Introduction For this report, we are focus on the process of manufacture beer. In order to make…

Introduction For this report, we are focus on the process of manufacture beer. In order to make everything clearly, Tsingtao Beer was be chosen as the example. In the following report, it will divide it into several parts. The first one is brief introduction of Tsingtao Beer, in this part we want to let audiences know what is this company doing, meanwhile the main products and processes they have. In the body, we will introduce the strategy of this company. Then the most important part is the process of manufacture beer.
In this report, we will expound the whole process, such as how to get raw materials, how to inventory, and manufacture. In addition, risk management and quality management will be included. For the purpose of make the process more clearly to be understood, we will use a flow chart and two value stream mappings (VSM) to compare. Introduction of Tsingtao Beer Tsingtao Brewery Co. , Ltd. (hereinafter referred to as “Tsingtao Brewery”), one of the oldest beer makers in China, was founded in 1903 by German and British merchants under the name Nordic Brewery Co.
, Ltd. Tsingtao Branch. Today, Tsingtao Brewery is China’s largest brewery and is an Official Sponsor of the Beijing 2008 Olympic Games. By the late 1990s, with more than 50 breweries in 18 provinces, municipalities and autonomous regions, Tsingtao Brewery further strengthened its market leadership and domestic expansion plan through numerous strategic mergers, purchasing insolvent companies, reorganization, and joint-venture partnerships.
“In 2007, Tsingtao Brewery achieved a total sales volume of 5. 05 million kiloliters globally, with the market share of Tsingtao Beer in China reaching 13%. Tsingtao Beer is exported to 62 countries and regions, including the USA, Japan, Germany, France, UK, Italy, Canada, Brazil and Mexico. The Barth Report, the authoritative report of the global beer industry, ranked Tsingtao Brewery as the 8th-largest brewery in the world based on total yield in 2006 and 2007. ” (www. tsingtaobeer. com).
Manufacture Strategies Now let’s focus on the manufacture strategies that Tsing tao is taking • JIT Like other beer manufactures, Tsing Tao is also adopting JIT manufacture strategy, which mainly focus on using less raw material, getting the exact output in a specific time which all make sure that the products will arrive in customer at the right amount and at right time. Tsing Tao beer is just using the pull chain to finish the period production manufacturing, first demand from the customer may rise the awareness of importing more beer of the retailer, and then retailer request from the wholesaler, who will send the message to Tsing Tao beer.
This manufacture strategy mainly focusing on erasing waste, not just the product, but also the transportation work, inventory, re-manufacturing. • Low carbon technology manufacture Except JIT, Low carbon technology manufacture is another important strategy that Tsing Tao has, Carbon Tariff becomes reality after Copenhagen summit meeting, thus Low carbon revolution became popular in Europe and America. As a famous brand beer in China, which is facing the whole word with a great export performance, Tsing Tao necessarily follow behind the world level to challenge with the international market.
During manufacturing, Tsing Tao adopts self supply and exhaust manufacture method, which largely reducing the exhaust of carbon dioxide, and also reducing the cost. The most important is that this receives the praise of the customer. Processes of manufacture: We will divide this section into three parts: raw materials purchasing, production processing and delivering. The raw materials are very important for Tsingtao beer to distinguish with other beers. Four raw materials are required for beer production: 1. Malt: Tsingtao beer choose special malt from southeast of China.
Because this kind of malt is thin skinned, big granule, rich starch, high Germination rate, and low in protein. It is best raw material for beer. 2. Hops: Give beer its bitter taste & an effect on the aroma. Tsingtao beer has it own cultivation base. The hops with big flower stalk, rich pollen, and heavy fragrance are qualified. Therefore, that Tsingtao beer can be more clear and translucent than other beer. In addition, it can extend storage life for beer, and keep good flavor. 3. Water: Affect to the beer character & quality. Tsingtao beer use LAOSHAN mineral spring water.
Because of LAOSHAN mineral spring water is famous for it pure quality, and pleasant to the taste. It can make Tsingtao beer taste unique. 4. Yeast: it is important for alcoholic fermentation, and great effect on beer quality. For Tsingtao beer, it is a core secret; only three significant people in Tsingtao beer can get close to the yeast factory. Order the raw materials: Tsingtao beer company is purchase malt from a big port city—ZHOUSHAN which is located in the southeast of China. It will cost Tsingtao Beer Company two days to get malt. Second are hops, Tsingtao beer having their own base to produce hops.
The resources of water also very near by the factory; it will take half an hour to get water by truck. For the Yeast, the factory for yeast is located in Tsingtao beer’s factory and we will talk about all the details in the procedures. Now let’s see the process how Tsingtao manufacture beer, before that let’s its process flow chart (big picture is available in the attachment) basically there are 13 steps involved, and it will take one to three months unequally depends on the season demand. [pic] 1. Milling and Mashing The milling of the malt is critical to the brewing process.
Malt mill consists of a set of two top rolls and two bottom rolls with a set of beaters between them. The purpose of milling is to break open the malt corn and break up the malt starch,and allows the malt enzymes to penetrate the starch more efficiently during mashing. Mashing involves the mixing of the grist with hot water to form a mash in which the natural malt enzymes will break down the malt starch into sugars. The mash temperature normally lies in a range between 62 and 65 °C. Wort boiling The wort kettles are heated by means of internal coils up which superheated water is pumped.
This water is kept at a pressure of 80 psi and at that pressure can be heated to a temperature of 135°C. Sepreation: The whirlpool separator is an upright cylindrical vessel with a dished base. One of the properties of a vortex is that any solids contained in the liquid tend to be drawn into the centre of the vortex. 30 minutes after the finish of pumping the wort will have separated out into a cone of “trub” made up of spent hops and precipitated protein/ tannin in the dished base of the vessel and clear bitter wort all around it. Wort cooling.
The hot bitter wort has to be cooled from a temperature of around 90°C in the whirlpool to 16-20°C in the fermentation vessel, This machine is made up of a series of thin stainless steel sheets with a small space between each sheet. Cooling takes 1-2 hours, which is several hours shorter than boiling. Fermentation: The cooled wort is collected in the fermenting vessel. Each beer is collected in fermentor at its own “original” or starting gravity. Yeast which is added is a living organism and like all living organisms requires a source of energy for its life processes. 5-10 days is requested in this process.cask Racking: After a period of around seven days in total in the fermenting vessel (FV)the beer is ready to Rack.
The cask racker or racking machine has been designed to allow a continuous flow of beer through the machine. an semiautomatic washer, steam sterilisation and Isinglass finings will be involved in this process. Finally Cask conditioned beer should be bright and clear. Tanker/Bottling: The beer which leaves the brewery in tanker, directly from the fermenting vessels will be under goes a number of processes before ending up in a shrink wrapped tray of labelled bottles ready to be sent to a supermarket.
Cold Conditioning: On arrival at the packaging Centre the beer is pumped through a chiller to a cold conditioning tank for 10 days. Although this period of cold conditioning is fairly simple and straight forward it’s importance cannot be exaggerated. If the beer is not held at a low enough temperature for a sufficient period of time some of the protein and tannins will remain in solution in the beer only to precipitate out later in bottle after a period of time or when it is chilled in a refrigerator, causing an undesirable haze. Filtration:
After cold conditioning the beer is passed through a keiselghur fiter which removes the haze from the beer leaving it bright and clear. Bright Beer Tank: A great deal of care is taken from the cold conditioning stage onward to the bright beer tank to prevent the beer coming into contact with air. And now the beer under goes another series of checks for CO2, taste and so on. Usually it takes 1 to 2 months to store the beer in the bright beer tank. Bottle Filling: The beer runs from the BBT to the header tank on the filling machine through at least two back up filters which ensure no particles can find their way into the bottle. Pasteurization:
The pasteurizer comprises a series of water tanks at various temperature, a series of pumps. Ideally the bottles of beer will take about one hour to go through the pasteurizer being held in the middle section at a temperature of 60°C for twenty minutes. Packaging: After pasteurisation the bottles are conveyed to the labeller where the label is applied and the date code ink jetted onto the neck of the bottle. Finally the pallet is wrapped in a sleeve of cling film and despatched to the brewery. Testing Last but not least, the quality management team will test the final finished goods. If the products are not qualified they will be taken out.
When the products are finished, it is convenient for the company to deliver beers to its customers who are ordered the products before, or send to the consumers who are ordering after the company completes its goods. Firstly, the company receives an enquiry or offer about the information of its products which include quality, size, package, material, transportation and so on. After negotiation, they get agreement about the transaction. So the buyer gives an order to the company, and both side of the transaction sign a contract of purchase commodities to protect their rights and interests.
Within the contract, they can negotiate customers pay the bill after receive the products or not. From receive the enquiry to achieve agreement, the process of facilitating the transaction will take 1-2 days. After they get agreement and the company received the accurate order, the company begins to prepare the products. Make sure that the Quality, pricing, specifications are consistently with the contract. Meanwhile, ensure the quantity of goods is meet requirement of contract. Moreover, the package of the products is very important. The company should make sure the package protect beers from the damage of vibration and crash.
In general, stocking time should be provided under the letter of credit and combine with sailing in order to promote the convergence of cargo. Generally speaking, it will take 2-5 days to prepare the products after receive the order. After prepared the goods ready, the company can deliver to domestic customers directly. Deliver time based on the distant between the manufacture and customers, and the company has branches in different cities so that the company can deliver beers to customers within 1-2 days. For exporting, it will take more time. The basic thing for exporting is the items must be cleared by the customs.
It needs some documents which include export commodity inspection certificate, invoices, customs power of attorney and the contract of exporting goods and so on. When the company has these documents then goes to the Customs for customs clearance by professional customs specialist. It will take 2-3 days. The company can ship the goods after it gets these documents and customs clearance. At the same time, it should consider the risk and insurance. From the beginning of shipping to the end, it will take 20-30 days by ocean shipping. If the importer requires using air shipping, it will take 5-10 days.
After the goods are shipping, the outbound logistics will provider bill of lading to importer for picking up the goods and settling the exchange. So at this point, the customers can receive the products with the bill. According to all the manufacturing processes we talk above, we draw a Value Stream Mapping to evaluate the whole system and find that there are some problems among the current system. (big picture is available in the attachment) [pic] First of all, there are too many work centers and inventories in the factory which waste a lot of time to produce and waste staff to manage the process.
Secondly, all the raw materials are storage in the stock room and employees need to deliver them to certain work center when they want to use the materials, this is not efficiency. Thirdly, when get the order from customers they need to inform to others department by department which seem lack of technical support. After finding the current problem, we provide an improve VSM and we hope that will help the factory to make their manufacturing process more effectiveness and efficiency, also, can reduce cost. (big picture is available in the attachment) [pic]
First of all, we cut the amount of wok centers. We combine some related work centers together and delete the stock room since we think it is better if the factory can deliver to the certain work place as soon as they receive the raw materials. Secondly, we change the information system. When get the order from customers, the shipping department will pull the inventory to provide finished goods to customers directly though the Kanban. And then, finished goods inventory will pull inventory 2 to provide products at the mean time work centre 3 will start working, and then pull inventory 1, etc.
Depending on this system the factory can provide products as soon as possible when receiving orders. This system can help the factory reduce at least 10 days to meet customers’ requirement. Quality management Quality is a part of manufacturing process and plays a very important role in the whole process. In some situation, the first impression is very important for consumers to identify the product. Consumers are always looking the appearance of the product to judge if it has a good quality or not at the first sight. People can know the basic things of quality through the material, package, smell and feel.
Then they begin to know deeper aspects about the product if they would like to buy it. So the first impression is very important for customer to identify the products intuitionally. For a company, the quality does not only include the use value of the product, but also include the function, package, process, how to deliver the product to customers and the after sale services and so on. The company has to make every aspect of the quality perfect to meet clients’ needs so that it can build a long-term loyalty relationship with its customers and also attract more new customers.
So the company can get more sales and benefits. Producing good quality product is not only good for the customers but also good for the company. They all can get what they want from it, so it can be a win-win strategy. For Beer Company, firstly, it should select the good quality of raw materials such as barley and alcohol. It could bring some damage to people’s health if the company uses bad barley or alcohol to produce beer. Then improve the quality of manufacturing process to ensure the progress and efficiency of producing.
Finally, select a good and attractive package to deliver to customers on time. “Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for”(Rucker, Peter 1985) (1). So only when the company can meet customers needs to make them willing to buy the products. Try to make everything as possible as perfect to satisfy our clients, and make them are willing to pay for our products and would like to do more repeat purchasing. Risk management The company has some potential risks during the process of manufacturing.
For the raw materials, it is necessary to select the right suppliers who can offer high quality materials and keep good relationship with them. Because the company will take more risks and costs to deal with customers’ problems and suppliers’ relationship that include customers’ complain, goods return and conflict with new supplier. So the company should use good quality of materials to meet customers’ needs and negotiate and compromise with its suppliers in order to build good and long relationship.
During the process, the fault of machine, the problem or damage of the raw materials, the conflict between employees and the waste maybe happen. The fault of machine and damage of raw materials will affect the progress of manufacturing so that influence the finished data of products. So the company should examine the machine before and prepare emergency schedule in case it meets unavoidable problem. And deal with the conflict among employees to increase work efficiency. Moreover, the company can recycle the waste material or use them for other purposes.
In other aspect, the company has supplier risk, which means the company produces good quality products, but the customers do not think the products are good. In customers’ mind, they don’t like the products even though they have good quality. So it will influence the sales of the company. Also the inventory management is very important. The inventory exceeds or stock-out all will bring negative influence on the company. There is still having some risks in the process of delivering goods to customers. The damage, steal, delay of the products will cost a lot to make it up and the natural disaster also can influence the shipment.
So the company should buy the transportation insurance to reduce some costs and use stable package to protect the products from shake and crash. Conclusion In this report, the main purpose is show the process of manufacturing beer. It is very necessary to follow the production plan systematically, because only in this way, the manufactures can make max profits. Moreover, quality management is significant to a manufactory. However, there are some risks as we mentioned above. According to those risks, we suggest to manage it in advance.
Therefore, in this report we also include risk management. Overall, the process of manufacturing is very complicated and precisely process, which all manufactures should pay enough attention, and organize the process well.
Reference: • www. Tsingtaobeer. com. cn. • http://www. tsingtaobeer. com/brewery/brewery. htm • International trade 2009-11-02 June 15, 2010 http://baike. china. alibaba. com/doc/view-d1794890. html • Tsingtao Brewery 15 March 2010 15 June 2010 http://en. wikipedia. org/wiki/Tsingtao_Brewery ———————– [pic] [22-06-2010] [TstingTaoBeer Manufacture process/