Table of Contents

A. System Design.......................................................................................................................... 3

1. Product and Service Design ................................................................................................. 3

2. Strategic Capacity Planning.................................................................................................. 4

3. Process Description .............................................................................................................. 4

4. Facility Layout ...................................................................................................................... 6

5. Design of Work Systems ...................................................................................................... 6

6. Location Planning and Analysis ............................................................................................ 8

B. Quality...................................................................................................................................... 8

1. Management of Quality ....................................................................................................... 8

2. Quality Control/ Acceptance Sampling ................................................................................ 9

C. Supply Chain Management ..................................................................................................... 9

D. Inventory Management and Scheduling ............................................................................... 10

1. Inventory Management ..................................................................................................... 10

2. Aggregate Planning ............................................................................................................ 10

3. Maintenance ...................................................................................................................... 11

4. Scheduling .......................................................................................................................... 11
A. System Design
1. Product and Service Design
MM’s Polvoron House will be known for the diversity of the products it
offers without compromising its qualities, the healthiness of the products because
it uses organic ingredients, and a quality of service that will surely make you come
back again and again to the Polvoron House. The House would want to offer to
customers a new type of polvoron with a twist using organic ingredients to
promote at the same time a healthy lifestyle.
Products that will be offered will be designed in different manners. There
will be products that will be sold by 6s, 12s, and 24s. For each type of bundle, there
will be like same flavors and also assorted flavors.
Aside from polvoron, since it will also serve as a café, I will be offering also
meals where polvoron is part of the combo. It could either be served as an
appetizer or a dessert depending on the option of the buyer. This is not only to
cater buyers of polvoron but also to provide satisfaction to customers who wants
to stay longer in the café. And since meals are also served, there will also be drinks
so that whenever the customers need to drink, they can choose from the products
inside the café as well.
And so to help the local products, there will also be a place in the café
where all locally produced products will be displayed. This will include souvenir
items and packages that travelers can purchase to bring to their loved ones back
home.
The service of the café will follow the virtue of order and cheerfulness. First
is when customers arrive to the café. Employees will then greet each customer
that will enter the place with a smile. They will let the customers choose first what
they would want to buy. They will not yet ask customers on what do they want to
buy because as I had experienced before, customers would not want to buy on a
place where employees are asking them from the moment they arrived on what
would they want to purchase. So, we will just let the customers see for themselves
 what they want and if ever they have questions that’s the time where employees’
words of encouragement will appear.
After the customer places his/her order, the cashier will then accept
payment and then prepare and serve the order to the buyer. After all the
transactions during the day, employees will then have to clean up the room to
prepare for the next day’s operation.

2. Strategic Capacity Planning

During weekdays, the café will be expecting 50 customers that will be
having transaction with the business. Out of those 50, half would be staying longer
in the place. While during weekends, we expect to cater a hundred customers.

Supply of products depends also on the demand from customers. The

production team can accommodate to make a hundred products each day so
there will be no problem in the supply of products.

We also expect to generate a higher profitability ratio. With this, we can

pay our employees their just wages which will cause everyone to be happy. And
this is what the business wants, to make everyone happy and satisfied.

3. Process Description
a. Preparing Polvoron

It will take almost 30 minutes to make polvoron. What makes my polvoron

special is that all ingredients to make one is organic which means it is healthy.
After it has already been made, we’re now going to wrap it and then put in a box
where it will be ready to be displayed and ready to sell. Each container box will be
of different sizes depending on how many polvoron can it contain.

b. Preparing meals
Meals will be prepared as order so that freshness will remain on it.
c. Service to customers
 Customers can just enter the premises and then choose from the menu
their desired product and then place the order and pay at the counter and will be
given a priority number to monitor who’s order it is. Pay as you order policy will
be strictly followed in this business to ensure that all transactions will be paid and
to avoid the possibility that some customers might forget to pay their bills.

For polvoron, since it has already been prepared, from the time the
customer places order, desired number of polvoron will just be automatically be
given to the customer so for this product, there is no waiting time aside from
placing the order which will roughly take for about a minute or two.

On the other hand, if combo meals are ordered, it will take about 15
minutes before it will be served to the customer because for meals, we prepare
right after the order to obtain its freshness. All combo meals includes polvoron
since this is the main business of the company. After the preparation, the cook will
ring the bell to signal that the order is ready to be served, and then the server will
look at the receipt to see if the food prepared matches with the food ordered to
avoid conflicts between the management and the customer.
4. Facility Layout

Entrance and Exit will be facing the pathway because it is located near the pathway
where passengers are lining up to enter the boarding gate. Just right after you enter
the room, you will automatically notice the counter area. Right behind the counter
area is where the making of the polvoron happens and the kitchen also.

There are a total of 6 tables and 24 chairs available in the place. There also a unisex
comfort room at the upper right corner of the floor plan.

5. Design of Work Systems

Since it will start as a small business, we will only be having few employees. Two
employees will be assigned for making polvoron. One employee for preparing the
meals, one server, one in charge for keeping the place clean and in order, one cashier
and also one manager.
 As expected from the manager, he/she needs to be present every working days.
In case the manager will be absent, the cashier will take over in managing the business
and answering all the concerns of each customer. It is also part of the duty of the
cashier to check regularly the inventory of the products.

Job Description for workers in the House.

Job Title No. of Work Area Job Description

workers
Cook 1 Kitchen Cooks the food ordered by customers.
Checks regularly the inventory of the
ingredients. Monitors the quality of the
food served.
Polvoron Maker 2 Production Makes and prepares polvoron. Wraps
Area each prepared polvoron. Sees to it that
quality is maintained and that makes
sure that the House will not be running
out of polvoron.
Cashier 1 Counter Addresses the needs of the customers.
One assigned for collection of cash.
Makes sure that cash on hand is on a
safety place.
Food server 1 Customer Serves the order of the customer. Also
Area assists the cleaner in tidying up the
place.
Cleaner 1 All-around Keeps the area clean and in order.
Manager 1 Manages the operation of the House
and oversees if the employees are
working in accordance to their job
descriptions.
 There will be no rotation of jobs for it will be harder for each of them to master
all the duties.

6. Location Planning and Analysis

MM’s Polvoron House will be located inside the airport of Francisco Bangoy
International Airport in Davao City.

This location is chosen because the products are primarily for souvenirs to the
loved ones of the customers buying our products. It will be located particularly near
the boarding area so that before they will enter the boarding gate, the business will
be easily seen and it will give an impact that they must buy so that they will not miss
the chance of tasting the best polvoron in the world. This is another reason why we
also offered meals because most of the passengers are not yet taking their meals after
leaving home.

Thousands of people are travelling currently from Davao City. So this will be a good
place to start a business like this. With the improvement of the local industry in
Mindanao, more people from different parts of the world wants to travel and travel
around.

B. Quality

1. Management of Quality
To maintain the quality of the products served and offered fresh, ingredients
used must also be fresh, the place is clean, and all the equipment and utensils used
will be checked regularly. Freshness of the ingredients must be maintained for that
is where the business gets its name and this is also the most important factor that
affects the willingness of the buyer to buy.

To make sure that this is followed, the cook will be in charge of purchasing all
ingredients that are needed. The same thing goes with the polvoron maker. He will
be in charge of choosing the supplier of the organic ingredients.
 Quality over quantity. This is the case in preparing food. That is why, when
customers places their order, that is also the time where the cook cooks the food
ordered. This is to achieve the goal of providing a fresh food for customers.

2. Quality Control/ Acceptance Sampling

To maintain the quality of the food, temperature is a very important factor. Since
the airport is an air conditioned place, we will not worry anymore on the temperature
of the entire place.

Raw materials, like ingredients for preparing food, must be stored in a cool dry
place to avoid being invaded by bacteria. To ensure that the food prepared by the
cook is clean, he/she is required to wear gloves, mouth cover and apron. In addition,
hair net is also required to prevent hair strands from mixing onto the food prepared.

Before the food is delivered to the customer, he will check first if the order is
complete so it won’t take much time. If ever there are new discoveries for the
improvement of the food prepared, the cook may consult first the manager or the
owner if it passes their standards before opening the product to the public. This is to
avoid scandal that the food may not be as good as it was expected to be. The proposed
new recipe then will be included in the menu maybe permanently or temporarily
depending on the judgment of the manager or owner as the case may be.

C. Supply Chain Management

MM’s Polvoron House ensures the production and processing of high-quality
food in the most cost-efficient manner.

Ingredients needed for the meals and polvoron will be coming from a supplier in
Marfori, Mati City, Davao Oriental. This is to help at the same time our local farmers and
promote organic ingredients also.

From the help of the cook and the polvoron maker, the manager will need to
analyze the demand of the products served during the month and then from it plan on
 how much raw ingredients they will be purchasing from the farmers. Groceries will be
done by the polvoron maker.

Farmers, especially local growers, are preferred the most as our suppliers rather
than the commercialized raw ingredients. This is because it will compromise the health
of the customers which we don’t want to happen. We will be selecting suppliers based
on the price of the products we want to buy and the quality of the raw ingredients as
well.

D. Inventory Management and Scheduling

1. Inventory Management
The business’ goal for inventory management is to maximize inventory on hand to
reduce incurring more cost and to minimize waste as well.

Since we want to produce fresh products, the inventory should be just enough to
sustain the needs of the kitchen for two days. So our expected economic order
quantity should be enough for 2 days. And our safety stock is when the ingredients
reached ¼ of the total, we will already be ordering again new ingredients to avoid
running out of stock.

Food spoilage is a constraint in preparing food, and storing food for longer periods
may increase the risk of spoilage. If possible, we must avoid spoilage so we need to
advertise more our product so that it will be known nationally and maybe
internationally.

2. Aggregate Planning
Expected or budgeted report of demand for the month must be presented
monthly to the management. It is very important to forecast future operation so that
we can prepare well for its coming and that we will not be cramming when that time
will come. It is always better to produce excess during slack season and then store the
excess in the inventory or storage.
 Inside the airport is the location of the business, so mostly during summer, tourists
are abundant. More people are leaving to have vacations in other places and some
also are coming to have their vacations in Mindanao. Therefore, during this season,
the kitchen staffs should prepare more than what they are preparing during normal
operation days.

3. Maintenance
Appliances are used in preparing and making polvorons and also used for
preparing food, so we need to make sure that they are functioning well. This area of
maintenance can easily be known to the persons using them. Therefore, whenever
the employees thinks that they need to be replaced already, they just have to
approach the manager so that the problem will easily be fixed.

Refrigerators and other equipment must be cleaned regularly so that its function
will be constant from the beginning. Window panes and all glass surfaces must be
regularly cleaned, along with the mopping of the floor an hour before leaving the area.

4. Scheduling
Since the business is located inside the airport, it will start its operations at 6 am
and will end at 10 pm. The door will be open for the employees 30 minutes before
the operations will begin.

Stocks will be checked daily by the manager with the help of the cook and the
polvoron maker.

Employees will be paid on a bi-weekly basis depending on when they started to

work with the company.