FACULTY OF MECHANICAL ENGINEERING

REPORT
INDUSTRIAL APPLICATIONS OF OPERATIONS MANAGEMENT TECHNIQUES

Lecturer : Madam Izdihar Tharazi

Course : Industrial Management

Course Code : MEM575

Group : EMD6M4A

NAME OF STUDENT STUDENT ID

Iffa binti Mohd Arrif 2015283208

Najwa Syakirah binti Hamizan 2015250252

Nur Adibah binti Anuar Hakim 2015283886

Wan Fatimatul Aifaa binti Wan Fadzil 2015263348

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TABLE OF CONTENT

1.0 Acknowledgement ...................................................................................................... 3

2.0 Introduction ..............................................................................................................4-8
2.1 History ............................................................................................................... 4
2.2 Corporate Philosophy ........................................................................................ 5
2.3 Yakult Malaysia ................................................................................................ 5
2.4 Yakult Worldwide ............................................................................................. 5
2.5 Yakult Lady ...................................................................................................... 6
2.6 Product ...........................................................................................................6-8
2.6.1 Yakult Ace ............................................................................................ 7
2.6.2 Yakult Ace Light ................................................................................7-8
2.7 Probiotics .......................................................................................................... 8
3.0 Objectives ................................................................................................................... 9
4.0 Special Techniques Applied To The Production Of Yakult ..................................... 10
5.0 Analysis On The Special Techniques Applied To The Production Of Yakult ....11-12
6.0 Suggestions On Improving The System .............................................................. 13-14
8.0 Supporting Evidences .......................................................................................... 15-19
7.0 Conclusion ................................................................................................................ 20
7.0 References ................................................................................................................. 21

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1.0 ACKNOWLEDGEMENT

In the name of Allah S.W.T, the Beneficent, the Merciful.

Alhamdulillah, we were really grateful to The Almighty God for establishing us to

complete this project within the timeline given successfully. So much knowledge and
advantages we have gained during the visit. Nevertheless, all of these could not be achieved
without the help of others.

Firstly, we would like to thank our Industrial Management (MEM575) course lecturer,
Madam Izdihar Tharazi, for the full guidance along the learning of this course. Her support
and guidance let us to complete our industrial visit report.

In addition, we would like to thank the Yakult (Malaysia) Sdn. Bhd. staffs for
accepting and letting us to make a visit for one of our needed requirement of the course,
which is to go for an industrial visit to expose students to the practical applications of one of
the operations management techniques learnt in class, and make a report on it.

Furthermore, we would like to show our gratitude to our committed team members for
the good cooperation that have been performed during the completion of this project. We
have learnt some methods on how to perform work well in a group as well as individuals. In
addition, we thank our friends sincerely for their constructive criticisms and suggestions.

Finally, we would like to expand our deepest gratitude to our respective parents who
were always there for us, supporting and encouraging, giving us their blessings and also the
financial support that have been spent for us.

We would once again thank all the lending hands involved; directly and/or indirectly,
for their help on the completion of our project.

Thank you.

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2.0 INTRODUCTION

There are several topics that we have covered in class; introduction to industrial
management, forecasting, plant location, plant layout, human resource and job design,
procurement and inventory control, production planning and control, project management,
quality management and control, and maintenance management. From the ten topics studied
in the class, we have chosen the topic of Quality Management and Control and we are going
to see how the selected company manage their Quality Management and Control.

We have chosen to go to one of the factory of Yakult (Malaysia) Sdn. Bhd. which is
located at Oakland Indusrial Park, Seremban 2, Negeri Sembilan. This factory is the only one
and only local Yakult factory in Malaysia, with the head office located at Glenmarie, Shah
Alam, and other branches all over Malaysia.

2.1 HISTORY

In 1930, Dr. Minoru Shirota successfully cultured and strengthened a special type of
bacteria, the exclusive Shirota strain. Based in the Medical Faculty of Kyoto University,
Japan at the time, he became the first person in the world to succeed in culturing a strain of
lactic acid bacteria which are beneficial to the human health. This bacterium was then named
as "Lactobacillus casei Shirota strain" (or Shirota strain) after Dr. Shirota. (Yakult Malaysia).

In 1935, Yakult was first introduced in Japan, and was then registered as a trademark
in 1938. In 1955, Yakult Honsha Co., Ltd. was established with Dr. Shirota as the President.
In 1963, Yakult’s unique “Yakult Ladies” system of door-to-door distribution by housewives
was officially launched. Yakult Central Institute was established in Kunitachi, Tokyo in 1967.
(Yakult Malaysia).

In 1968, the now iconic Yakult plastic bottle was launched. 30 years later, Yakult has
been acknowledged by the Ministry of Health, Labour and Welfare as a "Food for Specified
Health Usages (FOSHU)”. The status is only awarded to food products that proven through
studies in humans, that they have positive health effects, both medically and nutritionally. In
2005, Yakult European Research Centre for Microbiology was set up in Belgium. (Yakult
Malaysia).
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2.2 CORPORATE PHILOSOPHY

With over 80 years of experience in scientific research, Yakult is committed to deliver

the highest quality products to people all around the world. They contribute to the health and
happiness of people around the world through the pursuit of excellence in life science in
general and research and experience in microorganisms in particular. (Yakult Malaysia).

Figure 1 : Shirota-ism philosophy.

2.3 YAKULT MALAYSIA

In 2003, Yakult is officially established in Malaysia and began to produce Yakult

products here since 2004. Currently, Yakult business has expanded to all over Malaysia.
(Yakult Malaysia).

Yakult (M) Sdn Bhd is a wholly-owned subsidiary of Yakult Honsha, Japan. Yakult
currently employs over 260 people throughout Malaysia, including production workers, sales
consultants, customer service officers, administrative staff and managers. (Yakult Malaysia).

2.4 YAKULT WORLDWIDE

Born in 1935 in Japan from the research of a doctor, Yakult is the world’s leading
probiotic drink. Today, science and research remains the basis of the business. As the world
pioneer in the field of probiotics research, they have expanded their portfolio to include a
range of consumer, skincare and pharmaceutical products in Japan. (Yakult Malaysia).

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2.5 YAKULT LADY

Figure 2 : A Yakult lady.

Yakult started their special Home Delivery System in Malaysia in 2008. The Home
Delivery Service is a distribution method unique only to Yakult. It is supported by a friendly
team of Yakult Ladies, who are independent distributor-agents. They are well equipped with
coolers bags and other paraphernalias to ensure the Yakult are stored in proper temperature
during delivery. The delivery is free and with no minimum ordering quantity. However, it is
currently only available in certain areas. (Yakult Malaysia).

There are several advantages of being a Yakult lady. A Yakult lady has flexible
business hours, given support from principal, provided seminars and materials, given awards
and incentives. (Yakult Malaysia).

2.6 PRODUCT

Yakult is a high quality probiotics in the form of a cultured milk drink. Yakult
contains the probiotics bacteria “Lactobacillus casei Shirota strain” (popularly known as the
“Shirota strain”). With over 30 billion live Shirota strain in each bottle, Yakult has among the
highest concentration of probiotics compared to other probiotic products on the market.
(Yakult Malaysia).

The Shirota strain is scientifically proven to be among the “strongest” strains of

beneficial bacteria, and has been shown to benefit human health. There are four major health

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benefits of the Shirota strain. It helps to fight bad bacteria and viruses in the gut, reduces
harmful toxins from the body, relieves constipation and diarrhea, and boost the immune
system. (Yakult Malaysia).

In Japan, Yakult is acknowledged by the Japanese government as a “Food for

Specified Health Usages” with approved health claim “The Lactobacillus casei Shirota strain
reaches the intestines alive, so this product maintains good health by increasing beneficial
bacteria, decreasing harmful bacteria and improving intestinal health.”. It is free of
preservatives, colourings and stabilizers. (Yakult Malaysia).

2.6.1 YAKULT ACE

The first product for the Malaysian market, Yakult Ace cultured milk drink is a
premium version of the standard Yakult cultured milk drink available in other countries
worldwide. It contains over 30 billion of the live beneficial bacteria Shirota strain and
added nutrients: calcium, niacin, and vitamins B6, B12, and D. (Yakult Malaysia).

Figure 3 : Yakult Ace.

2.6.2 YAKULT ACE LIGHT

Yakult Ace Light contains 56% percent less sugar and a lighter, less sweet taste
compared to Yakult Ace, but with the same high concentration of live Shirota strain -
over 30 billion in each bottle. Just like Yakult Ace, Yakult Ace Light cultured milk
drink is free of fat, cholesterol, colourings, preservatives, conditioners and stabilizers.
(Yakult Malaysia).

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 Figure 4 : Yakult Ace Light.

2.7 PROBIOTICS

A probiotic is defined as a live microorganisms which, when taken in adequate

amounts, provides a health benefit to the host. Strains belonging to the Lactobacilli and
Bifidobacteria species are the most widely researched probiotic in medicines and foods such
as fermented milk drinks and yoghurts. Probiotic bacteria is required to be safe for human
consumption, be non-pathogenic and have proven health benefits. (Made fresh for you –
Manufacturing process of Yakult).

The majority of probiotic bacteria used in food production are ‘Lactic Acid Bacteria’
such as species of Lactobacillus and Bifidobacteria. Yakult contains Shirota strain, a strain
found only in our product. The Shirota strain has been specially selected for its strength – in
other words, its ability to survive through our stomach and bile acids to reach the intestines
alive to deliver its health benefits. (Yakult Malaysia).

A probiotic must meet these strict requirements where it has proven to be safe for
human consumption, can live and multiply in our intestines, strong survival from gastric and
bile juice to reach the intestines alive, scientifically proven to have beneficial effects on our
health, have optimum shelf life that remain alive in sufficient number throughout storage,
affordable and easy to consume. (Yakult Malaysia).

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3.0 OBJECTIVES

The industrial visit was organised by the Industrial Management (MEM575) course for all
students in semester six of Faculty of Mechanical Engineering of UiTM Shah Alam. The
objectives of the visit are as follows :

1. To have better understanding in the engineering working environment.

2. To have better understanding in the processes learnt during class applied in
Yakult (Malaysia) Sdn. Bhd.
3. To expose students to the practical applications of the operations management
techniques studied in class.
4. To expose students to various operational management processes and technology
used in current industries.
5. To expose students to various job scope and opportunities available in current
industries.
6. To expose students to engineering practices such as design generation concept,
embodiment, quality control method, etc.
7. To enable students to practice occupational health and safety procedures by
wearing suitable outfits and gears.
8. To learn on the company’s safety regulations.
9. To enable students to develop and enhance critical thinking and problem solving
skills.
10. To expose students on the correct methodology on writing a report based on
observation and industrial visit experience.

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4.0 SPECIAL TECHNIQUES APPLIED TO THE PRODUCTION OF YAKULT

The production of Yakult undergoes a lot of procedures and steps. It is to ensure they
produce a high quality of Yakult products. Before Yakult probiotics drinks is produce, every
batch of its production will undergoes a taste testing. The worker needs to do the taste testing
to make sure that the taste of Yakult probiotics drinks of every batch is similar and the taste
does not taste bad. These testing determine things like Lactobacillus casei numbers, checking
potential contaminants, microbiological quality, composition, acidity, physical attributes and
its own taste. The taste testing also to make sure that the bacteria contained in the drinks is
the good one. The unnecessary bacteria should not be in the drinks. The testing of the taste
will be done everyday of working day which is from Monday to Saturday.

The correct temperature needed while the mixture in the storage. In the storage tank,
the sterilised sugar syrup is added to the culture base to form the concentrated Yakult and the
tank will be chilled at the temperature of 5°C. After the packaging of the product, the finished
product are kept refrigerated at a temperature of 5°C so that they will always remain at the
best condition that it should be before distribution.

Besides, to make sure the cleanliness of the product produce from the factory, Yakult
adheres to a comprehensive hygiene and sanitation process. They follow a cleaning progress
that is predominantly governed by CIP (Cleaning in Place). The cleaning of the machines in
the factory is done everyday of its working day. The cleaning process usually done at 4.00
AM until 8.00 AM. The machines undergo the cleaning from the mixing of the raw
ingredients until the finishing products. The equipments undergo washing process and
sterilized to make sure the cleanliness. Steam, an environmentally friendly cleaner, is used to
sterilize the pipes and tanks. A single phase chemical cleaner is used, reducing the numbers
of chemicals introduced into the drains. Chlorine based chemicals are not used.

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5.0 ANALYSIS ON THE SPECIAL TECHNIQUES APPLIED TO THE
PRODUCTION OF YAKULT

To ensure that the product is of the highest quality, samples are collected for
laboratory analysis throughout the production process to confirm that the quality assurance
measures in place have been effective. The testing takes place more than 150 samples per
production run, upon which a total of more than 200 tests are conducted.

One of the test is a taste testing which involves several samples are taken to be tested
so the final product tastes right. Several samples of taste have been recorded before. There
would be sour taste or foul taste and sweet taste. Sour taste or foul taste shows that the
product was already spoiled because of several factors such as storage temperature are broken
or could not detect the correct temperature. After the product past the culture tank, where the
tank is reduced to 37°C and live Lactobacillus casei Shirota strain is added. The product is
transferred into storage tank and is chilled to around 5°C and below. At this storage tank
process, the most crucial where the storage temperature need to be controlled so the bacteria
is not activated and change the taste. Besides that, the sweet taste comes from the mixture
tank process. The amount of sterilized flavours, syrups solution, vitamins, and calcium are
added to the concentrate need to be in right amount or else the taste will change. Therefore,
every batch of Yakult produced is monitored for 24-hours before it is dispatched for sale.

On the other hand, Yakult is store in the temperature of 5°C and below. This is
because after testing takes place, the result shows that many probiotic bacteria are naturally
sensitive to heat and moisture. This is because heat can kill organisms and moisture or
temperature between 15°C to 40°C activate the Yakult bacteria slowly. When the bacteria
become active, it will begin to produce lactic acid, which will affect the taste and make it
sour. When there is too much acid produced, the bacteria will die, and the product will be less
effective. These products should ideally be refrigerated and kept out of humidity throughout
from the storage tank, when delivery from factory to stores, and after customers buy from the
stores.

Quality assurance measures are in place to maintain standards for personnel and
factory hygiene, equipment cleaning, processing methods and parameters, and product
handling. Yakult’s quality assurance utilizes a system called “Hazard Analysis and Critical
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Control Points” (HACCP). HACCP is a systematic preventive approach to food safety from
biological, chemical, and physical hazards in production processes that can cause the finished
product to be unsafe and designs measures to reduce these risks to a safe level. The principles
of HACCP are internationally recognised as an excellent method for assuring stringently
ambitious standards. (Y.A.K.U.L.T).

Besides that, Cleaning in Place (CIP) is a method of cleaning the interior surfaces of
pipes, vessels, process equipment, filters and associated fittings, without disassembly. This
equipment is cleaned and sanitized by automatic (computer controlled) devices at the
appropriate time. The benefits of the use of CIP to Yakult is that the cleaning is faster, less
labour-intensive and more repeatable, and poses less of a chemical exposure risk to people.
The production is mostly everyday and at day time. Everyday the equipment need to be
cleaned before the next day of production. This CIP are reliable to Yakult because the only
time they have is from 4.00 AM to 8.00 AM.

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6.0 SUGGESTIONS ON IMPROVING THE SYSTEM

Figure 5 : The process to make Yakult.

We will now be discussing the current quality control applied in the process of Yakult.
At the beginning of the process, they mix the raw ingredients which is skim milk powder and
sugar are dissolved in water to make a sweet milky solution. The amount of milk and the
quantity of sugar are same for every batch to ensure the constant of the taste. Next, at second
stage the sterilisation process begins. The milk solution is sterilised by ultra-heat treatment to
destroy any bacteria present and then transferred to 6500 L culture tank via closed system of
pipe and valve to prevent contamination. (Y.A.K.U.L.T).

The third process is in the Culture tank. In this tank, the temperature is reduced and
adjusted to body temperature for the bacteria to grow. Live Shirota strain which had been
cultured in seed tank is added. The solution is fermented for a few days until the number of
Shirota strain reaches required level. Then we proceed to the Mixing and Storage tank. The
concentrate is transferred to a 12000 L mix and storage tank and chilled to 2°C. at this stage,
Sterilised flavours, vitamins, calcium and syrup are added. Prior to bottling, the concentrate is
diluted with filtered, sterile water. (Y.A.K.U.L.T).

For the bottle-making process, it used the injection blow moulding machine. The
plastic bottles are produced on site using polystyrene. Then for bottling and packaging
process, the bottles are wrapped with individual labels, filled with Yakult, capped with a foil
lid, sealed and transferred along the conveyor belt to the packaging facility. Single bottles are
sorted into groups of five to ten and shrink-wrapped in polypropylene film. It then grouped

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together and wrapped again in polyethylene film, forming a carton of 50 bottles. Lastly, the
finished products are kept refrigerated before delivery to the store. (Y.A.K.U.L.T).

To maintain the good quality of the Yakult, the tank and all other stuff involving in
the making of this product are washed daily which is before the closing of the factory and
after stopping the production by the worker. To improve the quality of the product, we
suggest that the factory administration must do frequent inspection on the hygiene of the
worker and also the factory surrounding. Also, conduct a frequent inspection by JAKIM to
make sure the company obey the standards for HALAL qualifications. Next, conduct health
screening for the workers to make sure the products will no be contaminated. The company
should enhance their quality system by implying Industry 4.0 which the implementation of
cyber-physical system especially in F&B industries to assured the quality of the products.

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7.0 SUPPORTING EVIDENCES

Figure 6 : Yakult products in other countries around the world.

Figure 7 : Cosmetic products by Yakult Japan.

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 Figure 8 : Culture Tank.

Figure 9 : Production line.

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Figure 10 : With the Sales Manager.

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8.0 CONCLUSION

In a nutshell, we managed to achieve our objectives which are firstly to have better
understanding in the engineering working environment and in the processes learnt during
class applied in Yakult (Malaysia) Sdn. Bhd. Next, to expose students to the practical
applications of the operations management techniques studied in class and to expose students
to various operational management processes and technology used in current industries.
Hence, to expose students to various job scope and opportunities available in current
industries and engineering practices such as design generation concept, embodiment, quality
control method, etc. Next, to enable students to practice occupational health and safety
procedures by wearing suitable outfits and gears and learn on the company’s safety
regulations. Next, to enable students to develop and enhance critical thinking and problem-
solving skills and expose students on the correct methodology on writing a report based on
observation and industrial visit experience. We also managed to gain knowledge on special
techniques applied to the production of Yakult where we learnt about the production of
Yakult and the steps taken to maintain its quality. Furthermore, we managed to make an
analysis on the special techniques applied to the production of Yakult and the quality
assurance measures to maintain standards for personnel and factory hygiene, equipment
cleaning, processing methods and parameters, and product handling. Lastly, we come out
with suggestion on how to improve the quality of the products which is to perform frequent
inspection by the administration and JAKIM to make sure the company obey the standards
for HALAL qualifications.

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9.0 REFERENCES

Made fresh for you – Manufacturing process of Yakult. Retrieved from

http://yakult.com.au/resources/documents/Yakult_2ndKitMadeFreshForYou.pdf

Y.A.K.U.L.T (2011). Retrived from http://usahawan-yakult.blogspot.com/

Yakult Malaysia – Pioneer of Probiotics. Retrieved from https://www.yakult.com.my/

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