Reference no: EM132830352

Nacional is a major breakfast cereal manufacturer in Portugal and forms part of the grain milling Amorim-Lage Group. The popularity of breakfast cereals has grown in Portugal in recent years and one of Nacional's main production facilities was in need of a major update and expansion using new technology and new ideas.

Early in 2004, Nacional carried out a major refit and expansion plan that was completed by mid-September. The investment in the new facility was estimated 11.2 million Euros. Nacional's main product was cornflakes but since the expansion the facility has been able to manufacture a variety of extruded breakfast cereal products for marketing under its own brand names and also for supermarket own-brand labels. The adoption of extrusion techniques (drawing a dough mixture through a shape to produce a continuous strand with an identical cross section which can be cut into shapes such as stars or squares for example) in processing breakfast cereal at the Nacional plant has widened the production possibilities because a variety of grains can now be used. This has allowed the blending of different grains into unique cereal pieces. Extrusion has also made production more efficient by combining several processing step into a single, continuous flow.

PV Baker has supplied and installed a complete processing plant for Nacional. It incorporates the entire production process, from compounding and mixing the recipe 'dough' through extrusion and cooking to drying and coating the final extruded product shapes. The new facility can make a variety of different products, including corn-balls, cocoa-balls, Chocó curls, golden squares, stars and rings, as well as co-extruded filled pillow shapes. All of these extruded shapes, except the pillows, will be coated with a honey, sugar or glucose based glaze.

Most of the products are cut into individual pieces by a die as they leave the extruder. A key design feature of the facility is the ability to change over rapidly between products in respond to market demand, including those products involving different raw materials and syrup. For example, to create filled pillow products, which cannot be cut at the die, a mobile crimping unit is wheeled in and out of the line.

A. State four processes used in the production of breakfast cereals at Nacional.

B. Explain how Nacional is using both batch production and flow production methods in its factory.

C. When upgrading its production facilities, what role did technology play at Nacional.

D. To what extent do you think the 11.2 million euro investment will benefit Nacional.