FPD Latest Compile 9 Aug

FOOD PLANT DESIGN CFB 30403
MDM FARIDATUL AIN
PRODUCTION OF BARBEQUE FLAVOURED POTATO CHIPS
Name ID Number
FARID IQMAL BIN SAMSUDIN 55218117087
FATIN NUR ASHIRA BT MOHD ASHRAF 55218117068
MOHAMAD AZUAN BIN MOHD SOFIAN 55218117083
NASUHA ZAHIRAH BINTI ZAHARUDDIN 55218117094
NUR DIYANAH BINTI ABD JALIN 55218117050
TABLE OF CONTENTS
CHAPTER 1........................................................................................................................... 4
1.1 COMPANY PROFILE..............................................................................................4

1.1.1 COMPANY BACKGROUND...............................................................................4
1.1.2 VISION............................................................................................................... 4
1.1.3 MISSION.............................................................................................................4
1.1.4 COMPANY LOGO.............................................................................................4
1.1.5 FOOD SAFETY POLICY....................................................................................5
1.1.6 FOOD SAFETY OBJECTIVES...........................................................................5
1.1.7 ORGANIZATION CHART..................................................................................6
1.1.8 ROLES AND RESPONSIBILITIES.....................................................................7
1.2 INTRODUCTION OF PRODUCT.............................................................................9
1.2.1 PRODUCT DESCRIPTION.................................................................................9
1.2.2 PRODUCT VALUE PROPOSITION..................................................................10
1.2.3 INGREDIENT OF TIDBIT’S CHIP.....................................................................10
1.3 PROBLEM STATEMENTS....................................................................................11
1.4 PROJECT OBJECTIVES.......................................................................................12
1.5 MARKET SURVEY................................................................................................13
1.5.1 GLOBAL SNACK INDUSTRIES........................................................................13
1.5.2 GLOBAL SALTED SNACK INDUSTRIES.........................................................15
1.5.3 SNACK INDUSTRIES IN MALAYSIA................................................................17
1.5.4 TARGET MARKET...........................................................................................20
1.5.5 SCOPE OF SURVEY........................................................................................21
1.6 SWOT ANALYSIS.................................................................................................29
1.6.1 STRENGTH......................................................................................................29
1.6.2 WEAKNESS.....................................................................................................31
1.6.3 OPPORTUNITIES.............................................................................................33
1.6.4 THREATS......................................................................................................... 34
1.7 PROCESS SCREENING.......................................................................................36
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1.7.1 PROCESS FLOW CHART................................................................................36
1.7.2 JUSTIFICATION FOR SELECTED PROCESS.................................................39
1.7.3 SELECTED PROCESS FLOW DIAGRAM........................................................41
1.7.4 DETAILED PROCESS FLOW DIAGRAM.........................................................42
1.7.5 PROCESS FLOW DIAGRAM DESCRIPTION..................................................43
1.7.6 EQUIPMENT REQUIREMENT.........................................................................47
1.8 FEASIBILITY AND SITE SURVEY........................................................................55
1.8.1 SITE SELECTION.............................................................................................56
1.8.2 GENERAL CONSIDERATION FOR PLANT LOCATION..................................59
1.8.3 AVAILABILITY TO OBTAIN NECESSARY SOURCE.......................................61
1.8.4 THE SITE PROXIMITY TO MARKET...............................................................63
1.8.5 SITE-SURVEY AND COMPARISON ANALYSIS OF SITE...............................64
REFERENCES..................................................................................................................... 69
APPENDICES...................................................................................................................... 71
3
CHAPTER 1
1.1 COMPANY PROFILE
1.1.1 COMPANY BACKGROUND
On 20 July 2020, TIDBIT Enterprise was established by 5 young food technologists,

with a background of food chemical engineering technology. It is a small and medium
enterprise that specializes in the production of snack foods and confectionaries. Putting our
customers as our top priority, we have launched various snack food and confectionaries,
pack with flavor and excitement, to deliver good times all over the country. TIDBIT Enterprise
is also set to embark our journey on delivering safe, quality and premium goods, to our
consumers, with the implementation of HACCP and GMP.
In 2020, TIDBIT Enterprise has successfully planned to put to shelf various flavours
of our primary product, which is the TIDBIT Chips. These include Flamin’ Hot, Grillin’ Bbq,
Meltin’ Cheese and so many more, to really win the hearts of our consumers by capturing
their preference of snacks to munch on during their free time.
1.1.2 VISION
Our vision is to become an internationally renowned supplier of high quality snack food and
confectionaries manufacturer with the aim of building deep and strong relationships with all
our customers through premium quality, safe and delicious products, providing exceptional
customer service levels and deep customer satisfaction.
1.1.3 MISSION
Our mission is to become the number one snack food and confectionaries manufacturer in
Malaysia by delivering premium quality, safe and best value products through the constant
pursuit of innovation and excellence.
1.1.4 COMPANY LOGO
4
Our logo is consists of a straightforward brand name with bright colours, showing off with
vibrant red and yellow as the main colours. These colours will attract the attention of the
consumers walking on the aisle at the malls, alluring them to buy the products of TIDBIT
Enterprise. The circle on the background represents the main product of the company, which
is potato chips.
1.1.5 FOOD SAFETY POLICY
To ensure the best practice, TIDBIT Enterprise shall regularly measure compliance against
the standards of Hazard Analysis Critical Control Point (HACCP), as well as implement
performance objectives to assure our clients and customers that we are providing food which
is safe, while meeting their quality expectations.
1.1.6 FOOD SAFETY OBJECTIVES
To ensure the best practices, TIDBIT Enterprise has established the internationally
recognised Hazard Analysis Critical Control Point (HACCP) system and ISO22000 Food
Safety Management System. To achieve our goal, we shall:
1. Communicate, implement and maintain this policy at all levels of the company;
2. Perform regular identification of hazards, determination of critical control points and
timely implementation of effective control and monitoring measures;
3. Provide our personnel with adequate food safety information, training, instructions,
tools and equipment to carry out their job in a hygienic and professional manner;
4. Promote personal hygiene and cleanliness to our staff, contractors, suppliers and
visitors;
5. Develop and strive to continually improve our processes capable of delivery of safe
food products through an efficient, effective and suitable food safety management
system.
6. Produce the best quality food products for domestic and international market that are
guaranteed safe for consumption, which complies to HACCP (MS1418: 2019), Good
Manufacturing Products (GMP) (MS 1514: 2009) and Malaysia Food Act 1983 & Food
Regulation 1985.
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1.1.7 ORGANIZATION CHART
MANAGER
Nasuha Zahirah bt
Zaharuddin
ASSISTANT
MANAGER
Farid Iqmal Bin

Samsuddin
HR/ADMIN PRODUCTION
DEPARTMENT QA/QC DEPARTMENT
DEPARTMENT
Mohd Azuan Bin Mohd Nur Diyanah bt Jalin

Sofian Fatin Nur Ashira bt
Mohd 'Ashraf
Figure 1.1: Organization Chart of the Company
As shown in Figure 1,1, the company is led by Nasuha Zahirah, as the manager,
which she is assisted by the assistant manager, Farid Iqmal. Responsible as the HR or
Admin Department is Mohamad Azuan, whereas, the Production Department is led by Nur
Diyanah. Last but not least, QA/QC Department is under Fatin Nur Ashira. The roles and
responsibilities under each position are listed in Table 1.2.2.
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1.1.8 ROLES AND RESPONSIBILITIES
ROLES RESPONSIBILITIES
DIRECTOR - to provide direction for the company
- to create, communicate, and implement the organization’s
vision, mission, and overall over all company’s strategy
- to signing checks and documents on behalf of the
company
- to evaluate the success of the organization
- to report to the board
- to increase management’s effectiveness by recruiting,
training, and coaching managers; communicate values,
strategies, and objectives; and plan, monitor, and appraise
job results
ASSISTANT MANAGER - to plan meetings, trainings and activities

- to arrange travel, meetings and appointments
- to record minute meeting and to ensure everything is in
track
- to provide secretarial and administrative support to the
general manager
- to coordinate work with other executive and to ensure
high performance of work
HR/ADMIN - to oversee the smooth running of HR and administrative

DEPARTMENT tasks for the organization
- to maintain office supplies by checking stocks; placing
and expediting orders; evaluating new products.
- to ensure operation of equipment by completing
preventive maintenance requirements; calling for repairs.
- to update job knowledge by participating in educational
opportunities; reading professional publications;
maintaining personal networks; participating in
professional organizations
- to enhance department and organization reputation by
exploring opportunities to add value to job
accomplishments
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- to define job positions for recruitment and manage
interviewing process
- to carry out staff induction for new team members
- to train, evaluate and assess employees
QA/QC DEPARTMENT - to manage and oversee project quality to ensure

compliance to codes, standards, regulations and Quality
Management System requirements
- to advance quality achievement and performance
improvement throughout the company
- to manage inspection, and testing plans for new
construction, repair work and alterations
- to ensure the consistency of quality of each raw materials
throughout the process
- to manage plant integrity through a failure analysis
reporting system and following up on recommendations
- to inspect and ensure compliance with regulations
and standards with GMP (MS 1514: 2009) and
HACCP (MS 1480: 2007).
PRODUCTION - to plan and organise production schedules

DEPARTMENT - to monitor operations and trigger corrective actions
- to ensure that everything on the production department
is done according to the policy and safety standard of
the company
- to ensure that finished goods meet quality standards
and customer satisfaction
- to estimate, negotiate and agree budgets and
timescales with suppliers
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1.2 INTRODUCTION OF PRODUCT
Figure 1.2: Barbeque flavoured potato chips
The fame of snacks food in recent time is developing fast on the daily basis, which potato
chips have always been one of the popular choices since many years ago. TIDBIT Chips is
in the snacks production industry to sell our well packaged potato chips. The objectives of
TIDBIT Chips are to become the leading potato chips production company brand in the
Malaysia and to build a potato chip production company, whose products can be found in
supermarkets and grocery stores all across West and East Malaysia.
1.2.1 PRODUCT DESCRIPTION
Potatoes are known as the all-time most loved snacks of people around the world.
TIDBIT Chips are made from fresh potatoes grown at farm-grown potatoes and are cooked
and seasoned to perfection. TIDBIT Chips can be described as thin slices of potatoes that
have been deep fried until the potato turns out to be very crispy. TIDBIT’s Chips comes in
flavour barbeque, as our very first flavour to launch. The ingredients used in the chips
comply with Food Regulation 1985. All ingredient will be written at the packaging as required
by the regulation, including the chemical name of the flavour enhancer used.
The chips are packaged into an aluminium pouch packaging that will preserve critical
attributes of the chips that consumers seek for. For instance, the flavour, the aroma, and not
to forget, the crispiness of the chips. The use of aluminium packaging is also an important
asset in order to keep the moisture of the surrounding out, thus, keeping the chips nice and
dry, leading them to last longer. TIDBIT Chips also comes in form of stackable of very thin
layer of potato in a cylindrical can. The cylindrical can is chosen as it is the most ideal way to
hold the stackable chips in a place keep them fresh. The container of the potato chips can
be found in two sizes, which are the small and the big one. The small one is much more
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convenient as it can be used to bring it anywhere due to its small size while the big one is
worth to share with more than two people.
1.2.2 PRODUCT VALUE PROPOSITION
TIDBIT Potato is the healthier alternative to the regular potato chips because the chips are
fried with finest vegetable oil that is high in tocopherols, palm oil and it is stable to be used
for frying. There are no any trans-fat, MSG or artificial colouring in making TIDBIT Chips.
1.2.3 INGREDIENT OF TIDBIT’S CHIP
Potato chips are thin slices potatoes that have been cooked by frying or baking process until
it turns crunchy and crispy. The basic chips are usually seasoned with salt. TIDBIT Chips
come with flavour of barbeque.
i. Flavouring Ingredients
As for the flavour, Russet potatoes will be used to provide a distinct flavour of
potato chips. Russet potatoes is chosen as it is a great option for Additional
ingredients that comprises of spices, garlic powder, tomato powder, onion
powder and paprika extract powder will be added as the barbeque flavouring.
Yeast extract is also added as a flavour enhancer as yeast extract will provide a
savoury flavour to the chips.
ii. Colouring Ingredients
Colouring ingredients used in TIDBIT Chip are mainly from the colour of
ingredient used in barbeque flavouring. Spices, tomato powder and paprika
extract powder will provide a red pigment to the chips.
iii. Texturing Ingredients
Anticaking agent are also included in the ingredients for making TIDBIT Chips to
prevent clumping of dusted barbeque seasoning to the chips during storage that
will lead to quality degradation of the chips.
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1.3 PROBLEM STATEMENTS
There are several problem statements can be drawn regarding the production of potato
chips, which are:
i. Lack of raw food material (potato) in Malaysia. Need to import the raw material from
India and China.
ii. Increase the quantity of production of the chips annually.
iii. Extend the shelf life and quality of the chips.
Malaysia located near the equator, Malaysia's climate is categorized as equatorial,

being hot and humid throughout the year which suitable for the agriculture industry. the
weather condition suitable for any agriculture industry such as palm oil, rubber, and tropical
fruits. However, the russet potato which is the most suitable type of potato in the potato
chips production is low due to the number of potato plantation in Malaysia is less and on a
small scale. This cause the demand for potato in the market is high. The company needs to
find other suppliers to get potato stock continuously throughout the year. India and China are
one of the largest potato producers that the company will buy the potato stock.
Malaysia is not the major producer of potato in the world. The demand for the potato
in the market is high and may not enough for potato chips production. So, the company will
import the russet potato from India and China to fulfilled the quota of the production annually.
Also, the other raw material and dry material such as packaging need to be managed. The
research and development for creating the recipe of the potato chips are done by the
research department to increase the quality and quantity of the product.
Potato chips have a long shelf life if the product is kept in a suitable condition. the critical
control point of the process should be controlled to prolong the shelf life of the product. the
process, packaging, and delivery process need to be controlled so the quality of the potato
chips can be maintained until it reaches the consumer. Several factors that will reduce the
quality of the product such as oxidation of oil, stale, and crack on the chips need to
eliminate. Moreover, due to the weather condition in Malaysia which is humid and hot
throughout the year, the potato chips will easily become stale. So, the proper process needs
to be controlled to preserve the quality of the chips.
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1.4 PROJECT OBJECTIVES
From the problem statements above, a few objectives have been made to achieve by our
company, which include:
i. To become a leading potato chips production company in Malaysia.

ii. To build the potato chips company of the product can be found in domestic and
international market
iii. To produce the best quality food products that are guaranteed safe for consumption
which are compliance to Good Manufacturing Products (GMP) (MS 1514: 2009) and
Malaysia Food Act 1983 & Food Regulation 1985.
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1.5 MARKET SURVEY
1.5.1 GLOBAL SNACK INDUSTRIES
Snacking has grown to be a big industry. It has earned the spot of regular meals like
breakfast, lunch, and dinner, unlike in the past, where snacking was made in between
meals. The norm of having three meals a day is an increasingly outmoded notion. Modern-
day consumers are grazers and snackers. These days, grabbing a quick snack, whether it is
a granola bar or overnight oatmeal, has become a habit for many to replace the most
essential meal of the day, which is breakfast. Presently, ready-to-eat food is the biggest
segment in the overall conventional and non-conventional food industry. Its market growth is
fuelled by various determinants that drive the risen demand for on the go convenience foods.
(Businesswire, 2018). These include consumers' lifestyles, rapid urbanization, and high
disposable wages. It is also expanding at a speedy pace due to the high consumer
acceptance for such food globally. (MarketWatch, 2020).
Snacks Consumption Globally

Figure 70% 64%
62%
1.3: Top 60%
5
50%
50%
44%
40%
33%
30%
20%
10%
0%
Fresh Fruits Chocolate Chips Ice Cream Yogurt
Favourite Snacks Globally (Nielsen, 2014)
The Nielsen Global Snacking Survey polled 30,000 online consumers in 60 countries
to identify which snacks are most popular around the world and which health, taste and
texture attributes are most important in the selection criteria. Confections, which include
sugary sweets, such as chocolate, hard candy and gum, comprise the biggest sales
contribution to the overall snack category in Europe ($46.5 billion) and the Middle East/Africa
($1.9 billion). Salty snacks contribute more than one-fifth of snack sales in North America
($27.7 billion), refrigerated snacks comprise almost one third of snacks in Asia-Pacific ($13.7
13
billion) and cookies and snack cakes make up more than one-fourth of total snacks in Latin
America ($8.6 billion). Sales of savory snacks, which include crackers, rice cakes and pita
chips, increased 21% in the last year in Latin America. Meat snacks, which include jerky and
dried meat, grew 25% in the Middle East/Africa and 15% in North America. Refrigerated
snacks, which include yogurt, cheese snacks and pudding, jumped 6.4% in AsiaPacific,
while dips and spreads, which include salsa and hummus, rose 6.8% in Europe.
In 2019, Harris Poll has conducted an online survey, concerning the UK’s snacking
habits, that involved a total respondent of 2,042 people. A whopping 1,193 respondents,
which covers 57% of the total respondents, said that they tend to skip a meal and eat snacks
instead. The most popular reason that dominated the other reasons of why they skip meals
is the fact that snacking is easier for them, while 18% said they eat snacks because of their
“on the go” lifestyle. This indicates that our busy lifestyle and the pressure to do everything
instantly has led to a disinterest in food, as well as, an inability to sit down and have a proper
meal. Furthermore, almost 60% of people buy snacks as part of their weekly grocery shop,
proving that snacking is planned and an expected behaviour.
Lays Chio Chips Calbee Chips
PRICE RM 2.80 RM 20.80 RM 6.80

NET WEIGHT 55 g 60 g 170 g
COMPANY Frito-Lay Company Intersnack Group Calbee’s
Corperation
COUNTRY Canada Germany Japan
Table 1.1: Global Price Comparisons of Potato Chips
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1.5.2 GLOBAL SALTED SNACK INDUSTRIES
The global snack food market can be divided into several types, which include
bakery, confectionery, and salted snacks. The bakery snacks involve cakes, pastries, and
bread, whereas, confectionery snacks include chocolates, candies, and cookies. The
salted snacks, such as potato chips, tortilla chips, and pretzels, are deemed as the kings of
the snacking world, due to an increase of sales by 4.9% to $24.9 billion for the 52 weeks
ending May 19, 2019, per IRI. Potato chips are the only largest segment within the
category, in which the sales of potato chips rose for the year, up 2.2 percent to achieve
$7.7 billion (Reilly M.,2019). Said dominant snacks category is also anticipated to possess
the highest market growth through the duration of the forecast, where they are poised to
rise at a rate of 5.6% in size. By 2025, the salted snack segment alone is predicted to
strike $109 billion in global sales (Cision News, 2019).
CONSUMPTION OF POTATO CHIPS IN VARIOUS COUNTRIES
10%
37%
23%
30%
North America Asia Pacific Europe Rest of the world
Figure 1.4: Consumption of Potato Chips in Various Countries (Market Research Future,
2020)
With a market share of 37.13% in 2018, the potato chips market in North America is
expected to be the leading market internationally. The main reason for the previous
statement is owing to the escalating demand for potato chips and crisps among the working
population and rising disposable income in the region. High snack consumption in the US
and Canada, supported by the growing demand for on-the-go food, is the prime factor that
15
encourages market growth in North America (Market Research Future, 2020). The industry
is driven by countries, such as the UK and Spain, as the consumers are actively involved in
on-the-go eating, as an immediate energy booster, to substitute the place of whole meals.
The demand for savory snacks also towers significantly in Europe, particularly Netherlands,
Norway, and Germany, as these products are consumed on numerous occasions by the
community in this region. The established culture of eating chips as a daily snack is also the
trump card that contributes to said scene. The market of potato chips and crisps in Latin
America, and Middle East & Africa are predicted to account for average growth over the
forecast period (Market Reseach Biz, 2020).
Additionally, the Asia Pacific market is expected to record a skyrocket growth rate
in the target market, thanks to the growing population and expanding the food & beverage
sector, especially in developing prosperity, such as India and China (Hayes J, 2020). Since
the disposable income of these countries is rising, the industries of food and beverage are
getting more acceptance form the community. Hence, the per capita expenditure on savory
snacks products is widening in these countries (Cision News, 2019). Moreover, with the
evolution of infrastructures taking place in numerous countries in said region, such as
metro station, cinema halls and airport, the demand is presumed to grow greatly in Asia
Pacific. Furthermore, giant snacks companies are taking a step ahead by introducing new
and innovative regional flavored potato chips to win more hearts of consumers all over the
world. This unique approach to tackle the taste buds of universal consumers is foreseen to
contribute significantly to the impact of the sales of potato chips in Asia-Pacific during the
forecast period (Hayes J, 2020). For instance, PepsiCo launched Lays India’s Magic
Masala that excites the pallet of the associated communities, as it offers many well-known
Indian spices and condiments that are familiar to them. By doing so, Lays has successfully
gained more loyalty, trust and love from their consumers, which leads to the gain of profits
too.
Figure 1.5: Lay’s Thai Sweet Chilli and India’s Magic Masala Potato Chips
16
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1.5.3 SNACK INDUSTRIES IN MALAYSIA
In the first instance, this cottage product received unenthusiastic feedback from the
consumers. However, involved companies in the snacks industry have turned over a new
leaf by delivering a diversity of flavors, in uniform shapes and sizes, and impressive
packaging, resulting in them to stand at par with international companies. Now, the
consumers are exposed to have ample choices to suit their taste when it comes to snacks,
where crispy chips made of potato, banana, sweet potato, and onion, are the favorite ones.
FAMA's Chairman, Datuk Badruddin Amiruldin remarked the skyrocketing rise in the growth
rate of the snack industry in Malaysia at present. The high demand from the consumers is
very encouraging, particularly as it leads to the emergence of numerous local brands from
Malaysia. Since the demand for the snacks industry, especially chips, are increasing at a
rapid pace, the manufacturers are encountering a shortage of raw ingredients like tapioca,
sweet potato and even bananas. To tackle the downfall in the ingredients to process the
chips, FAMA has taken an alternative to establish a contract farming system, where farmers
planting the tubers and bananas needed by the industry and the yield purchased by FAMA.
He regarded that through FAMA's promotional efforts and supports, numerous local products
have been successfully marketed at the international level with the Malaysia Best
endorsement. (PotatoPro, 2011).
Malaysia’s Savory Snacks market is projected to manifest a soaring growth in value,

as well as volume terms during 2015-2020, where the category of potato chips is anticipated
to achieve the highest market share throughout these years (Global Data, 2016). Malaysia's
traditional snack industry is developing efficiently, with the sales figure amounting to RM200
Million (66 Million USD) last year. As stated by the growth data for the country's snack
industry published by Federal Agricultural Marketing Authority (FAMA), the chips serve a
critical role in becoming the largest market share of the snack industry, with their sales figure
hitting RM102.1 Million (34 Million USD). The Processed Snacks category has the highest
volume share, while the Pretzels category is speculated to enrol the fastest value growth
during 2015-2020. Mamee Double Decker, Universal Robina, and Oriental Food Industries
Sdn Bhd. are the leading market players in the Malaysian savory snacks sector (PotatoPro,
2011). Mondelez (M) Sales Sdn Bhd secured its position as the lead in the category, in
2019, but lost share to second-ranking Mamee-Double Decker (M) Sdn Bhd, which
encountered higher sales growth thanks to the strength of its Mamee brand. Both companies
have been present in the category for some time.
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Mamee Double Decker is one of the most well-known food manufacturers in Malaysia.
It focuses on producing and selling instant noodles, snacks, confectionery, and beverages.
In 1992, the company started with a single product. Putting their customers as their top
priority, they are consistently expanding their range of products, in order to fulfill the
consumers' satisfaction. Today, Mamee products are exported to more than 80 countries
which includes Asia, the Middle East, Africa, and Europe, leading them to grow to be one of
the most respected snack companies. At present, the company makes more than 50
different products, where Mister Potato crisps are its biggest seller since it contributes to the
highest gain to the company. However, Mamee Monster snacks remain close to the hearts
of countless Malaysians, instantly bringing back fond childhood memories after being on the
market for 45 years. After more than four decades in business, the company has notched up
many major milestones, including a partnership with Manchester United Football Club and
the opening of a free kidney dialysis center in Malacca for underprivileged locals (F. Najwa,
2015).
Table 1.2: Price of Snacks from Mamee-Double Decker (M) Sdn Bhd
MAMEE DOUBLE DECKER MR POTATO
PRICE RM 2.80 RM 1.40 RM 2.70
NET WEIGHT 8 x 25 g 40 g 75 g
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Mondelez Malaysia is a part of the Mondelēz International group of companies. In
Malaysia, Mondelez has two factories, where one of them is in Selangor, for the production
of Cadbury and Choclairs, while the other is in Penang, for the production of Twisties and
biscuits, including Jacob’s. Based on sales, its top brands worldwide are Cadbury, Oreo
Cookies and belVita. On the other hand, Mandelez's most popular brands in Malaysia are
Cadbury, Twisties, Chipsmore, Jacob’s and Tiger biscuits (Ganesan V. 2019). Through the
debut of new products, Mondelez strives to turn more people into snackers and make its
products appeal to health-conscious consumers, hence, it can dominate new business
segments. Last year’s introduction of Cadbury Dairy Milk Kopi C in partnership with Datuk
Mohammad Nor Mohammad Khalid, famously recognized as Lat, declared a success during
a three-month promotional period. Mondelez's other achievement is the Oreo Thins, which
went viral in the food industry, especially among teenagers that love to try new stuff.
Table 1.3: Price of Snacks from Mondelez (M) Sales Sdn Bhd
Ritz Twisties Chipster
Price RM 8.21 RM 1.90 RM 2.90

Net Weight 100 g 65 g 60 g
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1.5.4 TARGET MARKET
TIDBIT Enterprise is high in quality and a unique brand, which is targeted to all group of
people according to the product offered. Since the company began with a single product,
and consistently grown to several products, targeted market becomes more.
i. Kids and teenagers

From the family structure perspective, a mother with children, usually will buy more
groceries and household products. Children love to have snacks like Potato Chips,
chocolates and pastries because the products are very convenient and it comes with
different taste based on their preferences.
ii. Students
Students are also being targeted because most of the time, they need snacks and
drinks while studying to get away with the stress, especially female students. They
always need something to chew and eat during study time or after lecture.
iii. Working people

Reaching for on-the-go food is becoming a norm to busy people, as they have not
much time to prepare for a proper meal for the day. These targeted audiences need
snacks that will satisfy their hunger without interrupting with their daily works.
iv. Health conscious people

On account of the rising awareness of the importance to consume healthy foods
among adults, said targeted segment tend to analyse the ingredients used in
products before making the purchase. Our product is the perfect snack for those who
want to have something to munch on, while still maintaining the healthiness of their
wellbeing. This is because, TIDBIT Chips have no trans-fat, MSG or artificial, and our
potatoes are also is a gluten-free, allowing people with Celiac or allergic to enjoy their
snacks.
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1.5.5 SCOPE OF SURVEY
Market Survey is one of the most widely used sales forecasting method used to
gather information from the public, making it beneficial in gaining a better perspective and
understanding of the market or target audience, as well as to keep attentive to where one
can improve their proposition, customer service or product offering. TIDBIT Enterprise has
conducted an online survey, through Google Form, that consists of 10 questions relating to
the preference of potato chips among teenagers. By doing this, the consumers’ reactions
can also be obtained to a new product or service when it is still being developed, hence, the
product can be improvise until it achieves the best suitability to its intended market.
MALE FEMALE 15-20 21-25 26-30
Figure 1.7: Pie Chart for Age

Figure 1.6: Pie Chart for Gender
The total number of respondents obtained from the market survey was 170 people.
Figure 1.6 shows the pie chart for gender. As shown, the female category dominated the
survey with 62%, whereas, the remaining belongs to the male category. On the other hand,
Figure 1.7 shows that majority of the respondents are aged ranging from 21 to 25 years old,
followed with teens around 15 to 20 years old, with 27%. Hence, it can be said that females
with the ages of 21 to 25 years old brought a huge impact to the survey conducted.
Q1: Do you like potato chips? Q2: When do you prefer to eat potato
chips?
22
YES NO
Figure 1.8: Pie chart of preference of potato Figure 1.9: Pie chart of time preference of
chips potato chips
From Figure 1.8, it can be seen that 96% of the total respondents answered ‘Yes’
when they were asked about their preference towards consuming potato chips. On the other
hand, the data obtained from Figure 1.9 shows that 64% of respondents answered that they
like to eat potato chips the most during the night, while, 30% of respondents chose evening.
There is a high possibility that the reasoning behind this is, because they want to eat
something light, easy, but at the same time, delicious after a long day at work or school. The
thought of cooking or waiting in line to get food in the restaurant may not be their cup of tea,
alluring them to get snacks instead. Moreover, many of us love to spend weekend nights
with our family to relax, while enjoying movies and snacks, leading them to choose night or
evening as their preferred time to consume potato chips.
23
Q3: How often do you consume potato chips?
VERY OFTEN
OFTEN
SOMETIMES
RARELY
NEVER
Figure 1.10: Pie chart for amount of consumption of potato chips
Next, Question 3 asked about how often the respondents consume potato chips, with
five answer choices. The results are observed from Figure 1.10. More than half of them, or
more precisely 64%, answered sometimes, while, only 1.8% of them answered very often.
There is not much difference between the number of people that answered with often and
rarely, with percentages of 15 and 19 respectively. The evolving technology plays a very
huge effect towards the teenagers nowadays, where they can order food easily through a
few clicks on mobile apps, mainly Food Panda or Grab Food, to get their food delivered
anytime and anywhere. This might contribute to the reason why majority of them chose
sometimes, and rarely for said question. Moreover, the awareness of keeping a good health
among teenagers and young adults are spreading like a wildfire, especially due to the rising
cases of obesity in Malaysia. The desire of maintaining a good health might become the
second reasoning of why the respondents are minimizing the intake of snacks in their diet.
24
Q4: Which brand of potato chips do you prefer?
MAMEE
PRINGLES
MR POTATO
OTHERS
Figure 1.11: Pie chart for brand preference of potato chips
Furthermore, it was observed from Figure 1.11 that 55% of the respondents prefer Mr
Potato, followed by Pringles, and Mamee, with 32% and 11% respectively. There were also
other brands that are preferred by the respondents, which include Wise Cottage and Jacker.
Mr Potato has a wider range in producing their products, where they come in both paper
tube and plastic pouch. Majority of Pringles’ products come in the form of paper tube, while,
Mamee focuses on plastic pouch. The diversity qualities offered by Mr Potato provides
options for the consumer, in order to satisfy their preference and wants. This is because,
some people tend to think that potato chips in a paper tube are a lot for them, and keeping
the chips for some time might cause them to stale, leading to the loss of crunchiness and
flavor of the chips. Hence, they opt to buy in plastic pouch more. Vice versa happens to the
consumers that prefer chips in the paper tube.
In 2019, a simple study was conducted to determine the differences of Mr Potato and
Pringles Chips, as these giant brands are two close competitors against each other. The
flavor of chips tested was Sour Cream and Onion. It was found that each slice of Pringles
crisp seems to be thinner with a smoother texture. The colour of the crisp is a few shades
lighter than Mister Potato’s. The flavour of sour cream and onion is balanced with a hint of
herbs fragrance to it, making it less strong. In comparison, Mr Potato crisp has a rough
surface with a crispier texture. It brings a strong punch of sour cream and onion, which the
aroma of onion is especially distinct and leaves a strong buttery aftertaste. It was concluded
that both brands have their own selling factor, but the price is definitely a deciding point for
some. The price of Mr Potato is about 50% cheaper than Pringles.
25
Q5: Which flavour of potato chips do you prefer?
ORIGINAL
BARBEQUE
CHEESE
OTHERS
Figure 1.12: Pie chart for flavour preference of potato chips
From Figure 1.12, it is can be seen that there is not much difference in percentage
regarding the various flavors, with 33.3% for BBQ, 23.8% for original and 18.5% for cheese.
However, 24.4% of the votes goes for other flavours, where most of them prefer sour cream
and onion, hot and spicy and garlic. The result obtained might be contributed due to the fact
that Malaysians love spiced food with adequate seasonings. Food testers from tasteofhome
summed up the barbecue-flavoured chips as “a summer party packed into a chip”, which the
majority of the panel really enjoyed this chip’s savoury barbecue sauce taste with a kick of
smoke. It also comes with just a hint of sweetness to round out the taste. Next, combining
sour cream and onion actually makes for one of the very best chips in the chips line up. The
savoury onion flavor is balanced well by the creamy tartness of the sour cream, and the
amount of salt is perfect.
For fans of spice and snacks, they would go for hot and spicy chips. The thin and
crispiness of the potato chip combined with the light coating of hot flavor delivers a great
combination of flavours to the consumers. There is also an interesting note of sweetness to
these chips that offset the intense burn of the spice, giving it a well-rounded flavor rather
than an over-spiced acidic one. On the side note, cheese lovers will not be able to resist the
sharply cheesy chips. The hint of cheddar cheese flavour on the chips will leave them
wanting more, making it to be one of the crave-able snacks. Last but not least, the classic
flavor of the original chips is perfectly crisp and salty. The flavour may be plain, but it's
endlessly snackable since it is the one salty snack that hits the spot every time.
26
Q6: Which quality of potato chips do you prefer the most?
THICKNESS
FLAVOUR
CRUNCHINESS
AMOUNT
Figure 1.13: Pie chart for quality preference of potato chips
As we can see from Figure 1.13, it can be extracted that the crunchiness and flavour
of chips play critical roles in capturing the consumers’ hearts, leading them to trust one’s
brand that they have put their attention on. The percentages of respondents gained by
crunchiness and flavour of chips are 41.8 and 38.2 respectively. Crispness and crunchiness
are found to be highly noticeable textural attributes, often linked with the freshness and
firmness foods. In consumer interviews, it was reported that people considered crispy and
crunchy foods to be appealing and enjoyable, due to the sound produced when one eats
something, leading it to be is an important part of a food's desirability factor. Sounds made
during eating can modulate people’s perceptions of moistness, texture, and other aspects of
food, and may influence taste perception. People associate the loudness of a crunch with
the freshness of the food.
Besides, flavours are also assets that need be considered the most in the production
of potato chips to gain consumer acceptance. For example, consumers expect to have a
tangy and sour sensation from sour cream and onion-flavoured chips. If the flavour is failed
to be delivered, they will opt for another brands, leading to loss of trust and loyalty to the
chosen brand. In addition, developing flavours that are suitable to the pallet of the targeted
market open the door for the success of the brand. The profit of Lays Chips in India soared
when Magic Masala was launched, because the use of spices that familiar and loved by the
community.
27
Q7: Which range of price of potato chips do you prefer the most?
RM 2-5
RM 6-10
RM 11 AND ABOVE
Figure 1.14: Pie chart for price preference of potato chips
Question 7 asked about the preferred price range of potato chips from the
consumers. Three answer choices were provided, which are RM2-5, RM6-10 and RM11 and
above. Based on Figure 1.13, it is obvious that more than half of them, precisely 68.2% of
them, chose RM2-RM5 as their most preferred price range when they buy potato chips.
Meanwhile, 28.2% of them chose RM6-RM10, making the remaining of the respondents to
choose RM11 and above. Looking back at Figure 1.6, the respondents are dominated with
teens and young adults that are still studying or still at the beginning of their career, with no
stable income. These categories cannot splurge their money mindlessly, especially with the
current economy that is still trying to gain its momentum. Saving money is important for
them, hence they opt for chips with reasonable prices. There is also a possibility that the
thought of spending a lot of money for something that will be gone in minutes will be a waste
to them.
Brand: Twisties’
Brand: Haitai Chips
Chipster
Net Weight: 60g
Net Weight: 60g
Price: RM 9.90
28
Price: RM 2.89
Q8: Which type of packaging do you prefer Q9: Which type of packaging do you prefer
the most? the most?
PLASTIC PAPER PLASTIC TRAY +

POUCH TUBE PLASTIC POUCH
Figure 1.16: Pie chart for type of packaging

Figure 1.15: Pie chart for packaging preference
preference of potato chips
of potato chips
Based on Figure 1.15, the data obtained shows that 60% of the respondents prefer
chips that come in paper tube, while plastic pouch and plastic tray got 26 and 14 of
percentages respectively. This is because, the paper tube has a lid, allowing the consumers
to be able to keep the chips fresh and crunchy, if they could not finish them in one seating.
The think paper material is beneficial in increasing the permeability of the products, due to
less air that can enter the tube. Thus, the moisture content of the chips can be maintained,
preventing the chips to become stale and lost the flavours. In contrast, plastic pouch has a
low permeability, where air can enter easily once the package is opened. The consumers
also need to store the left over chips in other container since it is not close-able type of
packaging.
Last but not least, it can be observed from Figure 1.16 that 41% of the respondents
prefer medium sized packaging of chips, whereas, 28% of them prefer large size. The
remaining chose small. Based on the date collected from Question 3, majority of them
consume potato chips sometimes. There is a possibility that the respondents consume chips
in a moderate to large amount, even though the frequency of said scene is low.
29
30
1.6 SWOT ANALYSIS
1.6.1 STRENGTH
i. Growing Demand of Potato Chips Among Malaysian
Figure
1.17: Snacks
Market Growth in Several Countries
Figure 1.17 represents the data gathered concerning the per capita consumption of
snacks in 2013 involving various countries. It was found that Indonesia, the Philippines, and
Thailand are the largest sales contributed by their massive population. Malaysia manifests
signs of a maturing market in courses of both growth and per-capita consumption. Finally,
Vietnam is an assuring market, on account of its immense growth and low snack-
consumption level. Including the production of potato chips, corn chips, pretzels, and
chocolates, the snack food industry is expanding its influence to many countries, due to the
improvement of people’s earnings and the development of people’s lifestyle.
With the active growth of Malaysia’s traditional snack industry, the sales value of
snack food scores $ 66 million. The snack industry has played a vital role in improving the
rural economy and increasing the rural people's income, where many of the chip makers
work in groups. The demand for potato chips is growing day by day, also because of the
development of media and globalization. Young people are attracted by the western lifestyle,
resulting in them tend to eat snack food more. In addition, there are more and more women
get to work in the present time, therefore, they have less time to cook for themselves or their
31
families. Here is the part where they would reach for snack foods, in which potato chips with
crispy, good taste and color are one of their choice between meals.
ii. Assurance of Quality and Safe Products
HACCP, which stands for Hazards Analysis and Critical Control Point, is a system
that enables companies to determine and manage any hazards that pose a danger to them.
It can be utilized throughout the food chain from production to consumption. Prerequisite
programs, such as Standard Operating Procedures (SOPs), are the foundation of HACCP.
SOPs are written procedures that precisely define and describe fundamental job tasks. The
use of SOP pre-operations and clean up checklists further ensure that the steps throughout
the production process are performed accordingly, leading to fewer mistakes. By
distinguishing and managing possible risks, such as microbiological, chemical and physical
contaminants, the company can strongly secure consumers that its products are safe. By
decreasing risks, companies are able to sustain a clean record, which in turn will strengthen
the company’s public image. As part of the HACCP, system critical control points are
recognized, so that corrective actions can be implemented to prevent a hazard. From there,
critical and measurable limits of acceptability are planned for each critical control point, as
well as monitoring methods. These steps are beneficial in assuring the consistency of the
products. Though, if the criteria are not matched and deviation happens, the product will
either be fixed or rid of. If the correct methods are not uniformly executed, documented and
sustained, risks are expected to occur. Leniency could result in noncompliance, recall, or
even a foodborne illness outbreak.
32
Figure 1.18: Example of Manufacturing Process of Potato Chips
33
1.6.2 WEAKNESS
i. Lack of Raw Materials In Malaysia
As the fourth most essential food crop after the cereal wheat, rice, and corn in global
crop production, potatoes are the most crucial vegetable crop as it is deemed as the world’s
stable food consumed by numerous countries. In 2011, the potatoes industry gave off
around 61% to the total entire value of vegetable production. The processing of potatoes has
advanced at an active rate over these years. Nonetheless, Malaysia does not produce
potato locally, which most of the fresh potatoes and potato products are imported from its
neighboring countries, as well as other western countries, such as China (59%), USA (8%)
and
Pakistan(8%).
Figure 1.19: Top 10 Biggest Potato Producer in The World (Aster, 2019)
Currently, the potato harvested area in the world has conquered more than 1.88
million hectares. China dominates the list of the world’s largest potato producing countries,
estimating for a share of nearly 26% of the world’s total production volume. China is also a
34
salient potato exporter in the global arena. As of 2017, China’s potato exports equalled USD
281.1 million, which is equivalent to approximately 6.8% of the global potato exports value.
India ranks second in terms of potato production volume, holding a share of almost 12.5% of
the world’s output. The production of potato has taken over the country since the middle of
the twentieth century. Today, about 2.18 million hectares are covered as the potato
harvesting area in India, where Uttar Pradesh and West Bengal are the major potato-
producing states in said country. With a percentage of roughly 7.62% of the world’s potato
production volume, Russia gets the third place on the list of the global major potato product.
ii. Lack In Terms of Products, Company and Facilities
Since TIDBIT Enterprise a new company, we have only few numbers of manufacturing
facilities which could make them insufficient to meet market demand. As we are also
focusing to export to over 100 countries around the world, but it may be insufficient for the
company to serve an enough quantity of products to meet the market demand with our
limited manufacturing facilities. We can only make limited production one day, hence, the
sales of the company may also be restricted due to the limited products in the market
offered. A major weakness that may count against us is the fact that we are a new potato
chips production company, and we don’t have the financial capacity to compete with multi-
million dollars chains potato chips production companies who are already determining the
direction of the market as it relates to the sale and supply of potato chips all across the
globe.
The flavour of the potato chips that the company will be launching is also limited to
only BBQ for now, which means that the consumers are exposed to very narrow choice to
make. The reason why we chose BBQ as our first flavour is due to the very high preference
of said flavour from consumers through the survey conducted, compared to other flavours.
Moreover, the top organization is shaped by young people. The lack of experience and
knowledge to manage a company are also one of the TIDBIT Enterprise’s weakness. The
responsibilities of each roles might have shortcomings, that hopefully can be reduced as the
time goes by.
35
1.6.3 OPPORTUNITIES
i. Demand of Healthy Snacks in Malaysia
In the globalization era, it is obvious that there is an increase in working women over
the years, who spend less time cooking, resulting in soaring demand for the snack food
market, particularly potato chips.Generally, potatoes can be served in a diversity of methods
by roasting, frying, baking and many more. It was found that the healthiest ways of cooking
potatoes are by boiling and baking. On the other hand, roasting and frying potatoes in hot oil
(140ºC to 180ºC) give the best outcome, in terms of taste. On the downside, these methods
of cooking lead to the high absorption of fat and added salt. In addition, WHO estimates that
the concentration of acrylamide is higher in fried potato products (French fries and potato
chips), followed by cereals, crisp and other bakery products. The use of oil and MSGs in the
production of potato chips also bring forth several diseases to the consumers. MSG, derived
from the amino acid glutamate, or glutamic acid, is a popular food additive used to intensify
flavors. It improves the savory, meaty umami flavor of foods. Some people stated that MSG
causes in excessive glutamate in the brain and excessive stimulation of nerve cells. It is true
that a high glutamate activity in the brain can result in harm to the body, as well as can raise
blood levels of glutamate. In one study, a megadose of MSG raised blood levels by 556%.
That said, numerous human studies associate MSG consumption to weight gain and obesity.
As of 2019, Malaysia is placed sixth in the Asia Pacific region and the first country
within Southeast Asia for both obesity and diabetes. By 2025, an alarming seven million
adults, both diagnosed and undiagnosed, are expected to be impacted by diabetes in
Malaysia. Based on a report by Food Industry Asia (FIA) and research firm IGD, nearly 99%
of Malaysians are engaged in supporting a healthy diet and are actively working to develop
36
their consumption habits. Younger consumers are more inclined to snack and exercise
routinely. So, it is no wonder that this fitness-conscious category is especially enthusiastic
about the idea of healthy snacking. It was concluded that a fifth of 18 to 24-year-olds
constantly strive to go for the healthier option when they snack, where, 38% of them prefer a
healthy option most of the time. In comparison, just 11% of the 55+ age group stated they
always aimed for a healthy option, and 32% did so most of the time. However, a notable
majority, accounting for 71% of the total respondents, revealed that the cost of healthy food
as a primary barrier to obtaining a healthy diet. Food Industry Asia (FIA) also said that many
consumers are still not content with the number of healthy food options accessible in
Malaysia.
37
1.6.4 THREATS
i. Growth of Global Preference of Other Snacks
GLOBAL SNACK PREFERENCES 2019
Chocolate
Crips
Sweets
Biscuits
Fruit
0 10 20 30 40 50 60 70
Figure 1.20: Global Snack Preferences in 2019
The same poll that has been conducted by Harris Poll, in 2019, reported that
chocolates and fresh fruits are the most popular snacks among respondents from all over
the world. Women are more prone to pick fruits as their snack options. Surely, 68% of
female respondents stated that they had snacked on fruit in the past week, contrasted with
60% of men. On the other hand, the influence of chocolate has taken over the whole world
as a popular snack among younger consumers. In detail, 71% of the 25 to 34-year-old age
group affirmed they had eaten chocolate in the past week. That fell to just 55% among the
over-55s.
In the said age group, biscuits are the more preferred choice, enjoyed by 61% of
respondents in the week leading up to the survey. Furthermore, there are some regional
variations, where, just 49% of respondents in the northeast answered they had eaten fruit as
a snack in the northeast. That compared with 69% of respondents. Consumers are seeking
past the traditional salty or sweet snacks to other areas such as fruit snacks, protein-based
snacks and even meal drinks. The fruit snack market is predicted to observe a strong
growth, thanks to the increase of the demand for refreshments that are rich in nutritional
content, simultaneously with the growing consumer consciousness, principally linked to the
consumption of healthy food. The fruit snack market is forecasted to rise with a CAGR of
8.17% during the forecast period, 2019 2024, whereas, salted snack market is expected to
rise with a CAGR of only 4%. (Business Wire, 2020)
38
ii. Increase of Potato Price From Suppliers
Figure 1.21: Price of Imported Fries in Malaysia (2017, 2018 & 2019) (Fresh Plaza, 2019)
At the start of 2019, sales of European and United States fries to the Malaysian
market fell because of the higher prices on average by almost 10%. Year-to-date, US
imports are dropping 7%, while the market has increased by 10.7%. The lack of supplies in
Europe has caused higher prices with increases of 12-34% for the product from European
importers. Shortages of supplies for European processors observed the association of the
Dutch, Belgian, German and Danish suppliers drop back. Over the course of the year, they
have been capable to make vital inroads in what had traditionally been a strong market for
the United States. The Dutch are now importing at Ringgit 4,538/ton (€986) and Belgians
Ringgit 4,173 (€907). The price of US fries has also increased, but by just 5% as they
continue to relish a slight premium at Ringgit 5,534/ton (€1,203).
39
1.7 PROCESS SCREENING
Process selection is very important on balancing the costs, efficiency, output and quality of
each option to meet the production goals. It can increase the production output, decrease
the operational costs and enhance the quality of product (Ingram, 2019).
1.7.1 PROCESS FLOW CHART
i. Process Flow Diagram 1
Raw Materials
Mud and Washing

soil
Potato skinPeeling
Slicing
Frying
Add flavouring Excess oil Draining
Potato crisp
Pack/Seal
Figure 1.22: Process Flow Diagram of Making Potato Chips (FAO-AGS Food and
Agriculture Organization of the United Nations, 2007)
40
41
ii. Process Flow Diagram 2
Raw Material
Washing
Mud and soil
Peeling &
Potato skin
trimming
Selecting
Slicing
Potato washing
Starch
Blanching
Drying (60% wet

basis)
Frying
Excess oil removal
Flavouring
Potato crisp
Packing
Figure 1.23: Process Flow Diagram of Making Potato Chips (Ellie, 2019)
42
iii. Process Flow Diagram 3
Raw material
Washing, sorting
Potato skin &
peeling
Slicing
Washing
Starch
Drying
Frying
Seasoning
Packing
Figure 1.24: Process Flow Diagram of Making Potato Chips (Goyal & Goyal, 2018)
43
Table 1.4: Comparisons between processes
Process Flow Process Flow Process Flow

Diagram 1 Diagram 2 Diagram 3
Raw Materials
Washing
Peeling
Selecting
Slicing
Starch washing
Blanching
Drying
Frying
Excess oil removal
Seasoning
Packing
1.7.2 JUSTIFICATION FOR SELECTED PROCESS
Based on Table 1.5, comparisons between each process flow diagrams are made and
Process Flow Diagram 2 have been selected to be proceed. Justifications for the selection
that was made are as below:
Table 1.5: Importance of Steps Involved

STEPS IMPORTANCE
STARCH - Potato starch is a sticky white coating that will occur after peeling
WASHING and slicing process.
- The potatoes need to be rinse under cold water immediately to
wash away the starch.
- Starch washing is done to remove excess starch after peeling
and slicing the potatoes to prevent the starch from blocking the
evaporation of moisture from the potato that will cause the potato
to turn brown and mushy.
BLANCHING - The blanching process is done to remove some of the sugar in

the potatoes.
- The sugar in potatoes will cause the browning of the potatoes
during frying.
- The nutritional value, flavour, colour and texture of the potatoes
will be altered during the blanching process.
44
- The blanching process also will improve the flavour and colour of
the final product as it minimizes the leaching of solid that leaves
more natural sugar in potatoes
DRYING - Drying of potatoes after rinsing is important as the water on the

surface of the potatoes will in lead in dropping the temperature of
the cooking oil.
- The water on the surface of the potatoes will reduce the
crispiness of the potatoes and produce a greasy potatoes chips
after frying.
45
1.7.3 SELECTED PROCESS FLOW DIAGRAM
i. Process Flow Diagram In General
Raw Material
Mud Washing
and soil
PotatoPeeling
skin
Selecting
Slicing
Potato washing
Starch
Blanching
Drying (60% wet

basis)
Frying
T:180 C
Excess oil removal
Flavouring
Packing
Figure 1.25: Process flow diagram of general manufacturing for potato chips
46
1.7.4 DETAILED PROCESS FLOW DIAGRAM
Receiving Raw Material
Potable Semi-perishable Dry Ingredient Liquid Packaging

Water Ingredient • Salt • Tomato Powder Ingredient Material
• Potatoes • Sugar • Paprika Extract • Cooking Palm • Primary
- Room temp. • Corn Starch Powder Oil packaging:
- Avoid light, • Garlic Powder • Yeast Powder Multilayer
prevent sprouting • Onion Powder • Anticaking agent metalized
E551 laminated
film roll
• 2ndary
packaging:
Box carton
Preparation of Raw Ingredients
Potatoes All dry

ingredient
Washing
Dry Mixing
Peeling Potato skin
Selecting
Slicing
0.066 - 0.072 in
(1.7 - 1.85 mm)
Starch washing
Cold water, 1 min
Blanching
T: 85°C
t: 3.5 mins
Drying (0.6%moisture)
Convection oven, T: 60±1°C,
air velocity: 1m/s
Frying
T: 180°C
t: 3 mins
Excess oil removal
Seasoning
Packing
Storage
Distribution
47
Figure 1.26: Process flow diagram of barbecue flavoured potato chips in detail
48
1.7.5 PROCESS FLOW DIAGRAM DESCRIPTION
i. Receiving Raw Materials
The basic of finished food product is having raw materials. Raw materials Raw
materials are materials or substances used in the primary production or
manufacturing of goods. Raw materials used must follow the regulatory requirement
which are safe and legal. The ingredients used to make potato chips are:
- Potatoes - Garlic Powder

- Cooking Oil - Tomato Powder
- Salts - Onion Powder
- Sugar - Yeast Extract
- Dextrose - Paprika Extract
- Corn Starch - E551 Anticaking agent
ii. Preparation of Raw Materials
Potatoes will be washed and peeled its skin prior before selection. Clean water will
be used as a medium for washing the potatoes to rinse off the muds and soil on the
skin of potatoes. After washing, skin potatoes will be peeled.
iii. Selecting
Selection of potatoes will be made based on the appearance of peeled potatoes. Any
potatoes that shows visible blackspots on the surface of potatoes will be rejected.
Medium size of potatoes will be sorted by size sorting machine and selected
manually by hand.
iv. Slicing
The potatoes will go through a slicer that is equipped with a blade that can be set
according to the desired thicknesses. In this manufacturing process, required
thickness for the sliced potatoes is around 0.066 - 0.072 in (1.7 - 1.85 mm). An
average size of potatoes will provides around 28 slices of potatoes.
49
v. Starch Washing
The excess potato starch that forms when potatoes are peeled and sliced must be
rinsed off the chips with water to reduce the formation of acrylamide that will be
influenced by starch. If washing is not included, the surface starch will block the
evaporation of moisture from the potato and lead to mushy, dark brown chips
(Society of Chemical Industry, 2008). Sliced potatoes is washed with cold fresh water
for about 1 minute.
vi. Blanching
Blanching process is added as it this step may improves the colour and also the
texture. Moreover, it can also reduce the oil uptake by gelatinization on the surface of
potato (Califano & Calvelo, 1988). Blanching reduces the level of reducing sugar in
sliced potatoes thus can avoid browning before frying. The best blanching time
according to (Damto & Chala, 2019) is 5 to 7 minutes while the temperature for
blanching is 70°C to 100°C. Selected temperature and blanching time are 85°C and
3.5 minutes respectively, with a ratio of potato-to-water ~0.005w/w.
vii. Drying
Blanched slices potatoes will then be blotted with paper towel to eliminate loose
material adhering to the surface prior to drying or frying. Air dehydration with warm
air, is used to dry the blanched potato sliced until it reaches 60% of moisture content,
wet basis (Talburt & Smith, 1975). Air dehydration leads to a lower moisture content
that will also reduce oil absorption (Talburt & Smith, 1975). Blotted blanched slices of
potatoes will be arranged in one single layer and dried in a convection oven with
temperature 60±1°C and air velocity 1 m/s. Mass loss of potatoes is measured
regularly until a final moisture of 60 g/100 g (wet basis).
viii. Frying
Dried slices potatoes will be fried in a batch fryers according to each batch. The
setup consists of a frying pan of a rectangular shape with the size of 1800 mm × 900
mm × 300 mm. The pan with the perforated plate is completely filled with vegetable
oil manually. Oil temperature ranges, initially, between 175°C and 190°C, and
terminally 180°C. Frying time for about 3 minutes (Varzakas & Tzia, 2015). The frying
temperature needs to be maintained below 190 °C. If temperature increases, it
50
causes burning of chips at its outer boundary and also makes it reddish which
changes. Owing to evaporation of water during frying, the weight of potato slices
decreases, and consequently float into the oil.
ix. Removing Excess Oil
Excess oil are crucial to be separated to slow down the deterioration process cause
by oxidation that will creates a rancid flavour and off odour during storage. Fried
slices of potatoes will then be placed in a deoiling machine or known as oil separator
machine that will work under a centrifugal force with high-pressure airflow that will
blow away the surface oil and cooled it down. Excess oil is piped out from the
machine and be collected. This excess oil will be send to a third party together with
leftover oil used for frying for further treatment.
x. Seasoning
The chips / crisps pass through a rotating flavour drum where they are lightly
sprinkled with salt and barbeque flavouring powder. The rotating drum makes sure
the flavouring is evenly distributed over all the chips / crisps.
xi. Packing
Flavoured potato chips need to be packaged immediately after seasoning process.

Nitrogen gas is opted to be filled in the package as the chips will not be reacted with
nitrogen (Nobile, 2001).
51
1.7.5.1. Compositions of Ingredients
Table 1.6: Composition of Ingredient for Barbecue Flavored Potato Chips

Compositions of Ingredients Percentage of
Ingredients
per Batch (250kg/batch) (kg) Compositions (%)
Potatoes 220 88
Cooking Oil 1.0 0.4
Salts 5.0 2
Sugar 5.0 2
Corn Starch 1.0 0.4
Garlic Powder 2.0 0.8
Tomato Powder 7.0 2.8
Onion Powder 4.5 1.8
Paprika Extract 3.0 1.2
Anticaking agent E551 0.5 0.2
Yeast Extract 1.0 0.4
Total 100%
Initial compositions for our barbecued flavor potato chips are basically started with a
homemade recipe, which then were up scaled for a larger production (250kg). Based on
Table 1.6, the percentage of each composition of barbeque flavored chips has been fixed by
the following permitted amount or value of ingredients in Food Act 1983. Mushroom is the
main ingredient in this composition, hence the amount is larger than the other. Salt, sugar,
corn starch, garlic powder, onion powder and paprika extract powder are used as flavoring
agents. Anticaking agent E551 are used as an anticaking agent that will prevent lumps for
the barbecue flavoring and yeast extract used as flavor enhancer.
52
1.7.6 EQUIPMENT REQUIREMENT
i. Potato Washing Peeling Machine
Type Of
Option 1 Option 2
Machine
Henan Vic Machinery (Model
Brand Sammic (Model number: PI-10)
number: PWP80)
Figure
Power
0.55kw 1.5kw
Consumption
Weight 36kg 158kg
Capacity 240 kg/hour 500-800 kg/hour
Dimension
433 x 638 x 1040mm 900×800×1300mm
(mm)
Price per unit RM 7,692.56 RM 10,005.30
Figure 1.27: Potato Washing Peeling Machine
The Henan Vic Machinery (Model number: PWP80) is chosen as the equipment for
washing and peeling. The use of potato washing peeling machine is to remove the thin peels
of potato. The machine is essential for semi-automatic potato chips line or automatic potato
chips line. The cleaning machine has been used independently for the food processing
industry. This machine has a high peeling rate up to more than 98% with a capacity of 500-
800 kg/hr. Even though the price of the machine is higher compared to Option 1, the
dimension of the machine is much higher. Thus, the capacity of the Option 2 machine is
higher than Option 1.
53
ii. Automatic Slicing Potato Chips
Type Of
Option 1 Option 2
Machine
Brand Sammic (Model number: CA-62)
number: QS600B)
Figure
Power
0.75kw 1.5kw
Consumption
Weight 29.5kg 120kg
Capacity 500 Kg - 1000 Kg 800 kg/hour
Dimension
480 x 480 x 740 mm 900×800×1300mm
(mm)
Price per unit RM 10,345.30 RM 9,902.90
Figure 1.28: Automatic Chips Cutting Machine
The SAMMIC (Model number: CA-62) is chosen as the equipment to cutting the
potato into chips. Cutting the potato is one of the crucial parts of making potato chips that
need to be focused especially in the slicing process. The automatic chips cutting machine
helps in processing potatoes in different thicknesses and shapes in order to meet the variety
of industry’s demands. Moreover, said machine can also be used for kinds of potatoes,
sweet potatoes, carrot, and cassavas. The capacity of this machine varies from 500kg/hr to
1000kg/hr. Also, the machine is compact and lightweight suitable for the cleaning process by
the operator after the slicing process.
54
iii. Potato Chips Blanching Machine
Type Of
Option 1 Option 2
Machine
Brand TAIZAN (Model number: JME6)
number: PT-1500)
Figure
Power
15kw 18kw
Consumption
Weight 29.5kg 80kg
Capacity 1000 Kg 800 kg/hour
Dimension
6000 x 1200 x 2700 mm 1780 x 650 x 700 mm
(mm)
Price per unit RM 6279.75 RM 10,416.01
Figure 1.29: Potato Chips Blanching Machine
The TAIZAN (Model number: JME6) is chosen as the equipment to blanch the
potato. Potato chips blanching machine is used after the process of cutting or slicing the
potatoes. The potatoes will be put into boiling water for a few minutes and then will be
plunged into cold water. The reason for blanching the potatoes using this machine after
slicing it is to pre-cook sliced potato chips in potato chips line. The flavor, texture, color, and
nutritional value of the potatoes will be altered during this process. The power used for this
machine is 30kW for 120kg of potatoes. Also, the machine is in lightweight suitable for the
cleaning process by the operator after the blanching process. the price of the machine also
less compared to Option 2.
55
iv. Potato Chips Dehydrating Machine
Type Of
Option 1 Option 2
Machine
Fengxiang (Model number: FZHS- Henan Vic Machinery (Model
Brand
15) number: TS600)
Figure
Power
1.5w/380v 1.1Kw/220v
Consumption
Weight 280kg 500kg
Capacity 10-15 Kg/batch 35-40 kg/batch
Dimension
950 x 700 x 1230 mm 1050 x 660 x 930 mm
(mm)
Price per unit RM 10680.68 RM 4185.81
Figure 1.30: Potato Chips Dehydrating Machine
The Henan Vic Machinery (Model number: TS600) is chosen as the equipment to dehydrate
the potato chips. Potato chips dehydrating machine is used to remove the surface water
from the slices, strips, dices of the cleaned, or soaked potatoes. This machine is essential in
the processing line especially in making potato chips. It is totally made of stainless steel,
hence, it is sanitary and easy to clean. The use of a centrifugal machine allows the fast
rotating barrel to remove the food surface water. In addition, it also comes with an anti-shock
system, to ensure a reliable working condition, as well as, digital control panel, to make the
operation of high automation and labor-saving. The cost of the machine is lower than option
1 and the capacity of this machine is 35-40kg/batch much higher compared to option
56
v. Potato Chips Frying Machine
Type Of
Option 1 Option 2
Machine
Henan Vic Machinery (Model Henan Vic Machinery (Model
Brand number: DYZ-2000A) number: DYZ-1000 (Manual
(Auto discharge material) discharge material)
Figure
Power
54w/380v 21kw/380v
Consumption
Weight 280kg 120kg
Capacity 35-40 Kg/batch 20-35 kg/batch
Dimension
2350 x 1050 x 1200 mm 1380 x 620 x 950 mm
(mm)
Oil groove size
2000 x 700 x 400 mm 1000 x 500 x 400 mm
(mm)
Figure 1.31: Potato Chips Frying Machine
The Henan Vic Machinery (Model number: DYZ-2000A) (Auto discharge material) is
chosen as the equipment to fry the potatoes. This machine is designated for frying chips.
This machine has qualities of high efficiency and energy saving, which make it to be widely
used it the food industry. It is made of stainless steel and able to control the temperature.
The machine is also able to adopt advanced oil-water mixture technology, which can save
50% of oil and 40% of the power. It also can improve product quality due to the use of
automatic water and oil temperature control systems in the machine. Besides, the safety of
the machine can also be affirmed since it comes with an over-temperature protection device.
The capacity of the Option 1 is much higher compared to Option 2.
57
vi. Potato Chips De-Oiling Machine
Type Of
Option 1 Option 2
Machine
JOYSHINE (Model number: Henan Vic Machinery (Model
Brand
JXTYJ-800) number: TS600)
Figure
Power
3 kw 1.1Kw/220v
Consumption
Weight 480kg 500kg
Capacity 35-55 kg/batch 35-40 kg/batch
Dimension
1400 x 900 x 800 mm 1050 x 660 x 930 mm
(mm)
Figure 1.32: Potato Chips De-oiling Machine
The Henan Vic Machinery (Model number: TS600) is chosen as the equipment to de-
oiling the potato chips. Potato Chips de-oiling machine, which comes with different
capacities, is a necessary device in potato chips production line. This model comes with an
anti-shock system which makes the machine run stably at high roasting speed. The
conveying speed, length, and turnings of oil the oil removing machine can be adjusted to
meet the expected results. Several turnings design with airflow reversing device contributes
to a good drying effect on food products. Also, the high-pressure flow used in this machine
able to fasten the de-oiling and cooling process. This machine is also good to cut down
investment, as it consumes less oil. The power consumption and the price of the Option1 is
less than Option 2.
58
vii. Potato Chips Seasoning Machine
Type Of
Option 1 Option 2
Machine
ULTRON (Model number: Henan Vic Machinery (Model
Brand
BL3000) number: BL3000)
Figure
Type roller roller

Power
1.5 kw/220v 1.47Kw/380v
Consumption
Weight 250kg 380kg
Dimension
1100 x 1000 x 1300 mm 3000 x 850 x 2100 mm
(mm)
Figure 1.33: Potato Chips Seasoning Machine
The potato chips seasoning machine is used to season the potato chips evenly and
discharged them automatically. This machine is made of stainless steel, sanitary, and easier
to clean. The diameter and length of the roller seasoning can be customized as it comes
from three types of models which are disc-type seasoning machine, octagonal type
seasoning machine, and roller type seasoning machine. The price of Option 2 is lower than
Option 1. There are several types of seasoning machine, however, the type of machine we
used is the roller type which uses fully automatic equipment.
59
Table 1.7: Types of Seasoning Machine
Types of Seasoning Machine Description

Disc - Comes with low speed motor to prevent damage
to the fried food
Octagonal - Able to process the food material with the required

spices and mix them evenly in a short time
Roller - Fully automatic equipment

- Able to customize the seasoning barrel length and
diameter, depending on customer needs
60
1.8 FEASIBILITY AND SITE SURVEY
The location of the factory needs to be considered in many aspects before deciding
to build the factory. Provisions must be made for the ancillary buildings and services needed
for factory operation. A suitable site must be found for a new project, and the site and
equipment layout planned. There are three suggestions for the factories to be built. The
locations are at Klang, Sungai Udang, and Alor Gajah. All the locations of the suggested
factory have a flat and not hilly area. The locations are also near to the main road and port,
which helps to transport the product to the market. The site location is a vacant land filled
with bushes and shrubs. It is also having a reasonable price for its location and the area.
Besides that, it is near to the raw material supply. The production of the potato chips product
uses imported potatoes as the main raw material. In Klang and Sungai Udang, the imported
potatoes can be transported using shipment through Klang port and Sungai Udang Port. The
distance from the site location to the supplier is just only several kilometers. Other facilities
such as mobility, health service, communication, and security are also easy to access in
those areas.
61
1.8.1 SITE SELECTION
i. Site Option 1
The first option for the factory to be built is at Klang, specifically at Kapar, Klang. The
site location is near to Port Klang which is the place for importing and exporting food
products to the international market. The place has a reasonable price for its location and
the area with a total build-up of 46113 sqft amounting to RM360 psf. Besides that, it is near
to the port which makes it easy to access raw materials and other supplies. Other than that,
the transportation of the product to the consumer is also another important factor. In Kapar,
Klang there are three highways that can be accessed easily such as KESAS, FEDERAL and
NKVE. This location also ensures that employees can get there easily. The government also
provide the incentive such as capital grants and tax concessions for the new company. The
government also support the establishment of the factory which can open up new job
opportunities.
Table 1.8: Location of the Option 1
Address No. 3,Jalan Wawasan 3/Ku7, Kawasan Perindustrian Sg. Kapar

Indah, 42200 Klang, Selangor
Coordinate 3.0990181, 101.3899397
Land Price RM 11,863,320.00
Land Area 46113 sqft
62
ii. Site Option 2
The location of the factory that are suggested to be built is at Sungai Udang, Melaka.
The site location is near to Port Sungai Udang which is the place for importing and exporting
food products to the national market such as Indonesia, Thailand and Brunei. The place also
has a reasonable price for its location and the area with a total build-up of 51110 sqft
amounting to RM310 psqft. Besides that, it is near to the port which makes it easy to access
the raw materials and other supplies. Other than that, the transportation of the product to the
consumer is also another important factor. In Sungai Udang, Melaka, three highways can be
accessed easily such as SPA, AMJ and NSE. This location is located at sub-urban area
which ensures that employees can get to the factory easily. The residential area is also
nearby and the accommodation rent is cheaper in this location. The government also
provide the incentive such as capital grants and tax concessions for the new company. The
government also support the establishment of the factory which can open up new job
opportunities.
Table 1.9: Location of Option 2
Persiaran Penapisan, Taman Peruna, 76300 Sungai Udang,

Address
Melaka
Coordinate 2.2752591, 102.1359310
Land Price RM 15,844 100.00
iii. Site Option 3
63
The last option for the factory to be built is at Kelemak, specifically at Alor Gajah,
Melaka. The site location is located quiet far from any port which causes difficulties to export
the product to international market. The last option also has a rather reasonable price for its
location with a total build-up of 47630 sqft amounting to RM315 psqft. Other than that, the
transportation of the product to the consumer is also another important factor. The site
location is near to NSE highway which connects the main road of North-South Expressway
for transporting the food products in peninsular Malaysia. This location is located at sub-
urban area which ensures that employees can get to the factory easily and fairly a cheaper
accommodation rent for the employees. The government also provides the incentive such as
capital grants and tax concessions for the new company. The government also support the
establishment of the factory which can open up new job opportunities.
Table 1.10: Location of Option 3
Address Kawasan Perindustrian Alor Gajah, 4, Jalan Industri 6,

78000 Alor Gajah, Malacca
Coordinate 2.3638972, 102.2061022
Land Price RM 15,003 450.00
1.8.2 GENERAL CONSIDERATION FOR PLANT LOCATION
64
The development of a complete factory design requires consideration of many different
factors such as factory location, site and layout, utilities, and availability of raw material.
Sufficient suitable land must be available for the proposed factory and future expansion. The
area of the factory should ideally be flat, well-drained, and have suitable load-bearing
characteristics for the installation of equipment. Also, the full site evaluation could be made
to determine the need for the factory to piling or other special foundations. The land price
also needs to be considered before the site location was chosen. All aspects will need to be
considered and a thorough decision will be made. This is to avoid any loss to finance in the
future. Also, the facilities and other necessary utilities need to be examined, so, the factory
can operate smoothly.
The geographical structure of the location for the factory will influence the success of
an industrial venture. Primarily, the factory should be located where the minimum cost of
production and distribution can be obtained, but other factors, such as room for expansion
and safe living conditions for factory operation as well as the surrounding community, are
also important. The healthcare and safety service such as hospital, police station, the fire
department is important for the safety of the workers and factory. These utilities provide
service to workers and factories during emergencies and other incidents.
Manpower will be needed for the operation of the equipment at the site,
transportation of the product, repair and maintenance, and marketing of the product to the
market. Local trade union customs, the existence of technical training institutes, and
restrictive practices will have to be considered when assessing the availability and suitability
of the local labor for recruitment and training. Also, it is better if the location of the factory is
not far from the housing area of the workers. Whether the manpower residential should be
rural or urban it also assumed as significant in selecting the location for one’s industry. The
wage rates prevalent within the area even have a very important regarding the choice of
location decisions. If the transportation cost is cheap, it makes the workers easier to travel to
work.
Transportation is another factor that influences the site selection. To transport the
product to the distributor or customer, the factory also needs good loading and transportation
facilities to make sure it is easier to transport. Besides using the port to transport the
product, it also recommended using the train and lorry. For the domestic consumer, it can be
transported by using lorry and train while for international consumers, shipping is the best
65
option. There are several transportations located in east Malaysia for import and export.
These facilities help the company to distribute its product to the customer.
Political stability is essential for industrial growth. Malaysia has stable politics and
government support by providing several incentives such as capital grants and tax
concessions for the new company mostly the small and medium enterprises. Capital grants,
tax concessions, and other inducements are often given by governments to direct new
investment to preferred locations, like areas of high unemployment. the supply of such
grants is the overriding consideration in site selection. The government also has come with a
few acts to help the local company to start-up their company. These acts cover the
investment within the manufacturing, agriculture, tourism, and approved services sectors
similarly as R&D, training, and environmental protection activities. The act that the govt.
provides is that the Promotion of Investment Act 1986, revenue enhancement Act 1967,
Customs Act 1967, excise Act 1972, Excise Act 1976, and therefore the Free Zones Act
1990. These kinds of acts help the new company to start-up their company or plant.
All chemical waste from the factory must be disposed of in an acceptable manner.
Dumping waste can give bad impacts on the environment and society. All the waste material
can be either sent to the waste treatment factory or it can be sold to the factory that uses the
waste material as their raw material. This also can generate side income for the factory. As
stated in the process selection, the waste products are water, starch, potato skins, and
excess oil. The waste needs to be treated before it can be recycled or release to the
environment. A waste management plan needs to be conducted according to the procedure.
An efficient waste treatment factory will treat the waste to make sure that there is no
hazardous substance in the water that can affect the environment or people.
66
1.8.3 AVAILABILITY TO OBTAIN NECESSARY SOURCE
Table 1.11: Utilities service

Utilities Service Description
Tenaga Nasional Berhad (TNB)  Investor Relations Department Level 4, TNB
Headquarters, 129 Jalan Bangsar, 59200 Kuala
Lumpur
 Email: tenaga_ird@tnb.com.my
 Website: https://www.tnb.com.my/
Syarikat Air Selangor (SYABAS)  Address: Jalan Pantai Baharu, Bangsar, 59200
Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur
 Phone: 15300
 Email: puspel@airselangor.com
 Website: https://www.airselangor.com
Syarikat Air Melaka Berhad  Address: Jalan Pengkalan, 78000 Alor Gajah,
(SAMB) Melaka.
 Phone: 013-7515800
 Email : aduan@samb.com.my
 Website: https://samb.com.my
Telekom Malaysia  Address: No 23 A, Tingkat Bawah,Jalan Bandar
Pusat Perdagangan,81700 Pasir Gudang,Johor,
81700 Malaysia
 Phone: 1-300-88-8123 ext. 100
 Website: http://www.tm.com.my/
The availability and price of the raw material also can be used to determine the site
location. It is good to have the raw materials supplier near to the site location. The price to
transport the raw material to the factory can be cut due to the short distance and it can also
reduce the budget. The main raw material for the production of potato chips is the potato
itself. Since the number of potato plantations in Malaysia is less and on a small scale, the
demand for potato in the market is high. So, it necessary to import potatoes from other
countries such as India and China. Thus, it is very critical for the factory to be built near the
port. It also shortens the duration to transfer the raw material and finished product to and
from the factory.
67
As mention in the availability of utilities, all the utilities are not a problem to start up
the factory in the suggestion site. This is because the electrical and water supply will be
supplied by Tenaga Nasional Berhad (TNB), Syarikat Air Selangor (SYABAS), Syarikat Air
Melaka Berhad (SAMB) and Telekom Malaysia. Each of these suppliers has its standard
tariff for industrial use. The tariff has its standard rate for industrial use. The rate is different
for the residential or individual. Every type of building has its specific tariff. So, every industry
will have the same standard tariff for water and electricity. It depends on the usage of both
electricity and water. In order to reduce the cost of water supply, the wastewater from the
cleaning process will be treated before it can be reused again. The sedimentation from the
water will be removed. Besides that, the factory also uses Telekom Malaysia for
communication service. Telekom Malaysia provides communication services such as phone
lines and Wi-Fi. Communication is important for the factory to make contact with the supplier
or customer. These service providers help the company to make sure the daily operation
works smoothly. Table 1.4 shows the utility service.
Other than that, the ways to transport the product to the consumer is also one of the
important factors. In the suggested area there are several ports nearby which are the Klang
Port, Lumut Port, Port Dickson, Tanjung Pelepas Port, Johor Port and Sungai Udang Port.
So, the factory has several choices to transport the product to international market. Road
transport is increasingly used and is suitable for local distribution from a central warehouse.
Also, all the suggested factory is nearby to the main road which is North–South Expressway
and East–West Highway that connect to the north-south and East-west area of Malaysia.
Hence, the factory has several choices to transport the product to local market.
Table 1.12: Transportation facilities for the particular state (East Malaysia)
State Transportation Facilities
Port Dickson, Negeri Sembilan  Port Dickson
Kelang, Selangor  Klang Port
Pasir Gudang, Johor  Tanjung Pelepas Port
 Johor Port
Lumut, Perak  Lumut Port
Sungai Udang, Melaka  Sungai Udang Port
1.8.4 THE SITE PROXIMITY TO MARKET
68
Market research is the analyst's research, analyze, and report on the patron data that
has been compiled so as to assist and inform the proximity marketing strategies. This market
research is done by the market research department to help the company keep the business
on the right track. Effective research analysts have in-depth knowledge of which kinds of
data provide the foremost insight into consumer trends, and that they require excellent
communications and presentation skills so as to show data analysis into effective marketing
plans.
Transportation and logistics are some of the factors that influence the market of this
product. In order to transport the product to the distributor or customer, the factory also
needs good loading and transportation facilities to make sure it is easier to transport. The
transport of materials and products to and from the factory is something to think about in site
selection. If practicable, a site that selected should close to at least two major forms of
transport such as road, rail, and waterway. Road transport is commonly used and suitable
for local distribution from a central warehouse. Rail transport is usually cheaper for the long-
distance transport of bulk raw material. Also, air transport is more convenient and efficient
for the transportation of personnel and essential equipment and supplies. However, the cost
for transportation using air transport is higher compare to road transportation and waterway.
In transporting the potato chips to the local market, road transportation is the most
efficient way in terms of cost and time. The factory located at Alor Gajah, Melaka, which
located in the middle of Malaysia. Malaysia's road network is quite extensive, which covering
around 250,023 kilometers, including 1,956 km of expressways (stated in 2019). The main
highway of the country length over 800 km, reaching the Thailand border from Singapore.
The company can distribute the product to each state by using the lorry and truck. The
railways also can be used to transport the product to further regions such as Thailand and
Singapore. This road transport should be fully utilized in transporting the product due to the
good condition of the road and railway network.
1.8.5 SITE-SURVEY AND COMPARISON ANALYSIS OF SITE
69
Figure 1.34: Maps for Site Option 1, located in Klang
Figure 1.35: Maps for Site Option 2, located in Sungai Udang, Melaka
Figure 1.36: Maps for Site Option 3, located in Alor Gajah, Melaka
Table 1.13: Comparisons of Site Options
UTILITIES DESCRIPTION
70
OPTION 1 OPTION 2 OPTION 3
Address And - No. 3, Jalan Wawasan - Persiaran Penapisan, - Kawasan Perindustrian
Coordinate 3/Ku7, Kawasan Taman Peruna, 76300 Alor Gajah, 4, Jalan
Perindustrian Sg. Kapar Sungai Udang, Melaka Industri 6, 78000 Alor
Indah, 42200 Klang, - 2.2752591, Gajah, Malacca
Selangor 102.1359310 - 2.3638972,
- 3.0990181, 101.3899397 102.2061022
Land And 46113 sqft 511100 sqft 47630 sqft
Building Area (4284.03 square meter) (47482.74 square meter) (4424.9718 square meter)
Price RM 11, 863, 320.00 RM 15, 844, 100.00 RM 15, 003, 450.00
Comply With No Yes Yes
HACCP
Requirement
Utilities - Tenaga Nasional Berhad - Tenaga Nasional - Tenaga Nasional
(TNB) Berhad (TNB) Berhad (TNB)
- Syarikat Air Selangor - Syarikat Air Melaka - Syarikat Air Melaka
(SYABAS) Berhad (SAMB). Berhad (SAMB).
Accessibility - 9.5 KM to the North– - 40 KM to the North– - 9.5 KM to the North–
South Expressway South Expressway South Expressway
- 28 KM from Klang Port - 1 KM form Sungai - 21 KM form Sungai
- 112 KM from Port Udang Port Udang Port
Dickson - 80 KM form Port
Dickson
Facilities - Urban area (located near - Sub-urban area (located - Sub-urban area (located
residential area) near residential area) near residential area)
- 54 KM to Beringin Landfill - 5.8 KM to Sungai - 21 KM to Alor Gajah
- 21 KM to Shah Alam Udang landfill landfill
Hospital - 6.6 KM to Sungai - 3.3 KM to Alor Gajah
- 25 KM to Shah Klang Udang hospital hospital
Hospital - 6 KM to sungai udang - 1.6 KM to Alor Gajah
- 17.7 KM to Jalan Kampar fire department fire department
Syah Alam Fire - 1.2 KM to Sungai - 1.2 KM to Alor Gajah
Department Udang Police Station Police Station
- 32 KM to Seksyen 15,
Shah Alam Fire
Department
- 2.2 KM to Kapar Police
Station
After a thorough analysis of the three options as in Table 1.13, the location that is
chosen is Option 2 which is at Persiaran Penapisan, Taman Peruna, 76300 Sungai Udang,
Melaka. The area of the factory is mainly for industrial development. The land is located in a
flat and not hilly area which is suitable to build the food process factory. The suitability of the
land must be taken seriously. The site location cannot be built in an environmentally
71
sensitive area such as residential area, cemetery, site gazette area, and land with heritage
value. So, the selected site location is not built at the environmentally sensitive area and it
follows the criteria as stated in The Industrial Coordination Act, 1975 (ACT 156). Besides
that, the location of the factory is sub-urban which not too far from the town center. The area
has many utilities such as hospital, police station, fire department school, bank, and many
facilities are not far from the site location. The area is also easy to reach due to the modern
road network, so, employees can get to the factory easily. Also, the factory area is located
near the residential area where the hired worker will be given a place for them to stay. The
rent price for the accommodation for the employees is also fairly cheaper compared to the
other locations. The location of the factory was selected by using The Industrial
Coordination Act, 1975 (ACT 156) page 8-9 according to Appendix 1 and 2 as a preference
(Department of Environment, 2012).
Transportation for the factory is also the factor that influences site selection. The
second option factory is located at the Sungai Udang Port, which is the place for the
transportation of the product to the local and international markets. The factory is located
approximately a 5-kilometer from Sungai Udang Port, 40 KM to the main road PLUS (North-
South Expressway and East-West Highway) and accessible to another transportation
medium such as train and air carrier. These facilities and mobilities really help the company
to distribute the product to the customer. The factory is located in a suburban area where the
water and electrical supply is provided by the company such as Tenaga Nasional Berhad
(TNB) and Syarikat Air Melaka Berhad (SAMB). Furthermore, the factory is near to other
facilities such as landfills and accessibility to raw material and water supply. The factory
located 5.8 KM to Sungai Udang Sanitary Landfill. This location is strategic to transport the
waste from the factory and it is located far enough from affected by smell pollution from the
landfill. For the raw material, the potato is imported from India and China. The potato arrives
at Sungai Udang Port and delivered to the factory. The Sungai Udang Port is located only 1
km from the factory. The cost of transportation for the product, waste, and the raw material is
reduced greatly due to the strategic location of the factory.
72
1.7 RAW MATERIALS DESCRIPTIONS
Chemical/ State Of
Common Scientific/ Matter Name And Address Of
No Source
Name Trade Manufacturer
Name
1 Potato Potato Solid Plant Malala Food Privet Limited
Opp Eidgah Masjid, Dhaura
Tanda, Bareilly, Uttar Pradesh
- 343202, India
2 Cooking Palm Oil Liquid Plant Rahim Palm Oil Industry (M)
Oil (Palm Sdn Bhd
Oil) No. Lot 1, Jalan IKS Sungai
Petani 3, Melaka, 78000 Alor
Gajah
3 Salt Salt Solid Other Hoe Hing Chan Sdn Bhd
No.2, Jalan Lombong Emas 3,
Seremban Light Industrial Park,
Jalan Tun Dr. Ismail, 70200
Seremban, Negeri Sembilan,
Malaysia
4 Sugar Sugar Solid Plant Central Sugars Refinery Sdn
Bhd
Batu Tiga, 40000 Shah Alam,
Malaysia
5 Corn Corn Solid Plant Hoe Hing Chan Sdn Bhd
Starch Starch No.2, Jalan Lombong Emas 3,
Seremban
6 Garlic Garlic Solid Plant Meida Foodstuffs Supplies Plt,
Powder Powder No.7, Jalan Semtec 3, Semtec
Park, 43500 Semenyih,
Selangor
7 Tomato Tomato Solid Plant LLKOW Food Industries No.13
Powder Powder Persiaran Desa Ampang,
Taman Sri Ampang, 68000
Ampang Selangor
8 Onion Onion Solid Plant GBA Corporation Sdn Bhd, Lot
Powder Powder 8, Wisma GBA, Jalan PPU 3,
Taman Perindustrian Puchong
Utama, 47100 Puchong,
73
Selangor
9 Yeast Yeast Solid Other GBA Corporation Sdn Bhd, Lot
Selangor
10 Paprika Paprika Solid Plant GBA Corporation Sdn Bhd, Lot
Selangor
74
REFERENCES
Department of Environment Ministry of natural resources and Environment Malaysia.

(2007). ENVIRONMENTAL IMPACT PROCEDURE AND REQUIREMENTS IN
Department of Environment. Journal of Enviromental Impact Assessment, (25), 49.
https://doi.org/10.1007/s10518-016-0039-9
Department of Agriculture (USDA) (2018) Potatoes. Retrieved from:

https://www.agmrc.org/commodities-products/vegetables/potatoes
Dk Sinha. 11 Factors that Influence the Selection of Plant Location. Retrieved from:
https://www.yourarticlelibrary.com/industries/location-selection/plant-location-11-factors-
that-influence-the-selection-of-plant-location/41072
Ellen Zhuang (2016). Process location and layout decisions. Retrieved from:
https://processdesign.mccormick.northwestern.edu/index.php/Process_location_and_lay
out_decisions
SME Corp. Malaysia (2018). EXPORT Ports in Malaysia. Retrieved from:

https://www.smeinfo.com.my/export/ports-in-malaysia
Ellie. (2019, August 12). Processing Flow Chart of Potato Chips Production Line.
Retrieved July 29, 2020, from https://www.chips-machine.com/blog/potato-chips-
equipment.html
FAO – AGS Food and Agriculture Organization of the United Nations. (2007). Potato
Crisp. Retrieved from FAO website: http://www.fao.org/3/a-au143e.pdf
FRYMAX. (2019, September 24). Preparing Chips: How to Remove Starch From
Potatoes Fast: Blog. Retrieved July 29, 2020, from https://frymax.co.uk/frying-tips/how-
to-remove-starch-and-water-from-potatoes-fast/
Goyal, B., & Goyal, P. (2018). Manufacturing of Potato Chips and its Quality
Improvement. Journal of Food Processing & Technology, 9(12). doi:10.4172/2157-
7110.1000765
Nobile, M. D. (2001). Packaging design for potato chips. Journal of Food Engineering,
47(3), 211-215. doi:10.1016/s0260-8774(00)00118-7
Society of Chemical Industry. (2008, March 9). Soaking Potatoes In Water Before Frying
Reduces Acrylamide. ScienceDaily. Retrieved July 28, 2020 from
www.sciencedaily.com/releases/2008/03/080306075222.htm
Varzakas, T., & Tzia, C. (2015). Chapter 8: Snacks Food. In Handbook of food
processing (pp. 574-580). Boca Raton: CRC Press. Retrieved July 29, 2020, from
https://www.routledgehandbooks.com/doi/10.1201/b19398.
75
76
Business Wire. (2018). Global Ready-to-Eat Food Market Analysis & Forecasts 2018-
2023. Retrieved from
https://www.businesswire.com/news/home/20180820005413/en/Global-Ready-to-Eat-
Food-Market-Analysis-Forecasts-2018-2023
Business Wire. (2020). Fruit Snack Market Study 2020: Analysis, Opportunities and
Future Trends. Retrieved
fromhttps://www.businesswire.com/news/home/20200430005559/en/Fruit-Snack-Market-
Study-2020-Analysis-Opportunities
MarketWatch. (2020). Ready-to-Eat Food Market 2020 Update. Retrieved from

https://www.marketwatch.com/press-release/ready-to-eat-food-market-2020---industry-
size-growth-factors-top-leaders-development-strategy-future-trends-historical-analysis-
competitive-landscape-and-regional-forecast-by-360-market-updates-2020-06-04
Nielson N.V. (2019). Global Snacking Report. Retrieved from

https://www.nielsen.com/wp-content/uploads/sites/3/2019/04/nielsen-global-snacking-
report-september-2014.pdf
Market Research Future. (2020). Global Potato Chips Market Research Report.
Retrieved from https://www.marketresearchfuture.com/reports/potato-chips-market-2991
Potato Pro. (2011). Malaysia’s Savory Snacks See Rapid Growth.

https://www.potatopro.com/news/2011/malaysias-savory-snack-industry-sees-rapid-
growth
Najwa F. (2015.) Mamee Double Decker Company.

http://logisticmameedoubledecker.blogspot.com/2015/04/mamee-double-decker-
company.html
Vasantha G. (2019). Mondelez wants bigger bite of snack pie.

https://www.theedgemarkets.com/article/mondelez-wants-bigger-bite-snack-pie
77
APPENDICES
QUESTIONNAIRE FOR MARKET SURVEY OF POTATO CHIPS
NAME:
AGE:
GENDER:
2. Do you like potato chips?

Yes
No
3. When do you prefer potato chips in a day?

Morning
Afternoon
Evening
Night
4. How often do you consume potato chips?

Very often
Often
Sometimes
Rarely
Never
5. Which brand of potato chips do you prefer?

Mr Potato
Twisties
Pringles
Others
 If you choose others, please state your choice below:
6. Based on Question 5, what attracts you to choose the brand generally?
78
Flavours
Quality
Price
Packaging
7. Based on Question 6, if you choose flavours, which flavour of potato chips do you prefer
the most?
Original
Cheese
BBQ
Others
 If you choose others, please state your choice below:
8. Based on Question 6, if you choose quality, which quality of potato chips do you prefer
the most?
Thickness of chips
Crunchiness of chips
Amount of chips
Flavour of chips
9. Based on Question 6, if you choose price, which range of price of potato chips do you
prefer the most?
RM 2-5
RM 6-10
RM 11 and above
10. Based on Question 6, if you choose packaging, which type of packaging of potato chips
do you prefer the most?
Paper tube
Plastic pouch type
Plastic try + plastic pouch
11. Which size of packaging do you prefer the most?

Small
Medium
Large
79
Thank you for your time and cooperation.
Appendix 1: The Industrial Coordination Act, 1975 (ACT 156) Page 8
80
Appendix 2: The Industrial Coordination Act, 1975 (ACT 156) Page 9
81
Appendix 3: Yeast extract are permitted to use as flavor enhancer, adapted by Malaysia
Food Regulations 1985 Ninth Schedule Regulation 23
Appendix 4: Permitted anticaking agent including E551, silicon dioxide, adapted from
Malaysia Food Regulations 1985 Schedule 11 Regulation 25
82

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FOOD PLANT DESIGN CFB 30403

MDM FARIDATUL AIN

PRODUCTION OF BARBEQUE FLAVOURED POTATO CHIPS

1.1 COMPANY PROFILE..............................................................................................4

1.1 COMPANY PROFILE

1.1.1 COMPANY BACKGROUND

On 20 July 2020, TIDBIT Enterprise was established by 5 young food technologists,

1.1.4 COMPANY LOGO

1.1.5 FOOD SAFETY POLICY

1.1.6 FOOD SAFETY OBJECTIVES

Farid Iqmal Bin

Mohd Azuan Bin Mohd Nur Diyanah bt Jalin

Figure 1.1: Organization Chart of the Company

ASSISTANT MANAGER - to plan meetings, trainings and activities

HR/ADMIN - to oversee the smooth running of HR and administrative

QA/QC DEPARTMENT - to manage and oversee project quality to ensure

PRODUCTION - to plan and organise production schedules

Figure 1.2: Barbeque flavoured potato chips

1.2.1 PRODUCT DESCRIPTION

1.2.2 PRODUCT VALUE PROPOSITION

1.2.3 INGREDIENT OF TIDBIT’S CHIP

ii. Colouring Ingredients

iii. Texturing Ingredients

Malaysia located near the equator, Malaysia's climate is categorized as equatorial,

i. To become a leading potato chips production company in Malaysia.

1.5.1 GLOBAL SNACK INDUSTRIES

Snacks Consumption Globally

Favourite Snacks Globally (Nielsen, 2014)

PRICE RM 2.80 RM 20.80 RM 6.80

Table 1.1: Global Price Comparisons of Potato Chips

CONSUMPTION OF POTATO CHIPS IN VARIOUS COUNTRIES

North America Asia Pacific Europe Rest of the world

Malaysia’s Savory Snacks market is projected to manifest a soaring growth in value,

PRICE RM 2.80 RM 1.40 RM 2.70

Price RM 8.21 RM 1.90 RM 2.90

i. Kids and teenagers

iii. Working people

iv. Health conscious people

MALE FEMALE 15-20 21-25 26-30

Figure 1.7: Pie Chart for Age

Figure 1.10: Pie chart for amount of consumption of potato chips

Figure 1.11: Pie chart for brand preference of potato chips

Figure 1.12: Pie chart for flavour preference of potato chips

Figure 1.13: Pie chart for quality preference of potato chips

Figure 1.14: Pie chart for price preference of potato chips

PLASTIC PAPER PLASTIC TRAY +

Figure 1.16: Pie chart for type of packaging

i. Growing Demand of Potato Chips Among Malaysian

ii. Assurance of Quality and Safe Products

i. Lack of Raw Materials In Malaysia

ii. Lack In Terms of Products, Company and Facilities

i. Demand of Healthy Snacks in Malaysia

i. Growth of Global Preference of Other Snacks

GLOBAL SNACK PREFERENCES 2019

Figure 1.20: Global Snack Preferences in 2019

1.7.1 PROCESS FLOW CHART

i. Process Flow Diagram 1

Mud and Washing

Add flavouring Excess oil Draining

Drying (60% wet

Excess oil removal

Process Flow Process Flow Process Flow

1.7.2 JUSTIFICATION FOR SELECTED PROCESS