Assignment on

"Assignment on Concept & details on Make to Stock (MTS), Make to

Order (MTO), Make to Assemble (MTA), Postponement strategy in
supply chain & ensuring product quality through HACCP”

Course code: 619.3

Course Title: Managerial Accounting

Submitted To

Syed. M Tugril Esteyak

Adjunct Faculty,
School of Business,
East Delta University.

Submitted By

ID Name Remarks
201003106 Md. Sumon
201007206 Mohammad Irshadul Haque Nahiyan
201004906 Sohel Mahfuz
201000706 Md. Anwar Hossain Khandakar
201006506 Nayan Kumar Das

Date of Submission: 22nd April 2020

"Assignment on Concept & details on Make to Stock (MTS), Make to

i i i i i i i i i i i

Order (MTO), Make to Assemble (MTA), Postponement strategy in

i i i i i i i i i

supply chain & ensuring product quality through HACCP”

i i i i i i i i

1 i| iP a g e
 (NAME : SOHEL MAHFUZ, ID: 201004906)
i i i i i

 MTS (Make to Stock):

i i i

Make ito istock iis ithe iproduct istrategy iwhich iis ibased ion idemand iforecast. iFollowing ithis istrategy,
i products iare imanufactured ifor ianticipated ifuture idemand ibased ion idemand ifluctuation icycle iof
i the ipast.

 A ipush ibased iproduction istrategy ithat iis iused iby ibusinesses ito imatch ithe iinventory iwith
i anticipated iconsumer idemand iis icalled iMTS.
 Production, iplanning iand ischeduling iare ithe ibasic itriggers iof iMTS iproduction imethod.
i Here isales iorder iare imost iimportant isince iMTS iuse ito ibulk isize istorage iand iwarehousing. i

 MTS iproduction irefers ito idemand iforecast ibased imanufacturing ioperation. iAs ia iresult
i accurate idemand iforecast ican iprevent ithe iloss iof iopportunity idue ito istock iout. i
 MTS iproduction imethod ican ibe iefficient ionly iwhen ithe idemand iforecast iaccurately.

 Characteristics of Make to Stock (MTS):

i i i i i

 MTS iis ia itradition iproduction imethod.

 MTS iis ipush itypes imanufacturing imethod iwhich ibased ion ianticipated ifuture idemand.
 MTS istrategy iis idesign ito imeet iuncertain idemand.

2 i| iP a g e
  MTS istrategy idesign ifor ibulk iproduction.
 MTS istrategy idesign ifor ithe igoods ithose iare ito ibe istored.
 MTS imethod irequired ithe iaccurate iforecast iof idemand.
 MTS iaddress ito iprevent iopportunity iloss idue ito istock iout.

 Application of MTS strategy :

i i i i

 MTS istrategy iof iproduction iis ivery iuseful ifor icompany ithat iare iindented ito ibuild
i production. i Unilever i , i Patanjali i Ayurved i group, i Pran i Ltd, i i Beximco
i pharmaceuticals, iAmul, iGSK, i iProcter i& iGamble iare ifollowing ithe iMTS iproduction
i strategy ifor itheir ibulk iproduction. iThey iproduce itheir iproducts ibased ion itheir imarket
i demand iinformation. iThey irevise itheir iproduction isize iin ievery iquarter ifor ivarious
i products. iSuch ias iUnilever iproduce iVaseline iin i3rd iquarter ifor ithe ihuge idemand ithat iwill
i generate iin i4th . Their imotto iis ito iprevent ithe iloss iof iopportunity idue ito istock iout. iIf ionce
i
i

i they ibecome istock iout, ithey iwill ilose ithe imarket ishare ivery ibadly. i

 Make to Order (MTO):

i i i i

Make ito istock i(MTO) iis ithe iproduction istrategy iwhich iis ibased ion icustomers iorder. iIt iis ithe ipull
i type iproduction imethod. i

 In iMTO iproduction isystem isales iorder iis ithe itrigger ifor imanufacturing.
 MTO imodes irequire iclose icontact ibetween ivendors iand iproduction idepartment.
 MTO istrategy iuse ifor icustomer ispecification iand icustom idesign.
 MTO istrategy iis iuseful iwhen ifinished igoods imay ihave iconfiguration ivariance ior ithey iwill
i use ifor icertain icustomer.

3 i| iP a g e
  MTS istrategy iuse isafety istock, ioptimal iproduction, iand iordering ipoints ibased ion ilead
i times iof imaterial, idelivery, iprocurement iand iproduction.
 MTS itype iproducts iare idaily iessential iprocessed ifoods, itextiles iand isundries ietc.
 Characteristic of Make to Order (MTO):
i i i i i

 MTO iproduction ibegins iwith icustomer iorder itriggers.

 MTO istrategy iis ipull itype imanufacturing isystem.
 MTO istrategy iuse ifor ione ior ifew iquantity iof iorder iand icarry ia ihigh iunit icost.
 MTO istrategy iuses ifor iraw imaterial ior icomponent ithat irequire isub iprocessing ior irendering
i following ito iconvert iinto ifinal iproduct.
 Purchasing, ilogistics iand ilead itime iare ikey ito iMTO istrategy.
 MTO istrategy irequires iless icost iof iwarehouse, istaff iand iraw imaterial icos.
 JIT iand iSRFT iis imust ineeded iin iMTO istrategy.
 MTO iproduction istrategy iis istandard ifor iperishables, iproduction iwith igreater iunit icost iand
i custom iproduction.
 For iefficient iMTO istrategy isome itechniques ican iuse ithat iare iVMI i(vendor imanaged
i inventory), iECR i(efficient iconsumer iresponse), iCRP i(continuous ireplenishment
i program) iand iQR i(quick iresponse) imay iused.

 Application of Make to Order (MTO):

i i i i i

4 i| iP a g e
  Make ito iorder istrategy iis iused ifor icustom idesign iand ifor ifulfillment iof icustomer
i specification. iCompanies ilike iDELL, iHP, iWESTERN iMarine iShipyard iLtd., iAirbus
i Corporate ijets, iBoeing iBusiness iJets iare iusing imake ito iorder istrategy iso ithat ithey ican
i make ithe ifinal iproducts iaccording ito itheir icustomer ispecification.
 Postponement Strategy i

 Postponement iis ia iproduction istrategy iwhere icompany iproduces igeneric iproducts iwhich
i can ibe imodified iin ithe ilater iphase ibefore imaking ithe ifinished igoods. i
 Postponement irefers ito ithe ibusiness istrategy iwhere ifinal iform ior ilocation iof iproduct
i delayed ias ilong ias ipossible.
 Postponement iis ithe imanufacturing iprocess iwhere isufficient iraw imaterial, istaff iand iother
i essential iitem iproduced ito icreate ithe ithe ifinished igoods iaccording ito ithe ischedule.
 There iare imainly ifive itypes iof ipostponement istrategy ifor iinstance iI) iLabeling i
ii) iPackaging iiii) iAssembly iiv) iManufacturing iv) iTime ipostponement.
 Postponement iis ithe ibusiness istrategy iwhich iaims ito ireduce ithe irisk iand ienhance ithe
i profitability iby idelaying ithe icash ioutflow iinto ithe iproduct iand iservice itill ithe ibest ipossible
i time.
 Application of Postponement strategy:
i i i

 Postponement istrategy iaims ito iincrease icustomer isatisfaction. i

 Companies ilike iTarget, iInditex i(ZARA), iPrimark, iPrimark, iRaintec iumbrella,
i Berger icolor iBank iare ifollowing ipostponement istrategy ito ireduce imanufacturing, iraw
i material i, iprocurement, iinfrastructure iand itransportation icost.
 Hazard Analysis & Critical Control Point (HACCP):
i i i i i i

HACCP iis ia isystem ifor ireducing iand icontrolling iof ithe ifood isafety ihazard. iA iHACCP isystem
i designed ito iidentify isignificant ihazards iand icontrolled iat ispecific ipoints iin ithe iprocess. i

 Hazard ianalysis iis ithe iprocess iof iidentify ipotential ihazard iremain iin ifood isafety. iHazard
i most icommonly iare ithree itypes. iThey iare iphysical ihazard, ibiological ihazard, ichemical
i hazard ietc.

5 i| iP a g e
  Critical icontrol ipoint irefers ito ithe iamount ior ihazard ilevel ithat ishould ibe icontrolled,
i prevented ior ieliminated.
 This iconcept icame ito iexistent ibecause ipeople ihave irealized ithat iend iproduct itesting ifor
i food isafety iis inot isufficient ienough ito icounter iall ithe ihazards.
 HACCP iprocess iis iwidely iused iin iFood imanufacturing, ipharmaceutical iindustry ito iensure
i the iproduct iquality.

 Example iof iHACCP iflow idiagram:

Hereby ia iHACCP iflow idiagram iof iorange ijuice iproducing:

 “HACCP in depth with industry analysis”

i i i i i

6 i| iP a g e
HACCP ipractice iin iDairy iindustry ilike iPRAN i& iMILK iVITA iIn idairy iindustry iHACCP iis ithe
i best iapproach ito iidentify iand icontrol ithe iharmful ifood ihazard. iHereby ishowing ithe iuse iof
i HACCP iin idairy iindustry:

“Pre-requisite iprograms ifor iHACCP”

 Personal iHygiene. i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i
 Environmental ihygiene
 Hygienic iproduction iof imilk
 Animal ihealth
 General ihygienic ipractice
 Pest icontrol
 Veterinary idrugs
 Hygienic imilking
 Handling, istorage iand itransport iof imilk
 Milking iequipment
 Storage iequipment
 Management iof iproducts iwithin ithe iplant.
 Incoming imilk ichecking
 Temperature iand itime icontrols
 Distribution iof ifinished iproducts
 Microbiological icriteria
 Microbiological icross icontamination
 Incoming imaterial i(other ithan imilk) irequirements
 Maintenance iand icleaning
 Cleaning iprograms

“Implementing seven principle of HACCP”

7 i| iP a g e
1) Conduct hazard analysis: Conduct a hazard analysis means identifying, detecting & listing
all possible hazard that can harm the safety .The HACCP team try to prevent, eliminate or
control the hazard at acceptable level according to HACCP plan.

 Physical hazard : Hazardous extraneous material (glass , metal ,wood)

 Chemical Hazard: Veterinary drug residues, mycotoxins, pesticide residues and dioxins.
 Biological Hazard: Listeria monocytogenes, campylobacter jejuni,
Bacillus cerus, salmonella spp, staphylococcus aureus , E.coli and shigella spp.
 Allergen : Milk are allergen ingredient.
 Radiation: very rare to occur from country have radiation incident history.

2) Identify the Critical control point: A critical control point (CCP) is a point, step or
procedure at which control can be applied and a food safety hazard can be prevented, eliminated
or reduced to acceptable levels. The HACCP team do identify the critical control points in the
process through decision tree. Based on processing method there are various cap needed to
identify. Such as CCP1 is pasteurization and. hazard of the CCP1 is pathogenic microorganism
like Salmonella, E. coli.

8 i| iP a g e
CCP2 is X-Ray for controlling physical hazard like glass wood, sand, plastic or any metals.

3) Establish Critical Limits Error: A critical limit (CL) refers to the minimum or maximum
amount of biological, chemical or physical parameter that should be controlled a CCP for
prevent, reduce or eliminate the occurrence of food safety hazard.

The critical limit refers to time, temperature, water activity (Aw), pH, weight, or some other
measure which is suggested by scientist.

 Our critical limit in pasteurization is Ultra high temperature (UHT) 137.8 degree Celsius
per 2 sec.
 Our critical limit in X-ray is 0 percent. This is very sensitive critical control area.

4) Monitor CCP: For monitoring critical control point, The HACCP team describe the
measurement of the critical limit. Monitoring procedures shows the how the measurement
procedure. Such as who, when, how the measurement procedure will be taken.

CCP1: Detect or monitor pasteurization time and temperature degree.

i) Monitor pasteurization each 1hour or 2hour.

ii) Monitor either calibrated thermometer or calibrated control panel screen- Temp, Time chart.
iii) Calibrated thermometer and record the reading in thermometer report and calibrated timer.
iv) The pasteurization will monitor in every 1 hour by production labor .

9 i| iP a g e
v) Also quality inspector will monitor the pasteurization in every 2 hour.

 CCP2: Detect or monitor CCP2 X-ray.

i) Detecting any physical hazard such as sand, plastics, wood , glass or any metal.

ii) Monitor X-ray process in every 1 & 3 hour.

iii) The X-ray process will monitor in every 1 hour by production labor .

iv) Also quality inspector will monitor the X-ray process in every 3hour.

v) The CCP2 either by examination cards or sticks or verification cards of calibration.

5) Establish Corrective Action:

Corrective actions need to be taken when deviation occurs in critical limit. By establishing
corrective action, it ensures that the deviation will not occur in food chain further in later.

• Microbiocidal control measures helps to reduce the microbial level. It processes through the
removal, or instance by killing, inactivation or removal. The microbicidal control measure taken
into account in time of microfiltration, theorization, and pasteurization or after completing this
process.
• Micro-organism Growing due to chemical or physical hazard have been prevent, limit or retard
by micro biostatic control measure. This control measure helps to stabilize spoilage organism &
activity of pathogens.. It may apply after milk production , after processing or during processing.
• During processing: It ensures that level of pathogens are to be kept at acceptable level during
milk processing.
• After processing: It ensures that level of pathogens are to be kept at acceptable level during
packaging, distribution and storage.

 Extra attention need to be paid during storage and distribution.:

• In time of defrosting of refrigeration amount.
• Temperature abuse, and
• overloading the cold storage facility.

10 i| iP a g e
Quality assurance programs like Good manufacturing Practices (GMP) or ISO 9000 can ensure
the hazard control. Wearing hairnet & hand gloves a can prevent he physical hazard. For quality
assurance vendors can certify their food to globally recognized food standards such as BRC,
SQF, and IFS.
6) Verification: Verification step is all about determine the validity of HAACP plan and
checking of the system that is work according to HACCP plan. The HACCP team will conduct
auditing of HACCP process, Critical control limit, Product testing equipment calibration that is
the part of verification process.

Verification of process 1:
The product that need to be sterilization must be kept at 55 °C for 7 days after storing the product
till the end of shelf life.
Verification of process 2:
The products need to be pasteurization must maintain a negative alkaline phosphates level. For
the better result alkaline phosphatase11 is best use. Verification also check the heat treatment
according to HACCP plan for valid result.
7) Recordkeeping: Recordkeeping is the steps of HACCP where all information are recorded
regarding HACCP team, HACCP flow diagram, product description, Hazard analysis, CCP limit,
monitoring result, correction steps that should be taken, and verification process. Everything may
be signed or stamped by quality inspector. So that it can be used in further need of food safety.

(Name: Md. Sumon ,ID:201003106)

i i i

How Make-to-Order Strategies Work

i i i

11 i| iP a g e
The imake-to-order i(MTO) istrategy imeans ithat ia ifirm ionly imanufactures ithe iend iproduct ionce ithe
icustomer iplaces ithe iorder, icreating iadditional iwait itime ifor ithe iconsumer ito ireceive ithe iproduct,

ibut iallowing ifor imore iflexible icustomization icompared ito ipurchasing idirectly ifrom iretailers'

ishelves.

In iorder ito imanage iinventory ilevels iand iprovide ian iincreased ilevel iof icustomization, isome
icompanies iadopted ithe imake ito iorder iproduction isystem. iThe iMTO istrategy irelieves ithe

iproblems iof iexcess iinventory ithat iis icommon iwith ithe itraditional imake ito istock istrategy. iDell

iComputers iis ian iexample iof ia ibusiness ithat iuses ithe iMTO iproduction istrategy, iwherein icustomers

ican iorder ia ifully icustomized icomputer ionline iand ireceive iit iin ia icouple iof iweeks.

The imain iadvantage iof ithe iMTO isystem iis ithe iability ito ifulfill ian iorder iwith ithe iexact iproduct
ispecification irequired iby ithe icustomer. iSales idiscounts iand ifinished igoods iinventory iare ialso

ireduced, iand istock iobsolescence iis imanaged. iHowever, ifor ian iMTO isystem ito isucceed, iit ishould

ibe icoupled iwith iproactive idemand imanagement. iIt ishould ialso ibe iconsidered ithat ithe iMTO

isystem iis inot iappropriate ifor iall itypes iof iproducts[ CITATION Kay06 \l 1033 ] .

Related ito iMTO iis iassemble ito iorder i(ATO), iwhich iis ia ibusiness iproduction istrategy iwhere
iproducts iordered iby icustomers iare iproduced iquickly iand iare icustomizable ito ia icertain iextent. iThe

iassemble-to-order i(ATO) istrategy irequires ithat ithe ibasic iparts iof ithe iproduct iare ialready

imanufactured ibut inot iyet iassembled. iOnce ian iorder iis ireceived, ithe iparts iare iassembled iquickly

iand isent ito ithe icustomer.

Make to Order versus Make to Stock

i i i i i i

Traditional iproduction imethodologies iproduce iproducts iand istock ithem ias iinventory iuntil ia
icustomer ibuys ithem. iThis iis iknown ias imake ito istock ior iMTS. iHowever, ithis isystem imay ibe iprone

ito iwastage iand iobsolescence, ias iinventory isits ion ishelves iawaiting ipurchase. iThis iproblem iis

iparticularly iacute iin ian iindustry ilike itechnology, iwhere ithe ipace iof iadvancement iis iquick iand ithe

iproblem iof iobsolete iinventory icould iquickly iarise.

In itheory, ithe iMTS imethod iis ia igreat iway ifor ia icompany ito iprepare ifor iincreases iand idecreases iin
idemand. iHowever, iinventory inumbers iand, itherefore, iproduction, iare iderived iby icreating ifuture

idemand iforecasts ibased ion ipast idata.

There iis ia ihigh ilikelihood ithat ithe iforecasts iwill ibe ioff, ieven iif iby ijust islightly, imeaning ithat ia
icompany imight ibe istuck iwith itoo imuch iinventory iand itoo ilittle iliquidity. iThis iis ithe imain

idrawback ito ithe iMTS imethod iof iproduction[ CITATION You04 \l 1033 ]. iInaccurate iforecasts

iwill ilead ito ilosses, istemming ifrom iexcess iinventory ior istock iouts, iand iin ifast-paced isectors isuch

ias ielectronics ior icomputer itech, iexcess iinventory ican iquickly ibecome iobsolete.

Advantages of make-to-order
i i

Obviously, ithe itype iof ibusiness ithat iyou irun iwill ibenefit ifrom ia icertain itype iof imanufacturing
imethod. iHowever, ihere iare ithree ireasons ias ito iwhy ia imake ito iorder ioperation imight ibe ibeneficial

ito iyour ibusiness: i

12 i| iP a g e
 1. Minimize Waste i

Minimizing iwaste idoesn’t ijust iapply ito iyour ibusiness iattempting ito ireduce iexpenses ion imaterial
ithat iis ibeing idisposed ior ithat iis iunnecessary ito iproduction. iMinimizing iwaste imeans ithat

iresources iare ionly ispent ion iyour iproduct iif iit ibenefits iyour icustomers. iIf ia iprocess, iaction ior

iaddition ito ia iproduct idoes inot iadd ivalue ito ithe icustomer, iit iis iconsidered iwaste. i i i

2. Reduce the risk of inefficiency

i i i i

All imanufacturing itakes iplace ion ireceiving ithe icustomer’s iorder imeaning ithe icompany’s
ioperations iare idirected ito ijust ifocusing ion ithe imanufacturing i iof iproducts ias iefficiently ias

ipossible. iHowever, iyou’ll ineed ito idecide iwhen ito istart iproduction iby ichoosing ieither iforward

ischeduling ior ibackward ischeduling.

3. Customizable Products i

Customers iwill icome ito iyou ifor iwhen ithey iwant ia imore ipersonalized ishopping iexperience,
imaking iyour iproducts ivery iunique icompared ito iother icompanies iwho iMTS. i

Disadvantages iof iMake-to-order

1. Irregular isales idemand

Obviously, ibusinesses iusually iexperience ipeaks ior ispikes iin isales, ifor iexample, iseasonal iperiods
iincrease iin isales isince iit’s ithe iChristmas iperiod. iThis imeans ithat iyour ibusiness imight inotice ilulls

iin isales, ior ieven ia imassive iboom iin idemand, iboth iof iwhich ican iput imajor istrain ion iyour ibusiness. i

2. Material istock ifalling ibehind

The inature iof ia imake ito iorder ibusiness imeans ithat iyour ibusiness imust ialways ibe iprimed iand iready
ifor ithe inext icustomer iorder ito ibegin imanufacturing ias isoon ias ipossible. iAlthough, iincorrect istock

ilevel ireadings iof imaterials ior ia iton iof iorders ican iresult iin iyour ibusiness irunning iout iof imaterial iat

ia icrucial imoment, iputting iyou ibehind ion iyour iorders.

3. Customer iwait itime

It’s inot itheir ifault, iand iif iwe’re ihonest iwith iourselves, iwe’re iall ia ilittle iimpatient. i

Customers iwant itheir iproducts iand ithey iwant ithem inow!

Make ito iorder, ionce iagain, igiving ithe inature iof ithe imethod, imeans icustomers ihave ito iwait ia iwhile
ibefore ireceiving itheir iproducts. iAnd iif ithey imust iwait ilonger ithan ithey ioriginally irealized, ithis iis

igoing ito imanifest iin itheir idissatisfaction itoward iyou. i

13 i| iP a g e
That iwas ia ibrief ioverview iof ithe imake ito iorder imethod iand ihow iit icould ipotentially ibenefit iyour
ibusiness. iBut, inow ilet's ilook iat iits icounterpart, iwhich iis iagain ianother iavenue iof ia imanufacturing

itechnique ithat iyou icould iexplore.

A Make to order Example

i i i i

How iabout ithis ifor ia imake ito iorder iexample.

You iwant ito ibe ithe icoolest ikid ion ithe iblock, iso iyou idecide ito ibecome ia ivideo igamer. iHowever,
iyou idon’t iwant isome igeneric iPC ithat iis ibeing ioffered iby isome iof ithe ibigger icompanies.

You’ve iresearched iall ithe icomponents i(processors, iRAM, ihard idrive ietc.) iand iknow iwhat iyou
iwould ilike iin iyour iperfect irig. iBut iyou ireally idon’t itrust iyourself ibuilding ithe icomputer iand

ihandling ithe ihardware. iIf iyou igo ito ia icompany ithat ibuilds icustomized iPC’s iyou iwill ibe ioffered

itons iof ioptions iand ivariations ito ibuild ia idesktop ior ilaptop ithat imeets iyour ispecific ineeds. iOnce

iyou’ve ipopulated ia iform ior italked ithrough iyour idream iPC’s ispecifications iwith ian iemployee,

iyou’ll iimmediately iplace iand ipay ifor iyour iorder.

That’s ithe icustomers’ iside iof ithe ijourney ifinished i– iwell, ialmost ifinished. iNow ithey iwait ifor ithe
idelivery iof itheir iproduct.

Over iat ithe icompany, ithey ireceive ithe icustomer's iorder iand inow ithe imanufacturing iof ithat iPC iwill
ibegin ion ireceipt iof ia imanufacturing iorder. iA iwell-organized ibusiness iwill ihave ithe imaterials iand

icomponents ion isite i(or iat ianother ilocation idepending ion ihow ithey istore iinventory iand ioperate)

iready, iso ithat ithe imanufacturing ican ibegin, iand inot ibe idelayed iby ilow ilevels iof istock.

As imentioned ibefore, imake ito iorder iproducts iexist iunder ia ipull isystem:

The ipull isystem i= iProducts ibeing ipulled ito imanufacturing ifrom ia icustomer's ipurchase.

Limitations of Make to Order

i i i i

The itwo imain idrawbacks iof imake-to-order imanagement iare itimeliness iand icost iof icustomization.
iIf iproducts iare ialready ion ithe iself ias iwith iMTS, ithen ia icustomer ineed inot iwait iuntil ithe iproduct iis

imade, iassembled iand idelivered ito ispec. iCost iis ialso ia ifactor; ipre-made iand iavailable iproducts iare

iall ialike iand iso imanufacturing icosts iare ilowered idue ito ieconomies iof iscale. iMade ito iorder iwill

itend ito ibe imore iexpensive ifor ithe iconsumer isince iit iinvolves icustomizable iparts iand ifinishes.

Advantages of make to stock

i i i i

Knowing ithe ipros iand icons iof ithis iworkflow iwill ihelp iyou ifigure iout iyour imake ito istock iplanning
istrategy.

14 i| iP a g e
As ialready istated ibefore, ithis imight ibe ia iviable imethod ifor iyou idepending ion iyour itype iof
ibusiness. iBut iwe’ll istill ilook iat ithe iadvantages iand idisadvantages ito iget ian iunderstanding iof iif

iMTS iis ia istrategy ithat iyou ishould ibe iincorporating.

Three iadvantages iare:

1. Spread iresources iand iproduction

As iwe’ll ibe imanufacturing iyour iproducts iready ifor ithe icustomers idemand, iyou ican iproperly iand
icarefully iorganize iyour iresources iand ithe iproduction iwhich iwill ibe icarried iout ito imaximize iyour

iefficiency.

2. Make ito istock ischeduling

Using ithis imethod imeans ithat iyou’ll ibe iable ito idesign ia imaster iproduction ischedule ito imake isure
iour iworkflow iis ias ismooth ias ican ipossibly ibe.

It iallows iyou iand iyour iemployees ito iknow iwhere ithey ineed ito ibe iand iwhat iis ileft ito ido.

3. Minimize icustomer iwait itime i

Finally, iour iproducts iwill ibe iwaiting ifor iyour icustomers i– iobviously iif ieverything iis icompleted ion
itime.

As isoon ias iyour icustomers ihave iplaced itheir iorder, itheir iproduct ican ibe ishipped iout ito ithem,
ireducing ithe icustomers iwaiting itime iby ia ihuge iamount. iUsing ia imake ito istock imethod iseems ilike

ia idream icome itrue ifor isomeone iwho ivalues iorganization iand ihaving icomplete icontrol iof itheir

ibusiness's iworkflow. iThe ibest idefense iis ia istrong ioffence, iso ito ispeak.

However, ithis itactic ican ialso icome iwith isome idisadvantages ias, ithe imost iobvious ireason, ithis itype
iof imanufacturing iprocess irelies iheavily ion iassumption iof ithe iindustry.

Disadvantages of Make to Stock

i i i i

Let’s itake ia ilook iat ithree idisadvantages iwhich icould iaffect iyou iand iyour ibusiness:

1. Unpredictable inature iof iconsumer itrends

We ican iforecast iby ianalyzing ipast isales iand iseasonal ispikes, ibut ieven ithough iyou’ve imade
icompletely iaccurate iand icorrect iassumptions, iyour iproducts iunfortunately iaren’t iselling ias iwell

ias iyou ioriginally ipredicted. iOr ithe iother iextreme, ithere's ia isudden iboom ithat iyou iweren’t

iprepared ifor. iIt’s ijust ithe inature iof ithe ibeast.

2. Inventory ilevels
We ican itechnically ibe iin ia iperpetual istate iof ieither ihaving itoo imuch ior inot ienough istock.

3. The idifficulty imaking iaccurate isales iforecasts

15 i| iP a g e
The iindustry ican ibe icomplex iand iaffected iby ia iton iof ivariables, iso ithat ialready imakes iit idifficult
ito iforecast iyour isales. iHowever, ione ilittle imistake ior imiscalculation imeans iyou icould iend iup iwith

itoo ilittle ior ian iexcess iof istock, iwhich iis igoing ito icost iyour ibusiness. iThere iare ipros iand icons ito

ichoosing ito ifollow ieither iworkflow, ihowever iyou ishould iknow ithat iif iyou ido idecide ito iorganize

iproduction ifollowing ione iof ithese itactics, ithat idoesn’t ihave ito ibe iyour ifinal ichoice. iWe ican

iexperiment iand iswitch ibetween ithe itwo, ior iit imight ieven ibe ibeneficial ifor iyour ibusiness ito iswitch

icompletely iover ito ia idifferent iworkflow, iit iall idepends ion iyour ibusiness's ineeds. iBut, ieither iway,

iwe iare iprobably irealizing ithat ithere iis ia ilot iof iwork ineeding ito ibe idone, iregardless iof ithe ichoice.

iAnd iwhen iit icomes idown ito ibrass itacks, isuccessful iimplementation iis iwhat's ikey ihere[ CITATION

Che89 \l 1033 ].

Example of MTS i i

Manufacturing icompanies ioften iuse ithe iMTS imethod ito iprepare ifor iperiods iof ihigh iproduction.
iFor iexample, imany iretailers, isuch ias iTarget i(TGT), igenerate imost iof itheir isales iin ithe ifourth

iquarter iof ithe iyear. iFor ithe imanufacturing icompanies isupplying ithese iretailers, ia imajority iof itheir

iproduction ihas ito icome iin ithe isecond iand ithird iquarters iof ithe iyear, ito iprepare ifor ithe iincreases iin

idemand.

Using ithe iMTS iproduction imethod, ilet's isay ithat iThe iLEGO iGroup, imaker iof ithe ipopular iLEGO
ibricks iand iother itoys, ilooks iback iat iits iprevious iyears iand isurmises, ibased ion ipast idata ithat

idemand iwill iincrease iby i40% iin ithe ifourth iquarter iversus ithe ithird iquarter. iTo iprepare, ithe

imanufacturer iproduces i40% imore iof iits itoys iin iJuly, iAugust, iand iSeptember ito imeet ithe idemand

iforecasts ifor ithe ifourth iquarter. iAdditionally, iduring ithe ifourth iquarter, iLEGO ilooks iat ipast

inumbers ito isee ihow imuch idemand iwill idecline ifrom ithe iend iof ithe iyear ito ithe ifirst iquarter iof ithe

inew iyear, ireducing iproduction iaccordingly.

If iLEGO iis iadopting ian iMTO istrategy, iit iwill inot iincrease ithe iproduction iof, isay, iits iLEGO ibricks
iby i40% iuntil iand iunless iTarget isent iin ia ilarger iorder ifor ithem. iIf iit iwere itaking ian iATO iapproach,

iit imight ihave ithe iincreased ibricks imade iand iready, ibut iwouldn't iput itogether icomplete ipackaged

ikits iof ithem iuntil iit ireceived iTarget's iorder. iThis iway, ithe irisk iof ian iinaccurate idemand iforecast iis

imitigated, ias iboth iLEGO iand iTarget ishare iit.

Drawbacks of MTS i i

In itheory, ithe iMTS imethod iis ia iway ifor ia icompany ito iprepare ifor iincreases iand idecreases iin
idemand. iHowever, iinventory inumbers iand, iconsequently, iproduction, iare iobtained ithrough ithe

icreation iof ifuture idemand iforecasts ithat ihave ia ibasis iof ipast idata.

Should ithe iforecast ibe ieven islightly ioff, ithe icompany imay ifind ithey ihave itoo imuch iinventory iand
ilimited iliquidity? iThis ipossibility iof ierror iis ithe iprimary idisadvantage iof iusing ithe iMTS isystem

ifor iproduction. iWrong iinformation ican ilead ito iexcess iinventory, istock iouts, iand irevenue ilosses.

iMoreover, iin ifast-paced isectors isuch ias ielectronics ior icomputer itech, iexcess iinventory ican

iquickly ibecome iobsolete.

16 i| iP a g e
Also, ian iMTS iapproach irequires ia ibusiness ito iredesign ioperations iat ispecific itimes, iinstead iof
ikeeping ia isteady ilevel iof iproduction iyear-round. iThis iregular iadjustment iends iup ibeing icostly,

iand ithe iincreased icosts imust ieither ipass ion ito ithe iconsumer ior ibe iabsorbed iby ithe icompany.

The ieffectiveness iof ithe imake ito istock i(MTS) iapproach iis ientirely ireliant ion ithe iability iof ia ifirm
ito icorrectly ipredict ithe ifuture idemand icustomers iwill ihave ifor iits iproducts. iThe itypical

iunpredictability iof ithe ieconomy iand ibusiness icycles imake iMTS ichallenging ifor iany icompany,

ibut ithe istrategy ibecomes iparticularly icomplicated iwhen ia ibusiness ioperates iin ia isector ithat

iexperiences icyclical ior iseasonal isales icycles[ CITATION You04 \l 1033 ].

Alternatives to Make To Stock

i i i i

Common ialternative iproduction istrategies ithat iavoid ithe idownsides iof iMTS iinclude imake ito iorder
i(MTO) iand iassemble ito iorder i(ATO). iBoth itie iproduction ito idemand, ibut iin ithe icase iof iMTO, ithe

ioutput iof ian iitem ibegins iafter ithe icompany ireceives ia ivalid icustomer iorder. iATO iis isomething iof

ia icompromise ibetween iMTS iand iMTO: iBasic iparts iare iconstructed iin iadvance, ibut ia ifinished

iproduct iis inot icreated iuntil ia ivalid iorder icomes iin.

Postponement Strategy i

Postponement i strategy i is i a i concept i in i supply i chain i management i where i the i manufacturer

i produces i a i generic i product, i which i can i be i modified i at i the i later i stages i before i the i final

i transport i to i the i customer. i Take i for i example i an i umbrella i manufacturer i who i does i not

i know i what i the i demand i will i be i for i different i colored i umbrellas. i The i manufacturer i will

i manufacture i all i white i umbrellas i and i dye i them i later i when i umbrellas i are i in i season i and i it

i is i easier i to i predict i demand i of i each i color i of i umbrella. i This i way i the i manufacturer i can

i stock i up i on i white i umbrellas i early i with i minimal i labor i costs, i and i be i sure i of i the i demand

i before i they i dedicate i time i and i money i into i predicting i the i demand i so i far i in i the i future.

i Postponement i strategy i is i a i business i strategy i which i maximizes i possible i benefit i and

i minimizes i risk i by i delaying i further i investment i into i a i product i or i service i until i the i last

i possible i moment. i Within i supply i chain i management i (SCM), i postponement i is i a i deliberate

i action i to i delay i final i manufacturing i or i distribution i of i a i product i until i receipt i of i a

i customer i order. i This i reduces i the i incidence i of i wrong i manufacturing i or i incorrect

i inventory i deployment. i Postponement i strategies i and i practices i serve i to i reduce i the

i anticipatory i risk i in i a i supply i chain.

Postponement in Supply Chain Management

i i i i

Postponement iis ia iconcept iin isupply ichain imanagement iwhere ithe imanufacturer iproduces ia
igeneric iproduct, iwhich ican ibe imodified iat ithe ilater istages ibefore ithe ifinal itransport ito ithe

icustomer. iTake ifor iexample ian iumbrella imanufacturer iwho idoes inot iknow iwhat ithe idemand iwill

17 i| iP a g e
ibe ifor idifferent icolored iumbrellas. iThe imanufacturer iwill imanufacture iall iwhite iumbrellas iand
idye ithem ilater iwhen iumbrellas iare iin iseason iand iit iis ieasier ito ipredict idemand iof ieach icolor iof

iumbrella. iThis iway ithe imanufacturer ican istock iup ion iwhite iumbrellas iearly iwith iminimal ilabor

icosts, iand ibe isure iof ithe idemand ibefore ithey idedicate itime iand imoney iinto ipredicting ithe idemand

iso ifar iin ithe ifuture.

The manufacturing postponement strategy

i i i

Packaging iand iassembly istrategies iare istrongly irelated ito ithe imanufacturing ipostponement
istrategy iidentified iby[ CITATION Pag98 \l 1033 ] . iThey iprimarily idiffer iin ithe idegree iof iform

ipostponement iemployed. iTherefore, ithese ipostponement istrategies ican ifit iwithin ithe

imanufacturing ipostponement istrategy. iIn ithis istrategy, iafter ithe iproduct ihas ibeen ilogistically

idifferentiated, ithe ifinal imanufacturing ioperations, iwhether iit iis ilight imanufacturing, ifinal

iassembly, ipackaging iand/or ilabeling, iare iperformed ionce ia icustomer iorder iis ireceived, ior ithey iare

ipostponed iat ileast iuntil ia ishort-term iforecast iis ifirm. i

The logistics postponement strategy

i i i

The ififth ipostponement istrategy iidentified iby iZinn iand iBowersox, itime ipostponement, iis iclosely
irelated ito ithe iunicentric istrategy iidentified iby i[ CITATION Pag98 \l 1033 ] , iand ito ithe ilogistics

ipostponement istrategy iidentified iby iPagh iand iCooper ias iwell. iIn ilogistic ipostponement,

imanufacturing iis ibased ion ispeculation, iand ilogistics iis ibased ion ipostponement. iUnder ithis

istrategy, ifully ifinalized iproducts idistributed idirectly ifrom ia icentralized iinventory ito ifinal

iretailers/customers. iAll imanufacturing ioperations iare iinventory iinitiated, iand iperformed iprior ito

ithe ilogistics ioperations. iThe ilogistics ioperations iare ipurely icustomer iorder iinitiated.

The full postponement strategy

i i i

Further, ithe ibundled imanufacturing istrategy iidentified iby iCooper, iwho idoes inot ihave ian iobvious
iequivalent ito ithe istrategies iidentified iby iZinn iand iBowersox, iis istrongly irelated ito ithe ifull

ipostponement istrategy iidentified iby iPagh. iThe iaim iin iboth istrategies iis ito iretain iproduct

icommonality ias idownstream iin ithe imanufacturing iprocess ias ipossible iThis istrategy irepresents ithe

ihighest ilevel iof ipostponement iapplication icompare iwith iother iP/S-strategies. iBoth imanufacturing

iand ilogistics ioperations iare icustomer iorder iinitiated. iUnder ithis istrategy, isome iof ithe iearly

imanufacturing ioperations iperformed iin ianticipation iof icustomer iorders. iTherefore, iit icould

ishorten idelivery itime ior iachieved ithe ibenefit iby iutilizing imanufacturing ieconomies iof iscale.

Advantages and Disadvantages of Postponement

i i i i

Product ivalue iand itime iare ithe imost iimportant ivariables ithat iinfluence ithe ipostponement istrategy.
iRegarding ito isupply ichain istrategy ithere iare ithree imajor ideterminants iaffect iit, isuch ias iproduct,

18 i| iP a g e
imarket idemand iand imanufacturing iand ilogistics. iPostponement istrategy ifollowed ithe
icustomization ipart iof ithe i“Just-in-Time” i(JIT) iproduction imethods. iIt iwill ibe ideferred ito iwhen ito

icollect imore iinformation iabout ithe ineeds iand iuncertain idemand ihas ibeen ireduction iin ithe

iminimum itime ito ibe icustomized, ithus ireducing ithe ifinished iproducts iinventory, iforecast iearlier,

ireducing ithe idemand ivariability i(Ernst iet ial., i2000) iand irisk idiversification. iFrom ithe igreen

ilogistics ipoint iof iview, ithough ithe istrategy ihas ia inegative ieffect ion ithe iCO2 iemissions, iit ican

ireduce ithe itransport iflows iin ioutbound iareas iand imitigate ithe ienvironmental iimpact iof itransport.

iThe imain idrawback iof ithe istrategy iis ithe ihigher icost iof icustom idesign iand iuniversal iparts

iinventory. iThe iimplementation iof ithe istrategy idepends ion ithe ienterprise imarket icharacteristics

iand iproduction iof iproduct itype; itherefore iit iis inot isuitable ifor iany isituation. iMany iqualitative iand

iquantitative imodels ianalyze ipostponement istrategy iin idifferent ibackground, isuch ias, ithey

ievaluate ithe icosts iand ibenefits iof ithe iimplementation iof ipostponement istrategy.

Implementation of the Postponement Strategy – Automotive

i i i i i i

As iit iis imentioned iabove, ipostponement ican ibe idivided iinto itwo ikinds, ione icalled iform
ipostponement, iwhich iavoids ithe ivendor ibased ion ia iforecast iof iproduction iof ithe ifinal iproduct

iform idifferent itypes iof iproducts. iAnother iis itime ipostponement ior ilogistics ipostponement. iIt

iavoids ithe ivendor itransport iproduct iwhen ithe iforecast idemand idoes inot iproduce iactually, ithereby

ireducing ithe ienvironmental iimpact iof iCO2 iemissions. iForm ipostponement ifocuses ion iproduct. iIn

ithe ilogistics isystem iupstream ioperations iare istandardized ias imuch ias ipossible. iWith ispecific

irequirements iof icustomer iorders ifor iproduct, ithe idifferentiation imay ioccur iat idifferent istages iof

ithe iprocess isuch ias imanufacturing, iassembly, ipackaging iand ilabelling. iTime ipostponement

ifocuses ion itime. iAt ithe icentral idistribution icenters, istoring idifferent iproducts iin iorder ito ireduce

idecentralization iinventory iin iall isales imarket ithat iresult iin ihigh iinventory idistributed, iwhen

ireceive icustomer iorders ihave ia iquick iresponse. iThis ikind iof idelay idifferentiation itakes ias ilong ias

ipossible.

HACCP Principles
i

HACCP iis ia isystematic iapproach ito ithe iidentification, ievaluation, iand icontrol iof ifood isafety
ihazards ibased ion ithe ifollowing iseven iprinciples:

Principle i1: iConduct ia ihazard ianalysis.

Principle i2: iDetermine ithe icritical icontrol ipoints i(CCPs).

Principle i3: iEstablish icritical ilimits.

Principle i4: iEstablish imonitoring iprocedures.

Principle i5: iEstablish icorrective iactions.

Principle i6: iEstablish iverification iprocedures.

19 i| iP a g e
Principle i7: iEstablish irecord-keeping iand idocumentation iprocedures.

GUIDELINES FOR APPLICATION OF HACCP PRINCIPLES:

i i i i i

Introduction

HACCP iis ia imanagement isystem iin iwhich ifood isafety iis iaddressed ithrough ithe ianalysis iand
icontrol iof ibiological, ichemical, iand iphysical ihazards ifrom iraw imaterial iproduction, iprocurement

iand ihandling, ito imanufacturing, idistribution iand iconsumption iof ithe ifinished iproduct. iFor

isuccessful iimplementation iof ia iHACCP iplan, imanagement imust ibe istrongly icommitted ito ithe

iHACCP iconcept. iA ifirm icommitment ito iHACCP iby itop imanagement iprovides icompany

iemployees iwith ia isense iof ithe iimportance iof iproducing isafe ifood.

HACCP iis idesigned ifor iuse iin iall isegments iof ithe ifood iindustry ifrom igrowing, iharvesting,
iprocessing, imanufacturing, idistributing, iand imerchandising ito ipreparing ifood ifor iconsumption.

iPrerequisite iprograms isuch ias icurrent iGood iManufacturing iPractices i(cGMPs) iare ian iessential

ifoundation ifor ithe idevelopment iand iimplementation iof isuccessful iHACCP iplans. iFood isafety

isystems ibased ion ithe iHACCP iprinciples ihave ibeen isuccessfully iapplied iin ifood iprocessing

iplants, iretail ifood istores, iand ifood iservice ioperations. iThe iseven iprinciples iof iHACCP ihave ibeen

iuniversally iaccepted iby igovernment iagencies, itrade iassociations iand ithe ifood iindustry iaround ithe

iworld[ CITATION WHO99 \l 1033 ].

The ifollowing iguidelines iwill ifacilitate ithe idevelopment iand iimplementation iof ieffective iHACCP
iplans. iWhile ithe ispecific iapplication iof iHACCP ito imanufacturing ifacilities iis iemphasized ihere,

ithese iguidelines ishould ibe iapplied ias iappropriate ito ieach isegment iof ithe ifood iindustry iunder

iconsideration.

Prerequisite iPrograms

The iproduction iof isafe ifood iproducts irequires ithat ithe iHACCP isystem ibe ibuilt iupon ia isolid
ifoundation iof iprerequisite iprograms. iThe iexistence iand ieffectiveness iof iprerequisite iprograms

ishould ibe iassessed iduring ithe idesign iand iimplementation iof ieach iHACCP iplan. iAll iprerequisite

iprograms ishould ibe idocumented iand iregularly iaudited. iPrerequisite iprograms iare iestablished iand

imanaged iseparately ifrom ithe iHACCP iplan. iCertain iaspects, ihowever, iof ia iprerequisite iprogram

imay ibe iincorporated iinto ia iHACCP iplan. iFor iexample, imany iestablishments ihave ipreventive

imaintenance iprocedures ifor iprocessing iequipment ito iavoid iunexpected iequipment ifailure iand

iloss iof iproduction. iDuring ithe idevelopment iof ia iHACCP iplan, ithe iHACCP iteam imay idecide ithat

ithe iroutine imaintenance iand icalibration iof ian ioven ishould ibe iincluded iin ithe iplan ias ian iactivity iof

iverification. iThis iwould ifurther iensure ithat iall ithe ifood iin ithe ioven iis icooked ito ithe iminimum

iinternal itemperature ithat iis inecessary ifor ifood isafety.

Education iand iTraining

20 i| iP a g e
The isuccess iof ia iHACCP isystem idepends ion ieducating iand itraining imanagement iand iemployees
iin ithe iimportance iof itheir irole iin iproducing isafe ifoods. iThis ishould ialso iinclude iinformation ithe

icontrol iof ifoodborne ihazards irelated ito iall istages iof ithe ifood ichain. iIt iis iimportant ito irecognize

ithat iemployees imust ifirst iunderstand iwhat iHACCP iis iand ithen ilearn ithe iskills inecessary ito imake

iit ifunction iproperly. iSpecific itraining iactivities ishould iinclude iworking iinstructions iand

iprocedures ithat ioutline ithe itasks iof iemployees imonitoring ieach iCCP.

Management imust iprovide iadequate itime ifor ithorough ieducation iand itraining. iPersonnel imust ibe
igiven ithe imaterials iand iequipment inecessary ito iperform ithese itasks. iEffective itraining iis ian

iimportant iprerequisite ito isuccessful iimplementation iof ia iHACCP iplan.

Developing ia iHACCP iPlan

The iformat iof iHACCP iplans iwill ivary. iIn imany icases ithe iplans iwill ibe iproduct iand iprocess
ispecific. iHowever, isome iplans imay iuse ia iunit ioperations iapproach. iGeneric iHACCP iplans ican

iserve ias iuseful iguides iin ithe idevelopment iof iprocess iand iproduct iHACCP iplans; ihowever, iit iis

iessential ithat ithe iunique iconditions iwithin ieach ifacility ibe iconsidered iduring ithe idevelopment iof

iall icomponents iof ithe iHACCP iplan.

In ithe idevelopment iof ia iHACCP iplan, ifive ipreliminary itasks ineed ito ibe iaccomplished ibefore ithe
iapplication iof ithe iHACCP iprinciples ito ia ispecific iproduct iand iprocess. iThe ifive ipreliminary itasks

iare igiven iin iFigure i1.

Assemble ithe iHACCP iTeam

21 i| iP a g e
The ifirst itask iin ideveloping ia iHACCP iplan iis ito iassemble ia iHACCP iteam iconsisting iof
iindividuals iwho ihave ispecific iknowledge iand iexpertise iappropriate ito ithe iproduct iand iprocess. iIt

iis ithe iteam's iresponsibility ito idevelop ithe iHACCP iplan. iThe iteam ishould ibe imulti-disciplinary

iand iinclude iindividuals ifrom iareas isuch ias iengineering, iproduction, isanitation, iquality iassurance,

iand ifood imicrobiology. iThe iteam ishould ialso iinclude ilocal ipersonnel iwho iare iinvolved iin ithe

ioperation ias ithey iare imore ifamiliar iwith ithe ivariability iand ilimitations iof ithe ioperation. iIn

iaddition, ithis ifosters ia isense iof iownership iamong ithose iwho imust iimplement ithe iplan. iThe

iHACCP iteam imay ineed iassistance ifrom ioutside iexperts iwho iare iknowledgeable iin ithe ipotential

ibiological, ichemical iand/or iphysical ihazards iassociated iwith ithe iproduct iand ithe iprocess.

iHowever, ia iplan iwhich iis ideveloped itotally iby ioutside isources imay ibe ierroneous, iincomplete, iand

ilacking iin isupport iat ithe ilocal ilevel.

Describe ithe ifood iand iits idistribution

The iHACCP iteam ifirst idescribes ithe ifood. iThis iconsists iof ia igeneral idescription iof ithe ifood,
iingredients, iand iprocessing imethods. iThe imethod iof idistribution ishould ibe idescribed ialong iwith

iinformation ion iwhether ithe ifood iis ito ibe idistributed ifrozen, irefrigerated, ior iat iambient

itemperature.

Describe ithe iintended iuse iand iconsumers iof ithe ifood

Describe ithe inormal iexpected iuse iof ithe ifood. iThe iintended iconsumers imay ibe ithe igeneral ipublic
ior ia iparticular isegment iof ithe ipopulation i(e.g., iinfants, iimmunocompromised iindividuals, ithe

ielderly, ietc.).

Develop ia iflow idiagram iwhich idescribes ithe iprocess

The ipurpose iof ia iflow idiagram iis ito iprovide ia iclear, isimple ioutline iof ithe isteps iinvolved iin ithe
iprocess. iThe iscope iof ithe iflow idiagram imust icover iall ithe isteps iin ithe iprocess iwhich iare idirectly

iunder ithe icontrol iof ithe iestablishment. iIn iaddition, ithe iflow idiagram ican iinclude isteps iin ithe ifood

ichain iwhich iare ibefore iand iafter ithe iprocessing ithat ioccurs iin ithe iestablishment. iThe iflow

idiagram ineed inot ibe ias icomplex ias iengineering idrawings. iA iblock itype iflow idiagram iis

isufficiently idescriptive. iAlso, ia isimple ischematic iof ithe ifacility iis ioften iuseful iin iunderstanding

iand ievaluating iproduct iand iprocess iflow.

Verify ithe iflow idiagram

The iHACCP iteam ishould iperform ian ion-site ireview iof ithe ioperation ito iverify ithe iaccuracy iand
icompleteness iof ithe iflow idiagram. iModifications ishould ibe imade ito ithe iflow idiagram ias

inecessary iand idocumented.

After ithese ifive ipreliminary itasks ihave ibeen icompleted, ithe iseven iprinciples iof iHACCP iare
iapplied.

22 i| iP a g e
Principle i1- i: iConduct ia ihazard ianalysis i

After iaddressing ithe ipreliminary itasks idiscussed iabove, ithe iHACCP iteam iconducts ia ihazard
ianalysis iand iidentifies iappropriate icontrol imeasures. iThe ipurpose iof ithe ihazard ianalysis iis ito

idevelop ia ilist iof ihazards iwhich iare iof isuch isignificance ithat ithey iare ireasonably ilikely ito icause

iinjury ior iillness iif inot ieffectively icontrolled. iHazards ithat iare inot ireasonably ilikely ito ioccur

iwould inot irequire ifurther iconsideration iwithin ia iHACCP iplan. iIt iis iimportant ito iconsider iin ithe

ihazard ianalysis ithe iingredients iand iraw imaterials, ieach istep iin ithe iprocess, iproduct istorage iand

idistribution, iand ifinal ipreparation iand iuse iby ithe iconsumer. iWhen iconducting ia ihazard ianalysis,

isafety iconcerns imust ibe idifferentiated ifrom iquality iconcerns. iA ihazard iis idefined ias ia ibiological,

ichemical ior iphysical iagent ithat iis ireasonably ilikely ito icause iillness ior iinjury iin ithe iabsence iof iits

icontrol[ CITATION Wor97 \l 1033 ]. iThus, ithe iword ihazard ias iused iin ithis idocument iis ilimited

ito isafety.

A ithorough ihazard ianalysis iis ithe ikey ito ipreparing ian ieffective iHACCP iplan. iIf ithe ihazard
ianalysis iis inot idone icorrectly iand ithe ihazards iwarranting icontrol iwithin ithe iHACCP isystem iare

inot iidentified, ithe iplan iwill inot ibe ieffective iregardless iof ihow iwell iit iis ifollowed.

The ihazard ianalysis iand iidentification iof iassociated icontrol imeasures iaccomplish ithree
iobjectives: iThose ihazards iand iassociated icontrol imeasures iare iidentified. iThe ianalysis imay

iidentify ineeded imodifications ito ia iprocess ior iproduct iso ithat iproduct isafety iis ifurther iassured ior

iimproved. iThe ianalysis iprovides ia ibasis ifor idetermining iCCPs iin iPrinciple i2.

The iprocess iof iconducting ia ihazard ianalysis iinvolves itwo istages. iThe ifirst, ihazard iidentification,
ican ibe iregarded ias ia ibrain istorming isession. iDuring ithis istage, ithe iHACCP iteam ireviews ithe

iingredients iused iin ithe iproduct, ithe iactivities iconducted iat ieach istep iin ithe iprocess iand ithe

iequipment iused, ithe ifinal iproduct iand iits imethod iof istorage iand idistribution, iand ithe iintended iuse

iand iconsumers iof ithe iproduct. iBased ion ithis ireview, ithe iteam idevelops ia ilist iof ipotential

ibiological, ichemical ior iphysical ihazards iwhich imay ibe iintroduced, iincreased, ior icontrolled iat

ieach istep iin ithe iproduction iprocess. iHazard iidentification ifocuses ion ideveloping ia ilist iof ipotential

ihazards iassociated iwith ieach iprocess istep iunder idirect icontrol iof ithe ifood ioperation. iA

iknowledge iof iany iadverse ihealth-related ievents ihistorically iassociated iwith ithe iproduct iwill ibe iof

ivalue iin ithis iexercise.

After ithe ilist iof ipotential ihazards iis iassembled, istage itwo, ithe ihazard ievaluation, iis iconducted. iIn
istage itwo iof ithe ihazard ianalysis, ithe iHACCP iteam idecides iwhich ipotential ihazards imust ibe

iaddressed iin ithe iHACCP iplan. iDuring ithis istage, ieach ipotential ihazard iis ievaluated ibased ion ithe

iseverity iof ithe ipotential ihazard iand iits ilikely ioccurrence. iSeverity iis ithe iseriousness iof ithe

iconsequences iof iexposure ito ithe ihazard. iConsiderations iof iseverity i(e.g., iimpact iof isequelae, iand

imagnitude iand iduration iof iillness ior iinjury) ican ibe ihelpful iin iunderstanding ithe ipublic ihealth

iimpact iof ithe ihazard. iConsideration iof ithe ilikely ioccurrence iis iusually ibased iupon ia icombination

iof iexperience, iepidemiological idata, iand iinformation iin ithe itechnical iliterature. iWhen iconducting

ithe ihazard ievaluation, iit iis ihelpful ito iconsider ithe ilikelihood iof iexposure iand iseverity iof ithe

ipotential iconsequences iif ithe ihazard iis inot iproperly icontrolled. iIn iaddition, iconsideration ishould

ibe igiven ito ithe ieffects iof ishort iterm ias iwell ias ilong iterm iexposure ito ithe ipotential ihazard. iSuch

iconsiderations ido inot iinclude icommon idietary ichoices iwhich ilie ioutside iof iHACCP. iDuring ithe

23 i| iP a g e
ievaluation iof ieach ipotential ihazard, ithe ifood, iits imethod iof ipreparation, itransportation, istorage
iand ipersons ilikely ito iconsume ithe iproduct ishould ibe iconsidered ito idetermine ihow ieach iof ithese

ifactors imay iinfluence ithe ilikely ioccurrence iand iseverity iof ithe ihazard ibeing icontrolled. iThe iteam

imust iconsider ithe iinfluence iof ilikely iprocedures ifor ifood ipreparation iand istorage iand iwhether ithe

iintended iconsumers iare isusceptible ito ia ipotential ihazard. iHowever, ithere imay ibe idifferences iof

iopinion, ieven iamong iexperts, ias ito ithe ilikely ioccurrence iand iseverity iof ia ihazard. iThe iHACCP

iteam imay ihave ito irely iupon ithe iopinion iof iexperts iwho iassist iin ithe idevelopment iof ithe iHACCP

iplan.

Hazards iidentified iin ione ioperation ior ifacility imay inot ibe isignificant iin ianother ioperation
iproducing ithe isame ior ia isimilar iproduct. iFor iexample, idue ito idifferences iin iequipment iand/or ian

ieffective imaintenance iprogram, ithe iprobability iof imetal icontamination imay ibe isignificant iin ione

ifacility ibut inot iin ianother. iA isummary iof ithe iHACCP iteam ideliberations iand ithe irationale

ideveloped iduring ithe ihazard ianalysis ishould ibe ikept ifor ifuture ireference. iThis iinformation iwill ibe

iuseful iduring ifuture ireviews iand iupdates iof ithe ihazard ianalysis iand ithe iHACCP iplan.

Principle i-2: iDetermine icritical icontrol ipoints i(CCPs) i

A icritical icontrol ipoint iis idefined ias ia istep iat iwhich icontrol ican ibe iapplied iand iis iessential ito
iprevent ior ieliminate ia ifood isafety ihazard ior ireduce iit ito ian iacceptable ilevel. iThe ipotential ihazards

ithat iare ireasonably ilikely ito icause iillness ior iinjury iin ithe iabsence iof itheir icontrol imust ibe

iaddressed iin idetermining iCCPs.

Complete iand iaccurate iidentification iof iCCPs iis ifundamental ito icontrolling ifood isafety ihazards.
iThe iinformation ideveloped iduring ithe ihazard ianalysis iis iessential ifor ithe iHACCP iteam iin

iidentifying iwhich isteps iin ithe iprocess iare iCCPs. iOne istrategy ito ifacilitate ithe iidentification iof

ieach iCCP iis ithe iuse iof ia iCCP idecision. iAlthough iapplication iof ithe iCCP idecision itree ican ibe

iuseful iin idetermining iif ia iparticular istep iis ia iCCP ifor ia ipreviously iidentified ihazard, iit iis imerely ia

itool iand inot ia imandatory ielement iof iHACCP. iA iCCP idecision itree iis inot ia isubstitute ifor iexpert

iknowledge.

Critical icontrol ipoints iare ilocated iat iany istep iwhere ihazards ican ibe ieither iprevented, ieliminated,
ior ireduced ito iacceptable ilevels. iExamples iof iCCPs imay iinclude: ithermal iprocessing, ichilling,

itesting iingredients ifor ichemical iresidues, iproduct iformulation icontrol, iand itesting iproduct ifor

imetal icontaminants. iCCPs imust ibe icarefully ideveloped iand idocumented. iIn iaddition, ithey imust

ibe iused ionly ifor ipurposes iof iproduct isafety. iFor iexample, ia ispecified iheat iprocess, iat ia igiven itime

iand itemperature idesigned ito idestroy ia ispecific imicrobiological ipathogen, icould ibe ia iCCP.

iLikewise, irefrigeration iof ia iprecooked ifood ito iprevent ihazardous imicroorganisms ifrom

imultiplying, ior ithe iadjustment iof ia ifood ito ia ipH inecessary ito iprevent itoxin iformation icould ialso

ibe iCCPs. iDifferent ifacilities ipreparing isimilar ifood iitems ican idiffer iin ithe ihazards iidentified iand

ithe isteps iwhich iare iCCPs. iThis ican ibe idue ito idifferences iin ieach ifacility's ilayout, iequipment,

iselection iof iingredients, iprocesses iemployed, ietc.

Principle i-3: iEstablish icritical ilimits i

24 i| iP a g e
A icritical ilimit iis ia imaximum iand/or iminimum ivalue ito iwhich ia ibiological, ichemical ior iphysical
iparameter imust ibe icontrolled iat ia iCCP ito iprevent, ieliminate ior ireduce ito ian iacceptable ilevel ithe

ioccurrence iof ia ifood isafety ihazard. iA icritical ilimit iis iused ito idistinguish ibetween isafe iand iunsafe

ioperating iconditions iat ia iCCP. iCritical ilimits ishould inot ibe iconfused iwith ioperational ilimits

iwhich iare iestablished ifor ireasons iother ithan ifood isafety.

Each iCCP iwill ihave ione ior imore icontrol imeasures ito iassure ithat ithe iidentified ihazards iare
iprevented, ieliminated ior ireduced ito iacceptable ilevels. iEach icontrol imeasure ihas ione ior imore

iassociated icritical ilimits. iCritical ilimits imay ibe ibased iupon ifactors isuch ias: itemperature, itime,

iphysical idimensions, ihumidity, imoisture ilevel, iwater iactivity i(aw), ipH, ititratable iacidity, isalt

iconcentration, iavailable ichlorine, iviscosity, ipreservatives, ior isensory iinformation isuch ias iaroma

iand ivisual iappearance. iCritical ilimits imust ibe iscientifically ibased. iFor ieach iCCP, ithere iis iat ileast

ione icriterion ifor ifood isafety ithat iis ito ibe imet. iAn iexample iof ia icriterion iis ia ispecific ilethality iof ia

icooking iprocess isuch ias ia i5D ireduction iin iSalmonella. iThe icritical ilimits iand icriteria ifor ifood

isafety imay ibe iderived ifrom isources isuch ias iregulatory istandards iand iguidelines, iliterature

isurveys, iexperimental iresults, iand iexperts.

Principle i-4: iEstablish imonitoring iprocedures

Monitoring iis ia iplanned isequence iof iobservations ior imeasurements ito iassess iwhether ia iCCP iis
iunder icontrol iand ito iproduce ian iaccurate irecord ifor ifuture iuse iin iverification. iMonitoring iserves

ithree imain ipurposes. iFirst, imonitoring iis iessential ito ifood isafety imanagement iin ithat iit ifacilitates

itracking iof ithe ioperation. iIf imonitoring iindicates ithat ithere iis ia itrend itowards iloss iof icontrol, ithen

iaction ican ibe itaken ito ibring ithe iprocess iback iinto icontrol ibefore ia ideviation ifrom ia icritical ilimit

ioccurs. iSecond, imonitoring iis iused ito idetermine iwhen ithere iis iloss iof icontrol iand ia ideviation

ioccurs iat ia iCCP, ii.e., iexceeding ior inot imeeting ia icritical ilimit. iWhen ia ideviation ioccurs, ian

iappropriate icorrective iaction imust ibe itaken. iThird, iit iprovides iwritten idocumentation ifor iuse iin

iverification.

An iunsafe ifood imay iresult iif ia iprocess iis inot iproperly icontrolled iand ia ideviation ioccurs. iBecause
iof ithe ipotentially iserious iconsequences iof ia icritical ilimit ideviation, imonitoring iprocedures imust

ibe ieffective. iIdeally, imonitoring ishould ibe icontinuous, iwhich iis ipossible iwith imany itypes iof

iphysical iand ichemical imethods. iFor iexample, ithe itemperature iand itime ifor ithe ischeduled ithermal

iprocess iof ilow-acid icanned ifoods iis irecorded icontinuously ion itemperature irecording icharts. iIf ithe

itemperature ifalls ibelow ithe ischeduled itemperature ior ithe itime iis iinsufficient, ias irecorded ion ithe

ichart, ithe iproduct ifrom ithe iretort iis iretained iand ithe idisposition idetermined ias iin iPrinciple i5.

iLikewise, ipH imeasurement imay ibe iperformed icontinually iin ifluids ior iby itesting ieach ibatch

ibefore iprocessing. iThere iare imany iways ito imonitor icritical ilimits ion ia icontinuous ior ibatch ibasis

iand irecord ithe idata ion icharts. iContinuous imonitoring iis ialways ipreferred iwhen ifeasible.

iMonitoring iequipment imust ibe icarefully icalibrated ifor iaccuracy.

Principle- i5: iEstablish icorrective iactions i

The iHACCP isystem ifor ifood isafety imanagement iis idesigned ito iidentify ihealth ihazards iand ito
iestablish istrategies ito iprevent, ieliminate, ior ireduce itheir ioccurrence. iHowever, iideal

icircumstances ido inot ialways iprevail iand ideviations ifrom iestablished iprocesses imay ioccur. iAn

25 i| iP a g e
iimportant ipurpose iof icorrective iactions iis ito iprevent ifoods iwhich imay ibe ihazardous ifrom
ireaching iconsumers. iWhere ithere iis ia ideviation ifrom iestablished icritical ilimits, icorrective iactions

iare inecessary. iTherefore, icorrective iactions ishould iinclude ithe ifollowing ielements: i(a) idetermine

iand icorrect ithe icause iof inon-compliance; i(b) idetermine ithe idisposition iof inon-compliant iproduct

iand i(c) irecord ithe icorrective iactions ithat ihave ibeen itaken. iSpecific icorrective iactions ishould ibe

ideveloped iin iadvance ifor ieach iCCP iand iincluded iin ithe iHACCP iplan. iAs ia iminimum, ithe

iHACCP iplan ishould ispecify iwhat iis idone iwhen ia ideviation ioccurs, iwho iis iresponsible ifor

iimplementing ithe icorrective iactions, iand ithat ia irecord iwill ibe ideveloped iand imaintained iof ithe

iactions itaken. iIndividuals iwho ihave ia ithorough iunderstanding iof ithe iprocess, iproduct iand

iHACCP iplan ishould ibe iassigned ithe iresponsibility ifor ioversight iof icorrective iactions. iAs

iappropriate, iexperts imay ibe iconsulted ito ireview ithe iinformation iavailable iand ito iassist iin

idetermining idisposition iof inon-compliant iproduct.

Principle- i6: iEstablish iverification iprocedures i

Verification iis idefined ias ithose iactivities, iother ithan imonitoring, ithat idetermine ithe ivalidity iof ithe
iHACCP iplan iand ithat ithe isystem iis ioperating iaccording ito ithe iplan. iThe iNAS i(1985), ipointed iout

ithat ithe imajor iinfusion iof iscience iin ia iHACCP isystem icenters ion iproper iidentification iof ithe

ihazards, icritical icontrol ipoints, icritical ilimits, iand iinstituting iproper iverification iprocedures.

iThese iprocesses ishould itake iplace iduring ithe idevelopment iand iimplementation iof ithe iHACCP

iplans iand imaintenance iof ithe iHACCP isystem

One iaspect iof iverification iis ievaluating iwhether ithe ifacility's iHACCP isystem iis ifunctioning
iaccording ito ithe iHACCP iplan. iAn ieffective iHACCP isystem irequires ilittle iend-product itesting,

isince isufficient ivalidated isafeguards iare ibuilt iin iearly iin ithe iprocess. iTherefore, irather ithan

irelying ion iend-product itesting, ifirms ishould irely ion ifrequent ireviews iof itheir iHACCP iplan,

iverification ithat ithe iHACCP iplan iis ibeing icorrectly ifollowed, iand ireview iof iCCP imonitoring iand

icorrective iaction irecords.

Another iimportant iaspect iof iverification iis ithe iinitial ivalidation iof ithe iHACCP iplan ito idetermine
ithat ithe iplan iis iscientifically iand itechnically isound, ithat iall ihazards ihave ibeen iidentified iand ithat

iif ithe iHACCP iplan iis iproperly iimplemented ithese ihazards iwill ibe ieffectively icontrolled.

iInformation ineeded ito ivalidate ithe iHACCP iplan ioften iinclude i(1) iexpert iadvice iand iscientific

istudies iand i(2) iin-plant iobservations, imeasurements, iand ievaluations. iFor iexample, ivalidation iof

ithe icooking iprocess ifor ibeef ipatties ishould iinclude ithe iscientific ijustification iof ithe iheating itimes

iand itemperatures ineeded ito iobtain ian iappropriate idestruction iof ipathogenic imicroorganisms i(i.e.,

ienteric ipathogens) iand istudies ito iconfirm ithat ithe iconditions iof icooking iwill ideliver ithe irequired

itime iand itemperature ito ieach ibeef ipatty.

Subsequent ivalidations iare iperformed iand idocumented iby ia iHACCP iteam ior ian iindependent
iexpert ias ineeded. iFor iexample, ivalidations iare iconducted iwhen ithere iis ian iunexplained isystem

ifailure; ia isignificant iproduct, iprocess ior ipackaging ichange ioccurs; ior inew ihazards iare irecognized.

26 i| iP a g e
In iaddition, ia iperiodic icomprehensive iverification iof ithe iHACCP isystem ishould ibe iconducted iby
ian iunbiased, iindependent iauthority. iSuch iauthorities ican ibe iinternal ior iexternal ito ithe ifood

ioperation. iThis ishould iinclude ia itechnical ievaluation iof ithe ihazard ianalysis iand ieach ielement iof

ithe iHACCP iplan ias iwell ias ion-site ireview iof iall iflow idiagrams iand iappropriate irecords ifrom

ioperation iof ithe iplan. iA icomprehensive iverification iis iindependent iof iother iverification

iprocedures iand imust ibe iperformed ito iensure ithat ithe iHACCP iplan iis iresulting iin ithe icontrol iof ithe

ihazards. iIf ithe iresults iof ithe icomprehensive iverification iidentifies ideficiencies, ithe iHACCP iteam

imodifies ithe iHACCP iplan ias inecessary.

Verification iactivities iare icarried iout iby iindividuals iwithin ia icompany, ithird iparty iexperts, iand
iregulatory iagencies. iIt iis iimportant ithat iindividuals idoing iverification ihave iappropriate itechnical

iexpertise ito iperform ithis ifunction. iThe irole iof iregulatory iand iindustry iin iHACCP.

Principle-7: iEstablish irecord-keeping iand idocumentation iprocedures i

Generally, ithe irecords imaintained ifor ithe iHACCP iSystem ishould iinclude ithe ifollowing:

1. A isummary iof ithe ihazard ianalysis, iincluding ithe irationale ifor idetermining ihazards iand
icontrol imeasures.

2. The iHACCP iPlan

Listing iof ithe iHACCP iteam iand iassigned iresponsibilities.

Description iof ithe ifood, iits idistribution, iintended iuse, iand iconsumer.

Verified iflow idiagram.

HACCP iPlan iSummary iTable ithat iincludes iinformation ifor:

Steps iin ithe iprocess ithat iare iCCPs

The ihazards iof iconcern.

Critical ilimits

Monitoring*

Corrective iactions*

Verification iprocedures iand ischedule*

Record-keeping iprocedures*

27 i| iP a g e
 * iA ibrief isummary iof iposition iresponsible ifor iperforming ithe iactivity iand ithe iprocedures
iand ifrequency ishould ibe iprovided

Recommendations

Due ito ithe itechnical inature iof ithe iinformation irequired ifor ihazard ianalysis, iit iis irecommended ithat
ihazard ianalysis iand ithe iHACCP iplan. iSuch iindividuals ishould ihave ithe iknowledge iand

iexperience itoo icorrectly.

 Conduct ia ihazard ianalysis

 Identify ipotential ihazards i

 Identify ihazards iwhich imust ibe icontrolled

 Recommend icontrols, icritical ilimits, iand iprocedures ifor imonitoring iand iverification

 Recommend iappropriate icorrective iactions iwhen ia ideviation ioccurs

 Recommend iresearch irelated ito ithe iHACCP iplan iif iimportant iinformation iis inot iknown
iand i

 Validate ithe iHACCP iplan.

We irecommended ithat iMTO iand iMTS:

 We ican iforecast iby ianalyzing ipast isales iand iseasonal ispikes, ibut ieven ithough iyou’ve imade
icompletely iaccurate iand icorrect iassumptions, iyour iproducts iunfortunately iaren’t iselling

ias iwell ias iyou ioriginally ipredicted.

 We ican itechnically ibe iin ia iperpetual istate iof ieither ihaving itoo imuch ior inot ienough istock.

 Company imust iconcern iabout iIrregular isales idemand.

 Company ireduce icustomer ilead itime.

28 i| iP a g e
Conclusion

Inventory icosts imake iup ia ilarge iportion iof itotal icosts iin imany isupply ichains, iso ieffective
iinventory imanagement iis ione iof ithe imost iimportant iissues ifacing isupply ichain imanagers. iIndeed,

iin ia imulti-facility isupply ichain, ia icritical itactical idecision iinvolves ithe iidentification iof

iintermediate istocking ipoints iin ithe isupply ichain, iand ithe idetermination iof iappropriate iinventory

istrategies iat ithese istocking ipoints. iManagers imust idetermine, iin iother iwords, iwhich iproducts i(or

icomponents iof iproducts) iwill ibe imade ito istock, iand iwhich iwill ibe imade ito iorder. iTraditionally,

imost icompanies iutilized ia i“push” ior iMake-To-Stock i(MTS) isystem, iholding iinventory iat ithe iend

iof ithe isupply ichain. iHowever, iin ian iMTS isystem, ifirms ineed ito ibe iable ito iestimate idemand ito

idetermine ihow imuch. ito iproduce iand istock, iand iso ithese isystems irely iheavily ion iforecasts, iwhich

iin imany icases iare inot ivery iaccurate. iThus, imany iprogressive icompanies ihave ishifted ito i“pull” ior

iMake-To-Order i(MTO) isystems, iholding ino iinventory iat iall iand iproducing ito iorder. iIn ithese

isystems, icompanies iproduce ibased ion iactual icustomer idemand iinstead iof iforecasts. iInventories

iare ieliminated, ibut icustomers imust inow iwait ifor idelivery, iperhaps ileading ito iloss iof

icompetitiveness ion ithe ipart iof ithe ifirm.

Traditionally, ithe iHazard iAnalysis iand iCritical iControl iPoint i(HACCP) imethodology ihas ibeen
iconsidered ito ibe ia ifood isafety imanagement isystem. iIt iaims ito iprevent iknown ihazards iand ito

ireduce ithe irisks ithat ithey iwill ioccur iat ispecific ipoints iin ithe ifood ichain. iThe isame iprinciples iare

ialso iincreasingly ibeing iapplied, iin iother iindustries, isuch ias ithe icar iindustry, iaviation iand ithe

ichemical iindustry. iHazards iaffecting iquality iare icontrolled ito ia icertain iextent ithrough ithe

ivalidation iof icritical ioperations iand iprocesses iin ithe imanufacture iof ifinished ipharmaceutical

iproducts iin iaccordance iwith iGood iManufacturing iPractices i(GMP). iHowever, iGMP ido inot icover

ithe isafety iof ithe ipersonnel iengaged iin imanufacture, iwhile iboth iaspects iare icovered iby iHACCP.

29 i| iP a g e
REFERENCES

 WILL iKENTON i(Feb10, i2020), iBusiness iEssentials.

https://www.investopedia.com/terms/a/assemble-to-order.asp
 Adam iHayes i(April i24, i2019), iCorporate ifinance i& ifinancial ianalysis.
https://www.investopedia.com/terms/m/make-to-order.asp
 Mr iKarl(June i18, i2019), iManufacturing iprocess iflow i& ibest ipractices.
https://manufacturing-software-blog.mrpeasy.com/mto-and-ato-manufacturing-process
 Wikipedia- ithe ifree iencyclopedia i( iMarch i20, i2019) i, iBTS ior iMTS.
https://en.m.wikipedia.org/wiki/Build_to_stock
 Asprova i( iMarch i19, i2019), ilean imanufacturing i& iProduction ischedule.
http://www.lean-manufacturing-japan.com/scm-terminology/mts-make-to-
stock.html

 Cheng, iT.C.E. iand iGupta, iM.C. i(1989). iSurvey iof ischeduling iresearch iinvolving idue idate
idetermination idecisions i. iEuropean iJournal iof iOperational iResearch,, i38, i156–166. i.

 Kaya,O i. i(2006). iMTO-MTS iproduction isystems iin isupply ichains. iCalifornia: iUniversity iof
iCalifornia, iBerkeley, iUSA.

 Pagh, iD. iJ. iand iCooper, iM. iC. i(1998). iSupply iChain iPostponement iand ispeculation istrategies.
iJournal iof iBusiness iLogistics., i19(2), i13.

 WHO. i(1999). iQuality iassurance iof ipharmaceuticals. iA icompendium iof iguideline is iand irelated
imaterials. iVolume i2: igood imanufacturing ipractices iand iinspectio in i. i, i. iGeneva: iWorld iHealth

iOrganization,.

 World iHealth iOrganization. i(1997). iHACCP: iIntroducing ithe iHazard iAnalysis iand iCritical iControl
iPoint iSystem. i, i. iGeneva: idocument imember iWHO/FSF/FOS/ i97.2.

30 i| iP a g e
  Youssef, iK.H., iVan iDelft, iC. iand iDallery, iY. i(2004). iEfficient ischeduling irules iin ia icombined imake-
to-stock iand imake-to-order imanufacturing isystem. i. iAnnals iof iOperations iResearch,, i126, i103–
134.

31 i| iP a g e