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Please put title page here Nicolle Lim Stephanie Cuya Carren Maghari Hannah Valera

Module 1 Executive Summary

Module 2 Corporate Profile

2.1 Name

When it comes to bakeshops in the Philippines, Filipinos have been given the chance to finally choose from a very wide collection of bakeries and pastry shops across the country. Unlike in the past, the cake and pastry industry in the Philippines have steadily grown, particularly when international bakeshops have started to open their doors for the Filipino people. Bakeshops such as Dlifrance, The French Baker, and BreadTalk are some of the most popular bakeshops in the Philippines today. These, however, have only been introduced from other countries, in which Jollibee acquired the franchise of Dlifrance. Other than these bakeshops and cafes, there have also been other popular bakeries in the Philippines, which are proudly Filipino-owned. Some of the best includes Goldilocks, Red Ribbon, and Bizu Philippines Patisserie. Other local bakeries, while not popularly known nationwide, still contribute to the industrys overall growth. Some of them started operations way back in history, when Filipinos were very much inclined to eating pan de sals. Herran Bakeshop, located in Pedro Gil, Sta. Ana Manila, is a small bakery that has been operating since the 1960s. Given its historical connotation, Herran Bakeshop has captured the markets loyalty and satisfaction by means of patronizing the products offered even though it only has one particular branch. In fact, in a historical place such as Sta. Ana, Manila, people tend to take trips just to avail themselves of the famous Herran bread and pastry products.


Industry Definition

The bread and bakery industry in the Philippines consists of establishments primarily engaged in the production of bakery mixes and frozen dough/pre-formed products and those involved in dough mixing, kneading and baking to manufacture "perishable" bakery products (such as bread, rolls and pastries) and their distribution. These products are sold to retail grocery and foodservice establishments. This study, however, specifically focuses on "retail bakeries" that bake and sell their products directly to the consumer on the premises since Herran Bakeshop is one of such kind. The evolution and concentration of the retail grocery sector, coupled with growth in modern transportation and distribution systems, have greatly influenced the structure of this sub-sector. The ability to achieve economies of scale in the manufacture of baked goods is largely a result of the ability to sell high-volume, homogenous products to large

retail or foodservice customers with central purchasing, and to distribute these products efficiently. However, the wholesale bakery industry has slowly evolved to a structure that favors more centralized, scale production, that is now considered retail bakery industry.


Products Offered

Herran Bakeshop offers a wide variety of treats from traditional bakery stand bys: donuts, muffins, pan de sals, cookies and brownies (made fresh and from scratch), as well as unique signature items such as cakes, special ice cream, glazed bread, siopao and other delicious delicacies. Herran also offers decorated cakes in a variety of sizes, flavors, filling and frosting depending on the request of the customer.


Mission Statement

The employees of Herran Bakeshop are committed to deliver only optimal returns to the owner thus, we all have an important function to play in the team to maintain our image for exceptional reputation and quality standards of consistent and efficient service, instilling a sense of responsibility amongst our people and a sense of pride for a job well done.


Vision Statement
To provide excellent, unique food and service with a plus towards expansion


Competitive Position

Herran Bakeshop only has one branch located at Sta. Ana, Manila and is considered as a small-scale business. Despite this, it can be said that the company is still growing as brought about by increase in profit through selling more and more food products and services while having more and more patrons. It has been in the food business for almost 60 years, which makes it have more experience in its type of industry. Through constantly offering quality and excellent taste original recipes for its food items, it has been able to build its reputation and become more popular than its other competitors. For many, its food items taste the best among the ones sold by other bakeshops within the area and even outside Sta. Ana. Because of this, there are customers outside Manila who intentionally goes to it just to buy its orginal products. In addition, the company is able to achieve success since it has never failed to cater to the increasing demands of its products and services. It is able to address the increase in the quantity demanded of its goods and services through having more and more workers that do the labor of producing more and more products.

Module 3 Process Definition

3.1 Operations

In this case, since Herrans bestseller - the Coconut-glazed bread - is the one that is highly demanded from customers, the study will only focus on how to improve the overall operations related to producing such product. Ingredients for the glaze include coconut, sugar, milk, fat, and butter. These are added in standard proportion as per requirement. a. Mixing of dough ingredients. Mixing starts with sifting flour. Flour is then collected in bowl and then weighed. All ingredients, including flour, sugar, fat, salt, yeast, specialty chemicals and other forms of flavoring are then added in a bowl. After addition of all ingredients, the bowl is moved to a spiral mixer where mixing is done. Water is added in different volumes. Mixing time depends on quality of flour. General mixing time can vary from 10 minutes. Under-mixing and over-mixing can have direct impact on dough consistency. Dough quality can be checked with stretching the dough, which is done by a laborer. b. Kneading. On completion of the mixing process, dough is transferred into trays where laborers knead it. Kneading process needs to take place for at least 8 minutes. c. Proofing. After the dough is kneaded, proofers are used in conditioning dough so as to raise it for baking. For the Coconut-glazed bread recipe, proofing usually takes 48 minutes. d. Molding. Laborers then begin to mould the dough after the proofing process. They use manual labor in order to complete such process, which takes about 7 to 8 minutes per batch. e. Cutting. After the dough has fermented, it is cut into a particular size and measured according to a particular weight. Workers use a mechanical slicer, which cuts the dough into equal parts. Cutting time usually takes 5 minutes. f. Baking and cooling. Baking is the process of convection cooking in a hot chamber. Temperature and time for baking is specific to each product and changes with many factors. For this specific product, baking and cooling usually takes 20 minutes. g. Mixing of coconut flavoring ingredients (6 minutes). h. Cooking of coconut mixture (8 minutes). i. Cooling of coconut flavoring (5 minutes).

j. Glazing of coconut mix into the bread (6 minutes).


Statement of the Problem

Bread manufacturing profession is as old as starting of human civilization. It is oldest profession when every house having its own bakery. Now with mechanization and with new technology breads are manufactured in mass scales. Worldwide, we can find thousands of bakeries preparing variety of breads. We label bread with various names like bread, loaf, pan de sal, etc. However, faced with a growing variety of products and increasing pressure to control costs, success in the bakery industry depends on flexible and highly cost-effective production. In effect, bakery owners are financially constrained by the increasing need for up-to-date equipment and state-of-the-art facilities in order to relatively meet customer demands. As a result, there arises the need for acquiring a comprehensive range of products, systems and services that help assure cost efficient productivity. Aside from the issue about the growing demand for more machinery, bottleneck operations in bread manufacturing such as mixing of dough ingredients. In this specific case, even though Herran has a number of mixers that supports its laborers; the demand for their product is high, so much so that their laborers are forced to exert manual effort. In turn, workers are expecting higher wages and thus more expense on the part of the employer. Aside from that, laborers performance is not standardized as compared to the performance of capital (machines). This entails that there is a greater risk that the company would experience lower productivity, and thus lower sales, when the laborers do processes manually.



The baking industry trend is to move away from individual devices and machines and toward integrated automation solutions. Comprehensive and unique range of hardware and software facilities ensures integrated automation of a companys entire production line - from receipt of goods, through production and packaging, to shipment of finished goods. While it is believed that the baking industry has made it through the recession, the recovery will continue to be a drag on the baking industry. Worrying signs include predictions of substantial increases in commodity prices, expiring tax cuts, uncertain federal policy, and the exploding national debt. With the economic future uncertain, bakers should not be content with their current disposition. In view of what bakers can't control - customer spending and ingredient costs - they need to take charge of what they can control - their own operations.

Module 4 Control of Process

4.1 Line Balancing

Reasons Diagram

Solution A B C D E F G H I J 10 8 48 8 5 20 5 8 5 6

Fundamentals: a. Operating time = 8 hours a day/480 minutes b. Number of units per batch = 50 c. Sum of all tasks = 120 minutes d. Cycle time = 45 minutes e. Desired output = at least 500 units

Range. With a CT of 48 minutes, output is: 480minutes/48minutes = 10 batches With a CT of 120 minutes, output is: 480minutes/120minutes = 4 batches Therefore, the range is from 4 to 10 batches per day. Cycle Time. If desired output is 10 batches per day, cycle time is: 480minutes/10batches = 48 minutes per batch Number of Work Stations. 120minutes/48minutes = 2.5 or 3 work stations Heuristic Line Balancing. Workstation 1 Time Remaining 48 38 30 25 17 12 48 0 48 40 35 15 9 Eligible A, G B, G C, G C, H C, I C C D E F J Will Fit A, G B, G G H I NO C D E F J Assign A B G H I NONE C D E F J Idle


2 3

TOTAL IDLE TIME *assigned according to most number of followers *ties are broken by the length of task time Percent Idle Time. Total idle time = 21 minutes Nactual = 3 Cycle time = 48 minutes 21minutes/(3WS x 48minutes) = 0.1458 or 14.58%

9 21 minutes

Efficiency of the Line. 100% - Percent Idle Time 100% 14.58% = 85.42%

Module 5 Summary Findings and Conclusion

The solution presented previously indicates how Herran Bakeshop can assign its tasks of manufacturing Coconut-glazed Bread at the optimal level. The employer may opt to adapt this strategic operational approach so as to maximize the inputs of its capital and labor, as well as to meet the desired output of the organization. By assigning three (3) workstations to undertake the process of making Coconutglazed Bread, the line would have an overall efficiency of 85.42%. Total idle time, on the other hand, would be 21 minutes. Further, this means that the mixing of ingredients, kneading of dough, mixing of coconut crme ingredients, cooking of coconut mixture, and glazing of coconut flavor would be assigned to one workstations with the combined aid of both capital (machines) and labor. Workstation 2, on the other hand, would only be involved in proofing the dough. Lastly, the final workstation would only be assigned to mold, cut, bake, and glaze the dough. All in all, this would result to producing 10 batches of Coconut-glazed bread a day, more or less equivalent to 500 units.

Module 6 Recommendation

References: Please insert your references here %20Balancing.pdf