A.
TECHNICAL OPERATIONS DESCRIPTION
Marites' Pastillas is a company that offers unusual products that will surely bring
a delightful pastilla eating experience to customers. The company aims to be recognized
in various markets by producing a high-quality sweet delicacy made of the finest quality
ingredients at a reasonable price. The milk comes from the carabao farm in Bulacan to
ensure its freshness, while the other ingredients will be purchased from contacted
suppliers. The production of the product will be done by the members of the company
only within the production area to ensure proper production.
B. PRODUCTION PROCESS
The Purchasing Manager is responsible for all transactions related to ingredient
procurement. Upon delivery, the Production Manager assumes responsibility for
inspecting of damaged and expired ingredients. Stale and expired goods will be returned
and replaced as included in the terms agreed upon the company and the supplier.
Approved ingredients are transferred to the production area for immediate use and good
and unexpired ingredients that are not used in the current production run are properly
stored for the next production cycle. After production, the finished product will then be
inspected for quality control to identify if the specified standard of the product is met. In
case of identified issues, the findings will promptly be communicated with the Production
Manager to address concerns or implement corrective measures. After passing through
quality control, the finished products will be handed over to the General Manager for
inventory management. After distribution, sales team will communicate with the
production manager regarding the need for restocking.
Step by step Procedure
Process Flowchart
Approval/ Actual Quality Control
Ingredients
Rejection of Production (In-Process
goods inspection)
Return and
replacement of
goods Packaging
Restocking
Distribution / Quality Control
Sales Inventory (final
Transaction Management inspection)
Duration per Step per Batch
PROCESS DURATION
Delivery of Ingredients (milk/others) 2-3 days/1day
Ingredients Preparation 1 – 2 hours
Production of goods 2-3 hours
Quality Control Inspection 30 mins. – 1 hour
Packaging 1 – 2 hours
Final Inspection 30 mins. – 1 hour
Inventory Management 30 mins. – 1 hour
Labor and Equipment Requirement per Step
PROCESS LABOR REQUIREMENT EQUIPMENT
REQUIREMENT
Delivery of Ingredients N/A N/A
(milk/others)
Ingredients Preparation Measurement accuracy Measuring tools
Production of goods Mixing/coating technique, Coating/mixing
manual shaping skills equipment, shaping tools
Quality Control Inspection Visual inspection skills, Visual inspection tools
understanding of quality (like rulers, etc.)
standard
Packaging Packaging technique (Attention Packaging materials
to details in labeling and (wrapping, containers,
presentation) etc.)
Final Inspection Advanced visual inspection Quality Control stations
skills (detailed understanding of
quality standard)
Inventory Management Analytical skills for stock level Computer for record -
assessment, communication keeping
skills for coordination with
suppliers
C. Production schedule
There are five workers in the production team of the company with 100 pieces of pastillas
produced per week. The average pastillas produced by each worker in a month is 400 pieces.
Monthly production capacity
Worker Weekly Capacity Monthly Capacity
Worker 1- Esvie 100 pieces of pastillas 500 pieces of pastillas
Worker 2- Beverly 100 pieces of pastillas 500 pieces of pastillas
Worker 3- Remelyn 100 pieces of pastillas 500 pieces of pastillas
Worker 4- Mae 100 pieces of pastillas 500 pieces of pastillas
Worker 5- Steven Jones 100 pieces of pastillas 500 pieces of pastillas
D. Labor Requirement
The team is composed of 5 members which they were also appointed to different
positions. The company just started its venture so it cannot yet afford to sustain upscale labor
cost. In this situation, the owners will handle everything. Everybody must have the marketing
skills needed to sell the product. Since the workers are also the owners, each member must fulfill
their tasks duly.
Labor Productivity
All the five members will fulfill their tasks in accordance with the time frame given to
them. In this moment, the members will maximize their time in reaching their target sales
through their marketing strategies. The number of the workers would be enough to reach an
attainable sale.
E. Equipment Requirement
Fixed Capital
The business will seek a location to rent bear the public market. The acting manager will
visit the LGU to process documents and paper works for leasing a specific place for the business.
Regarding the equipment needed for the production process, such as cooking pot, stove or
cooktop, wooden spoon, or spatula, measuring cups, mold or molder, wax paper or cellophane
and others, the company will purchase them.
Life of fixed capital
The baking tools that were purchased will be utilized for one year. Afterward, an upgrade
to machinery is planned to streamline and expedite the production process, aiming to increase
quantity in response to growing sales.
Maintenance and repair
The company will bear the costs of damages and defects in the equipment.
Sources of Equipment
Each owner will contribute capital for all the equipment, ensuring an equal distribution of
shared resources.
Planned capacity
All machines and equipment to be used in the production process shall be exploited at
most 80% of its capacity.
Future Capacity
As such, all machines and equipment shall be used at most 80% of its capacity in any
future endeavor.
Terms and Conditions of Rented Equipment
The company will enter into a lease agreement for the premises, while the equipment will
be purchased outright with cash.
F. PLANT/FACTORY LOCATION
Marites’Pastillas factory and storage, as to the selling place will be situated at Brgy.
Quirino, Solano. The machinery and equipment needed for the production is also located at the
factory.
G. PLANT LAYOUT
H. WASTE DISPOSAL
The waste disposal plan for our pastillas business is intricately aligned with key tenets of
Philippine environmental legislation, notably the Ecological Solid Waste Management Act of
2000 (Republic Act No. 9003). This legislation underscores the necessity of waste segregation at
the source, a principle embedded in our plan by delineating recyclables, non-recyclables, and
potentially hazardous waste during pastillas production. Correspondingly, our emphasis on waste
reduction and reuse mirrors RA 9003's objective of curbing solid waste generation and
promoting recycling. The plan further demonstrates compliance with Republic Act No. 6969,
addressing potentially hazardous waste disposal through meticulous management of cleaning
chemicals and expired ingredients.
In essence, our waste management strategy not only aligns with existing legislation but
also reflects a dedication to responsible and sustainable practices, contributing to environmental
stewardship in accordance with national standards. This comprehensive approach positions our
pastillas business as a conscientious player in waste disposal, promoting both legal adherence
and environmental responsibility.
I. Quality Control
The company will perform food testing weekly for each new recipe added to the menu.
Before introducing the product to the market, the company will ensure that it is DTI
approved to maintain safety and customer satisfaction. The quality sectors in pastillas
typically include factors such as the ingredients’ freshness and quality, the production
process, adherence to hygiene standards, packaging integrity, and overall taste and texture of
the pastillas. Ensuring high standards in these areas contributes to the overall quality of the
product.
Sector Required Quality
ingredients Fresh, pure (free from contaminants),
consistent (in texture and taste), reputable
suppliers
Production process Proper hygiene, precision in measurements,
proper mixing and blending, proper cooking
temperature and time, quality control checks,
compliance with regulations.
Hygiene standards Sanitization, personal hygiene (workers),
separation of duties, clean environment,
equipment maintenance, pest control, trained
staff
Packaging integrity Seal integrity, barrier properties, aesthetic
appeal, portion control, informational clarity,
durability, tamper-evident features,
environmental considerations
J. Production Cost
The production cost for each pastillas product is itemized in the table below.
Direct Materials Price Quantity Total/Unit
Carabao Milk 2,917 2,500 1.17
Condensed Milk 2,813 2,500 1.13
Powdered Milk 3,625 2,500 1.45
Sugar 3,333 2,500 1.33
Fresh Fruit 2,604 2,500 1.04
Direct Labor
Payroll 30,000 2,500 12
Overhead
Transportation cost 10,625 2,500 4.25
Plastic wrapper for 2,292 2,500 0.92
packaging
Rent 10,000 2,500 4
Equipment maintenance 1,235 2,500 0.49
Electricity 1,885 2,500 0.75
Insurances 1,675 2,500 0.67
Other indirect materials 1,996 2,500 0.8
Total Cost per unit 30
Total Production Cost 75,000
