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Week 4 Lecture

The document outlines essential metrics for tracking small-scale food processing operations, including daily production, sales, inventory, and expenses. It emphasizes the importance of accurate record-keeping to prevent financial losses and ensure operational efficiency. Additionally, it covers the mathematics of yield, costing, and the requirements for food packaging and labeling to meet regulatory standards.

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0% found this document useful (0 votes)
2 views4 pages

Week 4 Lecture

The document outlines essential metrics for tracking small-scale food processing operations, including daily production, sales, inventory, and expenses. It emphasizes the importance of accurate record-keeping to prevent financial losses and ensure operational efficiency. Additionally, it covers the mathematics of yield, costing, and the requirements for food packaging and labeling to meet regulatory standards.

Uploaded by

johnnhiel01
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Topic 1: Tracking the Small-Scale Operation 7.

Downtime: The amount of time the production line was


Why track data? NOT operational. Did the blender break? Did the gas run out?
Protecting the Base! Record the lost time here!
If you are running a small-scale food processing operation (like 8. Notes: Any additional observations, like staffing levels or
selling snacks in school), you cannot just guess how much strange equipment issues that the boss needs to know about.
money you have. Topic 3: The Mathematics of Yield
You must properly record four specific pieces of information to Defining Input, Output, and Waste
ensure your business survives! The Three Weight Categories:
Metric 1: Daily Production Before you do the math, you must weigh everything!
The Daily Crafting Log: • Input: Weigh ALL the ingredients used in the recipe
You must keep a strict record of the exact number of packs BEFORE you start peeling, cutting, or cooking.
or bottles per product that your team processes every single • Waste/Spoilage/Reject: Weigh the excess skins, spoiled
day. parts, or spilled ingredients that cannot be used.
If you made 50 bottles of vinegar on Monday, that number • Output: The total weight of the finished, cooked ingredients
must be locked into the ledger! at the very end of the production!
Metric 2: Daily Sales The Percentage Yield Formula
The Income Tracker: Calculating your Efficiency!
Every single sale of the finished product MUST be recorded To find out how efficient your factory is, we use the
immediately. Percentage Yield formula. Memorize this equation:
If your friend buys one bottle of your Guava Jam for Php 100, Percentage Yield = (OUTPUT / INPUT) x 100
you write it down. Never rely on your memory to track your
income! Topic 1: Costing and Operating Expenses
Metric 3: Weekly Inventory Why do we Cost Products?
The Stash Check: Preventing Bankruptcy!
A weekly inventory is a physical count of the products that are Costing processed foods involves accurately computing the
NOT sold. TOTAL cost of the ingredients and determining a mark-up
The Golden Equation: Your remaining inventory should percentage.
always be exactly equal to the difference between the total We do this to arrive at a reasonable Selling Price. The ultimate
products you produced and the total amount you sold! If the goal is to ensure that the seller does NOT lose money in the
numbers don't match, someone stole your loot! enterprise!
Metric 4: Daily Expenses The Hidden Costs
The Drain on Resources: It's not just about Sugar and Fruit!
You must record all expenses incurred for the day. This is the Most beginners think the cost of a product is just the cost of
money flowing OUT of your base. the ingredients. They are completely wrong!
This includes the cost of raw ingredients, packaging materials, To run a factory, you must pay for Operating Expenses. If you
tricycle fare to the market (travel expense), and even the cost forget to add these to your final price, you will lose money
of the gas you used to cook! every time you sell a bottle!
Topic 2: The Daily Production Report Operating Expenses 1 to 3
What is a Daily Production Report? The Base Upkeep:
The Factory Dashboard: 1. Labor: How much will the employees be paid for their
A daily production report is a professional document that physical work during the production?
summarizes the key activities and metrics that happened on 2. Gas / Fuel / Electricity: The stove doesn't run on magic!
the factory floor in a single day. You must calculate the cost of the LPG gas or the electricity
It is a crucial tool to track your team's efficiency, identify used to boil the jam.
bottlenecks (where the process slows down), and ensure strict 3. Transportation: The travel expenses (tricycle fare, gas)
quality control. used to acquire the ingredients from the market.
Components 1 & 2 Operating Expenses 4 to 5
The Basics: The Base Upkeep:
1. Date: The exact date the report is for. 4. Miscellaneous Expenses: This includes all other items not
2. Production Lines: A breakdown of activity by production directly eaten, such as the cost of the glass jars, the printed
line. This specifies the exact food product being processed Canva labels, and the plastic cap seals!
that day (e.g., 'Line A: Spicy Pork Tocino'). 5. Rentals: If you are renting the factory space, the stall, or
Components 3 & 4 the heavy equipment, you must account for it!
Materials and Output: Topic 2: The 6 Steps to Determine Selling Price
3. Raw Materials: The exact amount (in grams or kilos) of raw Step 1 & 2: The Master List
ingredients put into the system. This also tracks any spoilage Gathering your Stats:
or wasted materials! • Step 1: List down ALL the food ingredients and the exact
4. Finished Products: The final quantity of fully processed quantities used in the standardized recipe.
products produced, categorized by type (e.g., '15 Bottles of • Step 2: Make a complete list of your Operating Expenses
200g Jam'). (Labor, Gas, Transpo, Misc., Rentals).
Components 5 & 6 Step 3: Compute Ingredient Cost
Efficiency and Quality: The Ingredient Formula:
5. Yield: A mathematical calculation of the percentage of raw You rarely use the entire bag of an ingredient. How do you find
materials that were successfully converted into finished the cost of what you actually used? Use this formula:
products. Ingredient Cost = (Quantity Required / Unit Size
6. Quality Control (QC): A record of any sampling checks Purchased) x Cost of Unit
performed and the results. (e.g., 'Taste test passed; pH level is *(Example: If you need 0.5 kg of sugar, and a 1 kg bag costs
safely acidic'). 140 pesos... 0.5/1 x 140 = 70 Pesos!)*
Components 7 & 8 Step 4 & 5: Find the Portion Cost
Errors and Observations: Dividing the Loot:
• Step 4: Determine your product yield (How many bottles did The Internal Lacquer Buff:
you successfully make?). To stop the metal from rusting into the food, manufacturers
• Step 5: Divide the TOTAL cost (Ingredients + Operating apply Internal Lacquers to the inside of the can.
Expenses) by the number of yields to get the cost per product! Example: Sulfur-resistant internal lacquers (made of zinc
Formula: Portion Cost = Total Production Cost / Yield oxide oleoresins) are explicitly used for meat products to
Step 6: Add the Mark-up! prevent ugly black discoloration known as 'sulfur staining'!
Taking your Profit! Material 3: Metal Containers (Part 3)
If your Portion Cost is 50 pesos, you cannot sell it for 50 Shallow vs. Deep Drawn:
pesos. You wouldn't make any profit! • Shallow Drawn Cans: These are short and flat. They are
You must decide how much you will add to the unit cost. The used for processed meat and fish products (like Sardines or
industry standard percentage ranges from 15% to 40% of the Corned Beef).
food cost. • Deep Drawn Cans: These are tall and cylindrical. They are
Formula: Selling Price = Portion Cost + Mark-up used for powdered and condensed milk!
Material 4: Plastic Containers
Topic 1: The 3 Forms of Food Packaging The Lightweight Alternative:
What is Food Packaging? Plastics are extremely light, resistant to corrosion, and won't
The Ultimate Container! shatter like glass. They come in jugs, tumblers, and based-like
Food Packaging is the process of enclosing processed foods containers (used for vinegar or catsup).
into containers to aid in distribution, identification, storage, The Weakness: Plastics have very LOW resistance to heat,
promotion, and usage. they deteriorate at freezing temperatures, and they are less
It is a mix of art, science, and technology! It protects the food efficient as a barrier to block out rogue gases and odors
from spilling and spoiling, while also serving as a vital compared to glass!
marketing tool to catch the buyer's eye. Material 5: Paper and Paperboard
Form 1: Primary Package The Print Canvas:
The Inner Armor: • Paper is primarily made into bags, wrappers, and labels. It is
The Primary Package is the specific container that comes in also an important part of laminates.
direct, physical contact with the food itself! • Paperboard is thicker and is made into sturdy cartons,
Example: The actual tin can holding the mango juice, or the multipack carriers, tags, and composite drums!
glass jar directly holding the jelly. This is the container the Material 6: Corrugated Carton
customer eventually opens to eat the product. The Shipping Heavyweight:
Form 2: Secondary Package • Single-Faced: Consists of two flat linerboard layers
The Display Box: sandwiching one wavy 'corrugated' layer in the middle for
The Secondary Package is the material that protects the shock absorption.
primary package. • Double/Triple-Wall: Contains multiple corrugated layers to
Example: A shiny, printed carton box that holds 6 individual support massive, heavy loads.
pouches of coffee. The secondary package is what usually • Clay-Coated Linerboards: Feature a beautifully printed,
appears on the supermarket shelf for retail sale! smooth white exterior ideal for shipping premium fruits!
Form 3: Tertiary Package Material 7: Flexibles
The Heavy Transport Shield: The Malleable Pouch:
The Tertiary Package (or Shipping Package) is the massive, Flexibles are pouches, bags, reels, sheets, or strips.
heavy-duty package used purely for storage, identification, and They are made out of a single layer or combined layers of
long-distance transport. paper, film, foil, or cellophane (like the shiny wrapper around
Example: A massive corrugated cardboard box or a wooden your favorite chicharon or smoked fish)!
pallet crate holding 50 secondary packages inside a delivery Topic 3: Container Shapes & Core Components
truck! The 4 Glass and Plastic Shapes
Topic 2: The 7 Types of Packaging Materials Choosing the Silhouette:
Material 1: Indigenous Materials 1. Bottles: Have narrow necks. Used for liquids like vinegar,
The Natural Wrapper: catsup, or juices.
These are highly usable, eco-friendly materials sourced 2. Jars: Have wide mouths and very short, wide necks. Used
directly from nature. for thick paste-like or syrupy foods (sweet preserves, whole
Examples: Mats made from banana leaves or corn husks, pickles).
baskets woven from vegetable fibers, heavy wooden crates, 3. Tumblers: Have absolutely NO necks (like an ordinary
and traditional earthenware (clay pots). drinking glass). Commonly used for firm jellies and peanut
Material 2: Glass Containers butter.
The Premium Shield: 4. Jugs: Have short, narrow necks and 'ear lugs' (handles).
Glass is fragile, heavy, and hard to dispose of, BUT it is They come in massive half-gallon or gallon sizes for bulk
incredibly powerful: liquids.
• It can easily withstand extreme sterilization temperatures. The 4 Mandatory Requirements
• It NEVER chemically reacts with the food. The QA Checklist:
• It is an absolute barrier resistant to moisture, gasses, odors, Before selecting a package, you must ensure it hits these 4
and microorganisms. marks:
• It provides Product Visibility so the customer can see the 1. It must release NO toxic chemicals into the food.
beautiful jam inside! 2. It must be chemically compatible with the processed food.
Material 3: Metal Containers (Part 1) 3. It must provide absolute protection against dirt,
The Unbreakable Vault: microorganisms, moisture, and fat.
Metal cans are easier to handle during transport than glass 4. It must protect from gas—keeping bad odors OUT and
because they are lighter and unbreakable. delicious aromas IN!
Kinds of Metal Cans: Standard tin-plate, coated tin, lightweight Other Packaging Components (Part 1)
double-reduced tin-plates, and aluminum-coated cans. The Extras:
Material 3: Metal Containers (Part 2)
• 1. Cap Seal: A tamper-evident wrap made from shrinkable • If solid or semi-solid (like jam): Indicate the weight in grams.
plastics (like PVC) placed over the lid. If it is broken, the • If distinct solid pieces (like mango halves): Indicate by
customer knows the item was tampered with! numerical count (e.g., '4 Mango Halves').
• 2. Label: The most visible part! It says everything about the Requirement 5: Additives & Preservatives
product—brand, weight, producer, expiry date, and usage. Declaring the Chemicals:
Other Packaging Components (Part 2) • Other relevant information: You must declare any artificial
The Extras: materials or chemicals added.
• 3. Tags: Usually made of paperboard, serving as hanging • Examples: 'Artificially flavored', 'Artificial color added', or
labels when products are displayed on hooks. 'Preservative added: Sodium Benzoate'.
• 4. Cushion: An impact-absorbing material used to protect • If making wine, you MUST state the alcohol content (e.g.,
fragile items from environmental shocks and vibrations during 15% or 30% proof).
shipping (e.g., sawdust, wooden shavings, plastic bubble Requirements 6 & 7
wrap!). The Timers and Stat Sheets:
• 6. Expiry Date: Open-date marking gives information on how
Topic 1: The Basics of the Brand Skin long the food is safe for human consumption.
What is a Label? • 7. Nutrition Facts: The ultimate stat sheet! Required to
The Identity Tag! determine the health values of the product, especially if it
Labeling is defined as identifying or describing a product by claims to be rich in protein or calcium.
placing printed or graphic materials directly on the container or Requirements 8 & 9
wrapper. The Art and The Guild:
A label is the slip of printed material attached to the package. • 8. Vignette: An illustration, graphic, or picture designed to
Its main job is to tell the consumer exactly what the product is! attract the attention of buyers. *(Note: While highly
Why do we need it? recommended to sell products, this specific artistic element is
Marketing and Trust: technically optional).*
Labels identify the manufacturer of each product and give vital • 9. Brand Name: The cool, catchy name of your specific guild
information on the product's quality in terms of taste and or manufacturer (e.g., 'Tropics Best' or 'Master Tycoon
nutritive value. Foods').
Therefore, labeling is a very important consideration because Topic 3: The Optional Label Buffs
it directly contributes to the marketability of the goods. A good Upgrading your Skin
label means more sales! Going above and beyond!
The Rule of Law Manufacturers may give additional, optional information to
The Government Audit: make their label even better and more helpful to the customer!
You cannot just draw a smiley face on a jar and sell it in a The 5 Optional Additions
supermarket. Extra Details:
Starting March 1, 1989, compliance with the national Labeling 1. A picture of the food in its actual size, color, and shape.
Law was strictly enforced. Every container of food sold to the 2. Information regarding the size of the container (e.g.,
public MUST have specific, mandatory information printed on 'Contains 5 cupfuls or servings').
it. If you miss even one, your product can be banned! 3. The specific style of packing.
Topic 2: The 9 Mandatory Label Requirements 4. Recipes using the products (e.g., putting a spaghetti recipe
Requirement 1: Product Name on a bottle of tomato sauce).
The True Identity: 5. Specific directions for use or serving suggestions.
• Name of food/product: The name shall indicate the TRUE
nature of the food. Topic 1: Condition Checks & Leak Inspection
• It must be specific, not generic (e.g., 'Spicy Pork Tocino', not Why do a Final Check?
just 'Meat'). Validating the Output:
• It MUST be prominently printed on the principal display panel Conditions of packaged finished/processed food products
(the very front of the package)! MUST be checked before shipping to ensure absolute
Requirement 2: Manufacturer Info conformity with your specified outputs.
Who crafted this? If a breached package makes it to the supermarket, the food
• Name and Address: You must list the Manufacturer, will rot on the shelf, destroying your brand's reputation and
Repacker, or Distributor. causing massive Net Losses!
• It must include the street, city/town, and province. A. Leak Inspection (The Flip Test)
• The Qualifier: If the food is not made by the company on the Testing the Hermetic Seal:
label, it must say 'Manufactured for...' or 'Packed for...'. 1. Test for proper seals: As soon as your processed jars are
• The Country of Origin must be indicated if it is an export or completely cooled, you must test them to see if they are
import! 'hermetically sealed' (100% airtight).
Requirement 3: List of Ingredients How to do it: Turn each jar partly over in your bare hands to
The Recipe Hierarchy: see if any liquid or syrup leaks out of the rim!
• List of Ingredients: A complete list of every single ingredient A. Leak Inspection (The Acoustic Ping)
used must be printed on the panel. Testing Metal Lids:
• The Golden Rule: They must be listed in DESCENDING 2. To test jars with metal lids, tap the exact center of the lid
order of proportion! lightly with a metal spoon.
*(This means the heaviest/largest ingredient goes first, and the • The Pass: A clean, high-pitched ringing sound means a
smallest ingredient goes last!)* perfect, airtight vacuum seal!
Requirement 4: Net Content • The Warning: A dull 'thud' note does not *always* mean a
How much loot is inside? poor seal, but it requires close monitoring. If there is no
• Net content or net weight: You must tell the buyer exactly leakage, store the jars and watch carefully for signs of
how much food they are getting. spoilage.
• If liquid (like juice or vinegar): Indicate the volume in cc Material-Specific Checks
(cubic centimeters) or ml (milliliters). Scanning for Weaknesses:
Different armors have different weaknesses you must visually
inspect:
• Canned Foods: Must be 100% free from leaks, metal
contamination (rust), and the entrance of air (no
swelling/bulging).
• Glass Containers: Must be completely free from hairline
breakage and microscopic cracks.
• Flexible Packages (Plastics/Pouches): Must be absolutely
free from 'pinholes' (tiny punctures that let rot-causing oxygen
in!).
Topic 2: Print Labels & Sensory Product Testing
B. Checking of Print Labels
The Truth Verification:
Once the package is sealed, verify the Label.
Labels of processed products MUST describe truthfully the
actual contents of the product. If your label says '100% Pure
Mango' but you used banana fillers, you are committing fraud
and will fail the QA check!
C. Product Testing
The Sensory Audit:
You must randomly sample a batch to ensure the food is
actually edible.
• Visuals & Taste: The food should look good and taste good
according to the recipe profile.
• Safety: It should not be spoiled, damaged, or fermented
incorrectly. It must be safe and 100% free from harmful stray
ingredients (like bits of plastic or hair)!
Topic 3: Storing Packaged Processed Foods
Managing the Loot Stash
Environmental Buffs:
Just because a product is packaged doesn't mean you can
leave it anywhere. Different preservation methods require
completely different storage environments to survive!
Rule 1: Dried & Dehydrated Foods
The Dry Vault:
Foods that have had their moisture removed are highly
vulnerable to absorbing water from the air.
• The Threats: Must be heavily guarded against moisture,
intense light, open air, foreign odors, and pests (rats/insects).
• The Location: They MUST be stored in a cool, dry place.
Rule 2: Sugar, Pickles & Fermented
The Dark Vault:
Products like Jams, Jellies, Vinegar, Wine, and Pickled
Mangoes rely on heavy sugar or heavy acid.
• The Threat: Direct sunlight can break down the chemicals
and bleach the beautiful colors of your preserves.
• The Location: They must be stored in a cool, dark, and dry
place.
Rule 3: Cured Meats
The Cryo Vault:
Meat products processed with Nitrates and curing salts—such
as ham, bacon, tocino, longganisa, sausage, and tapa—are
still highly perishable if left in the heat.
• The Location: These products MUST be refrigerated or
frozen immediately to halt bacterial rot!

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