Transcript Overview of Halal Certification

INDONESIAN HALAL CERTIFICATION
AND
HALAL ASSURANCE SYSTEM
LPPOM MUI
• Lembaga Pengkajian Pangan Obat-obatan dan Kosmetika - Majelis
Ulama Indonesia (LPPOM – MUI), is an institution formed by MUI
to run MUI function in protecting muslim consumers in consuming
products of foods, drugs, and cosmetics
• Establish on January 6th, 1989 in Jakarta
• Mission
 To establish and develop halal standard and inspection system
 To halal certify foods, drugs and cosmetics consumed by the
people
 To educate people and be aware to only consume halal products
limitedly
 To provide complete and comprehensive information about
halalness of products from various aspects integratedly
Auditor of LPPOM MUI
Auditor is a person assigned by LPPOM – MUI through a
selection process including his/her competency, quality and
integrity to conduct halal audit. Auditor is a representative of
ulama and a witness to find facts on halal production of a
company.
MUI Fatwa Committee
MUI Fatwa Committee is one of MUI committees whose task to
produce an Islamic legal opinion about law status on certain
case. Members of fatwa committee are representative of
Islamic organizations in Indonesia
Fatwa
Fatwa is Islamic legal opinion about law status of a certain case.
In halal certification process, fatwa output is the halal or haram
status of product(s) based on auditing process performed by
LPPOM – MUI.
Education
• Fatwa Committee :
- Syariah
- Da’wah
- Ulumul Qur’an
- Ulumul Hadits
• Auditors :
- Chemistry
- Food Science
- Biochemistry
- Agro industry
- Biology
- Physics
- Veterinary
Halal Certificate
Halal Certificate (HC) is a written fatwa issued by MUI to state
the halalness of a product based on auditing process
performed by LPPOM – MUI.
Internal Halal Auditor
Internal Halal Auditor is staff(s) officially appointed by
Company Management to coordinate implementation of
HAS.
HAS Audit
HAS Audit is audit on Halal Assurance System
implementation in the halal certified company.
Procedure
Halal Certification
1st HAS
Document
Registration
Product
Certification
Document
Product
Audit
No
Audit
Evaluation
Audit
Memorandum
Yes
Fatwa
2nd HAS
Document
Yes
Halal
Certificate
No
HALAL CERTIFICATION
3 Step of LPPOM MUI Halal Certification
1.
Pre-Audit
2.
Process-Audit
3.
Post-Audit
1. Pre-Audit
a. Fill in three kind of application form :
* Namely the request for halal certification
form
* The Declaration on ingredients form
* Company’s affirmation form
b. Attach information with specification, halal
certificate and document on Halal Assurance
System
c. LP POM MUI sending official letter of
schedule audit
d. Auditing process to the factory
2.
Process-Audit
* Auditing Process Covers :
a. Management of Halal Assurance System
b. All documents regarding to the raw material
c. Whole process of production
d. Sampling if necessary
* The Field Auditing :
a. Production location (every location, branches
and toll manufacturing)
b. Factory location in the country origin
c. Factory location for base form of raw material
* Auditing is conducted at the running time
* The result of auditing evaluated in the Auditor Team Meeting
* If auditing result complete, the meeting result will be reported
and submitted to the Fatwa Commission Meeting of MUI
* Fatwa Commission will decide the halal status of the product
* MUI Halal Certificate will be issued and valid for 2 (two) years
3. Post-Audit
Three activities in post audit will be conducted by
company and LP POM MUI are :
a. Company prepare Halal Assurance System
b. Company regular report system to LP POM
MUI every 6 months and every changes raw
material, supplier, factory process, ect.
c. Unscheduled inspection by LP POM MUI to
the company factory
FATWA COMISSION
Halal
Haram
Referrence :
1. Al-Qur’an
2. Hadist
3. Fatwa Ulama
MUI HALAL
CERTIFICATE
HALAL ASSURANCE SYSTEM
Halal Assurance System is
a management system to maintain the halal
status of products that have obtained halal
certificate
17
• For a new company which has not obtained MUI Halal Certificate, HAS
documents needed are :
1. 1st HAS Document contains at least an official statement to submit
Manual of HAS within 6 months after halal certificate is issued.
2. 2nd HAS Document contains at least Halal Policy, halal management
organization, and scope of HAS implementation.
• For company which has already had halal certificate but its HAS
implementation has not been audited, then HAS documents needed are :
1. 1st HAS Document contains at least Halal Policy, halal management
organization, and scope of HAS implementation.
2. 2nd HAS Document contains standard Manual of HAS
• For company whose HAS has been audited and is going to renew its halal
certificate then HAS documents needed are :
1. 1st HAS Document contains HAS implementation report on recent
condition or revised HAS Manual or statement letter mentioning the
company has got at least B grade or copy of HAS certificate.
2. 2nd HAS Document is not needed.
Reason of HAS Implementation
• Period of Halal Certificate : 2 years
• Need a sytem which can assure halal during period of Halal
Certificate
• Based on Islamic Law :
- To consume Halal Products is obliged for Moslem
- All activities for guarding Halal Status of Products
become obliged, like :
a. Make agreement with company to maintain
Halal Production consistenly
b. Create HAS and It has to be applied by company
which have got Halal Certificate
Reason of HAS Implementation
(continued)
•
•
•
•
•
•
Maqhashid Shari’ah
Trend of Increasing Market for Halal Product
Globally (Customer Satisfaction)
Continual product development (rapid
development) in a short time
Supply chain management in global market
Join responsibility for halal production
LP POM – MUI as external body
Declining life cycle of product
(continued)
• Life style changes consumer behavior  decline
life cycle of product.
• 4 stages of product in the market (Fig 1)
Sales decline
Company responds
Production changes
Figure 1. Life cycle of product Maarif and Tanjung, 2003)
21
Declining life cycle of product
(continued)
• Change or modification:
• Product
• Lay out
• Packaging
• Production technology
• Manufacturer may change raw material,
ingredients, or formula  ‘Change’ is critical
points in maintaining halal status of product.
22
Declining life cycle of product
(continued)
• Producer must set up Standard Operation
Procedure (SOP) : a halal manual for detail
technical procedures.
• Any change must refer to SOP.
23
Supply chain management (SCM)
in global market
SCM maximize costumer satisfaction, reduce
costs.
Fig 2. Supply-Production-Distribution System
24
Supply chain management (SCM)
in global market
(continued)
3 critical points in maintaining halal status:
1. Supplier’s Obligation
2. Transformation from raw materials to end
product
3. Distribution system
25
Supply chain management (SCM)
in global market
(continued)
3.1. Supplier’s Obligation
• Many suppliers 
ALL must provide halal materials
• Little suppliers 
Continuously supply halal materials
26
Supply chain management (SCM)
in global market
(continued)
3.2. Transformation from raw materials to end
product
All steps of transformations in Production
process, from raw materials to end
product, must be clearly documented in
HAS so that they can be evaluated properly
Figure 3.
27
Supply chain management (SCM)
in global market
(continued)
3.2. Transformation from raw materials to end product
• In Supply Chain Management, to reduce cost of
investment, production or inventory, some
producers may conduct toll manufacturing by using
several companies which produce some
components of product.
• Consequently, HAS will also include the company
where toll manufacturing is taken.
28
Supply chain management (SCM)
in global market
(continued)
3.3. Distribution system
Some products are easily being contaminated
with non-halal product (e.g. meat),
 producer must pay great attention during
distribution to ensure that products are
maintained in halal status until they reach
consumers.
29
Supply chain management (SCM)
in global market
(continued)
3.3. Distribution system
Figure 4. click
• there are several bodies involved in this system
which means that halal status of product must be
controlled in all bodies involved.
• Thus HAS include services such as importer,
distributor, transportation and retailer.
30
LP POM – MUI as an external body
• As an external body, LP POM MUI cannot
control production process in a company all
the time,
although there is a surveillance allows LP
POM MUI to visit the production site
without information prior to visit.
• Therefore a team of Internal Halal Auditors
is required in the implementation of HAS.
31
LP POM – MUI as an external body
(continued)
• Three components must be carried out in
HAS:
1. Conducting internal audit regularly,
2. Conducting corrective action when any
distortion occurs or procedural errors ; and
3. Making a report to LP POM MUI every 6
months whether there are changes in raw
materials and production process.
32
Halal production is a join responsibility
(Total Quality Management)
(continued)
• The implementation of HAS needs Total
Quality Management :
Internal Halal Auditor and the Top
Management are responsible to maintain
the halal status of product.
33
Halal production is a join responsibility
(Total Quality Management)
(continued)
Continuous
Improvement
Objective
Principles
Customer
Focus
Elements
Process
Improvement
Total
Involvement
Leadership
Education and Training
Supportive structure
Communications
Reward and recognition
Measurement
Fig 5. The Total Quality Management System
(Arnold dan Chapman, 2004)
34
Halal production is a join responsibility
(Total Quality Management)
(continued)
Components in Total Quality Management
(Figure 5)
1. Halal policy
2. Halal management structure
3. Communication
4. Training and socialization
5. Materials must be absolutely halal
6. Management review
35
•
Halal policy. Support from the top
management must be in the form of
documented halal policy, hence it can be
implemented in halal production process.
•
Halal management structure. It is a
management structure that supports the
implementation of HAS in manufacturer.
36
• Communication. It is the way to encourage
transfer of knowledge and internal
coordination.
• Training and socialization. Main purposes of
training and socialization for employee are to
improve an understanding of Islamic law
related to halal product.
37
•
Materials must be absolutely halal. Any
substance or process that can be identified as a
critical point in production process must be
mentioned in Halal Guide as a technical
guidance.
HAS does not tolerate low risk, medium risk or
high risk in halal production process (zero
tolerance)
•
Management review. It is necessary to
continuously review and improve the system to
assure halal production process.
38
Conclusion
Implementation of HAS is required to be
able to :
1. encourage the manufacturer to be aware
in maintaining the halal status of the
products;
2. renew halal certificate, and
3. provide costumer satisfaction.
39
Procedure to be Approved
by
LP POM MUI
Requirement
1.
2.
3.
4.
5.
Halal Certifier Body should be a Public
Organization
Supported by Islamic Community
Have at least 2 scientist as Auditor
Have at least 3 Ulama (Islamic Scholars Ship)
Have Standard Operating Procedure for Auditing
and Administration
Step by step to be approved
1.
2.
3.
4.
5.
Application by letter
Giving full information by answering the
questionnaires (attached)
Administrative evaluation
Verification by side visit, including following
audit procedure
Giving status
Thank You Very Much
For The Attention