PRODUCTION SYSTEM OF ALBOCO FOOD INDUSTRY

PRODUCTION SYSTEM OF ALBOCO FOOD INDUSTRY ____________________________ A System Study Presented to The faculty of the College of Engineering Eastern Visayas State University Tacloban City _____________________________ In Partial Fulfillment of the Requirements for the Degree Bachelor of Science in Industrial Engineering _____________________________ By JOSHUA A. ESQUIERDO CHARISSE L. NUEVO JUBELIEN A. RAMIREZ JOHN OSCAR I. SUÑGA RYUICHI V. UMEMURA BSIE 4A February 2022

APPROVAL SHEET In partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering, this study is entitled \"Production System of Alboco Food Industry\", has been prepared and submitted by Joshua A. Esquierdo, Charisse L. Nuevo, Jubelien A. Ramirez, John Oscar I. Suñga and Ryuichi V. Umemura who are examined and recommended for ORAL EXAMINATION. ENGR. FRANCIS ADRIAN P. POLIDO, CIE, AAE Research Adviser PANEL OF EXAMINERS Approved by the Committee on Oral Examination with a grade of ________. ENGR. LEONORA N. MANCIO Faculty, IE Department Chairman ENGR. ROQUE A. COSTINIANO Head, IE Department Member ______________________________________________________________ Accepted and approved in partial fulfillment of the requirements for the degree Bachelor of Science in Industrial Engineering. Date of Oral Examination DIOSDADO J. LESIGUEZ, Ph.D February 2022 Dean, College of Engineering ii

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ACKNOWLEDGMENT First and foremost, we want to thank our Almighty Father for providing us with mental and physical strength, and all of the other blessings that helped us in the development of the paper. To the Alboco Food Industry, for allowing the researchers to conduct the study on their establishment despite facing global pandemic. The conduct of the study provides the researchers with an excellent opportunity to improve and widen their understanding of System Engineering and Information Systems. To Engr. Leonora Mancio, our subject instructor, for giving the researchers challenges and words of encouragement and for giving a long period of time to make and defend this paper. What we've learned in making this manuscript will undoubtedly serve as a guide for the researchers to hone their skills and knowledge. To Engr. Francis Adrian Polido, our adviser, for his support, advice, valuable comments and patience in the completion and success of this study. To our parents, thank you for all your moral and financial support. All of our struggles and triumphs are dedicated to you. Finally, thanks to all of our friends who assisted us in making this study a success. We appreciate all of your suggestions and encouragement. The Researchers J.A.E C.L.N J.A.R J.O.I.S R.V.U EASTERN VISAYAS STATE UNIVERSITY Tacloban City February 2022 iv

TABLE OF CONTENTS Page TITLE PAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i APPROVAL SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii CERTIFICATE OF PROOFREAD . . . . . . . . . . . . . . . . . . . . . . . . . . iii ACKNOWLEDGMENT. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . iv TABLE OF CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v LIST OF TABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii LIST OF FIGURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix LIST OF ANNEXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x LIST OF APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii CHAPTER 1 I INTRODUCTION 2 Background of the Study . . . . . . . . . . . . . . . . . . . . . . 3 Objectives of the Study. . . . . . . . . . . . . . . . . . . . . . . 4 Significance of the Study. . . . . . . . . . . . . . . . . . . . . . . 4 Scope and Delimitation of the Study. . . . . . . . . . . . . . 5 Conceptual Framework. . . . . . . . . . . . . . . . . . . . . . . . Conceptual Literature. . . . . . . . . . . . . . . . . . . . . . . . . 9 9 II METHODOLOGY 9 Research Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Respondents of the Study . . . . . . . . . . . . . . . . . . . . . Research Locale. . . . . . . . . . . . . . . . . . . . . . . . . . . . Data Gathering Procedure. . . . . . . . . . . . . . . . . . . . . v

Analysis Tools Used. . . . . . . . . . . . . . . . . . . . . . . . . . 11 III EXISTING OPERATING SYSTEM 13 Production Process. . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Production Design and Layout. . . . . . . . . . . . . . . . . . 25 Machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Production Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . 29 Records Management. . . . . . . . . . . . . . . . . . . . . . . . . 30 Raw Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Personnel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Management Practices. . . . . . . . . . . . . . . . . . . . . . . . IV RESULTS AND DISCUSSION 38 Production Process. . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Production Design and Layout . . . . . . . . . . . . . . . . . . 47 Machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Production Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . 51 Records Management . . . . . . . . . . . . . . . . . . . . . . . . 52 Raw Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Personnel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Management Practices. . . . . . . . . . . . . . . . . . . . . . . . V FINDINGS, CONCLUSION AND RECOMMENDATION 59 Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Recommendations. . . . . . . . . . . . . . . . . . . . . . . . . . . vi

ANNEXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 BIBLIOGRAPHY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 vii

LIST OF TABLES Table Page 1 Machineries of Alboco Food Industry . . . . . . . . . . . . . . . . 25 2 Schedule of Work/Break of Employees . . . . . . . . . . . . . . 28 3 Procurement of Raw Material . . . . . . . . . . . . . . . . . . . . . . 30 4 Salary Rate, Schedule, Status of Workers . . . . . . . . . . . . 32 5 Time Schedule for Resting and Lunch Break . . . . . . . . . . 33 6 Illumination Level of the Different Areas . . . . . . . . . . . . . . 46 7 Noise Level of the Different Areas . . . . . . . . . . . . . . . . . . 47 8 Good Manufacturing Practices . . . . . . . . . . . . . . . . . . . . . 58 viii

LIST OF FIGURES Figure Page 1 Conceptual Framework of the Study . . . . . . . . . . . . . . . . . . 5 2 Diagram showing the map of Alboco Food Industry . . . . . . . 10 15 3 Alboco Food Industry’s Crunchy Peanut Butter . . . . . . . . . . 16 18 4 Alboco Food Industry’s Creamy Peanut Butter . . . . . . . . . . 20 5 Alboco Food Industry’s Turon De Mani Production Flow . . . 21 6 Alboco Food Industry’s Roasted Peanut Without Shell 22 Production Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 7 Alboco Food Industry’s Roasted Peanut with Shell Production Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Existing Production Layout . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Hand Trolley Cart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 10 Organizational Chart of Alboco Food Industry . . . . . . . . . . . 35 11 Production Layout of Alboco Food Industry . . . . . . . . . . . . . 43 ix

LIST OF ANNEXES Annex Page A Proposed Production Layout . . . . . . . . . . . . . . . . . . . . . . . 78 B Proposed Generator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 C Proposed Production Layout . . . . . . . . . . . . . . . . . . . . . . . 82 D Proposed Wrapping Machine . . . . . . . . . . . . . . . . . . . . . . 83 E Nitrile Gloves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 F Proposed Stainless Steel Deep Fryer . . . . . . . . . . . . . . . . 84 G Proposed Material Handling Equipment . . . . . . . . . . . . . . 84 H Proposed Air Conditioning . . . . . . . . . . . . . . . . . . . . . . . . . . 85 I Proposed Fluorescent Light . . . . . . . . . . . . . . . . . . . . . . . . 86 J Proposed Machine Maintenance Schedule . . . . . . . . . . . . 86 K Daily Time Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 L Procurement Order Form . . . . . . . . . . . . . . . . . . . . . . . . . 88 M Order Slip Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 N Equipment/Machine Maintenance Log . . . . . . . . . . . . . . . 90 O Distribution Log Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 P Centralize Barcoding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Q ROP and EOQ Formula . . . . . . . . . . . . . . . . . . . . . . . . . . 92 R Inventory of Raw Materials Form . . . . . . . . . . . . . . . . . . . 93 S Inventory of Finished Goods Form . . . . . . . . . . . . . . . . . . 93 T Inventory of Work-In-Process Form . . . . . . . . . . . . . . . . . 94 U Inventory of Machines and Equipment Form . . . . . . . . . . 94 V Proposed Water Dispenser . . . . . . . . . . . . . . . . . . . . . . . . 95 W Proposed Organizational Chart . . . . . . . . . . . . . . . . . . . . . 95 x

X Proposed Vision and Mission . . . . . . . . . . . . . . . . . . . . . . 96 Y Proposed Water Sprinklers and Fire Extinguisher . . . . . . 96 Z Cost-Benefit Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 xi

LIST OF APPENDICES Appendix Page A Permit Letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 B Interview Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 C Plan of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 D Good Manufacturing Practices Evaluation Checklist . . . 106 xii

ABSTRACT Peanut or groundnut is one of the most popular crops in the Philippines. Most peanut crops are being processed into multiple products before it is being distributed and reached its consumers. In Eastern Visayas, specifically Tacloban City, the Alboco Food Industry is a well-known local distributor that specializes in peanut-based products such as Peanut Butter, Roasted Peanut, and Turon de Mani. The focus of this study is to determine the entire operational system of Alboco Food Industry in order to formulate improvement for their productivity and organize system information. The necessary data were gathered by the researchers by conducting interviews, observation, and assessment. Through the data gathering procedure, the necessary information was obtained and was used to identify problems in the existing operational system that affects the efficiency and effectiveness of production in the business. In accordance with the results of the study, the researchers were able to understand the whole operation system of Alboco Food Industry and have found out that it needs improvement at some aspects specifically with its Production Layout, Machines, Production Process, Production Schedule, Records Management, Raw Materials, Inventory, Personnel, and Management Practices. Hereby, with the use of the concepts, tools, and designs in information systems and systems engineering, the researchers have provided recommendations of improvement based on the findings that could help Alboco Food Industry to enhance its daily operation and productivity. xiii

1 Chapter I INTRODUCTION Background of the Study Alboco Food Industry is a well-known local distributor in Tacloban City that specializes in peanut-based products such as Peanut Butter, Roasted Peanut, and Turon De Mani. It is located in Imelda Village, Tacloban City and is owned by Mr. Alan Orais. The business was founded in 1975 and was formerly run by the current proprietor's mother, Mrs. Estela E. Orais. The flagship product of the business is the peanut butter which is being patronized by many customers because of its good taste and spreadable texture. The idea of making the peanut butter as a business started when they tried to produce small amounts and had been tasted by their neighbors. Throughout the years, the business started to make other products out of peanuts which are the roasted peanuts and turon de mani. Due to the increasing demand and production volume, it was decided to purchase machines and equipment that can speed up their production. The business ran smoothly until in 2013 when typhoon Yolanda hit Tacloban City, all of their machines and equipment had been destroyed, which caused the business to stop its operations. In 2014, through the DOST Small Enterprise Technology Upgrading Program, Alboco Food Industry received a grant to support the development of micro enterprises and provide the needs of local businesses in terms of technology. The business started the operation again and started distributing products in establishments such as SM grocery, Gaisano, Mayong’s, Uni City, Reina’s Bakeshop, Quality Bread, pasalubong centers and to Cebu, Capiz, Bohol, Mindanao, Manila and different municipalities within Region VIII. The Alboco Food Industry has its own suppliers of peanuts which are local farmers within the region. To be able to help the farmers, Mr. Alan Orais offered financial help in order for the farmers to acquire needed materials for planting in exchange for direct supplying of peanuts to Alboco Food Industry at a fixed and reasonable price. The business had been in the industry for more than 45 years however expansion is unobserved. Thus, the researchers are encouraged to conduct a production system study to propose improvements for the growth and development of the business.

2 Production systems help to minimize manufacturing cycle time, enhance product quality, reduce WIP, reduce or eliminate paperwork between shifts, shorten lead-time, and empower plant operations employees by focusing on value-adding procedures. Production systems provide data that allow for the optimization of production activities from the start of an order through the delivery of finished items. Production systems guide, initiate, respond to, and report on plant activities as they occur, using current and accurate data. The ability to respond quickly to changing conditions, along with a focus on eliminating non-value-added activities, is what drives efficient plant operations and processes (Greeff, 2004). For Skippy Peanut Butter, their production system includes two grinding steps. Peanut butter is normally made up of at least 90% peanuts. The peanuts are ground twice, once to a medium grind and again to a fine, smooth texture. Manufacturers add larger peanut fragments or employ a modified grinding procedure by removing a rib from the grinder to make chunky peanut butter. Other components, such as salt, sugar, and oil, used as a stabilizer, are added to the peanuts as they are fed into the grinder. Peanut butter is normally made up of at least 90% peanuts. The peanut butter is now transferred from the grinder to a stainless-steel hopper, which serves as a mixing and storing point in between. The finished product is put into jars, capped, labeled, and shipped to grocery stores across the country on flats. (National Peanut Board, 2014) Likewise, Alboco Food Industry’s production system has its own production steps in converting raw materials to finished goods. The researchers conducted an on-site observation in the manufacturing facility of Alboco Food Industry in order to assess their current production system. Within this on-site observation, the researchers aim to propose an improvement to the system that can improve the overall productivity and can organize system information. Objectives of the Study This study aimed to determine the current operational system of Alboco Food Industry to improve productivity and organize system information. Specifically, it sought answers to the following questions: 1. What is the existing production system of Alboco Food Industry in terms of:

3 1.1 Production Process; 1.2 Production Design and Layout; 1.3 Machines; 1.4 Production Schedule; 1.5 Records Management; 1.6 Raw Materials; 1.7 Inventory; 1.8 Personnel; and 1.9 Management Practices 2. What are the problems or factors affecting the production system of Alboco Food Industry? 3. What is the proposed improvement for the production system of Alboco Food Industry based on the results of the study? Significance of the Study Every system study has significance to the people, the authors, the owner of the business, etc. This study would be a great contribution to the knowledge of the student and will serve as their achievement. Thus, the findings and implication of this study will give benefit to the beneficiaries. The vital results of this study gave significant benefits specifically to the following: IE Students. The gathered information will enable them to act accordingly on both Systems Engineering and Information Systems subject, because, as early as now, through this study, they will be able to see the effects and benefits of a continuous improvement project for a system on a certain establishment or businesses offering products and services, since the field of their expertise is all about seeking improvement for every process in order to optimize efficiency. Alboco Food Industry Management. The entire continuous improvement project developed by the student will enable them to adopt changes for their business in order to improve their existing system. This will guide the management of Alboco Food Industry to provide better decisions based on reliable and acceptable data. This will help the management decide whether taking a risk or not is good for the future growth of their business. This

4 will also help the management to provide a safe and healthy working environment for their workers. Alboco Food Industry Customers. This study would benefit the customers of Alboco Food Industry and people that will purchase their product. It would help to optimize product’s quality and at the same time meet customer’s satisfaction and demand. Future Researchers. This study would help the future student researchers to be aware and have the knowledge of the processes and systems involved in the food industry. It would help them to become a better analyst, and this would serve as their reference for more studies in the future. Scope and Delimitation of the Study This study attempts to determine the existing production system of Alboco Food Industry in terms of its production layout, machines, production process, production schedule, records management of the system, raw materials, inventory, personnel, and the factors affecting the system that could give emphasis to develop and propose improvements for the production system. Conceptual Framework The researchers aimed to study the current production system of Alboco Food Industry to be able to formulate an improved system for the organization. As time passed by, researchers understood the importance of the production concept of the organization. The researchers want to generate new ideas for a better system, which will address the factors that affect the system and improve the overall performance. The figure below shows the conceptual framework of the study. The conceptual paradigm reveals its variables, the tools on how the researchers’ collect data and identify existing problems or factors that affect the production system and formulation of proposed improvements for of Alboco Food Industry based on the results of the study.

5 Figure 1. Conceptual Framework of the Study Conceptual Literature System Engineering is concerned with the system in a holistic approach; it places great value on the system's overall function. It examines the system both from the inside and outside (its interactions with other systems and the environment). These include the identification of production process, raw materials, inventory and among other factors that must be accurately reflected in system requirements documents and incorporated into the system's design. The Facets of System Engineering that is applicable to this study includes problem identification, identifying constraints, making decisions, and communicating. In this study, problem identification will be used by the researchers to determine and evaluate the existing problems in Alboco Food Industry and its root causes. It also helps to design potential alternatives that can be proposed to the business. Through identifying constraints, the researchers can assess the proposed alternatives while considering its corresponding constraints. Furthermore, making decision will be used in order to choose solutions from the proposed alternatives by eliminating other alternatives that are not feasible. All the data needed to successfully conduct this study are being collected by having proper communication between the researchers and the establishment’s owner and workers. System Thinking is the process of gaining a comprehension of how items that are considered systems interact with one another within a larger whole.

6 This is a strong technique to analyze the problem in the context of the entire system, allowing them to better identify and avoid unexpected negative implications of potential solutions. Systems thinking provides a powerful holistic approach on understanding a system. This can be used by the researchers to determine the relationship and influences of each element of the overall system of Alboco Food Industry with one another. According to the British Standards Institution (BS 3138), method engineering, also known as method study, is the systematic recording and critical assessment of existing and new ways of conducting work with the purpose of inventing and implementing easier and more effective processes while lowering costs. As a result, we've blended two workload-reduction solutions. Productivity enhancements can be combined with Industrial Engineering techniques to aid in the development of system improvements. This involves process analysis, which can be used by the researchers in looking at the complete manufacturing process of each product line from raw materials to finished product in order to find waste and execute necessary Kaizen measures. This also helps in understanding how each production process is interrelated with each other and its relationship to other elements of the system. Motion analysis is used to examine motions in order to decrease wasted movements and reorganize the order and coordination of operations in a less time-consuming and cost-effective manner. To decrease waste and boost productivity, do a time study to assess motions from a work time viewpoint. The researchers can use time and motion analysis in analyzing and evaluating motions of the workers of Alboco Food Industry in order to design a proposed standard of movements that can maximize the working hours. Moreover, in doing so, this ensures that the workers can do their tasks without increasing their fatigue levels. Operation analysis is a method of calculating the time-consuming ratio of each activity to the total operation by analyzing the movements of people and machinery. Analyze the time-consuming ratio of each activity to the total process using a combination work analysis. The researchers can gather the time required for each activity wherein it can be used in determining whether

7 each activity is necessary and bring efficiency to the overall performance of the entire system. Continuous improvement, according to the ISO 9000 standard, refers to a company's daily attempts to increase its ability to meet client’s needs. Continuous improvement can be achieved through internal audits, management reviews, data analysis, and the implementation of corrective and preventive actions. According to Khan and Turowski, a company that can't overcome technical problems will have trouble generating new products and services, as well as innovating. This is a widespread problem in the food industry, which is often regarded as one of the most important industries in today's economy. Indeed, in terms of demand, volume, process, production technology, consumer behavior, and supplier attitude, to name a few, the degree of unpredictability has increased dramatically in this industry. Components such as machines, storage systems, and utilities must be able to share information, as well as act and control one another, in order to achieve this goal (Thoben, Wiesner, and Wuest 2017). To remain competitive, Alboco Food Industry must adopt a trend. Developing an information system that is effective at supporting the operation of individual processes involved in the processing of individual data. The business must have a modern information system in place to provide a speedy and high-quality product \"life cycle\" (IS). This computerized information system is capable of facilitating creative activities throughout the pre-production, production, and post-production stages. According to Hanif al Fatta (2007), a transaction processing system (TPS) is a computerized information system that processes large amounts of conventional business transaction data in order to generate financial data. The main purpose of a system at this level is to keep track of how transactions flow through the Alboco Food Industry. The Codex Alimentarius Commission (1999) defined traceability as the ability to follow an entity's history, application, or location via the use of recorded identifications such as bar codes. While traceability is closely related to product identification, it may also apply to the origin of materials and components, the manufacturing history of the product, as well as the distribution and location of the product once it has been dispatched. Barcoding may be utilized for food

8 traceability on a global scale. The development of a technology is based on molecularization, standardization, and automation. Barcoding is a sensitive, quick, low-cost, and dependable approach for identifying and tracking a wide range of raw materials and derived food items, as well as detecting allergies or potentially harmful components in food matrices. Merchants wrote down purchases or glanced down at how many units were gone at the end of the day to forecast future requests, using barcodes, sales, and inventory control.

9 Chapter II METHODOLOGY This chapter presented the study methodology that was engaged in the research. Specifically, this involved the design of the study, the respondents, research locale, instruments used, and the data gathering techniques and methods. Research Design A case study approach of qualitative research design was used in this study to clearly arrive at the study's main purpose. The design is used since this study aims to determine the current production system of the chosen establishment, as well as the factors affecting the system to generate improvements. Respondents of the Study This study involved the proprietor and the workers of Alboco Food Industry. The research respondents were chosen through purposive sampling, a non-probability sampling technique where the selected sample is the most useful to the purposes of the study. Five respondents were purposefully selected, one from the management and 4 workers with different assigned production processes. Research Locale The study was conducted at Alboco Food Industry, which is located at Blk 21, Lot 7, Imelda Village, Tacloban City.

10 Source: Google Maps Figure 2. Diagram showing the map of Alboco Food Industry Data Gathering Procedure Primarily, the researchers presented a letter of communication to the proprietor of Alboco Food Industry to ensure authorization. A schedule for visitation and an appointment with the business owner were carried on to conduct the interview. The researchers also conducted observations and assessment of the plant’s production area. A one-on-one interview was conducted with the business owner by using an interview guide to collect necessary data. Random interviews with the production workers of the business were conducted to get useful information based on the study’s objectives. Good

11 Manufacturing Practices (GMP) Checklist was used by the researchers to determine the condition of the establishment’s GMP. Good Manufacturing Practices is necessary in food industries and is one of the requirements to ensure that the produced product is controlled according to quality standards. The main objective of this study and the use of information gathered was discussed to the respondents. A hundred percent retrieval and confidentiality are guaranteed in the obtained data from the respondents. The collected data were analyzed, interpreted, and evaluated by the researchers. Analysis Tools Used The following tools were used to gather information that is useful for the study. Problem Identification. Identification of existing problems within the establishment was conducted to determine the root cause of the issue in order to address it appropriately. Identifying Constraints. Constraints exist in every organization and neglecting those could greatly impact the welfare of the organization. The researchers identify the constraints to create actions on how to address it. Making Decisions. Making decisions comes after problem identification because this serves as the solution to the problem. Decision making was conducted by the researchers after gathering information, identifying the decision, and assessing alternative resolutions. Communicating. An important instrument to this study is communicating with the establishment’s owner and its workers. Proper communication is necessary to collect the important data and successfully conduct the study. Process Analysis. The researchers conducted process analysis at Alboco Food Industry’s production system to analyze the whole production process starting from raw materials up to its output. Operation Analysis. The researchers conducted operation analysis to examine all of the aspects that influence the way of conducting an action in order to maximize overall efficiency. Time and Motion Study. In gathering the necessary data, one of the great tools is to conduct time and motion study. This is used to analyze the time

12 and the different motions needed to finish a certain process. However, the researchers were not able to conduct time and motion study on the chosen establishment due to restrictions and confidentiality rules. Fishbone Diagram. To determine the potential root causes of the problem, the researchers used a fishbone diagram. This tool shows the root causes of the problem in terms of manpower, materials, machine, methods, measurements, and mother nature. Lux Light Meter. This tool is used to measure the lux level inside the facility. Sound Meter. This tool is used to measure noise level inside the facility. Likert Scale. This tool is used to test the Good Manufacturing Practices in the Alboco Food Industry.

13 Chapter III EXISTING PRODUCTION SYSTEM OF ALBOCO FOOD INDUSTRY This chapter contained the existing condition of Alboco Food Industry’s production system in order to thoroughly and clearly understand the issues under its system. This would help with the study's development and the creation of effective improvements and recommendations. A. Production Process Production Process is the most critical to Alboco Food Industry. It makes the industry stand out in the market. It ensures that their products are in good quality through a great implementation and control in the production process together with the raw materials and machines used for the production. The Alboco Food Industry has three different products with different varieties: 1) Peanut Butter 2) Turon de Mani 3) Roasted Peanut. Those products have different production processes with machines operated by the workers. Below are the existing production processes of the different product lines in the Alboco Food Industry. Peanut Butter (Crunchy and Creamy) According to the General Manager of Alboco Food Industry, Alan Orais, the peanuts are washed and dried before the farmers deliver them to the production facility. Upon arrival of the raw materials, two personnel do an inspection in order to ensure that the raw materials are in good condition. The production process of peanut butter starts at deshelling, where the peanuts are the input, and the output will be the unshelled peanuts. In deshelling, the machine removed the outer covering of the peanuts. The peanuts will pass between a series of rollers that crack them and repeatedly pass-through screens, blowers, magnets, and destoners. There, they are shaken, gently tumbled, and air blown, until all the shells and rocks are removed. After deshelling, the unshelled peanuts are sorted immediately. The workers manually sort peanuts into reject, broken whole nuts, and unshelled nuts. The workers sort out the peanut on a rectangular net and manually handpick the nuts. The peanuts are graded for defects and broken skins. The peanuts with defects are discarded into a container, going to waste disposal. After the

14 peanuts are sorted, the workers will put the good peanuts in the container drum where they will be stored and ready for roasting. The next process is the roasting of good peanuts. In this process, the peanuts travel through a hot air roaster for 1 hour in a continuous rocking motion. This motion allows the peanuts to roast evenly. A photometer indicates when the cooking is complete and the color of the peanuts changes from white to light brown. When the process is complete, the roasted peanuts are transferred to a basin for cooling. The roasted peanuts are cooled first for 1 hour before the peeling process. After the cooling process, the roasted peanuts undergo a peeling process. In this process, they use a peeling machine. The peeling machine removes the skin of the peanuts for an hour. When the peeling machine is done with the process. They manually remove the remaining skins to ensure that there is no skin left in the peanuts. After peeling, the peanuts are put in a container and transferred near the grinding machine. The next process will be the grinding process with the use of a grinding machine. The grinding machine grinds the peanuts and turns into a paste while incorporating other ingredients. The first grinding reduces the nuts to a medium grind for 30 minutes. When the process is done it is transferred into a casserole and is ready for the mixing process. During the mixing process, peanuts are fed into the mixing machine with salt and oil added into the mixture. Ingredients are mixed for about 30 minutes. The mixture underwent a second grinding process for 30 minutes to make it creamier. One of the varieties of peanut butter is the crunchy peanut butter. In the production of crunchy peanut butter, it starts from deshelling up to the mixing process, after the mixing process, it will skip to the last grinding process and to the filling process. However, for the creamy peanut butter, the production process will require three times of grinding process to ensure that the butter is fine and smooth. In the filling process, using the filling machine the mixtures are being filled into the plastic bottle. The personnel will step the pedal and the mixture will flow out to the plastic bottles for 30 minutes. After the plastic bottle is filled with the mixture, it will undergo a cooling process with the support of stand fans for an hour and conduct quality inspection for every plastic bottle if there are defects. After being cooled and checked, it will be sealed and capped with a sealing/capping machine. The color of the capped will be based on the variety of the peanut butter, blue for the crunchy and green for the creamy peanut

15 butter. Then all the sealed and capped bottles are labeled with printed stickers. The finished product will be arranged in the box, sealed and gotten ready for delivery. The estimated time per production is 8.5 hours. Figure 3. Alboco Food Industry’s Crunchy Peanut Butter

16 Figure 4. Alboco Food Industry’s Creamy Peanut Butter

17 Turon de Mani For this product line, the production process starts at deshelling, where the peanuts are the input, and the output will be the unshelled peanuts. The deshelling machine removed the outer covering of the peanuts. The peanuts will pass between a series of rollers that crack them and repeatedly pass- through screens, blowers, magnets, and destoners. There, they are shaken, gently tumbled, and air blown, until all the shells and rocks are removed. After deshelling, the unshelled peanuts are sorted immediately. The workers manually sort peanuts into reject, broken whole nuts, and unshelled nuts and the peanuts are sorted out on a rectangular net and manually handpick the nuts. The peanuts are graded for defects and broken skins. The peanuts with defects are discarded into a container, going to waste disposal. After the peanuts are sorted, the workers will put the good peanuts in the container drum where they will be stored and ready for roasting. The next process is the roasting of good peanuts. In this process, the peanuts travel through a hot air roaster for 1 hour in a continuous rocking motion. This motion allows the peanuts to roast evenly. A photometer indicates when the cooking is complete and the color of the peanuts changes from white to light brown. When the process is complete, the roasted peanuts are transferred to a basin for cooling. The roasted peanuts are cooled first for 1 hour before the peeling process. After the cooling process, the roasted peanuts undergo a peeling process. In this process, they use a peeling machine. The peeling machine removes the skin of the peanuts. When the peeling machine is done with the process. They manually remove the remaining skins to ensure that there is no skin left in the peanuts. After peeling, the peanuts are put in a container and are transferred near the grinding machine. The next process will be the grinding process with the use of a grinding machine. The grinding machine grinds the peanuts and turns them into a granular texture for 30 minutes. The grinding reduces the nuts to a medium grind. When the process is done, it is transferred into a casserole and is ready for the mixing process. During the mixing process, peanuts are fed into the mixing machine with sugar and oil added into the mixture. Ingredients are mixed for about 15 minutes. The next process is the cutting of lumpia wrapper; the wrapper is being cut into two in order to get the preferred size. After cutting the mixture is being placed into the lumpia wrapper

18 and being wrapped and uses a little water to seal. After wrapping, the Turon de Mani is ready for frying. The pan will be preheated together with the oil. Figure 5. Alboco Food Industry’s Turon De Mani Production Flow

19 When the oil is hot, the Turon de Mani will be deep fried until golden brown color surfaces. After deep-frying, it will be put in the strainer to let the oil flow out in the Turon de Mani and will undergo cooling and drying of oil process for 2 hours with the support of stand fans for an hour and it will be transferred to a container with a cloth to dry the remaining oil in the Turon de Mani. After being cooled and dried, they conduct quality inspection for every Turon de mani if there are defects. After inspection, the Turon de Mani will be packed, and it will be sealed and labeled with printed paper. The finished product will be arranged in the box, sealed and ready for delivery. The estimated time preparation for the Turon de Mani Production is 8.5 hours. Roasted Peanuts without Shell For this product, the production process starts at deshelling, where the peanuts are the input, and the output will be the unshelled peanuts. The deshelling machine removed the outer covering of the peanuts. The peanuts will pass between a series of rollers that crack them and repeatedly pass- through screens, blowers, magnets, and destoners. There, they are shaken, gently tumbled, and air blown, until all the shells and rocks are removed. After deshelling, the unshelled peanuts are sorted immediately. The workers manually sort peanuts into reject, broken whole nuts, and unshelled nuts. The workers sort out the peanut on a rectangular net and manually handpick the nuts. The peanuts are graded for defects and broken skins. The peanuts with defects are discarded into a container, going to waste disposal. After the peanuts are sorted, the workers will put the good peanuts in the container drum where they will be stored and got ready for roasting. The next process is the roasting of good peanuts. In this process, the peanuts travel through a hot air roaster for 1 hour in a continuous rocking motion. This motion allows the peanuts to roast evenly. A photometer indicates when the cooking is complete and the color of the peanuts changes from white to light brown. When the process is complete, the roasted peanuts are transferred to a basin for an hour to cool. After an hour of cooling, the next process will be conducting quality inspection, if there are defective roasted peanuts. After being cooled and checked, it will be packed in a plastic pouch and sealed with a sealing machine. Then, all the sealed pouches are labeled with printed stickers. The finished

20 product will be arranged in the box, sealed and ready for delivery. The estimated time preparation for the Roasted Peanuts without Shell is 2 hours and 25 mins per batch. Figure 6. Alboco Food Industry’s Roasted Peanut Without Shell Production Flow

21 Roasted Peanuts with Shell For this product, the production process starts at sorting. The workers manually sort peanuts into reject, broken whole nuts, and unshelled nuts. The workers sort out the peanut on a rectangular net and manually handpick the nuts. The peanuts are graded for defects and broken skins. The peanuts with defects are discarded into a container, going to waste disposal. After the peanuts are sorted, the workers will put the good peanuts in the container drum where they will be stored and ready for roasting. Figure 7. Alboco Food Industry’s Roasted Peanut with Shell Production Flow

22 The next process is the roasting of good peanuts. In this process, the peanuts travel through a hot air roaster for 1 hour in a continuous rocking motion. This motion allows the peanuts to roast evenly. A photometer indicates when the cooking is complete and the color of the peanut’s changes from white to light brown. When the process is complete, the roasted peanuts are transferred to a basin for an hour to cool down. After an hour of cooling, the next process will be conducting a quality inspection, if there are defective roasted peanuts with shells. After being cooled and checked, it will be packed in a plastic pouch and sealed with a sealing machine. Then all the sealed pouches are labeled with printed stickers. The finished product will be arranged in the box, sealed and got ready for delivery. The estimated time preparation for the Roasted Peanuts with Shell is 2 hours per batch. B. Production Design and Layout Figure 8. Existing Production Layout Figure 8 shows the existing plant layout and design of the Alboco Food Industry. Production design is important to the business to maximize the

23 effectiveness of the production process and meet the employee’s requirements. Production Layout will ensure the smooth flow of information, material, and work through a system. In Alboco Food Industry, the production layout is based on the process of the production. The arrangement of different areas in the facility is based on the flow of the production process. The raw materials that undergo the same process are grouped together and have been considered in the design of the production. The production design of the Alboco Food Industry has one building (main production building) and the area for deshelling and sorting. The sorting and deshelling area has an area of 3 meters x 2.5 meters and an elevation (from the ground to the roof) of 2.5 meters. The location of the area is located at the frontside of the main production building with a distance of 3 meters. This area is where the delivered raw peanuts are being stored and the deshelling and sorting process takes place. The sorting and deshelling area has a cemented floor, and it is open--there are no doors and windows. The walls were only made up of bamboo slats. Moreover, the deshelling area is occupied by the deshelling machine with a dimension of 156 centimeters x 160 centimeters. The remaining space is intended for the storage and sorting area where the peanuts are being sorted. The main production building is divided into five areas namely, storage room, dressing room, roasting area, production area, and the office. The Storage room where they store the packaging materials and other raw materials like sugar and oil that they used in the production, has a dimension of 1.86 meters x 3.25 meters with a ceiling height of 2.7 meters. The location of the Storage Area is the first area that can be seen upon entering the main building. It has one window with a screen that has a dimensions of 1.22 meters x 1.22 meters. One fire extinguisher can be seen in the area. Wall is painted with a green color and there is no light bulb installed in the area. The distance from the storage area to the dressing room is 1.85 meters. The Dressing room has a dimension of 1.65 meters x 3.25 meters with a ceiling height of 2.7 meters. It has a wooden door, green-painted walls and a small window with a dimension of 1 meter x .40 meters. The room has one low-light bulb and there is no fire extinguisher available. This is the area where workers wear and store their personal protective equipment. The distance from the dressing room to the

24 roasting area is 2 meters. The roasting area has a dimension of 2.85 meters x 3.25 meters with a ceiling height of 2.7 meters. It has three small windows with a dimension of 1.0 meters x .40 meters and has 1 exhaust fan. This area is occupied by the roasting machine with a dimension of 250 centimeters x 185 centimeters and the peeling machine with a dimension of 74 centimeters X 82 centimeters X 65 centimeters together with the basins used for the cooling process. The walls are also painted with green color and the area is lighted with one low-lighted light bulb. Those three areas are separated through a wall from the production area. The Production Area has a dimension of 7 meters x 8.10 meters with a ceiling height of 2.7 meters. It has 5 windows with a dimension of 1.22m x 1.22m. The area is divided into different areas and is occupied by the machines needed for every area and it was lighted with 4 fluorescent lights. After the processes are performed in the roasting area. The next processes like grinding, mixing, filling, and frying up to the last process will be done in the production area. There are five machines and equipment that occupy the remaining spaces including the three grinder, one mixer, one filling, one sealing and equipment such as tables and chairs. Upon entering the production area through a door, you will see the machines in-front. The first grinding machine is 3 meters away from the door and 1.40 meters to the mixer machine. The mixer machine is .70 meters away from the second grinding machine. The Grinder with filling has .50 meters from the second grinding machine and the same distance to the cooling area. The cooling area uses a stainless table with a dimension of 200 centimeters x 100 centimeters with a height of 90 centimeters. On the right side you will see the frying and packaging area. The frying area has a dimensions of 1.25 meters x 2 meters, where you can see the frying pan, stove and a small sink. The packaging area has a table with a dimension of 120 centimeters square with a height of 90 centimeters. The distance between the Cooling area to the packaging area is 3 meters. There is one fire extinguisher available located in the production area near the office. Furthermore, the office of the Alboco Food Industry is located near the production area and considered as the owner’s living room. The comfort room is located outside the building.

25 C. Machines The machineries in the facility that are used in the production of the Alboco Food Industry are listed in the table below. Table 1. Machineries of Alboco Food Industry Machines Picture 1. Deshelling Machine The Deshelling machine is used to deshell the outer layer skin of the peanut. It has capacity of 1 sack = 15 minutes. 2. Roasting Machine The Roasting machine is used to roast the peanuts. It has a capacity of 60 kg but only 50 kg is being put per hour. 3. Peeling Machine The Peeling machine is used to remove the other skin of the peanut after being roast and cooled. It can process 1 sack per hour. 4. Grinding Machine (1st) This grinder machine reduces the nuts to medium grind. It has a capacity of 30 kilos per hour.

26 5. Mixing Machine The Mixer is used to mix the other ingredients. It has a capacity of 50 kg per hour. 6. Grinding Machine (2nd) Used to grind the mixture and meet the consistency of the crunchy peanut butter; It has a capacity of 30 kilos per hour. 7. Grinding Machine (3rd) Used to meet the consistency of the creamy peanut butter; It has a capacity of 30 kilos per hour. 8. Filling Machine The Filler machine is used to fill the peanut butter to the container. It can process 270 pcs. in 30 minutes. 9. Sealing Machine Used to seal products such as peanut butter and roasted peanuts; It can process 300 bottles of Peanut butter per hour 500 packs per hour for both the Roasted Peanut and Turon de Mani. The Alboco Food Industry has eight machines that are being used in the operation. The owner of the Alboco Food Industry and one staff member are assigned to clean the machine. Whenever a machine breakdown occurs, the owner calls a machine shop to check and fix the machine. However, if the

27 machine has a big problem, the machine will be sent to the machine shop which will take some time to be fixed. D. Production Schedule For the peanut butter, there are allotted 3 days in a week for the production, wherein for every production day is for a specific size only. Every week has a different variety of peanut butter to produce depending on the number of orders from the distributors/retailers. Within a month, there are 12 days of production with 100 working hours allocated only for producing peanut butter. There are 3 available sizes for peanut butter which are 210 grams, 300 grams and 630 grams. The target daily volume production is 1000 bottles for 210 grams, 840 bottles for 300 grams and 300 bottles for 630 grams. The size of the peanut butter that they produce is not fixed for a specific peanut butter production schedule because the management still considers the orders of its distributors. The schedule for the production will just change if there will be an increase in demand for a specific size. They still consider the demand of the sizes because if a specific size is more in demand, they prioritize producing that specific size than the other sizes in order to satisfy the order of their distributors. For turon de mani, there are allotted 2 days for the production wherein there is only 1 batch every production day. Within a month, there are 68 working hours allocated only for producing turon de mani. There is only 1 batch for every production schedule because the wrapping process needs a longer time since the 4 workers just manually wrap the turon de mani. They only wrap manually because the establishment has no machine for wrapping that can speed up the process. Every batch produces 130 packs of turon de mani in which every pack has 20 pieces which gives a total of 2,600 pieces every batch. Since there are 8 days allotted for producing turon de mani per month, therefore, there will be an output of 1,040 packs every month. There are 5 workers assigned in the production line but only 4 workers can work in any areas since the other 1 worker is only assigned in the frying step. Others are all moving from one process step to another including the transfer of outputs of one machine to the next machine.

28 For roasted peanuts (with and without shell), there are 4 workers assigned for every production line. Every week, the allotted schedule is 1 day for the 2 products. They produce 1 batch of roasted peanuts without shell and 4 batches of roasted peanuts with shell per production schedule. Both are being produced at the same production day since these two products only require a few process steps that can accommodate all batches within the scheduled day. For roasted peanuts without shell, every batch produces 226 packs for 130 grams and 65 packs for 300 grams. They can produce 904 packs for 130 grams and 260 packs for 300 grams per month. While for the roasted peanuts with shell, every batch produces 160 packs for 300 grams and 110 packs for 500 grams. With that, there will be a total of 640 packs of 300 grams and 420 packs for 500 grams every production schedule. They can produce 2560 packs of 300 grams and 1680 packs of 500 grams per month. There are 34 working hours every month allocated in producing 1164 packs of roasted peanuts without shell and 4240 pack of roasted peanuts with shell. The schedule of the delivery of raw materials is not fixed since Alboco always purchases if there is an available supply while for other raw materials, the establishment only orders if there is already an insufficient stock. The delivery of products is every 1st to 2nd week of the month for grocery stores and supermarkets within Tacloban City, every 3rd week for other parts of Leyte and every 4th week for bakeries such as Quality Bread and Mayong’s. Working hours start at 7:30 in the morning up to 5:00 in the afternoon every day from Monday to Saturday which gives a total of 8.5 working hours. Table 2. Schedule of Work/Break of Employees Time Work/Break 7: 30 AM – 10:00 AM Work 10:00 AM – 10:15 AM 15-minute Break 10:15 AM - 12:00 NN Work 12:00 NN – 1:00 PM Lunch Break 1:00 PM – 3:15 PM 3:15 PM – 3:30 PM Work 3:30 PM – 4:30 PM 15-minute Break Work

29 4:30 PM – 5:00 PM 5S The table above shows that the number of working hours of the employee in Alboco Food Industry is 8 hours and 30 minutes, excluding the allocated one-hour lunch break. E. Records Management Alboco Food Industry has the records of its purchases in some months of the year 2017. However, with the transition of the administration, they failed to document transactions including daily time records of employees, procurement slips, distribution logs, and payments for the orders. They only have receipts from the distributors. The management has no knowledge and personnel responsible for documentation. Based on the conducted interview, the owner handles multiple tasks in the production up to the distributions. Moreover, the business is looking forward to hiring someone who will handle important responsibilities in accounting and marketing. As the business does not practice documenting, there is no available data as well, but the owner collects all receipts from transactions that had been made. The collected receipts are being stored in folders placed in the drawer of the owner’s house. The management was not able to monitor all transactions including the receivables from its distributors. These receivables are still not given in which can be used by the business in purchasing machines. The owner cannot force other distributors to pay for the remaining balance since there are no contracts that had been signed by both parties and agreements were only done verbally. Also, the owner only makes an estimation in determining if the business gains profit or not-- if Mr. Orais receives payments from its distributors, he uses that money directly in purchasing raw materials. The business has permits including Business Permit, DTI Permit, FDA License to Operate and Certificate of Product Registration. These permits are being renewed regularly by the business. To be able to get the FDA license, one requirement is to have a barcode wherein it can be used in supermarkets and groceries for the pricing. As stated, the business has no available computer system within the facility in using the barcode. The barcode is only

30 applicable in supermarkets and its other distributors for pricing purposes, the barcode is not available and cannot be used for inventory monitoring. F. Raw Materials Raw Materials per Product a. PEANUT BUTTER – Peanut, Sugar, Salt, Coconut Oil, Packaging Bottles b. TURON DE MANI – Peanut, Lumpia Wrapper, Sugar, Coconut Oil, Packaging c. ROASTED PEANUT WITH SHELL – Peanut, Packaging d. ROASTED PEANUT WITHOUT SHELL – Peanut, Packaging Procurement of Raw Material The raw material's name, quantity, purchasing schedule, and supplier are all listed in the table below. Table 3. Procurement of Raw Material RAW QUANTITY WHEN TO BUY SUPPLIER MATERIALS Peanut Depends on the amount the If there is Local farmers within the farmer sells; If from import available region/ Import from enough to produce a product China, India, Vietnam Sugar 8 sacks Depends on the RVDI stock Salt 1 sack (25 kilos) Every other Yaokasin Coconut Oil month Lumpia 6 jugs (17 liters) Depends on the RVDI Wrapper stock Packaging Container 4,800 pieces Depends on the Bhordad’s Pouch stock 7,000 – 8,000 pieces Every other Rem’s Synthetic month Roasted Peanut – 800 pieces Monthly Dragon Pack Turon De Mani – 2,000 pieces

31 Alboco Food Industry's procurement and restocking plan and process depend on the amount of their stocks. The management is only restocking supplies of their raw materials only until it is already needed. Additionally, once they notice that their raw materials are already running low on supplies, it is time for them to place another order from their suppliers. Material Handling Equipment Figure 9. Hand Trolley Cart Figure 9 shows the hand trolley cart as the existing material handling tool of Alboco Food Industry. G. Inventory According to the manager, he is the person- in- charge to handle the inventory management of the Alboco Food Industry. Based on the interview, the business used the First In, First Out method “FIFO” in their inventory management. This indicates that the raw materials that were purchased and stored first in their storage will also be the first to be used for their production. Furthermore, the manager said that they do not have any form slips available and they do not have formal records in their inventory management that is used for monitoring of the movement of the raw materials in and out of the storage and monitor the complete list of all the items such as machineries and equipment that are used in their production facility. They do not have personnel who handle such responsibilities. The only person who manages to draft some notes is the manager, who has a lot of tasks to be done at the same time. Mr. Orais also stated that they need to hire personnel to do the inventory

32 management, but the problem is that they still do not have the capital to finance the salary of the personnel that will be hired. When it comes to the inventory management of their finished products, the product that was made first also will be the first to be distributed to their customers. According to the manager, there is no schedule for the distribution of their finished products to their customers. As estimated by the manager, during the first and second weeks of every month, the scheduled area for the distribution of the product are their customers in the supermarkets and groceries that are located within Tacloban City. The third week of each month is the schedule for the customers that are located outside Tacloban City such as the town of Alang-alang, Carigara, Ormoc, etc. Lastly, on the fourth week of the month, the distribution is scheduled for the bakeshops such as Quality Bread and Mayong’s Bakeshop. Additionally, during the interview, it was clarified by Mr. Orais that the barcodes which can be seen on all their products have no direct purpose on their inventory management. Mr. Orais has also stated that the purpose of putting barcodes on their product is a requirement of the FDA that must be complied with by the business in order to get the Certificate of Product Registration for all the products that they are producing. Mr. Orais has also added that the barcodes on their products are used by the supermarkets and groceries where they have distributed their products. H. Personnel Table 4. Salary Rate, Schedule, Status of Workers WORKER STATUS Salary Rate Schedule 1 INDIRECT Php300.00/Day Monthly Basis 2 INDIRECT Php300.00/Day 3 DIRECT Php300.00/Day Daily-Basis 4 DIRECT Php300.00/Day Daily-Basis 5 DIRECT Php300.00/Day Daily-Basis 6 DIRECT Php300.00/Day Monthly Basis 7 DIRECT Php300.00/Day Monthly Basis 8 DIRECT Php300.00/Day Monthly Basis Monthly Basis The table shows that there are 8 workers in Alboco Food, two are on indirect labor and six are on direct labor. All workers receive Php300.00/day

33 salary rate. The three of the workers are receiving their salaries on a daily-basis and the remaining five workers receive their salaries on a monthly-basis. Personnel Requirements a. Dressing room for employees All employees of the Alboco Food Industry use a small room located in between the raw materials storage and roasting area as their dressing room with a dimension of 5.3 square-meters. The things that can be seen inside the dressing room are some of the things of the employees, a big container, and a washing machine. b. Place for Resting/Eating During breaktime, the employees can go to the veranda attached to the outside building of the office of the facility wherein they can spend their time resting. And this area is also the space where the employees can take their lunch. The table below shows the time and schedule of breaktime in Alboco Food Industry. Table 5. Time Schedule for Resting and Lunch Break Time Purpose 10:00 AM – 10:15 AM 15-minute Break 12:00 NN – 1:00 PM Lunch Break 3:15 PM – 3:30 PM 15-minute Break c. Common Comfort Room The common comfort room is located outside the production facility of the Alboco Food Industry. d. Health Services The employees are required to be medically examined before the employment to ensure that they are in good health and are really capable of doing the assigned job for them. Furthermore, regardless of their job position, all employees in Alboco Food Industry are all required to get an issuance of a Health Certificate.

34 Benefits and Incentives a. Year-End Bonus b. Trainings and Free Personal Protective Equipment I. Management Practices Planning According to the manager, the industry conducted monthly executive meetings to plan out all the necessary actions and to improve the production of the products. The management communicates with the workers about the plans and actions to be done for the operations. This is to ensure that the workers and the management have a common goal and support its mission and vision. All the plans and actions are written in a paper and are well- explained in order for them to fully understand. Furthermore, the company also conducted a meeting with the suppliers to negotiate with the prices and quality of the raw materials. They plan on how the process of purchase and payment must be done. When problems and issues exist, the management and workers immediately convene to analyze, plan, and solve the problem. Organizing The Alboco Food Industry is a small industry. Hence, they only have a small number of workers to organize. The management assigns the workers on the process that they will be working on. They also organized the duties and responsibilities of each worker in the facility. Training and orientation are conducted to equip the workers with knowledge and skills that can be used in the operation. The management constantly communicate with the workers to monitor the progress and status of the operation and to ensure that the workers are committed to achieve the business goals.

35 Leading Figure 10. Organizational Chart of Alboco Food Industry The figure above shows the existing organizational chart. The owner holds four responsibilities while other workers are assigned to one work only. Workers are focusing on the production of the products. Hence, other duties and responsibilities are not being performed by the workers, that includes the inventory. Alboco Food Industry’s VISION “Empowered people, empowered company with a good supply of natural resources enough to supply the community” Alboco Food Industry’s MISSION “To provide Sustainable, Resiliency, Quality, Affordable on Food Distribution and a decent life to all food handlers within the food chain”

36 Staffing Alboco Food Industry commonly hires employees who are recommended by their acquaintances. They also entrust the high positions to the workers they believe they could trust. Evaluation of workers is conducted on a monthly basis. The workers with low performance are given a warning to improve their performance, while the workers with high performance are given recognition. Hiring policies in the industry are not strict, they only have few qualifications and requirements. Hiring Policy 1. Recommended by friends or relatives 2. Must be skilled and undergo health examination 3. The owner shall be the one to decide if the applicant is hired. 4. The workers shall meet the following qualifications: a. High School Diploma; b. Good Moral Character; and c. Skills. Controlling Alboco Food Industry ensures the safety of the products, machines, and employees. Hence, safety controls are implemented to ensure the safety of the products, machines and workers in the facility. As per the conducted observation, the following are the safety controls of the Alboco Food Industry a. Safety Signages (including the safety rules, reminders, and fire exit) b. Two Fire Extinguishers c. Emergency Call List d. Electrical Safety e. Control Panel (Located Near the Fire Exit) f. Machine Guard and each machine are elevated from the floor. Furthermore, the business complies with the Good Manufacturing Practices stipulated by Food and Drugs Administration and Occupational Safety and Health. As per the observation, during the wrapping of Turon de

37 Mani, the only available Personal Protective Equipment that all the workers have used is a mouth shield, hairnet, apron, and a safety shoe. Moreover, it was observed that the workers were not wearing hand gloves and they were handling the product that they were making bare-handedly. When it comes to ventilation, the facility has 5 windows (1.22mx1.22m) in their production area, 1 window (1.22mx1.22m) in the raw materials storage and 3 windows (1.0mx0.4m) in the roasting area. Additionally, it can be seen in the roasting area that there is 1 small exhaust fan and they have used 2 electric fans that are faced towards the window that serve as an alternative for exhaust fans in their production area. There is 1 double-door (1.45mx2.15m), 2 single doors, and 1 door for fire exit that can be seen within the facility. In line with the good housekeeping policy of the business, jewelry, piercing, phones and other small things are not allowed within the production area of the facility. The regular cleaning of the facility is done daily, and the general cleaning is done weekly. The floor of the facility is completely dry. The walls and ceiling are all clean and free of cracks and are constructed out of a smooth, non-absorbent, and easily cleanable material. There is no dust that can be seen on the windows. The double-door located in front of the facility is tight fitting, clean, and is in good condition. And all the cleaning materials are stored in the bedroom of the owner. In terms of the waste management of Alboco Food Industry, the shell of the peanut is not considered as a waste for they are using it as a repellant and as a fertilizer. The used oil for the frying of their turon de mani is being used by the owner as a cooking oil in their home. And all other waste and garbage are put outside the production area. And it is a practice in the establishment that if a waste can still be used for another purpose, as much as possible it must be recycled.