Colegio de San Juan de Letran – Calamba

School of Engineering
Industrial Engineering Department

2ndSemester AY 2018 – 2019

IE101L – Production Systems Laboratory

Chapter IV

Submitted by:
Group #2

Almira, Angela Nicole Y.

Buencillo, Rhoniel M.

Junsay, Samera E.

Opeña, Mary Grace

Unay, Miguel Salvador V.

Submitted to:
Engr. Ma. Kathleen L. Duran, CIE, AAE, CLSSGB

Date:
April 10, 2019
Operational Plan

Happy Cheesyken will be having its operation during Monday until Saturday.The proposed
business will be operating for assuming 24 days in one month. The product would be produced
during morning and afternoon time at 9:00am until 12:00am then 1:00 pm until 6:00. It will be
available in the morning at the store from 9:00am – 6:00pm (store operating hours). Each of the
owner and officers will be assigned to supervise its daily operations depending on their skills
and capabilities.

The small stall of Happy Cheesyken will be located near Letran Calamba. The target
markets are the people in Letran or Letran Calamba Community.

The equipment used in the operation is follows:

 Stove
 Electric deep fryer
 Oven toaster
 Mini refrigerator
 Measuring spoon set
 Bowl
 Pan
 Tongs
 Tray

Production

The ingredients quantity in making cheesyken must be precise. In making the product, the
ingredients or raw materials are prepared first. Next is ground the chicken breast, carrots and
bell pepper. Then mix the first group of ingredients: all purpose flour, white sugar, baking
powder, corn starch, pepper. After you mix it, put the mixed grounded chicken breast, carrots
and bell pepper. Next is molding it into round shape. After that, put the cooking oil on the frying
pan in a medium-low heat. Then deep fry the cheesyken balls. After fried it, add the melted
cheese on top of the cheesyken. Put the product in try for cooling. And then ready to serve.
 Master Production Schedule (MPS)

PERIOD

Day 1 2 3 4 5 6

Forecast 150 150 150 150 150 150

Projected 0 0 0 0 0 0 0
Available
Balance

Master Production 150 150 150 150 150 150

schedule

Lot size = 25

Project management (Activity on Node)

Task Description Time Predecessors

A Prepare all the ingredients 10 mins. None

Ground the chicken breast, carrots and

B bell pepper 14 mins. A
Mix the all purpose flour, white sugar,
C baking powder, corn starch, pepper 5 mins A
Mix the grounded chicken breast, carrots
D and bell pepper 3 mins. B
E Mix well the ingredients 6 mins. C,D
F Mold it into round shape 8 mins. E

G Put cooking oil in frying pan 1 min. F

Put the unfinished product to pan and
H deep fry 10 mins. G
I Melt the cheese 2 mins. H

Put the melted cheese on top of

J cheesyken balls 3 mins. I

K Put in the tray for cooling 2 mins. J

Critical path: A-B-D-E-F-G-H-I-J-K = 59 mins.

This is the critical path of producing Cheesyken. Its total minutes are 59 minutes.
Bills of Material (BOM)

*note: Equivalent of 150 pieces

MATERIALS QUANTITY UNIT COST

Chicken breast 1 kilo ₱ 150.00

All Purpose Flour 1/4 kilo ₱ 20.25

White Sugar 1/4 kilo ₱ 15.00

Baking Powder 1 pack ₱ 15.00

Corn starch 1/4 kilo ₱ 20.00

Bell Pepper 1/4 kilo ₱ 20.00

Cheese 1 pack ₱ 50.00

Pepper 1 pack ₱ 10.00

Salt 1 pack ₱ 10.00

Carrot 1 Kilo ₱ 80.00

Eggs 2pcs ₱ 14.00

Cooking Oil 1 bottle ₱ 20.00

TOTAL ₱ 424.25
Production techniques and costs

The production techniques follow how the owner who invented the product cooks. The utilities
cost in our production is the rent, electricity and water, and gas. And the raw material costs are
the direct materials which sum up of Php 424.25.

Quality control

Quality control is a process through which a business seeks to ensure that product
quality is maintained or improved with either reduced or zero errors. Quality control requires the
business to create an environment in which both management and employees strive for
perfection.

To maintain the quality of the product, we first checked the quality of ingredients. This is
for the food safety and to avoid defects on the product. It saves time and money in the long run
because it eliminates production of default CHEESYKEN. Also, quality is the priority to sustain
the loyalty of the buyers.

Customer service

Customer service is the process of ensuring customer satisfaction with a product or

service. Often, customer service takes place while performing a transaction for the customer,
such as making a sale or returning an item. Customer service can take the form of an in-person
interaction, a phone call, self-service systems, or by other means.

This is important to ensure customer satisfaction. Cheesyken will establish good

customer relationship by giving the customers the quality product, offering special treats,
understanding what the customer’s needs, accepting the customers feedback, answering their
questions and helping them with their concerns to build trust with the customers.

Inventory control

The goal of inventory control is to generate the maximum profit from the least amount of
inventory investment without intruding upon customer satisfaction levels.

Inventory control of Happy Cheesyken is not a problem since the business stock only 1
set of ingredients. Also it ensures that it can provide sudden aid in case there sudden change in
sales. Inventory is a waste so the business will minimize it.
Product development

Product development, also called new product management, is a series of steps that
includes the conceptualization, design, development and marketing of newly created or newly
rebranded goods or services.

For the product development of Cheesyken, the managers will survey the opinions of the
market to know their comments about the product. Then the owners could concept a
development for the product. The feedback of the testers can provide idea whether there will be
an adjustment. Also the owner could make a market strategy to improve the number of sales.

Location

Before you start to create a business make sure that your location is right where in there
a lot of people/customer attracts in your business product. Our Business is located beside in
Colegio de San Juan de Letran – Calamba. We put our business in this location because there
are a lot of students that can buy our product. Having this kind of strategy, our business is truly
an advantage because our product is a kind of snack that is very healthy and unique that
attracts the customer.

Physical Requirements

Cheesyken Ball is a small business so it has a estimated space around 4 to 6 square-

meters and rent expense is 1,500.00 pesos. For the Power and other utilization, it is depends on
the nature and the size of your operation. Electricity utility is main utilities that you have in a
business because it is source of your tools to create and serve the product. For the health and
safety perspective, water is important for our first aid and basic hygiene at is very useful of any
businesses.

Access

It is only a stall so it is easily walk-in access. There’s no parking space because you can
easily access to get your order. We will serve this for around 3 to 5 minutes so you don’t need to
wait for the long time. The customer wants a good and fast service because it is the easiest way
to catch the attention of the customer.
Drawing or Layout

The figure above shows the sketch of the kiosk area where the production of Cheesyken takes
place. The specific equipment needed are the electric deep fryer, mini oven, Sink, Table, Bin
and other materials like the measuring cups and spoon as well as weighing scale in grams. An
electric deep fryer is a small kitchen appliance used to cook. The oven is used for melting the
cheese. Sink used for washing hands, dishwashing, and other purposes. Table is a form of
furniture with a flat horizontal upper surface used to support objects, for storage, show, and/or
manipulation. We also use bin or a container for the disposal of dry waste matter.
Cost

Utilities Monthly

Rent Expense P1,000.00

Electricity & water P600.00

Gas 550.00

total P2,150.00

Stove Will be used to 1 ₱1500 ₱1500 268 Market,

generate heat to Calamba City,
cook the Laguna
Cheesyken.

Electric Deep Will be use for deep 1 ₱1000 ₱1000 268 Market,
Fryer frying. Calamba City,
Laguna

Oven toaster Will be used to melt 1 ₱800 ₱800 268 Market,

the cheese. Calamba City,
Laguna

Mini Will be used for the 1 ₱5,00 ₱5,000 Japanese Surplus,

Refrigerator storage of 0 Canlubang,
ingredients. Calamba City,
Laguna
Measuring Will be used to 1 ₱25 ₱25 268 Market,
Spoon Set measure Calamba City,
 ingredients. Laguna

Bowl Will be use for the 8 ₱10 ₱80 268 Market,

mixture of the Calamba City,
ingredients Laguna

Pan Will be used for 1 ₱300 ₱300 268 Market,

cooking the Calamba City,
Cheesyken mixture. Laguna
Tongs Will be used for 1 ₱30 ₱30 268 Market,
picking the cooked Calamba City,
Cheesyken on to Laguna
the pan.

Tray Will be used to 1 ₱25 ₱25 268 Market,

temporarily place Calamba City,
the cooked Laguna
Cheesyken before it
will be serve.

TOTAL ₱ 8,760

In the table above shows the list of things that is needed for the store to operate. The store need
this material for us to produce our goods also the list of the bills that the store is paying. This
things helps the store maintains its productivity.

Personnel

The firm’s success will depend upon the effort, contribution and the ability of the
members. The management team is composed of five members who will contribute their full
effort and hard work. Miss Mary Grace G. Opeña will be the Cashier/Bookkeeper, Miss Angela
Nicole Almira and Miss Samera Junsay will be the cook, Mister Rhoniel Buencillo will be the
Stall Assistant and Mister Miguel Salvador Unay will be the Staff. The proponents are all
responsible for the operation and overall management of the business.
Inventory

*note: Equivalent of 150 pieces

MATERIALS QUANTITY UNIT COST

Chicken breast 1 kilo ₱ 150.00

All Purpose Flour 1/4 kilo ₱ 20.25

White Sugar 1/4 kilo ₱ 15.00

Baking Powder 1 pack ₱ 15.00

Corn starch 1/4 kilo ₱ 20.00

Bell Pepper 1/4 kilo ₱ 20.00

Cheese 1 pack ₱ 50.00

Pepper 1 pack ₱ 10.00

Salt 1 pack ₱ 10.00

Carrot 1 Kilo ₱ 80.00

Eggs 2pcs ₱ 14.00

Cooking Oil 1 bottle ₱ 20.00

TOTAL ₱ 424.25

Raw materials will be kept as inventory in Happy Cheesyken. These are the direct
materials: flour, chicken, sugar, baking powder, corn starch, bell pepper, cheese, pepper, salt,
carrot, eggs, cooking oil and packaging. There will be no inventory for finished goods because
the product is saleable within a day but in case the production of cheesyken will not be sold in a
day the firm has a mini refrigerator to store the products. The cost of the ingredients per piece is
₱5.62 or ₱6.00. On a regular basis; the business should make 150 pcs of Cheesyken which
equivalent to 25 pieces per batch of cooking. The total cost per target pieces for 1 day is
₱424.25.
Suppliers
The raw materials that are going to be used will be purchased at these addresses on cash
basis.

Chicken breast, Liza Store, Asia 1

Market ,Canlubang,Calamba City, Lag
una
Carrot, Bell Pepper Aling Charing’s Vegetable Stall, Asia
1
Market ,Canlubang,Calamba City, Lag
una
All Landicho Store, Asia 1
Purpose Flour, Corn Starch, Baking Powder, Market, Canlubang,Calamba City, Lag
White Sugar una
Cheese, Eggs, Cooking Oil, Pepper, Salt Amor Store, Asia 1
Market, Canlubang,Calamba City, Lag
una
Paper cone 7-Star, Asia 1
Market, Canlubang, CalambaCity, Lag
una

Happy Cheesyken doesn’t expect to have shortage or short term delivery problems.