Enhancing the competitiveness of food SMEs through application of sensory science

By MIFLORA M. GATCHALIAN, PhD. PFT

CEO, Quality Partners Company Ltd (QPCL)

ACADEMICIAN Emeritus, International Academy for Quality (IAQ)

Introduction

The food industry is highly competitive both in local and global markets. In the Philippine scenario, Micro, Small, and Medium Enterprises (MSMEs) constitute around 99.5% of all businesses, and among these, 8.82% belong to SMEs, which are generally focused on manufacturing and services (DTI, 2024a). The world has different definitions of MSMEs, but in general, particularly for the Philippines, each level is defined relative to the number of employees and size of assets (total capitalization inclusive of amounts in pesos and the peso-equivalent of business-owned valuables). For instance, Small Enterprises have 10 to 99 employees and assets of 3 to less than 15 million, while Medium Enterprises have 100 to 199 employees and assets of more than 15 to 100 million (DTI, 2024b).

Most  SMEs in the Philippines, engaged in food manufacturing are managed by women who have developed their companies from their basic culinary experiences and simple background in leadership (DTI, 2024b). In most cases, few of these SME businesses have gone beyond their current “success” level for various reasons, but the most common trait is the lack of technical capabilities to sustain new product development and continuous improvement activities, which are necessary to ensure business competitiveness (Gatchalian, 2018). Furthermore, in comparison with other industries like electronics or biotechnology, the food industry has a very low level of scientific R&D undertaken, such that out of 100% of new products, 75% were considered failures (Winger and Wall, 2006). This situation partly explains the slow business progress and growth, particularly among those in the food SME category.

In food manufacturing, it is of great advantage if the business has the capability to move faster than its competitors in the areas of: (a) new product development; (b) continuous product improvement; (c) measurement of customer satisfaction; and (d) sustainability and enhancement of these capabilities through time (Gatchalian et al., 2025). In view of these considerations, this paper challenges ambitious SME food manufacturing business leaders to seriously engage in knowledge- and capability-building activities toward effective applications of the benefits offered by the field of sensory science. This should serve as a major additional tool toward the enhancement of SMEs’ competitiveness in the food manufacturing sector.

This paper will be presented in three installments in FoodPacific Manufacturing Journal, as follows: Part I – Basic Concepts and Applications of Sensory Science; Part II – Utilization of Sensory Science in New Product Development and Continuous Improvement; Part III – Monitoring Customer Satisfaction and Product Market Performance.

Part I – Basic concepts and applications of sensory science

Introduction

Any business engaged in manufacturing will require a manpower complement to perform the tasks necessary to produce desired results. Whether formalized into an organizational structure or not at the start, Figure 1 shows the major participants for a business process to be executed. Depending on the size of the organization, each major activity could be assigned to a specific individual, or several activities could be performed by just one person. It is expected that, through time, specific functions would be assigned to individuals either by virtue of experience and/or by development of capability.

In an SME situation, normally it is the business owner who becomes the President and others would be family members or trusted relatives or friends. But each is expected to learn and execute the assigned tasks. As the business progresses it is expected that coaching and training continue through time. Quality of leadership paves the way towards either success or failure. As such, the Leader’s capability should always be attuned to the developments of the times.

Key players in food manufacture

Particularly for the SME situation in food manufacture, there are basic functions that must be implemented by the key players in the company as shown in Figure 2. The stages start with product identity or the product with high market potentials approved by top management. This is followed by consumer requirement determination that leads to designed product and so on down to commercial operation as presented in Figure 2. In all the steps presented, measurement of product quality is done in various ways. Specifically for food, determination of the product’s sensory characteristics desired by potential consumers is indispensable since this determines product acceptance by the end-users. These are measured utilizing scientific tools employed in “sensory evaluation”.

Note in Figure 2, that each of the key players has varying extent (note the Xs) of involvement at the operation. Nevertheless, their inputs would have important effects on the speed with which the final outcome at each stage is achieved. When the required measurement tool is not utilized at the precise time and place, the process completion is delayed preventing realization of expected outcomes which would slow-down overall progress. If this happens repeatedly, competitive advantage will not be realized and business slow-down would be the ultimate result. Thus, emphasizing the urgency of building the capability to utilize available modern technological advances which the leading competitors may already be successfully employing. The scientific application of sensory measurement has serious implications on the speed of new food product development, customer satisfaction level and continuous improvement. All these major activities could be achieved through proper application of the tools and techniques learned from updated practices in sensory science.

Nature and importance of tools in Sensory Science (SS)

Sensory Evaluation. The Institute of Food Technologist’s (IFT) Sensory Evaluation Division USA defines sensory evaluation as "a scientific discipline used to evoke, measure, analyze and interpret sensations as they are perceived by the senses of sight, smell, taste, touch and hearing" (Prell,1976; Lawless, H.T and Heyman, H. 2010). The definition explicitly mentions “scientific discipline” as the means to interpret human sensations when they are utilized to describe the food attributes observed by humans. Sensory evaluation methods, when properly utilized, can provide the predictive power to understand product characteristics that will meet consumer requirements and as such, provide early anticipation of their desires. In this regard, knowledge of product characteristics meeting consumer requirements actually describes product quality which to date is defined as “the ability of a complete set of realized inherent characteristics of a product, system or process to fulfill requirements" (AJA Registrar, 2000). The word “requirements” refer to the needs and wants of the customer, thus measuring the ability to identify characteristics desired implies successful development of “product quality”.

Quality Development Cycle (QDC). For product quality to be successfully evolved at least cost of time, money and effort, a “quality development cycle” (QDC) was developed with emphasis on the role of “sensory measurement” (Gatchalian and Brennan, 2011) linked to every stage of the cycle.. This is expected to ensure repeatability of processes and reproducibility of targeted outcomes as shown in Figure 3. Like other scientific disciplines, scientific sensory evaluation utilizes approaches which are valid, reliable and repeatable. Therefore, details of activities in every stage of the cycle will need to be seriously learned to ensure success of application and as such, the services of experts or consultants is imperative. One of these knowledge resources is QPCL (Quality Partners Company, Ltd.) headed by the author. To save time and effort, it is important to obtain guidance especially at the early stages of QDC implementation.

Figure 3 puts emphasis on the role of two key players, Marketing and Sales (M&S) and Research and Development (R&D) as the precursor of QDC. Particularly in the food business, M&S is in direct contact with actual and potential consumers of the manufacturer’s products and as such, play a crucial role in obtaining early information of consumer requirements both for existing and future desired products. Therefore, frequent and effective communication between the M&S and R&D provides the key towards business leadership, if the shared information is effectively addressed and brought promptly into speedy action. Results of such efficient and effective actuations lead to an overall outcome that provides assurance of getting ahead of competitors! Note in Figure 3 that the QDC starts with knowledge of “potential consumer specifications” which had been properly identified by R&D based on inputs from M&S. This leads towards the development of a “product profile” (as shown by arrows in the outer circle) which utilizes scientifically developed sensory evaluation tools, one of the advanced capabilities in Sensory Science. At this stage, “new product development” activities discussed in Figure 2 should already be in place so that a new or improved product & process specifications could be standardized utilizing defined “Test Procedures” presented in Figure 3. This stage is designed to ensure effective control of product quality as employed by the “Quality Control” group. The QDC continues its important contributions towards effective control of process and product quality through an efficient “system of recording and reporting”, a very important function that ensures proper and effective monitoring of activities in the development cycle utilized in following-through process performance. This step is very important especially when “trouble” is reported implying that a significant deviation in product specifications had likely caused process deviation resulting to change in product quality characteristics.

When this situation occurs, a review of the “trouble” reported will utilize the properly “recorded” data obtained from every operation step. In this case, the review process utilizes the inner cycle showing reverse arrows of set activities to determine the cause of the identified problem that resulted to a significant deviation from requirements which ultimately resulted to “trouble” oftentimes traceable to “customer complaint”.

As shown in Figure 3, the QDC moves in both clockwise (process flow) and counter- clockwise (response to trouble) directions. This emphasizes the grave importance of measurement at every stage of the cycle with efficient recording and reporting components since this facilitates the review of outcomes in QDC. Under this situation, the required sensory evaluation measurements are expected to be as effective and efficient as the other physical-chemical measures designed into the total operation.

The Advent of Sensory Science (SS). In this highly dynamic scientific world, one's competitive edge is the ability to remain ahead of others in understanding what consumers want and in knowing how to satisfy their needs better and faster than the competitors. Studies in this regard as they relate to sensory evaluation were initiated by the Arthur D. Little laboratory way back in the 1950s (Amerine and Pangborn, 1965) and through the years, this had become a global phenomenon such that to date enormous findings has virtually raised its status to what is now known as Sensory Science (Prinyawiwatkul, W. et. al.2023). It is multidisciplinary in its contents and applications as it combines important inputs from several scientific fields such as physics, psychology, physiology, chemistry, statistics and food science. The scientific approach to sensory evaluation has provided the means of converting the subjective nature of the human judge into the level of objectivity comparable to that of an accurate, precise and reliable instrument. This is where the SME engaged in food manufacture is compelled to determine if its employee capabilities include knowledge and practice of SENSORY EVALUATION. The advances in sensory science will only be meaningful if there is good understanding and appreciation of at least the basics of measurement and its advantages utilizing sensory evaluation methods. If the SME desires to enhance its competitiveness, it is high time to review their overall capabilities including “sensory measurement approaches”.

Measurements in sensory science. Progress in instrumental measurements (physical and chemical) as they correlate with human judgment, accelerated so quickly that to date, many sensory perceptions can be anchored against them (Khan, M.S. and Rahmann, M.S. 2021). However, the fact remains that the final judge of any commodity is the person who will use or consume it. Sensory assessment will, thus, continue to be required, as more products are developed and as market competition increases with time (Gatchalian, Branan, et. al. 2025). Information about consumer likes and dislikes will remain the basis for forging ahead in this rapidly modernizing society. In view of these considerations, the SME should best recognize their current capabilities to: (a) develop new products; (b) control quality of existing ones; and (c) monitor customer satisfaction level through time. One important area for serious consideration should be the extent with which technical employees, especially those in Research and Development and in Operations are equipped with basic capabilities in measurement especially “sensory measurements”.

Figures 1, 2, and 3, presented earlier, focus on functions and responsibilities in the Company operations to which employees at all levels are involved. They also showed where sensory measurements of product characteristics were necessary in the various stages of the process, from product conception to its final manufacture. Specifically, these measures include product sensory characteristics, as well as, Consumers’ preferences and/or level of satisfaction. In food manufacture, these are essential measurements that should be built into the overall operation. In general, sensory measurements can be grouped according to its nature such as: (a)“difference”, (b)“descriptive”,and (c) “preference/acceptability” where each group bring-in quantifiable information about the status of the product’s sensory qualities required by the target consumers. Particularly in food manufacture, unless the sensory characteristics of the product is controlled through its correlation with its physical-chemical measures, customer satisfaction cannot be assured. As such, quality assurance may not be achieved through time in view of the inability to ensure sustainability of product acceptance in the marketplace.

Progress of Sensory Evaluation methods leading to its elevation to sensory science, if properly practiced, provide guarantees towards sustainability of successes in the highly competitive food business. In this regard, the SME are urgently challenged to pay serious attention to the latest developments in the field of sensory science and to focus particularly on the latter’s unique capabilities to promote quality assurance and consumer retention when effectively employed. Part II of this article series, will focus on “Accelerating New Product Development and Continuous Quality Improvement” with emphasis on sensory quality measurements required in these activities.  The SMEs engaged in food manufacture are urged to upgrade their capabilities to perform measurements through proper application of the latest developments in sensory science.

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