		.............Kw
10% interest	..................
TOTAL		.............Kw
Total planned and unplanned costs		..............Kw
Actual sales		..............Kw
Profit (sales less total costs)		..............Kw

HANDOUT 7: PRODUCT SCORE SHEET

Product:....................................

QUALITY CHARACTERISTICS SCORE
	VERY POOR	POOR	SATISFACTORY	GOOD	VERY GOOD
Colour	1	2	3	4	5
Appearance	1	2	3	4	5
Odour	1	2	3	4	5
Texture	1	2	3	4	5
Flavour	1	2	3	4	5
Overall	1	2	3	4	5
General comments: