Central European Business Review 2013, 2(2):31-44 | DOI: 10.18267/j.cebr.44

Optimum Resource Allocation and Eliminating Waste Inside the Food Industry

Chandru Nagarajan Sathiyabama1, Pramod Dasan2
1 Chandru Nagarajan Sathiyabama, MSc., Sheffield Hallam University, United Kingdom, chandruscm88@gmail.com
2 Pramod Dasan, MBA, Faculty of International Relations, University of Economic, Prague Czech Republic, pramod.dasan@gmail.com

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.

Keywords: LEAN Methodology; Optimization in Food Logistics; Operations in Food lndustry
JEL classification: C40, C41, C44, C81

Received: February 4, 2013; Revised: June 12, 2013; Published: June 30, 2013  Show citation

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Sathiyabama, C.N., & Dasan, P. (2013). Optimum Resource Allocation and Eliminating Waste Inside the Food Industry. Central European Business Review, 2(2), 31-44. doi: 10.18267/j.cebr.44
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