ACADEMIC

RESEARCHPAPER

De Gula, Daisylyn
Marundan, Jayson
Sarmiento, Vincent
Tipan, Rica May

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 Table of Contents:

Executive summary 1

Vision, Mission, Company Profile 2

Scope and Limitations, Definition of Terms 3

Logictics Management: 4

Basic information

Problem Statement & Recommendation

Cost and Benefits Analysis

Inventory Control and Systems Management 5

Basic information

Problem Statement & Recommendation

Price estimate

Facilities Management 6

Basic information

Problem Statement & Recommendation

Price estimate

Budget 7

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EXECUTIVE SUMMARY

Pinkies Farm, is under of Lica Group Corporation. At first it was just hobby

for owners to produce milk. The corporation enjoys having different line of business

since the owners share different interest. The company started producing milk

because the owners are taking care of a number of lactating cows. The first

distribution of milk happens when the owner got interested of selling it for fun.

As for the areas covered by the study, it enables the researchers to

determine which facet of the current business process needs improvement. The

study ensures that no information was overlooked to have a reliable solution. The

study is also aiming for business growth and to give effective recommendation on

the problems encountered in the areas of logistic, inventory and facility

management.

The result of the study of researchers will enable the business to determine

the current problem situations and the possible solutions. The study also provide

an idea to make the business last longer and to make the operations more flexible

and efficient to the staff.

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MISSION

We will be your lifetime partner to help you OWN and ENJOY your CAR and

HOME. For visitors to the Philippines, we will help you and your family ENJOY a

CAR and HOME, away from home.

Our customers interact with us continuously, from the actual purchase

experience, to services like financing and insurance, to hassle-free maintenance

and repairs, to resale and upgrade.

Because of us, our customers will ENJOY their experience completely.

VISION

Ownership a CAR and HOME are two major dreams of all Filipino families,

in all walks of life. Visitors to the Philippines likewise seek a car and a home they

can enjoy.

We envision a country where a car and home are easy to acquire and a joy

to experience.

Our team mates at all levels find joy in their work, in a meritocracy where

our values are all shared and lived.

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COMPANY PROFILE

All-natural milk from our own grass-fed cows” is a promise that Pinkie and

Pinkie’s Farm take very seriously. While most local dairies augment their supply

with milk from smaller farms, Pinkie’s Farm only sells what it produces. It is very

limiting and frustrating with its slow growth, but it is the only way that the company

can be 100% confident of their products.

When Pinkie’s Farm was established in 2009, it started with only 3 pregnant

cows and selling most of its milk to bigger farms. Consultants from the University

of the Philippines, Los Baños taught them how to pasteurize milk and to make

kesong puti (local white cheese) and yogurt. Because Pinkie insisted on not using

any extenders, preservatives, or additives, the products tasted much fresher and

more natural, but sadly, had such a short shelf life that she would not sell the

products. The company would rather just give them away to the family and friends.

It was only when the company was told that there was a demand for all-natural

products and non-UHT milk that the company decided to sell the products to a very

limited market.

As the company’s products grew in popularity, the company added more

items: Greek yogurt, yogurt cheese, flavored yogurt, and most recently, frozen

yogurt and fresh butter! The owner liked seeing the little farm grow. Again, the

owner never veered from the company’s standards: all-natural, no preservatives,

no additives. Even if it meant being more expensive, or take much longer to

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produce. The decision to use glass bottles was brought about by the desire to

recycle and a salute to a more old-fashioned image.

Pinkie’s Farm is a reflection of the traditional homespun values: simplicity,

honesty, hard work, care for others, and uncompromising in quality of product and

service. Facilities have been kept simple yet safe, with the welfare of the people

and cows in mind. The owner will not think twice about helping out when needed,

even hosing down the barn. Concern for customer feedback and experience is

high: every members of the company from the owner down to the staff are sensitive

to the client’s comments. And above all, adherence to quality standards and safety

(being BFAD approved) is paramount.

Pinkie is improving the cow barn and other facilities in order to welcome

field trips from local schools, just so that she can spread the gospel of natural dairy.

The owner loves the idea of having kids learn about where milk comes from, how

butter is made, the joy of feeding calves, and being exposed to animals.

Today Pinkie’s Farm is just slightly bigger, slightly busier, and slightly more

developed. Growth has been slow but Pinkie was never really interested in being

the biggest. Just the best.

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SCOPE AND LIMITATIONS OF THE STUDY

The average of the study is mainly focus on the Pinkie’s farm Fresh Milk

process including the facilities, logistics and inventory management. The group

preferred to highlight the routing system, transportation mode and the lead time of

the delivery as for the standard process of the company in terms of logistics

management.

As for the company’s current inventory process, it covers the raw milk from

the milk parlor and the finish product before the dispatch time schedule.

In terms of facilities management, the study covers only the milking parlor

and milking process. The group is mainly focus on the size of the facility per square

meter as required base on the volume of production and the positions of equipment

on how the management see the most convenient way for the employees to work

in a fast but accurate manner. Lastly, what are the equipment being used to

produce the final product of Pinkie’s farm fresh milk.

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DEFINITION OF TERMS

Cow Barn. It is the area where the lactating and dry cows are selected for

the process of milk extraction.

Milking Parlor. Area where the selected cows are according line up, to start

the milk extraction with the use of milking machine.

Cluster Vacuum. It is the milk machine enable to get the milk from the

cows.

Milk Bucket. It connected to the vacuum machine where milk being

transferred after the cluster vacuum.

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LOGISTICS MANAGEMENT

Logistics is the general management of how resources are acquired, stored

and transported to their destination. Logistics management involves identifying

prospective distributors and suppliers, and determining the effectiveness and

accessibility. Ultimately, management establishes a relationship with the

appropriate companies or handles its own logistics if it is more cost-effective to do

so.

Pinkie’s Farm uses refrigerated van in delivering the fresh milk from Lipa to Manila

every Monday and Thursday. The company delivers fresh milk to the valued

customers including – Coffee Shops (Gourmet Shop and Habitual Coffee Shop),

and villages (Corinthians, Dasma village, Forms Park subscribers – usually a door-

to-door delivery. The loyal customers have a specified and fixed number of orders

per bottle, in case of any modifications the order should be placed 3 days before

the delivery date. The usual number of goods to be delivered is 100 liters of milk.

Problem Statement

Since the location of the customers are from the different part of manila

including () there are some instances that the shipment of fresh milk got delayed

base on the lead time that the fresh milk is expected to be shipped. The primary

cause are the traffic, inefficient employees and availability of refrigerated van.

The company is having a minor problem in logistic in terms of lacking or

miss out of fresh milk that is usually cause of improper monitoring of the subjected

fresh milk to be delivered.

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Recommendation

I highly recommend that since the delivery of fresh milk on time is very

important, reviewing of delivery schedule must be done to come up with an

effective and adjusted delivery time. Every equipment is required to have a regular

check or maintenance the same as the refrigerated van that the company is using

to deliver the fresh milk, the company should look for the possibility that an extra

or back up van for at least one is considerate, since two refrigerated van is being

used for the delivery process therefore the third refrigerated van is in maintenance

checkup that will relieve the other van by the next delivery date base on schedule.

Employees practices, rules and regulations are factors to be considered to avoid

tardiness of an employee.

Those are the resolutions that we can recommend to totally resolve the

delayed issue in terms of logistic.

I recommend having initial and final check of two different person to avoid

overlooked or miscounting of fresh milk.

Cost and Benefits Analysis

Having an extra van will not have an additional cost but an investment for

the company. It helps a lot like being a rescue van in case that the other van

encounter flat tires real time and the maintenance checkup is not in a rush, so it

will make sure that everything is good

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INVENTORY CONTROL AND SYSTEMS MANAGEMENT

Inventory represents one of the most important assets of a business

because the turnover of inventory represents one of the primary sources of

revenue generation and subsequent earnings for the company’s owners.

In the company’s inventory system is classified in two different stages. First,

the inventory of raw milk per liters. Second, the inventory of the fresh milk per

bottle. The fresh milk will be forwarded from the milk parlor up to the milk

processing and directly store to the chiller after the inventory. The raw milk has

been done (approximately 2 days or 48 hrs.) after 2 days the production will start

until the final product came out. The second stage of the inventory will perform

before the loading time.

Storage production for the Monday delivery

STORAGE PRODUCTION
Storage of raw milk Production of milk
Friday 3PM Sunday 3PM
Saturday 3AM Monday 3AM

Storage production for the Thursday delivery

STORAGE PRODUCTION
Storage of raw milk Production of milk
Monday 3PM Wednesday 3PM
Tuesday 3AM Thursday 3AM
Note: The milk from Pinkie’s farm has no any preservatives that makes the

product with a shorter shelf life.

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Problem Statement

The company usually encounter a problem in terms of inventory because of

returns that is cause by the delay of delivery. Some of the customer accept the

product by the next day, some of them are not.

Recommendation

I highly recommend to be focused on checking the accuracy of delivery time

per customer via call monitoring to prevent the returns of the product.

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FACILITY MANAGEMENT

Facility management refers to the integrated management of multiple and

interdisciplinary technologies, personnel, systems and processes. The goal behind

facility management is to promote an efficient and collaborative environment to

meet and fulfill the key objectives and mission of an organization.

the facility of Pinkie’s farm is focus on the two sections of the size of the

milk parlor is 10 sq m wherein it can be cater up to 8 cows per batch to undergo

the pumping process.

The production of the Pinkie’s farm is focus on the 2 sections of facilities.

The first one is the milk parlor which is approximately 10 sq m that can cater up to

8 cows per batch to undergo the pumping process, the staff used to pump the milk

using cluster which connected to a milk bucket by a vacuum tube, the staff uses

the weighing scale to monitor the accurate weight of the milk that cow should

produce and directly store it to a cooler after the milk has being filtered using a

cloth and strainer until the first batch of milk completed.

the second part of the facility is the milking process, it has 33 sq m, in this

facility you will find all the equipment being used to process and store the raw milk

including the utensils, casserole, stoves, stock pot, and chiller, the facility should

be in 98 degrees F (37 degrees C)to maintain the temperature required.

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Problem Statement

The size of the facility for the production is not enough because the storage

process needs to have an additional refrigerator and chiller to cater all the raw milk

and final product and as of the moment there are some liters of raw milk got spoiled

because of not enough chiller and space of facility for storage.

Recommendation

I highly recommend to look for a possible expansion and taking advantage

of the opportunity that the business has a growth already. As part of the expansion,

it is necessary to think of the best positioning for all of the equipments to maximize

the space and to make sure that it will not affect the flow of production.

PINKIE’S FARM 14
Budget

Budgets are enormously important to the operation of Pinkies Farm, not

only it help firm to manage their cost, but also it help company to determine

whether the profit goals are within the reach and keep the right road from month-

to-month. In simplest form, a budget is a detailed plan for the expenditures and

receipts. It is a tool for providing control.

Logistics in Pinkies Farm, is an integral part. Since company distribute in

Manila area. Pinkies Farm allocate Php 27,322 for the logistic and utilities in a

month. The budget for this area is monthly basis since the expenditures are not

constants, due to some instance, which are already, mention about the firm’s

logistics process.

Inventory budget is allocated at the amount of Php 29,200. Since most of

the product that Pinkies Farm produce is fresh milk. Take note that the expenditure

is in monthly basis. It helps company to control the number of product to be stored

and be ready for delivery, indications of spoilage are considered, because of the

product shelf life.

Facilities, the allocated budget in this area is also in a monthly basis

amounting to Php 14,287 for the maintenance and repair of the production and

inventory warehouses.

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Bibliography

www.pinkiesfarm.com

http://www.investopedia.com/terms/l/logistics.asp#ixzz4w7WEaJoe

https://www.alibaba.com/product-detail/Glass-Sliding-Door-Display-Commercial-

Fridge_60413957033.html?spm=a2700.7724857.main07.22.2f086c16O3qdwW&

s=p

http://www.investopedia.com/terms/i/inventory.asp#ixzz4w7cIGKmd

https://www.techopedia.com/definition/27423/facility-management

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Documentation

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 Fresh milk product

200 ml fresh milk bottle 1 liter fresh milk bottle

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 Interview in milking parlor Interview in processing area
with Ms. Kim with Sir Arnel

Interview at the Office Interview in milking parlor

with ma’am Jessy

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 Parts of the Milking Machine Medicine of the cows

Dairy Cow Anatomy Dairy Cow’s Cycle

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