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Modeling an Efficient Cold Chain for Ice Cream Manufacturing in Papua New Guinea Benedict C. Tarala School of Graduate Studies Mapua University, Intramuros, Manila, Philippines [email protected] Josephine D. German School of Industrial Engineering and Engineering Management Mapua University, Intramuros, Manila, Philippines [email protected] Abstract The cold chain is of critical importance in sustaining the ice cream quality from manufacturing to retail freezers. A high performing cold chain in a country has been demonstrated to have lower post-harvest losses. Papua New Guinea (PNG) rated poor on its cold chain situation including local frozen and chilled products and this study considered one of the most trusted ice cream manufacturing companies in PNG with an average market share of 80%. The study focused on the current cold chain system of an ice cream manufacturer situated in PNG and analyze its cold chain efficiency using various analysis and design tools such as strengths, weaknesses, opportunities, and threats (SWOT) analysis, value engineering, systems analysis and design, and total quality management. The study showed that strong internal and external maintenance strategies, real-time temperature logging of manufacturing plant and storage freezing, and senior management support in cold chain initiatives are the strong points of the ice cream manufacturer. Energy usage reduction by 22%, energy sub-metering, and preventive action plans for retail freezing breakdowns were the improvement points for the company. The study also indicated the technical requirements for real-time data monitoring for retail container freezers which complimented the business requirements from the manufacturer’s senior management. Keywords cold chain, ice cream, supply chain, Papua New Guinea, efficient cold chain model 1. Introduction Dairy desserts are one of the worldwide consumed products which are primarily produced from milk. Frozen dairy desserts are characterized by containing milk solids which may or may not include milk fat, being consumed in the frozen state, and are frequently also aerated (Goff & Hartel, 2013). Freezing prevents food from spoiling because spoilage agents, including bacteria, yeasts, and molds, cease functioning at temperatures below approximately 14°F or -10°C (World Frozen Logistics Organization, 2008). Goff & Hartel (2013) also emphasized that within the frozen dairy dessert category, ice cream is the most widely consumed product, which varies globally due to differing regulations and traditions of composition. Ice cream products are recommended to be stored at a temperature of -27°C or lower (Australian Alliance for Energy Productivity, 2017). They also advised that textural defects arise when storage freezer temperatures fluctuate, which happens when the product warms during movement between freezers since prolonged warming causes loss of air and settling of sugar syrup. Furthermore, ice crystals grow with each temperature fluctuation until noticeable textual changes cause consumer complaints. It is therefore of critical importance to maintain temperature to ensure the quality of ice cream is also called a cold chain. The cold chain refers to the management of the temperature of perishable products to maintain quality and safety from manufacturing through the distribution chain to the final consumer (Yeoh, 2017). In manufacturing, as shown in Figure Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021 © IEOM Society International 418
Transcript
Page 1: Modeling an Efficient Cold Chain for Ice Cream ...

Modeling an Efficient Cold Chain for Ice Cream Manufacturing in Papua New Guinea

Benedict C. Tarala

School of Graduate Studies Mapua University, Intramuros, Manila, Philippines

[email protected]

Josephine D. German School of Industrial Engineering and Engineering Management

Mapua University, Intramuros, Manila, Philippines [email protected]

Abstract

The cold chain is of critical importance in sustaining the ice cream quality from manufacturing to retail freezers. A high performing cold chain in a country has been demonstrated to have lower post-harvest losses. Papua New Guinea (PNG) rated poor on its cold chain situation including local frozen and chilled products and this study considered one of the most trusted ice cream manufacturing companies in PNG with an average market share of 80%. The study focused on the current cold chain system of an ice cream manufacturer situated in PNG and analyze its cold chain efficiency using various analysis and design tools such as strengths, weaknesses, opportunities, and threats (SWOT) analysis, value engineering, systems analysis and design, and total quality management. The study showed that strong internal and external maintenance strategies, real-time temperature logging of manufacturing plant and storage freezing, and senior management support in cold chain initiatives are the strong points of the ice cream manufacturer. Energy usage reduction by 22%, energy sub-metering, and preventive action plans for retail freezing breakdowns were the improvement points for the company. The study also indicated the technical requirements for real-time data monitoring for retail container freezers which complimented the business requirements from the manufacturer’s senior management. Keywords cold chain, ice cream, supply chain, Papua New Guinea, efficient cold chain model 1. Introduction Dairy desserts are one of the worldwide consumed products which are primarily produced from milk. Frozen dairy desserts are characterized by containing milk solids which may or may not include milk fat, being consumed in the frozen state, and are frequently also aerated (Goff & Hartel, 2013). Freezing prevents food from spoiling because spoilage agents, including bacteria, yeasts, and molds, cease functioning at temperatures below approximately 14°F or -10°C (World Frozen Logistics Organization, 2008). Goff & Hartel (2013) also emphasized that within the frozen dairy dessert category, ice cream is the most widely consumed product, which varies globally due to differing regulations and traditions of composition. Ice cream products are recommended to be stored at a temperature of -27°C or lower (Australian Alliance for Energy Productivity, 2017). They also advised that textural defects arise when storage freezer temperatures fluctuate, which happens when the product warms during movement between freezers since prolonged warming causes loss of air and settling of sugar syrup. Furthermore, ice crystals grow with each temperature fluctuation until noticeable textual changes cause consumer complaints. It is therefore of critical importance to maintain temperature to ensure the quality of ice cream is also called a cold chain. The cold chain refers to the management of the temperature of perishable products to maintain quality and safety from manufacturing through the distribution chain to the final consumer (Yeoh, 2017). In manufacturing, as shown in Figure

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 418

Page 2: Modeling an Efficient Cold Chain for Ice Cream ...

1, it is required to process the ice cream products at -5°C. These products are blast frozen to a temperature of −25 to −30 °C (Geoff & Hartel, 2013). Finally, after blast freezing, the ice cream product is typically stored at -27 °C or lower. Once ice cream leaves the storage freezer in the manufacturing plant, it typically goes through a shipping and handling system designed to deliver the product to the consumer with the highest possible quality (Geoff & Hartel, 2013). Approximate times and storage temperatures during shipping and handling of ice cream are shown in Figure 1 which is adapted from Keeney (1992) and Ben-Yoseph and Hartel (1998). .

Figure 1. The Ice Cream Supply Chain

One of the general and common issues on the cold chain in developing economies is the financial burden for the cold chain infrastructure (Asia-Pacific Economic Cooperation, 2014). The organization advised that the unit cost of the food and processed food is so lower than the manufacturing goods that companies in this field cannot invest the infrastructures much. Besides, cold chain management requires local staff to have the high-level know-how of operation compared to dry logistics. This study focused on identifying the key factors affecting the efficiency of cold chain processes and determined the efficiency of the current cold chain system of an ice cream manufacturer situated in Papua New Guinea (PNG). The study has also optimized the ratio of electricity usage per production output to improve the efficiency of the refrigeration system of the subject company. The International Institute of Refrigeration (2009) demonstrated that greater amounts of refrigeration equipment and a high-performance cold chain in a country equate with lower post-harvest losses. Most of the post-harvest losses around the world were due to lack of refrigeration during production, storage, and distribution, with developing countries causing 23% of the losses. The domestic PNG market has a growing aspirational middle class that has an increasing appetite for sweet food products and is driving demand for value-added and packaged food products. Further, initial estimates of PNG’s per capita consumption of ice cream is currently under one (1) liter per annum. Neighboring pacific communities, including Fiji, are estimated at around 8-10 liters per capita per annum and more affluent local economies including Australia and New Zealand are estimated at between 20-25 Litres per capita per annum. The Asia-Pacific Economic Cooperation (2014) described PNG as “poor” in the cold chain situation in each product which included frozen and chilled products. PNG has a tropical climate, with the coastal plains averaging a temperature of 28°C, the inland and mountain areas averaging 26°C, and the higher mountain regions, 23°C. The area's relative humidity is quite high and ranges between 70% and 90%. 2. Review of Literatures Most of the articles and studies focused on each cold chain process which is storage, transportation and distribution, and retail freezing. Yuen’s (2017) article emphasize the evaluation criteria of an effective cold chain warehousing. Both Montanari (2008) and Ting (2013) evaluated the use of RFID temperature monitoring systems for transportation and distribution of frozen products. Likar and Jevsnik (2006) found that food safety awareness is rising and the maintenance of retail freezing equipment is very important in maintaining freezing temperatures. Salin and Nayga Jr. (2002) and James (2010) elaborated on the external factors affecting the efficiency of the cold chain which are public infrastructures and climate. The literature shows a lack of recent study and end-to-end evaluation of cold chain efficiency of the ice cream industry focusing on developing countries such as Papua New Guinea. This opens an opportunity to conduct a study on recent methodologies, technologies, and scientific evaluations to ensure an efficient, reliable, and non-breaking ice cream cold chain.

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 419

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3. Methodology The subject of this study is one of the largest ice cream manufacturers in PNG offering a full range of products under the iconic Gala ice cream brand enjoys a dominant market share position in most segments of the Ice Cream market with an average market share of 80%. The following data were collected from the ice cream company’s database for further analysis and review; (a) manufacturing plant’s electricity usage; (b) major manufacturing plant equipment; (c) ice cream’s cold chain temperature requirements; (d) ice cream company’s cold chain breakdown occurrences. also, a brainstorming meeting with the cold chain support team of the company composed of an engineering supervisor, a maintenance planner, and four (4) refrigeration mechanic was conducted to gather information on cold chain operations, issues, and challenges. Quality Systems Management tools such as strengths, weaknesses, opportunities, and threats (SWOT) analysis, Failure Mode and Effect Analysis (FMEA), and Fault Tree Analysis (FTA) were used to identify the factors affecting the efficiency of cold chain operations and provide solutions for cold chain breakdown. A Quality Function Deployment (QFD) diagram was also created to convert the requirements from product solutions improving the ice cream cold chain management while value engineering analysis was utilized to determine the unimportant energy usage and inefficiency of the manufacturing plant. The proposed energy usage reporting was presented using information systems analysis and design tools such as process maps and flowcharts. 4. Results and Discussions 4.1 Results 4.1.1 The High-level Cold Chain Process Flow The ice cream company handled the supply chain of its ice cream products which include manufacturing, cold storage, transfers through refrigerated containers, and retail display freezers installed in each retailer, shown in Figure 2.

Ice Cream Company’s High Level Manufacturing and Cold Chain Process

SALE

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Raw Materials Ordering from

Local and Overseas

[Procurement Group]

Handling and Storage of Raw

Materials in Manufacturing Plant [Logistics

Group]

Scheduling of Production Run as required by Sales Forecast [Planning

Group]

Milk Mixing Process

[Production Group]

Ammonia Refrigeration

Cooling [Operated by Engineering

Group]

Milk Ageing Process

[Production Group]

Ice Cream Filling & Packaging

Process [Production

Group]

Ice Cream Blast Freezing Process

[Production Group]

Ice Cream Storage Freezing [Logistics Group]

Loading of Ice Cream to

refrigerated Containers

[Logistics Group]

Ice Cream Finished Goods

Movement to other regions [Logistics

Group through 3PL]

Receiving of ice cream product at customers end [SALES Group]

Transfer of ice cream product to customer owned freezer [SALES

Group]

Transfer of ice cream product to

LAGA Owned Refrigerated

Container [SALES Group]

Storing ice cream products to LAGA

Owned display freezers [SALES

Group]

Engineering Plant Maintenance and

Repair [Engineering

Group]

1 2 3 4

56

7

8

9

10

Equipment involved on each Cold Chain Process1. Liquivator, Pasteurizer and mixing tanks which requires cooling2. Ageing Tanks and pumps which requires cooling3. Ice Cream Churns, Ice Cream Rotary Fillers and Ice Cream Stick mould which requires cooling4. Tray Tunnel Freezer which requires cooling5. Ammonia Cooled Evaporator for storage freezers with drive thru racking6-8. 3PL refrigerated containers9. Laga Owned 20ft Refrigerated Container uses freon refrigerant10. Laga Owned display retail freezers uses freon or hydrocarbon refrigerants

Figure 2. High-level Cold Chain Process Flow of the Ice Cream Company The ice cream company has a manufacturing plant & storage freezer situated in Lae, Morobe Province. The manufacturing plant uses local and imported raw materials to produce ice cream. The ice cream production includes processing stations, aging stations for pasteurized milk, ice cream filling machines, and the blast freezer tunnel. The ice cream production equipment uses: (a) -38°C brine for stick production; (b) -37°C ammonia for blast freezing; (c) -24°C ammonia for storage freezing; (d) -20°C ammonia for ice cream filling; (e) -12°C ammonia for palletizing; (f)

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 420

Page 4: Modeling an Efficient Cold Chain for Ice Cream ...

-5°C glycol for pasteurization; (g) 4°C chilled water for pasteurization. The Lae refrigeration plant for manufacturing consists of ammonia compressors, condensing coils, and evaporators with a total electricity requirement of 650kW. The ice cream company’s manufacturing plant and products are certified by HACCP. The certification requires a series of control temperatures based on HACCP Standards. Blast Freezing and Storage Freezing temperatures are monitored through SCADA (Supervisory Control and Data Acquisition) computer with temperature graph and data logging. Refrigerated containers, retail freezers, and storage containers are monitored manually through temperature gauges installed in the equipment. The company has a hub for ice cream storage freezers located in Lae, Morobe Province, and Port Moresby (POM), National Capital District. The ice cream storage freezer for Lae and POM site handles 352 and 132 pallet spaces, respectively. The POM warehouse receives finished goods from Lae warehouse and stored it in the ice cream storage freezer which uses an ammonia evaporator coil. The POM ammonia refrigeration plant for ice cream storage freezer consists of ammonia compressors, condensing coils, and evaporators with a total electricity requirement of approximately 50kW. The manufacturing site in Lae requires additional pallet space to sustain a 2 to 3 weeks stock on hand. The additional pallet space is currently covered by ten (10) units of 20ft refrigerated containers which can hold ten (10) pallet space each. The refrigerated containers require a total of 150kW of electricity load. The ice cream company uses third party logistics (3PL) to transport the ice cream finished goods to different parts of PNG. The finished goods are transferred using 20ft refrigerated containers running at -20°C for K 20,000 per container shipment of 10-15 occurrences per month. The insured refrigerated containers are run by external power from the generator set whilst traveling on-road or at sea and manually monitored. The 3PL service provider submits temperature reading reports of transported containers to the ice cream company’s logistics department. Various modes of transportation from the manufacturing plant to the distribution facilities in POM and Provincial Sales Offices are also utilized. The ice cream company owned thirty-five (35) 20ft refrigerated containers and 1,789 retail freezers installed to different customers on each outstation across PNG. The company’s sales department arranges agreements to fit the 20ft refrigerated containers into the customer's yard. The customers are required to store ice cream finished goods in the refrigerated container at -20°C and sell to small, medium, and large retail stores. The customers are selling the ice cream products using the ice cream company’s owned display freezers with a temperature at -20°C. 4.1.2 Ice Cream Cold Chain Energy Usage The ice cream company uses town electricity to run the ice cream manufacturing plant, storage freezers, and refrigeration plant. The town electricity (PNG Power) is not reliable as frequent power blackouts occur two (2) to three (3) times in a week. There is a diesel-powered generator set capable of running the manufacturing plant, storage freezers, and refrigeration plants simultaneously. The energy usage of the cold chain is consists of town electricity usage and diesel usage of the backup power generator set. The usage is captured manually from the totalizer PNG power meter daily. There is no totalizer meter reading separating the energy usages of manufacturing plants (ice cream, beverages, and dry goods) and refrigeration plants. The senior management set a rule of thumb of 75% of plant energy usage allocated to ice cream and refrigeration plants. The ice cream finished goods produced as well as the energy cost per carton in the last two (2) years were collected to compute for the target energy cost per cartons produced using Equation 1. This yielded a value of 4.10 Kina per case.

𝐸𝐸𝐸𝐸 = (𝑈𝑈𝑈𝑈 𝑥𝑥 𝐶𝐶𝑈𝑈)+(𝑈𝑈𝑈𝑈 𝑥𝑥 𝐶𝐶𝑈𝑈)𝑄𝑄𝑄𝑄

,𝐾𝐾𝐾𝐾𝐾𝐾𝐾𝐾 𝑝𝑝𝑝𝑝𝑝𝑝 𝑐𝑐𝐾𝐾𝑝𝑝𝑐𝑐𝑐𝑐𝐾𝐾 (1) where 𝐸𝐸𝐸𝐸, Energy cost per cartons produced, Kina per carton

𝑈𝑈𝑝𝑝, Plant Electricity usage of the month x 75%, in kWh 𝐶𝐶𝑝𝑝, Cost of Electricity, 0.6333 Kina per kWh 𝑈𝑈𝑈𝑈, Plant Power Generator Diesel usage of the month x 75%, in liters 𝐶𝐶𝑈𝑈, Cost of Diesel, 2.81 Kina per liters 𝑄𝑄𝐸𝐸, Ice Cream Finished Goods produced, in cartons

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 421

Page 5: Modeling an Efficient Cold Chain for Ice Cream ...

4.1.3 Current Cold Chain Maintenance Strategy The ice cream manufacturing plant’s Engineering Department is managing the maintenance of cold chain equipment in the manufacturing plant, freezer storage facilities, and freezers in outstations. Table 1 shows the Cold Chain Maintenance Strategy of the ice cream company.

Table 1. Cold Chain Maintenance Strategy of the Ice Cream Company

Maintenance Description Strategy Manufacturing – Day-to-day check and inspection Internal Labor Manufacturing – Minor repair and troubleshooting Internal Labor Manufacturing – Minor Preventive Maintenance Tasks Internal Labor Manufacturing – Major Maintenance and Overhauling External Contractor Storage Freezing – Day-to-day check and inspection Internal Labor Storage Freezing – Minor repair and troubleshooting Internal Labor Storage Freezing – Minor Preventive Maintenance Tasks Internal Labor Storage Freezing – Major Maintenance and Overhauling External Contractor Transportation & Distribution Monitoring & Maintenance 3PL Retail Freezing – Temperature Monitoring Customer Retail Freezing – Maintenance Internal Labor

4.1.4 Cold Chain Breakdown Maintenance The breakdown maintenance of cold chain equipment is reported through the Computerized Maintenance Management System (CMMS) – PRONTO. The CMMS – PRONTO used by the engineering supervisor and maintenance planner captures the breakdown maintenance for the cold chain. Manufacturing breakdown includes ammonia refrigeration plant equipment and ice cream plant equipment. Storage freezing breakdown includes Lae and POM Storage freezers. The distribution breakdown includes refrigerated containers for transportation. Retail freezing breakdown includes refrigerated containers and retail freezers in customers. Data in the last two (2) years showed that retail freezing had the highest breakdown maintenance. 4.2 Discussion The number of breakdown maintenance that occurred in the ice cream cold chain illustrated an increasing pattern. Using the Pareto chart to identify which of the products or processes fail more often (Kiran, 2017), the lack of cooling breakdown for display freezers and refrigerated containers contributed 78% of retail freezing breakdown maintenance. The fault tree analysis shown in Figure 3 was used to identify the probable causes of the frequent cooling breakdown.

Figure 3. Fault Tree Analysis of Display Freezer Lack of Cooling Issue The FMEA, a tool to detect possible errors and defects at an early stage parallel to development and planning and to prevent their occurrence in products and processes (Dietz, 2015), was created to identify the possible causes and risks of retail freezing breakdown. In the FMEA, the severity of the potential effects was rated based on the impact of damages to refrigerated containers or stored finished goods. The possibility of the potential effects was rated based on the possible occurrence of the failure per refrigerated container running hours. The detectability of the failures was rated based on the likelihood to detect the issue(s) before failure occurs using the current design controls. The potential

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 422

Page 6: Modeling an Efficient Cold Chain for Ice Cream ...

causes with the highest Risk Priority Number (RPN) were: (a) Power supply issue at customers end including under or low voltage power supply and wrong power supply connections and design; (b) Customers are not fully committed to monitoring the container critical parameters; (c) Customers are allowing unauthorized repair of container which only requires the Refrigeration team to do the maintenance; (d) Normal wear and tear of filter drier. The action plans required to be prioritized were: (a) Implementation of Customer Location Assessment before the installation of retail refrigerated containers; (b) Implementation of nationwide refrigerated container data monitoring and logging; (c) Update the Freezer Agreement Form to impose customer penalty for the tampered refrigerated container (legal counsel to be involved); and (d) Preventive Maintenance to directly replace the filter drier every year. The study also provided a design for refrigerated container real-time monitoring requested by the ice cream company’s management. The real-time monitoring proposed to be installed as a data logger with automatic alarm notification via SMS or email. The alarm notification will guide the cold chain maintenance to prevent product wastage in case of cooling issue arises or the container breaks down. The study noted the cost of one full container of ice cream finished goods at K 100,000. The use of a quality function deployment (QFD) diagram enables the design phase of a project to focus on key customer requirements. Figure 4 shows the proposed improvement that defines pro-activeness in maintenance breakdowns and competitive pricing as the priorities of the stakeholders, while real-time readings, alarm notification, and standard components are the priorities in technical specifications.

Figure 4. QFD Diagram of the Proposed Refrigerated Real-Time Monitoring System

Milgram (1999) recommended SWOT analysis as a useful way to characterize an organization’s overall strategic situation. The SWOT analysis is based on the collected data and insights from external contributors of the ice cream company’s cold chain management. The strengths of the ice cream company’s cold chain system include real-time data monitoring of process cooling and storage freezers, strong maintenance strategy of manufacturing plant and storage freezing equipment, and support of the senior management for cold chain initiatives while the weaknesses include lack of electricity meter readings, high breakdown maintenance on retail freezing and manual temperature reading of ice cream company retail freezers in customers end. For the opportunities, the technology of real-time monitoring for retail freezing containers situated in customer and Papua New Guinea shifting to reliable natural refrigerants will improve the service level of cold chain management. Finally, some of the threats listed are the lack of technical support for cold chain maintenance, lack of transportation infrastructure in Papua New Guinea, and pandemic issues affecting external contractors to do maintenance and improvement. The calculated average energy cost per carton for the last two (2) years computed as K 4.43 per carton meant that there is a high energy cost during low production months. The high energy cost was from major manufacturing plant equipment with huge motor ratings. Kiran (2020) defines value analysis as a systematic approach in identifying the

PRIORITY

TOTAL

% TOTAL

Competitive price 18% 270 17%

Real time data 15% 240 15%

Accurate readings 18% 180 11%

Alarm notif ication 15% 240 15%

Robust components 16% 144 9%

Proactiveness in breakdow n 18% 540 33%

TECHNICAL DESCRIPTORS

PRIORITIZED TECHNICAL DESCRIPTORS

PRIO

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Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 423

Page 7: Modeling an Efficient Cold Chain for Ice Cream ...

functions of a product or process and to provide the desired function at the lowest minimal cost. Table 2 shows the functional analysis of the major manufacturing plant equipment with A.C. motor ratings of more than 25kW, located primarily in the ammonia refrigeration plant. The ammonia refrigeration plant equipment has motors that are rated from 25kW to 220kW. The ammonia refrigeration plant equipment functional analysis includes the functions and its classification. The most basic classification is send cooling which is the main function of refrigeration equipment while the second classification was received constant load which is a function of the drive motor to refrigeration compressor. The constant load received by a refrigeration compressor from the induction motor means the motor is running at 100% capacity even during the low cooling demand. The constant induction motor capacity is due to the installed soft starter or direct drive. Table 2. Functional Analysis of major manufacturing plant equipment with A.C. motor ratings of more than 25kW

Equipment No

Equipment Description

Motor Rating (kW)

Function

Classification (B)asic,

(S)econdary

1 MYCOM Ammonia Screw Compressor 1 (Soft Starter equipped) – LAE

220 (1) SEND COOLING to blast freezer & storage freezer (2) RECEIVE CONSTANT LOAD from induction motor (3) SEND HEAT LOAD to condensing coils

Basic Secondary Secondary

2 SABROE Ammonia Piston Compressor 1 (Soft Starter equipped) – LAE

75 (1) SEND COOLING to blast freezer & storage freezer (2) RECEIVE CONSTANT LOAD from induction motor (3) SEND HEAT LOAD to 2nd Stage Refrigeration

Basic Secondary Secondary

3 SABROE Ammonia Piston Compressor 2 (Soft Starter equipped) – LAE

150 (1) SEND COOLING to secondary refrigerant glycol for milk pasteurization (2) RECEIVE CONSTANT LOAD from induction motor (3) RECEIVE HEAT from SABROE Compressor 1 (4) SEND HEAT LOAD to condensing coils

Basic Secondary Basic Secondary

4 MYCOM Ammonia Screw Compressor 2 (Variable Speed Drive) – LAE

25 (1) SEND COOLING to secondary refrigerant brine for stick ice cream (2) RECEIVE VARIABLE LOAD from induction motor (3) SEND HEAT LOAD to 2nd Stage Refrigeration

Basic Secondary Secondary

5 MYCOM Piston Screw Compressor (Variable Speed Drive) – LAE

75 (1) SEND COOLING to secondary refrigerant chilled water for milk pasteurization (2) RECEIVE BRAKE LOAD from induction motor (3) SEND HEAT LOAD to plate heat exchanger cooler

Basic Secondary Secondary

6 Condensing Coil System, 3 units (Direct drive) – LAE

30 (1) REMOVE HEAT from ammonia refrigerant (2) RECEIVE CONSTANT LOAD from induction motor (3) SEND HEAT LOAD to the environment

Basic Secondary Secondary

7 Blast Freezer Evaporator Fan Coil Motor, 3 units (Variable Speed Drive) - LAE

45 (1) FREEZE PRODUCT down to a core temperature of -18°C (2) BLOW COLD AIR to ice cream product (3) RECEIVE VARIABLE LOAD from induction motor

Basic Basic Secondary

8 Freezer Storage Evaporator Fan Coil Motor, 15 units (Direct drive) – LAE

33 (1) BLOW COLD AIR to ice cream finished goods (2) MAINTAIN COOLING to ice cream finished goods (3) RECEIVE CONSTANT LOAD from induction motor

Basic Basic Secondary

9 SABROE Ammonia Piston Compressor 1 (Direct Drive) – PORT MORESBY

25 (1) SEND COOLING to blast freezer & storage freezer (2) RECEIVE CONSTANT LOAD from induction motor (3) SEND HEAT LOAD to condensing coil

Basic Secondary Secondary

10 SABROE Ammonia Piston Compressor 2 (Direct Drive) – PORT MORESBY

25 (1) SEND COOLING to blast freezer & storage freezer (2) RECEIVE CONSTANT LOAD from induction motor (3) SEND HEAT LOAD to condensing coil

Basic Secondary Secondary

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 424

Page 8: Modeling an Efficient Cold Chain for Ice Cream ...

The major A.C. motors are driven by direct drives, soft starter drive, or variable frequency drive. Hughes & Drury (2013) specify soft starter drives as an application of reducing the starting current and/or controlling the starting torque only. Shakweh (2011) defines variable speed drives benefits on optimizing the process, investment cost reduction, energy consumption, and energy cost. Tassou & Ge (2008) mentioned that regardless of the type of compressor employed, energy savings are achievable through better matching of the compressor capacity to the load by variable speed control. The energy conservation of A.C. motors can be achieved by matching the compressor capacity to load the utilization of motors using either a soft starter or direct drive. Using Equation 2, the Potential Energy Savings (PES) was computed as 165kW while Equation 3 was used to compute for the Annual Potential Energy Savings (AS).

𝑃𝑃𝐸𝐸𝑃𝑃 = 𝑀𝑀 𝑥𝑥 (1 − 𝑈𝑈) (2) Where, 𝑃𝑃𝐸𝐸𝑃𝑃, Potential Energy Savings in kW 𝑀𝑀, Motor Rating in kW 𝑈𝑈, Machine Utilization in %

𝐴𝐴𝑃𝑃 = 𝑃𝑃𝐸𝐸𝑃𝑃 𝑥𝑥 𝐸𝐸𝐸𝐸 𝑥𝑥 𝑇𝑇 (3) Where 𝐴𝐴𝑃𝑃, Annual Energy Savings Cost in Kina per year 𝑃𝑃𝐸𝐸𝑃𝑃, Potential Energy Savings in kW 𝐸𝐸𝐸𝐸, Electricity rate at K 0.633 per kWh 𝑇𝑇, operating hours per year in hours (24 hours per day x 365 days per year) To identify the potential rate of return of the energy-saving investment projects, the Payback (P) formula in Equation 4 was applied.

𝑃𝑃 = ∑( 𝐼𝐼𝐶𝐶𝐴𝐴𝐴𝐴

) (4) Where 𝑃𝑃, the Payback period in years 𝐼𝐼𝐶𝐶, Investment Cost in Kina 𝐴𝐴𝑃𝑃, Annual Energy Savings Cost in Kina ‘000 The annual potential energy savings of K 915,000 for a K 0.633 per kWh, 24 hours, and 365 days of operation was computed. The total required investment cost of K 198,000 for VSD and harmonic filtration installation will generate a payback period of 0.21 years or 2.5 months. It was also found that there is a lack of sub-metering of energy uses in the ice cream company to provide energy uses for cold chain energy usage. Rao, Muller & Gunn (2017) cited sub-metering the energy consumption of each process in a manufacturing plant that can provide insight into energy efficiency and productivity. The ammonia refrigeration plant which supplies cooling to the ice cream plant and cooling to storage freezing as well as the refrigerated containers in the yard used as temporary storage for ice cream finished goods were proposed to have sub-meters in the coming years. Sieniutycz (2020) stated that systems design is the process of defining the architecture, modules, interfaces, and data for a system to satisfy specified requirements. The system design was used to identify the required information to satisfy the necessity of actual cold chain energy usage. A new energy metering reporting system was also proposed to capture all the necessary readings --- kWh, voltage, amperage, and power factor --- and convert it to stored data in SCADA. The stored data in SCADA would produce

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

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reports as required by the user. Figure 5 shows the process to be used in the proposed energy reporting system. The new system included three (3) main processes which are (a) Capturing Readings – this includes the extraction of real-time meter readings from the sub-meters and sending the readings to the SCADA computer; (b) Data Log – this includes the projection of real-time meter readings in the SCADA computer through graphs and storing the data; and (c) Reporting – this includes the end-user to input the required data to be extracted from the SCADA computer and submit the report to the end user’s email.

ENERGY METERING SYSTEMRe

portin

gDa

ta Lo

gCa

pturin

g Rea

dings

START

Refrigeration – Ice Cream Plant

Totalizer capture kWh reading

Refrigeration – Storage Freezer Totalizer capture

kWh reading

Refrigeration – Reefer Totalizer

capture kWh reading

Refrigeration – Ice Cream Plant Totalizer

send readings to SCADA

Refrigeration – Storage Freezer Totalizer send

readings to SCADA

Refrigeration – Reefer Totalizer send readings

to SCADA

PNG Power Main Totalizer capture

kWh reading

PNG Power Main Totalizer send readings

to SCADA

SCADA computer captures all readings

SCADA projects real time kWh

readings

Data stored in SCADA

Computer

User to input required data

SCADA to submit report as per user

requirement

Report stored in SCADA computer

END

Figure 5. Flowchart of the Proposed Cold Chain Energy Metering System of the Ice Cream Company 4. Conclusion Developing countries contribute 23% of global losses due to low-performance cold chain. Papua New Guinea was rated “poor” in the cold chain situation of frozen and chilled products. This study focused on evaluating the cold chain management efficiency of one of Papua New Guinea’s ice cream manufacturers. The study identified challenges in the ice cream manufacturers' current cold chain management such as high cost of electricity cost per cartons of ice cream, lack of energy metering devices, high breakdown occurrences from retail freezers, lack of effective monitoring on retail freezers temperature, and unauthorized repair of retail freezers by customer. Using various systems and analysis tools such as FMEA, QFD, functional analysis, and systems design, the manufacturer’s key processes and issues in operations were evaluated. Some of the the recommendations to improve the ice cream manufacturer’s cold chain efficiency are to invest on projects of variable speed drive motors, overhaul maintenance on retail freezers, implement a nationwide real-time temperature monitoring and data logging of retail freezers, incur credit on customer for breach on Freezer Agreement Form, implement customer location assessment, and install energy metering with data logging in manufacturing plant. The specific requirements to attain the efficient cold chain by the ice cream manufacturer include Real-time data monitoring of process cooling and storage freezers, Strong maintenance strategy of manufacturing plant & storage freezing equipment, Standardize energy metering with data logging to identify high energy consumption, Convert direct drive motors to variable speed drive to reduce energy consumption, Strengthen overhauling maintenance of retail freezers, Implement real-time temperature monitoring and data logging of retail freezers, Review freezer agreement form for a customer to have more accountability on retail freezers, and Implementation of customer location assessment before installation of retail freezers. Future researchers may also explore on the study of other food products utilizing the cold chain model. References Australian Alliance for Energy Productivity (2017). Food Cold Chain Optimization: Improving energy productivity

using real-time food condition monitoring through the chain (Australia). Retrieved from

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https://www.airah.org.au/Content_Files/Industryresearch/05-17-A2EP_Cold_Chain_Report.pdf Asia-Pacific Economic Cooperation (2014). High-Level Private Forum on Cold Chain to Strengthen Agriculture &

Food’s Global Value Chain (Japan). Retrieved from: https://www.apec.org/-/media/APEC/Publications/2016/2/Final-Project-Completion-Report-High-Level-PrivatePublic-Forum-on-Cold-Chain-to-Strengthen-Agricultu/Final_Project_Completion_Report_0121.pdf

Dietz, W. (2015). Failure Mode and Effects Analysis (FMEA). Re-Engineering Clinical Trials, 77–88. doi:10.1016/b978-0-12-420246-7.00008-6

Geoff, D., & Hartel, R. (2013). Ice Cream Seventh Edition. New York Hughes, A., & Drury, B. (2013). Motor/Drive Selection. Electric Motors and Drives, 349–364. doi:10.1016/b978-0-

08-098332-5.00011-5 International Institute of Refrigeration (2009). The Role of Refrigeration in Worldwide Nutrition (France) Retrieved

from http://www.iifiir.org/userfiles/file/publications/notes/NoteFood_05_EN.pdf Kiran, D. R. (2017). Seven Traditional Tools of TQM. Total Quality Management, 271–290. doi:10.1016/b978-0-12-

811035-5.00020-9 Kiran, D. R. (2017). The Seven Modern Tools of TQM. Total Quality Management, 291–311. doi:10.1016/b978-0-12-

811035-5.00021-0 Kiran, D. R. (2017). Quality Function Deployment. Total Quality Management, 425–437. doi:10.1016/b978-0-12-

811035-5.00030-1 Kiran, D. R. (2020). Value analysis. Work Organization and Methods Engineering for Productivity, 247–262.

doi:10.1016/b978-0-12-819956-5.00018-2 Likar, K., & Jevsnik, M. (2006). Cold Chain maintaining in food trade. Food Control, 17, (108-113). doi:

10.1016/j.foodcont.2004.09.009. Milgram, L. (1999). The SWOT Analysis. Managing Smart, 81–82. doi:10.1016/b978-0-88415-752-6.50069-2 Montanari, R. (2008). Cold Chain tracking: A managerial perspective. Trends in Food Science & Technology, 19,

(425-431). doi: 10.1016/j.tifs.2008.03.009 Rao, P., Muller, M. R., & Gunn, G. (2017). Conducting a metering assessment to identify submetering needs at a

manufacturing facility. CIRP Journal of Manufacturing Science and Technology, 18, 107–114. doi:10.1016/j.cirpj.2016.10.005

Salin, V., & Nayga Jr., R. (2003). A cold chain network for food exports to developing countries. International Journal of Physical Distribution & Logistics Management, 33(10), (918-933). doi: 10.1108/09600030310508717

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Sieniutycz, S. (2020). Systems design: Modeling, analysis, synthesis, and optimization. Complexity and Complex Thermo-Economic Systems, 85–115. doi:10.1016/b978-0-12-818594-0.00005-2

Ting, P. (2013). An Efficient and Guaranteed Cold-Chain Logistics for Temperature-Sensitive Foods: Applications of RFID and Sensor Networks. Information Engineering and Electronic Business, 6, (1-5). doi: 10.5815/ijieeb.2013.06.01

Yeoh, J. (2017). Logistics of Transporting Perishable Goods for Cold Chain Management. Retrieved from https://sipmm.edu.sg/logistics-transporting-perishable-goods-cold-chain-management/

Yuen, S. (2017). Temperature Controlled Warehouse and Cold Chain Business in Hongkong: A Literature Review. Asia Pacific Journal of Advanced Business and Social Studies, 3(1), (7-17). Retrieved from https://apiar.org.au/journal-paper/temperature-controlled-warehouse-and-cold-chain-business-in-hong-kong-a-literature-review/

Biography Benedict Tarala is a Graduate Student of the fully online Master of Engineering Major in Industrial Engineering at Mapua University. He earned a B.S. in Mechanical Engineering from Bulacan State University, Philippines, and a Registered Mechanical Engineer, Philippines. Engr. Tarala has 10 years’ experience in Food and Beverages Manufacturing Industry both in the Philippines and Papua New Guinea. His area of expertise is the Computerized Maintenance Management System (CMMS), Maintenance Management, Project Management, and Continuous Improvement. He is a member of the Project Management Institute (PMI), Philippines Society of Mechanical Engineers (PSME), Institute of Engineers in Papua New Guinea (IEPNG), and Australian Institute of Refrigeration and Air Handling (AIRAH).

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Josephine D. German is an Associate Professor of the School of Industrial Engineering and Engineering Management at Mapua University in Manila, Philippines. She has earned her BS in Industrial Engineering and Master in Engineering (major in IE) from the same University. She is a Professional Industrial Engineer (PIE) with over 15 years of experience and has taught several courses in IE. She has done several research projects in the field of logistics and supply chain management, systems modelling, entrepreneurship, risk management, vulnerability assessments, and ergonomics and has an extensive experience in academic audits and accreditations. She is also a member of the Philippine Institute of Industrial Engineers (PIIE).

Proceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021

© IEOM Society International 428


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