WACHEMO UNIVERSITY

SCHOOL OF GRADUATE STUDIES

COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
Postgraduate MBA Program

Course Title: Operations and Supply Chain Management

Assignment: Manufacturing Industry Visit Report

Prepared by Group 2 MBA Weekend Students:

No. Name ID. No. No. Name ID. No.

1 Abdulaziz Kumdin 1500526 6 Fitur Tadele 1500517

2 Adane Petros 1500529 7 Meharu Abebe 1500524

3 Elias Ayele 1500521 8 Muluken Ersido 1500

4 Ermako Abayneh 1500522 9 Zelalem Erwaro 1500513

Misgana Flour
Factory Visit Photos Partially.pdf
5 Ermias W/Tensay 1500532
Submitted to: Temesgen Teshome (Assistant Professor) Date: January 2023
Hossana, Ethiopia

Table of Content
1. Introduction to the industry visit -----------------------------------------------------------------3
1.1. Vision, Mission, and Core Values ---------------------------------------------------3
1.2. Organizational Structure--------------------------------------------------------------4
1.3. A Step-By-Step Approach of Wheat Flour Production Process ---------------5

2. Objectives of the Industry Visit for This Report-----------------------------------------------6

3. Report on the Industrial Process- Relate the Body of Knowledge -------------------------6

3.1. Misgan Flour Factory Operation and Functional Strategies-------------------8

4. Strengths and Weaknesses of the Visited Companies ----------------------------------------9

5. Describe the Usage of Different Technologies/Tools in Practical Operations -----------11

6. Challenges/Limitations Encountered on Visits-------------------------------------------------16

7. Conclusions and recommendations---------------------------------------------------------------16

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1. Introduction to the industry visit.
In order to organize the report related to the assignment given to us, one of the group members
contacted the manager (Tefera Gizaw) of the factory to facilitate the date and time for visiting
the factory. Based on the communication over phone the owner of the factory allowed us to visit
in the afternoon on December 28/2023. The manager assigned the operator of the factory to lead
the visiting and to answer the questions developed by the group members. We could get the
following information about the industry from the operator.

1.1. Vision, Mission, and Core Values

Vision
To be a leading and sustainable flour producer, contributing to the nutritional needs of our
community and fostering economic growth in Ethiopia.
Mission
Produce high-quality flour by using skilled human resources and advanced mill technology
through innovative and sustainable practices, meeting the diverse needs of our customers while
prioritizing social responsibility and environmental stewardship.
Core Values
Quality: Strive for excellence in every aspect of flour production, ensuring our products meet or
exceed industry standards.
Integrity: Conduct business with honesty, transparency, and ethical practices, fostering trust
among customers, employees, and stakeholders.
Innovation: Embrace continuous improvement and innovation in our processes and products to
stay at the forefront of the industry.
Community Engagement: Actively contribute to the well-being of local communities by
supporting social initiatives, creating job opportunities, and investing in education.
Sustainability: Implement environmentally friendly practices to minimize our ecological
footprint, promoting sustainable agriculture and resource management.
Customer Focus: Understand and respond to the diverse needs of our customers, ensuring their
satisfaction and building lasting relationships.
Employee Empowerment: Cultivate a supportive and inclusive work environment that
encourages the professional growth and well-being of our employees

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We have also collected the following details of the industry during our visit:
✓ Location: Misgana Matewos Flour Factory located in Hossan town particularly in Jalo
Naramo village
✓ Date the Industry Started: September 2007 E.C.
✓ Its paid-up capital: Birr 3 million
✓ Geographical Market Segmentation: Hadiya zone, Wolaita, Mizan Tape, Amaya,
Dawuro, Woliso, and Arba Minch.

Flour is made from a wide variety of plants. Wheat is the main grain used for flour production by
Misgana flour factory. The factory targets customers who enjoy eating bread at homemade,
institution made and/or bought from the local bakeries and stores. It supplies the target market
with quality flour products which in turn contribute to the customers to cook the best homemade
bread. Therefore, it offers high-quality flour, one that helps the dough grow smoothly and
rapidly. The dough obtained from wheat flour is ideal for baking homemade and local bakeries
bread.

1.2. Organizational Structure

The organizational structure of the factory comprises:
✓ General Manager and Auditor are responsible to owners
✓ Production manager, marketing manager and finance are responsible to General manager
✓ Accountants are responsible to Finance and Store Keeper is responsible to Accounts
✓ Sales Personnel is responsible to Production Manager and Marketing Manager
✓ Sales agents are responsible to sales person

Owners

General Manager Auditor

Production Marketing Finance

Manager Manager

Sales Personnel Accountant

S
Sales Agents Store Keeper

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As far as the establishment of the firm, the general manager Ato Tefera Gizaw fully liable to all
administrative, marketing and financial decisions as he has been engaged in trading activities for
long years.

Therefore, we could collect additional and practical manufacturing process related data to
compile our report about the factory. We made the visit while the flour mill machine is
processing the production. During our visit we could observe that there are two wheat flour
plants as well as two switch boards per plant. One switch board is used to follow up the
performance of grain cleaning plan/ purifying, washing the wheat grains and sorting waste
materials like tares/weeds/, straw, gravel (እንክርዳድ፣ ገለባ፣ ጠጠር). The second switch board is
used to operate 12 mill machines with levels 1B to 5M for grinding the purified wheat and to sort
fine flour and brans (the outer covering or skin of wheat or ፉርሽካ). Therefore, we have listed
the processing steps as follows:
1.3. A Step-By-Step Approach of Wheat Flour Production Process

Storing

When the wheat arrives at the factory, the storekeeper stores the wheat either in the warehouse or
in the store for purifying.

Purifying

The machine terminal with one dash board assist the wheat is carefully cleaned in order to
remove impurities (for example sticks, tares and stones, plus other fine materials-(እንክርዳድ፣
ገለባ፣ ጠጠር)). After this step, the purified wheat is ready to be conditioned.

Conditioning

In this stage, the pure wheat is soaked(water-logged) in the water after the impurities removed.
The conditioning happens before the wheat milling. The conditioning step is important because
it further purifies the wheat for milling process.

Milling

The wheat is grounded by a machine with 10 mills that basically crushes it into small pieces.
After repeated grinding, it becomes a fine flour, and wheat brans (the outer covering or skin of
wheat). These two pieces are sold separately.

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We would like to acknowledge the factory general manager Ato Tefera Gizaw, the operation
manager Ato Shecha Tumebo and the marketing manager Ato Tagese Gizaw to cooperate us by
allowing the visit and responding the questions developed to gather information.

2. Objectives of the Industry Visit for This Report.

The possible objectives of Misgna flour factory visit are:

The purpose of this visit report is to relate what learned as MBA student in operations
management and supplies chain with the practice in the manufacturing visit. This visit took place
on the December 28/2023. In addition, the visit intended to come up with the report containing
information related to the production processes, marketing and distribution methods, quality
control and health and safety aspects specific to the factory. The other objectives include:
• To know the steps how flour is made
• To learn from the practical operation management of the factory
• To integrated the theoretical learnings with the works in the real world
• To investigate the relationship among operation department, finance, marketing
and other departments
• To see the strategic importance of the integration of operation department for the
success and competitiveness of the factory.
• To learn and understand the roles and responsibilities of the operation manager of
the factory in planning, coordination and control of the resources and the product
design and manufacturing
• To know how the operation manager discharges its responsibility to create the
desired wheat flour with the lowest possible cost(efficiency), with the highest
possible value to the customer (customer satisfaction), to get the highest profit for
its factory.
• To learn from the factory that how it manages its inventory and its costs
• To learn from the functional departments as when the participate in the decision-
making processes about the quality, quantity, inventory, capacity and workforce
of their factory.
• To learn how the decision of one functional department affects the other in
relation to the information for the production and marketing processes.

3. Report on the Industrial Process- Relate the Body of Knowledge Study Program to
Applications in Industry

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Misgan Flour Factory operations department uses productive system for sorting, conditioning,
purifying and milling processes that creates desired flour product as well as its byproduct. The
factory uses its resources and manages from the creation٫ direction and control of these
processes that transform a wheat, water, electric power and milling machine mechanical
and electrical energies in to desired flour products with added value.

The factory uses appropriate strategies for its operation, marketing and financing of the business.
Its factory asset and facilities location contribute to its operations strategyand marketing
strategies as well. It uses its plantcapacity management and ٫quality management by capacity
and managing its factory employees to ensure the inputs productivity, efficiency and
effectiveness.

It has established good supply chain and materials management with its suppliers, distributers
and customers. Misgna Flour Factory uses collaborative approach for its supply chain
management. Thus, its approach is highly related to the body of knowledge as we learned that –
collaborative planning, forecasting, and replenishment activities lead to better customer service,
lower inventory costs, improved quality, reduced cycle time, better production methods, and
other benefits.
We could also observe that Misgana Flour Factory uses the four elements of supply chain
management as we learned from the course. These four elements are:
a) Integration- involves SC coordination activities, global integration problems (operating
exposure), and SC performance measurement.
b) Operations- coordinates the specifics of day-to-day operations for the company.
c) Purchasing- creates relationships with suppliers and also identifies the qualities and
quantities of necessary items.
d) Distribution- considers transportation management, CRM, network design, and service
response logistics.
The factory works to deliver appropriate value to its customers and satisfy their expectation and
demand. It also has all the following three segments or activities of supply chain management.
These three segments include upstream, midstream and downstream as listed hereunder.

No. Activities Segments of SC

1 Forecasting All Segments
2 Production, Planning and Execution Internal/Midstream
3 Inventory Management Internal/ Midstream
4 Sourcing and Procurement Upstream
Warehousing and Logistics, Distribution and
Downstream
5 Transportation, Marketing and Sales
6 Payments and Financial Flows Upstream /Downstream

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Misgana Flour Factor’s operations strategy involves decision that relate to the design of a
process and the infrastructure needed to support the process. Because the factory uses waste
sorting technology, purifying the wheat by washing it properly and using fun and ventilation and
filtering equipment in its operation processes. Therefore, the factory production process is related
to the body of knowledge in the program as stated below:
Process design includes:
❖ The selection of appropriate technology,
❖ Locating the process.
❖ The role of inventory in the process
3.1. Misgan Flour Factory Operation and Functional Strategies
In addition, the elements of operation strategy of the factory including its mission, distinctive
competence, objectives (for its cost, quality, flexibility and delivery), and policies are highly
related to the body of knowledge. It has policies related to the operation processes, quality
system and capacity as well. It has planned in its policy to shift from 32- and 62-tons production
capacity to 120 tons producing factory plant and the policy for capacitating the employees for the
upgrading system.
Misgna Flour Factory in terms of its operation strategy matches with the body of knowledge and
it strives to:

• Improve Quality • Cost efficiency/minimization

• Maintain Flexibility • Service excellence

• Improve Delivery
It follows and focuses on current view rather than traditional view to formulate its strategies.
Operations strategy has a vertical relationship in hierarchy with business and corporate
strategies. Its operations strategy has a horizontally relationship with the other functional
strategies like marketing strategy.
“Global Corporation” use:
✓ World-wide facilities, ✓ Global Transportation capability
✓ Global Products, ✓ Global product/process design
✓ Global sourcing,
Misgan Flour Factroy operates only in Ethiopia and in 4 regional states. Therefore, it is
“traditional company” rather than “global company”.

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Misgana Flour Factory also uses market pull strategy that is it makes what it can sell by
attracting customers or market segments. Market Pull Strategy state that “We Make What We
Can Sell”. However, there is no new product design process for concept development, product
design and pilot product testing.
The factory also uses sequential approach rather than the concurrent approach for its product
design which implies the weakness of it because of the absence of market research. It does not
use modular design because it use sacks and threads from other factories and produces only
flour. In addition, we could not see any productivity measures for partial, multifactor and total
inputs used by the factory.
The customers of Misgan Flour Factory are classified into Make to Stock/MTS/ that is wheat
flour are manufactured and placed in stock before the customer’s order is received. It has no
need to produce modules ahead of time and assemble the modules in a particular combination
after the customer orders it. Therefore, it has no Assemble to Order/ATO/.
Consequently, the factory uses raw materials, processes them, stocks the finished flour in
warehouse and issues them for sale whenever the customer requests them. Thus, the information
flow of the factory takes two stages in Make to Stock.

4. Identify the strengths of the visited companies and areas (weaknesses) for improvement.

Strengths:
The factory is strong in terms of the its leadership, financial management, possessing adequate
equipped and motivated staff, using advanced technology for the production process.

1) Having well organized organizational structure and treating all the employees as a
family.
2) The factory uses its vehicle to distribute the product to its wholesalers and retailers
3) Timely accessing abundant wheat grain resources to ensure consistent production
process: Ethiopia in general and Hadiya Zone specifically has rich agricultural land
and diverse climates suitable for growing various grains like wheat and teff, the
primary sources for flour production. This availability of raw materials like wheat
presents an opportunity for sustained flour production.
4) The ability factory consistently producing flour to meet its target market demand.
The ability to use market segmentation to exploit the opportunity related to growing
population and demand. Meeting this demand presents a significant opportunity
for Misgana flour factory to expand its operations.
5) Motivating its employee by presenting flour during different celebrations and
encouraging the staff by incentives in cash and in kind 4 times in a year.

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 6) The factory’s capacity to produce quality flour product.
7) Supplying wheat flour to its customers through wholesalers and retailers channel of
distribution.
8) Attract different consumer segments by improving production processing
techniques, innovating in product development and supplying fortified flours.
9) The factory’s management ability to cope up with the challenges related to inflation
in the market.

By capitalizing on the opportunities and strengths, Misgan flour factory can strategically
position itself to achieve its objectives of sustained operations, increased market share,
and meeting the growing demand for flour-based products.

Weakness/Areas for Improvement/

The factory is weak in our perception and observation in the following aspects;
1) Absence of diversified products. Producing only wheat flour. The absence of diversified
products can limit consumer choice, hinder market competitiveness and potentially lead
to reduced innovation within factory.
2) Absence of well-educated employees in different organizational positions. The absence
of well-educated employees can impact the factory’s performance and growth. It may
lead to inefficiencies, reduced productivity, and limited capacity for innovation. Investing
in employee education and skill development is crucial for fostering a knowledgeable
workforce that can adapt the changes, contribute fresh ideas and drive the factory’s
success.
3) Inadequate skill and development training programs to its employees. An inadequate
training program can result in subpar employee performance, higher error rates, and
reduced job satisfaction. It may also lead to increased turnover as employees may feel
ill-equipped to handle their responsibilities. A well-designed training program is
essential for imparting necessary skills, boosting confidence, and ensuring employees are
equipped to excel in their roles.
4) Lack of technology advancements related to promoting its factory and factory products
to the community. It does not have website, and social media to communicate with
others. The lack of technology advancement can impede a company’s ability to remain
competitive in today’s fast-paced markets. It may lead to outdated communication
processes, decrease efficiency, and difficulty in meeting customer expectations.
5) Warehouse is not modernized, the flour product placed in where it is produced that
expose products to theft and damage
6) Absence of gender segregated bath rooms for employees to get shower after work hours.

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5. Describe the usage of different technologies/tools/concepts in practical operations
related to marketing, product/process design, quality control, manufacturing and
management.
In the practical operations of Ethiopian flour factories, various technologies, tools, and concepts
are employed across different areas such as marketing, product/process design, quality control,
manufacturing, and management. Here's an overview:
Marketing:
Digital Marketing Tools: Flour factories in Ethiopia may use digital marketing tools like social
media platforms, websites, and online advertising to reach a wider audience and promote their
products. However, Misgan Flour Factory does not use this technology to address its customers.
Customer Relationship Management (CRM) Systems: CRM systems help in managing
customer interactions and data, allowing for more personalized marketing strategies and
improved customer engagement.
Product/Process Design:
Computer-Aided Design (CAD): CAD software aids in designing and optimizing the layout of
manufacturing facilities and equipment, enhancing the efficiency of the production process. The
factory under visit used its facilities and equipment layout based on the external professional
support.
Simulation Tools: Simulation tools can be utilized for testing and optimizing various production
scenarios, enabling informed decisions in product and process design.
Quality Control:
Quality Management Systems (QMS): QMS software helps in monitoring and managing the
quality of products throughout the production process, ensuring adherence to standards and
specifications. The factory has no such system but the quality is checked by external body.
Statistical Process Control (SPC): SPC tools are employed to monitor and control the
production process statistically, helping to identify and address variations that may impact
quality.
Manufacturing:
Automation and Robotics: Automated systems and robotics can be used in manufacturing
processes, improving efficiency, reducing errors, and increasing production speed. However,
Misgan Flour Factory does not use robotics. It uses the automated mill plant for manufacturing.

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Enterprise Resource Planning (ERP): ERP systems integrate various aspects of
manufacturing, including inventory management, order processing, and production planning,
providing a centralized platform for efficient operations. The factory has no ERP.
Sensors and IoT Devices: Internet of Things (IoT) devices and sensors can be deployed to
monitor equipment performance, track inventory levels, and ensure optimal conditions in the
production environment. Misgna Flour factory 2 switch boards work as sensor for monitoring
its plants performance.
Management:
Supply Chain Management (SCM) Systems: SCM systems help in optimizing the supply
chain by managing inventory, logistics, and distribution, improving overall efficiency. Misgana
Flour Factory uses its vehicles to distribute the product to its wholesalers, retailers and
consumers. In addition, it uses its fleet management for collecting wheat from famers and
sellers.
Data Analytics: Utilizing data analytics tools enables management to gain insights into
performance metrics, market trends, and customer behavior, facilitating data-driven decision-
making.
Human Resource Management Systems (HRMS): HRMS tools assist in managing
workforce-related tasks, such as payroll, employee scheduling, and performance evaluations.

It's important to note that the adoption of these technologies may vary among different flour
factories based on their size, budget, and specific operational requirements. Continuous
investment in technology and a commitment to staying abreast of industry advancements can
contribute to the overall competitiveness and efficiency of Ethiopian flour factories.

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Wheat Flour Processing Technology Design

The wheat milling process is a series of steps that transforms wheat grains into flour, providing
a vital ingredient used in a wide range of food products. This process involves:
a) Wheat grains cleaning
b) Wheat conditioning for optimal milling
c) Wheat milling into flour
d) Wheat flour purifying to remove impurities and
e) Wheat Flour Packing

Wheat Cleaning and Conditioning Process

The first step in the complete wheat milling process is the wheat cleaning stage. Wheat grains go
through various grain cleaning equipment, such as vibrating screens, magnetic separators, and
grain cleaners, to remove any unwanted materials such as stones, dirt, and other foreign
substances. This ensures that the wheat is pure and free from impurities.

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After cleaning, the wheat grains undergo conditioning, where water is added to adjust the
moisture content and temperature. Conditioning makes the grains more suitable for milling and
improves the quality of the resulting flour. It involves allowing the wheat grains to rest for a
specific period, which can enhance the milling process and improve the flour yield.
Wheat Milling Process
In the wheat milling processing step, the conditioned wheat grains would be milled to produce
flour. The wheat grains are broken into smaller particles, separating the endosperm (starchy
part), bran (outer layer), and germ (nutrient-rich part) in this processing step, where the
endosperm is ground into flour to minimize the other parts.

Wheat flour milling process

This step involves grinding the wheat using specialized equipment like roller mills, hammer
mills, or stone mills. At present, the most commonly used flour production equipment in the
wheat flour industry is the roller mill. Different wheat processing steps techniques can yield
various types of flour, including whole wheat flour, white flour, or specialty flours.
Flour Sifting and Purification Process
Following the wheat milling process stage, the flour goes through sifting and purification
processes. Through the processing of bran mill, core mill, tail mill, cleaned wheat grains
becomes coarse flour. After that, the loose coarse wheat flour will enter high plansifter, and the
multi-layer lattices inside high plansifter with different allocation can flour into different sieving
paths, ultimately realize the purposes of grading and sieving of wheat flour.
Flour Packing Process
The basic flour that meets standards with different components and characters are mixed together
in certain proportion to make different grades of flour. Then the flour goes magnetic
separation to get rid of magnetic substances, and directly be delivered to flour packing
machine for weighing and hand packing. The packaged flour is then ready to be shipped and
used in various food products, such as bread, pasta, cakes, and pastries.
It's worth noting that the wheat milling process can vary depending on factors such as
the desired flour quality, milling technology, and specific equipment used. Advanced milling
systems may incorporate additional steps like tempering, or specialized purification processes to
further enhance flour quality and meet specific market demands.

Equipment Used in Each Step of the Wheat Milling Process

The following is a list of some basic wheat flour processing machines used in the Misgana Flour
Factory for wheat milling process in each of the process design steps.

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 No. Process Equipment Name Instructions

Remove large impurities and foreign

Vibrating screen
materials

Remove magnetic impurities such as

1 Magnetic separator
Wheat Cleaning Equipment iron or steel particles

Remove smaller impurities like dirt,

Grain cleaner
stones, or broken grains
Add water to adjust the moisture
content and temperature of the
Wheat Conditioning
2 Conditioner wheat grains (tempering bins,
Equipment
conditioning silos, or water addition
systems)
Use a series of rollers to break wheat
Flour Roller Mill Machine grains and separate various
components
Equipment with perforated screens
3 Sifters or sieves used to separate different particle
Wheat Milling Equipment
sizes of flour
Remove bran particles and other
Purifier impurities through a combination of
filtering and air aspiration

Automatic Flour packing Pack the flour into bags of various

4 Flour Packaging Equipment
machine sizes

A specialized Warehouse designed

5 Other Store
to store and handle flour

Wheat grain cleaning plan, conditioner, and purifier in addition to others mainly contribute to the
quality of flour product in Misgan Flour Factory. They contribute in:

a) Screening (different size): Remove impurities which are larger or smaller than wheat or
other grain by sieving machine.
b) Air Separation (different floating velocity in air flow): Remove light impurities by air
separator.

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 c) Gravity Grading (different specific gravity): Remove the inorganic impurity (stones and
mud) having similar size but different specific gravity by specific-gravity stoner.
d) Magnetic Separation (Different magnetism): Remove magnetic metals by magnetic
selector.
e) Fine Selecting (different shapes): Remove round impurities which are shorter or longer
than wheat by foreign seeds extractor.
f) Impacting (different strength): Crush the impurities with lower strength than wheat
by wheat scourer, thus screen out these impurities.
g) Optical Analysis (different color): Remove impurities having different color with wheat
by color selector.

6. Challenges/Limitations Encountered on Visits

• Repeated attempt to get permission to visit the factory

• Changes in visit schedule by the factory management
• The functional managers are held busy by their business and allowed shortage of
time to respond the questions.
• Sound pollution of the mills during operation which require to speak loudly

7. Conclusions and recommendations

Communication, and visit to the factory made us integrate the theoretical learnings with what is
going on in the Misgana Flour Factory. The assignment assisted us to investigate the relationship
among operation department, finance, marketing and other departments; to see strategic
importance of the integration of operation department for the success and competitiveness of the
factory; to know how the operation manager discharges its responsibility to create the desired
wheat flour with the lowest possible cost(efficiency), with the highest possible value to the
customer (customer satisfaction), to get the highest profit for its factory. In addition, it assisted us
to observe the participation of departments and information flow for decision-making processes
about the quality, quantity, inventory, capacity and workforce of their factory. We thank the
facilitators for the visit and would like to forward the following recommendations:
• The factory should work more to ensure the continuity of its strengths.
• The factory should work to convert or reverse its all weaknesses
• It should develop its own websites to contact the existing and potential customers

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• It should strive for better distinctive competences and better innovation by reversing the
absence of diversified products. The absence of diversified products can limit consumer
choice, hinder market competitiveness and potentially lead to reduced innovation within
factory.
• We recommend the factory to conduct market research and develop better strategies for
its better competitiveness.
• It should plan and use Enterprise Resource Planning (ERP) and Quality Management
Systems (QMS) software
• The factory should work to advance its warehouse management and inventory control
• We advise the factory to conduct productivity measures quarterly and periodically to take
corrective actions.

We Thank You!

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