Sunlight Foods Corp.

10 Years Journey to Operational
Excellence On Product Quality and
Productivity
Sunlight Foods Corp. (SFC) was established
in December 2000 with SEC Registration no.
A200018456 and initial working capital of
P1.3 million.
It became operational in February 2001
using a rented building in Marikina City with
a total floor area of 200 square meters that
houses its business office, processing facility
and living quarters of its key personnel.
SUNLight Foods Corp.
Before
Processing Area
SUNLight Foods Corp.
main line of business is processing
of fruit preserves
Bakery Industry
Macapuno Preserve
Ube Preserve
Banana Puree
Ice Cream Industry
Ube Puree
Fast Food Industry
Sweetened Saba
Sweetened Langka
Sweetened Macapuno
Ube Jam
SUNLight Foods Corp.
Company’s Management
Team
Nilo Chito C. Sun - President
- Certified Public Accountant & Financial Management Consultant in
international development projects assisted by multi-lateral and
bilateral financial institutions.
Crispin R. Muyrong Jr.- Operations Manager
Ma. Luz S. Muyrong- Admin/Technical
Manager
- A licensed Mechanical Engineer and Food Technologist
respectively with both have more than 20 years of hands on
experience in the management of food manufacturing operation
and product development gained previously from working with the
top food companies in the country.
COMPANY WORK FORCE PROFILE
50 people
23 male and 27 female
Age Range: 18 to 49 years old.
40% Married 60% Single
30 High school graduate, 9 High School Undergraduate, 5 Elementary
Graduate, 2 College Graduates, 2 Vocational Graduate. One each college
undergraduate and elementary undergraduate respectively.
All of the work force lives within the community where the company
operates.
OUR COMPETITORS
- Backyard type fruit processors operating in the provinces
south of Manila.
- 19 medium to large fruit processors, 15 of them operates in
Metro Manila, 2 in Davao, 1 in Cavite, and 1 in Laguna.
- Majority caters the export market and had been in the business
ranging from 15 to 40 years.
Sunlight Foods management team envisioned that the company will be
one of the leading players in the fruit preserve industry.
To achieve this status, SFC must be the preferred supplier in its target
market it will serve.
The market leaders in the food manufacturing industry with products
produced and sold to high end customer segment.
This strategic thrust selected by SFC management gives the company
the competitive advantage over its competitors on area of cost
leadership and business growth, a very important ingredient needed to
help propel the company to attain the company’s vision fast.
Industry market leader’s orders in volume that require large production
scale and purchasing operation. Production in large scale lowers
production cost and buying in bulk volume, puts the bargaining power in
an advantage position to lower the acquisition price at the same time
seals loyalty relationship between buyer and supplier giving another
advantage of the buyer to access to inputs materials during tight period.
SUNLight Foods Corp.
Milestone Goals
Short- Term Goal:
- Identification of qualified, willing, trusted personnel from its workforce
that
could
occupy
higher
responsibility
(supervisory
and
technical/management staff positions) in the organization so that
management could focus more on its management functions.
Medium- Term Goal:
1.) Documentation and installation of Quality Management
System that consists of the quality manual, operational manual,
and food safety manual.
Quality Manual defines the company policy on quality, the company’s purpose,
vision, values, guiding principles, organizational structure, and responsibility. The
Quality Manual serves as a guide to customers, auditors, and company’s work force
on how Sunlight Foods ensures continued customer satisfaction.
Operational Manual defines the operational process procedures, work instructions
finished product specifications, raw and packaging material specifications, needed
in the manufacture of the company’s products and strict compliance to this
operational manual will ensure compliance and attainment of product quality
uniformity.
Food Safety Manual defines the company’s 5S and Good Manufacturing
Practices, and SSOP’s and HACCP plans of all its products and strict compliance
to these practices and HACCP plans will ensure that the products being
produced is very safe for consumption.
2. Upgrading the company’s processing facility and equipment
capabilities.
3. Development of training programs for the company’s work force
that will address realignment of individual values of its work force to
the company values, skills development, widening and sharpening
of knowledge on food processing that will make them competent in
their assign duties and responsibilities in the organization.
4. Establishment of standards on productivity, product quality, plant
sanitation and personnel hygiene, performance monitoring and
measurements.
Long- Term Goal:
Development of the company’s supply base of its raw and packaging
materials to cope up with the increasing sales demand of its
customers.
2001-2007
• Worked on the documentation of its operational manual that
includes the process procedures, work instructions, product
specifications, raw and packaging material specifications needed
in the realization of its products
• Worked on establishing and documenting productivity and quality
standards, performance monitoring and measurements- a very
effective tool for management in achieving continual improvements
effort to higher level of performance.
2006-2007
• Worked on the documentation of its quality manual that defines
the company policy on quality, the company’s purpose, vision,
values, guiding principles, organizational structures, and
responsibility. This manual serves as guide to customers, auditors,
and our workforce on how Sunlight Foods ensures continued
customer satisfaction.
• March 2007, SFC transferred its operation to its newly constructed
company owned building structure in Barangay Fortune, Marikina
City with a total floor area of 767 sq.m. The building houses its
business office, processing facility, laboratory, and warehouse and
living quarters of its key personnel.
SUNLight Foods Corp.
Today
Processing Area
2007-2009
The company embarked a program to upgrade its equipment capability through the
intervention of DOST-NCR SETUP program replacing its second hand acquired
cooking equipment with an efficient/ higher capacity cooking equipment consisting
of 2 units stainless steel steam jacketed kettle with a total combined cooking
capacity of 480 kg/hr. of ube puree and 1 unit 4ft. Diameter by 6 ft. long horizontal
steam retort with a capacity of 600 kg/hr. of raw ube and 400 kg/loading for
processed products.
The company also embarked a company wide training program for all its
employees.
•
In house seminar/workshop on value formation attended by all SFC
employees with the objective of realignment of individual values to the
company values.
•
3 Saturday in house training/workshop on food safety
5S, GMP, SSOP, and HACCP conducted by no other
Leon of the Foundation for the Advancement of
Technology (FAFST). Product of the seminar was
documentation of HACCP plans of all its products.
system that includes
than Dr. Sonia Y De
Food Science and
the formulation and
• 3 SFC key personnel attended a two-day Enterprise Productivity
training of the EBESE- Ecop Big Enterprise-Small Enterprise
productivity improvement program through the partnership among
ECOP-EIPC, DTI-CIC, and DOST- TAPI followed by a one day
training of all SFC employees on Productivity, Good Housekeeping
practices and 5S conducted by the group of Ms. Ella Lachica of
DTI-CIC.
EBESE-ECOP-EIPC, DTI-CIC, and DOST- TAPI
Big Enterprise-Small Enterprise productivity improvement
training
2010- Present
SFC embarked a company wide quality and productivity
improvement programs to attain its vision as one of the leading
players in the industry.
Application of the learning gained from the productivity trainings
helped SFC realized a significant improvements on its productivity
after the implementation of various identified productivity projects by
the SFC employees.
•
Modification on the process procedures of cleaning the processing
equipment, washing of raw ube, and recycling of cooling water of finish
products that resulted to substantial reduction of the company’s water
consumption from 18 liters/kg output to 5 liters/kg output.
Hand washing facility at the entrance of the production area were
fitted with battery operated hands free faucets. Actual study
conducted reveals that the hands free operated water faucet will
reduced the water usage in hand washing by 70%.
Comparative water usage per activity in the operation before and after the
implementation of the different modified practices in the use of water in the
operation.
Legend <a recycled for use on items 2,3, 5 & 10
<b recycled by treatment for use on item 7a
<c condensates from SJK recovered back as feed water to the steam
generator
Combined cumulative reduction in water consumption as a result of
the above modification in water utilization practices express in
liters/kg output are as follows:
• Modification on the process procedures of cooking raw ube, peeling of
cooked ube, and individual labor productivity monitoring on the peeling of
cooked ube that resulted to substantial improvement on the material
recovery from 55% to 71% that translates to P 10.24/kg reduction on the
cost of raw material.
Problem overview/Proposed counter measures:
Low material recovery (ube pulp) due to:
1. Overcooking of raw ube tubers.
2. Utilization of small ube tubers (below .5kg/pc)
3. Thick peel by some peelers.
Proposed counter measures:
1. Strict implementation of narrower size uniformity of raw ube tubers for
cooking to eliminate over cooking.
2. Strict implementation of the raw ube size specification during
acceptance at the plant.
3. Install individual pulp recovery monitoring at peeling operation per
peeler.
Analysis/ Improvement process/Results:
Analysis
1.) Small and irregular shaped raw ube tubers has higher peel to pulp ratio
than bigger , regularly shaped ube tubers. At least a minimum size of 0.5 kg/pc
of ube tuber is acceptable as raw material to attain a higher pulp recovery.
2.) Peelers if not regularly monitored on their productivity tend to over peel the
ube sacrificing the pulp recovery.
3.) Very wide size uniformity ratio of 2-1.5 on raw ube being loaded into the
cooking vat results to high incidence of overcooked ube tubers. Over cooked
ube tubers breaks to small pieces and exposed pulp are susceptible to
contamination with foreign materials thus lowers pulp recovery.
Improvement process number 1
Before
Study reveals that utilization of smaller, irregularly shaped ube tubers
weighing below 0.5 kg per pc gives a lower pulp recovery ranging from 44% to
58%.
Counter measures:
Utilization of ube tubers weighing from 0.5 – 1.5 kg/pc, regularly shaped gives
higher pulp recovery range from 63% to 75% resulting to consistently high
pulp recovery. Also, a narrower size uniformity of 1.25 on ube tuber being
loaded into the cooking vat gives very negligible incidence of over cooking.
Improvement process number 2
Before
Absence of a regular productivity monitoring per peeler during peeling
operation
Counter measures:
Implemented a regular productivity monitoring on pulp recovery per peeler.
Below standards performing production crews were then reprimanded to
perform at a level to established productivity standard of 65%-75% resulting to
consistent higher overall pulp recovery.
Results
Immediately after the implementation of the formulated counter measures from
current average of 55%, record on file shows that there was a consistent big
improvement on the material recovery of ube pulp to 71%.
• Simple installation of lid cover on the two unit stainless steel jacketed
kettle that resulted on the improvement of cooking yield from 95% to
98%. This simple innovation translates to P 0.80 savings on the
product cost/kg.
• Installation of condensate recovery system on the cooking steam line
system for the 100% recovery of the condensate generated as feed
water to the steam generator. This innovation resulted substantial
reduction on the feed water consumption of the steam generator by
90% and reduction in the chemical treatment cost by 50%.
• Installation of racking system for the packaging materials, practice of
5S, and simplification of packaging design of the packaging carton
into a common design that resulted to substantial reduction on the
cost of inventory of packaging materials.
Peso Value Translation of the PIP’s Achieved Target
Measurements of Productivity
As projected potential savings for year 2010:
1.) Improvement on material recovery for 55% to 71%
Savings on
Raw Mat’l Cost saving
P/kg after PIP
2010
% Mat’l Usage
Mat’l
Product
Sales Order
Kg/kg product
Potential
Savings P
Ube raw price P/kg
25
% pulp yield before PIP
55%
Ube puree, 2 kg/bag
150,000.00
52%
10.24
798,720.00
Ube pulp cost P/kg
before PIP
45.45
Ube puree, 4 kg/bag
146,000.00
32%
10.24
478,412.80
% pulp yield after PIP
71%
Ube puree, 20kg/pail
60,000.00
32%
10.24
196,608.00
Ube pulp cost P/kgs
after PIP
35.21
Ube jam
24,000.00
36%
10.24
88,473.60
Cost saving P/kg of pulp
10.24
Grand total projected potential savings
Cost/kg
1,562,214.40
2.) Further reduction on water consumption
Water usage liters/kg output
Cost of Water
Cost of
savings
Total
projected
Projected
total
Before
PIP
After PIP
Savings
P/cu meter
P/kg output
Prodn. Vol kg.
Savings P
8
5
3
45
0.135
340,000.00
45,900.00
3.) Reduction on the steam generator feed water treatment chemicals from 6 sacks/month to
3 sacks per month
Monthly usage of NaCl (sack)
Cost of NaCl
Total Usage/yr
Total savings/yr
Before PIP
After PIP
savings
P/sack
sack
Peso
6
3
3
450
36
16,200.00
Total projected potential saving for year 2010 is P 1,624,314.40.
2011- present
SFC management embarked a company wide continuing education
program to all its employees to sharpen their skills, widen their knowledge,
make them up to date on their job, and sustain our momentum for our
quest for operational excellence on quality and productivity.
Seminars/trainings
Conducted by
Year
Attendees
• Fire, earthquake, & flood drill BFP-Marikina
2011
49
• Typhoon & First aide training BFP-Marikina
2011
44
• Value-reorientation for
Service Excellence
DTI- CIC
2011
48
• Team building
DTI-CIC
2011
45
• Food safety seminar
FAFST Inc
2011
36
• Corporate values, Quality
FAFST Inc
of life at home and at the workplace
2011
39
Seminars and Training
Conducted by
Date Attendees
• Effective Leadership Skills
PTTC
2011
2
• Supervisory Effectiveness
for Improved Quality
and productivity
• Creativity & Innovativeness
PTTC
2011
2
HIGUP
2011
4
• Strategic Vision &
Hoshin Planning
DTI-CIC
2012
17
• Root Cause Analysis
• Risk Analysis
PTTC
PTTC
2012
2012
1
2
Learning gained from the series of seminars/training greatly help SFC
sustained its momentum for its effort in achieving operational
excellence in quality and productivity as shown by the following
performance indicators
• Quality Audit results conducted by its customers
Quality Audit
100
90
80
Percentage
70
60
50
40
30
20
10
0
2008
2009
2010
2011
94.51
94
91.94
94.42
Target level of compliance
80
80
80
80
Critical
70
70
70
70
Sunlight
• Compliance to Good Manufacturing Practices and Personnel
hygiene
100
90
Percentage
80
70
60
50
40
30
20
10
0
2007
2008
2009
2010
2011
GMP Personnel Hygiene
94.25
94.21
92.12
95.77
97.42
GMP Cleaning & Sanitizing
83.83
87.84
86.56
91.02
92.81
90
90
90
90
90
Standard
• % Product rejection
Percentage of product rejection
1
0.9
0.8
0.7
Percentage (%)
0.6
0.5
0.4
0.3
0.2
0.1
0
% Rejection
2008
2009
2010
2011
0.00
0.25
0.54
0.01
• Raw material recoveries
Ube pulp recovery
Material Yield Raw Ube
100
90
% Yield
80
70
60
50
40
30
20
10
0
Actual
Standard
2008
2009
2010
2011
58.5
62.61
71.60
71.91
60
60.00
60.00
60.00
• Macapuno pulp recovery
Yield of Raw Macapuno
100
90
80
% Yield
70
60
50
40
30
20
10
0
2008
2009
2010
2011
Actual
45.24
44.96
47.94
47.01
Standard
45.00
45.00
45.00
45.00
• Banana pulp recovery
Banana Cavendish
100
90
80
% Yield
70
60
50
40
30
20
10
0
2008
2009
2010
2011
Actual
55.92
55.92
58.10
57.69
Standard
55.00
55.00
55.00
55.00
• Saba pulp recovery
Raw Saba
100
90
80
% Yield
70
60
50
40
30
20
10
0
2008
2009
2010
2011
Actual
45.97
44.77
46.80
46.42
Standard
45.00
45.00
45.00
45.00
• Cooking yield
Cooking Yield Monitoring
100
90
80
% Yield
70
60
50
40
30
20
10
0
2007
2008
2009
2010
2011
Actual Yield
96.01
97.16
97.60
97.82
98.56
Standard Yield
95.00
95.00
95.00
95.00
95.00
• Water consumption
Summary Year 2008 - 2011
20
18
16
14
Liters/kilo
12
10
8
6
4
2
0
2008
2009
2010
2011
12.38
7.97
5.53
6.41
• Labor productivity
Output / Hour 2011
210.00
200.00
190.00
180.00
170.00
160.00
150.00
140.00
Kg. / hr. ouput
130.00
120.00
110.00
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
Year
2007
2008
2009
2010
2011
90.49
139.85
167.74
191.29
181.43
PRESENT PRODUCTIVITY PROJECT
Further reduction of water consumption in operation from 12.76 cubic
meter per day to 6 cubic meter per day
RESULTS
Date
Water Meter reading(cu. meter)
May 26, 2012
June 26, 2012
Total Water consumption:
Ave. usage/day
4638.31
4849.54
211.23 cu. meters
6.81 cu. meters
June 27, 2012
July 13, 2012
4849.54
4954.69
Total Water Consumption:
Ave. usage/day
105.15 cu. meters
6.57 cu. meters
At present, 12 years after its establishment on Dec 2000, Sunlight
Foods Corp has grown from a backyard type of operation classified as
micro enterprise with 6 personnel to medium enterprise with 50
personnel and serving regularly the fruit preserve requirements of the
food industry giants and market leaders the likes of:
• Gardenia Phil Inc., the country’s market leader in bread products
with nationwide product distribution network
• Chowking, a subsidiary of Jollibee Foods Corp. and recognized
as the market leader of “halo-halo dessert product with 400
stores nationwide.
• Red Ribbon, also a subsidiary of Jollibee and recognized
market leader in the bakery products (cakes) with 200 stores
nationwide.
• Unilever-Selecta ice cream, the recognized market leader in the
ice cream industry controlling 75% share of the ice cream market.
• Fitrite, Inc., a recognized leading consolidator/ exporter of
Philippine made food products worldwide.
Thank You and
Good Day