University of the Philippines DilimanExtension Program in Pampanga

Clarkfield, Pampanga

Site Visit: Creamline Dairy Manufacturing Plant

Creamline Dairy Corporation is a company that manufactures and distributes a wide range of high quality ice cream products in variety of flavors and affordable prices. The company started its operations in June 2004, with its ice cream plant located in Cark Freeport Zone, Pampanga. Creamline uses modern manufacturing facilities and equipment to ensure the quality of their products. All of their raw materials are imported from their trusted suppliers in Europe and Australia.

The company has succeeded in positioning themselves in the market by targeting retail/ sari-sari stores and offering their customers affordable prices. The company also has an efficient and systematic operation process. They ensure that every part of their operations are carefully planned and managed.

Last Saturday, March 21, 2015, our class conducted a site visit at their plant in Clark, Pampanga. During the tour, one of their employees described to us their operations and production process. Some of the information that we learned regarding their operations are as follows:

Design of Goods and Services

The company offers a wide variety of ice cream products. To determine what kind and flavors of ice cream to sell, they assign a research team to study and develop their product designs.

Managing Quality

For checking the quality of their products, they have a quality control department that frequently monitors the production process and ensures that each product is correctly processed.

Process and Capacity Design

In order to produce high quality ice cream, Creamline follows a series of production steps.

1. Mixing: where all ingredients are blended together to produce the “ice cream mix”2. Homogenization: breaks down or reduces the size of the Fat Globules3. Pasteurization: the biological control point on the system to destroy any Pathogenic Bacteria4. Ageing: the ice cream is aged for at least 4 hours to improve the whipping qualities of the mix,

body and texture of ice cream5. Slush Freezing: the ice cream mix passes through the continuous freezer to produce soft ice

cream 6. Filling: the soft ice cream is then filled into cones, cups, sticks and bulk container using different

filling machine7. Blast freezing: the ice cream is stored in the freezer until they are ready for consumption.

Layout Strategy

The ice cream plant follows a product – oriented layout, which is best for their continuous and repetitive production process.

Human resources, job design, and work measurement

The workforce of the company consists of permanent and contractual employees. The heads of each department are hired permanently, while the factory workers have 5-year working contract and are supplied by a recruitment agency.

Supply-chain management

The raw materials needed for the production are imported from their suppliers in Europe and Australia. The raw materials are then processed in the factory and then the finished goods are delivered to retailers and sari-sari stores.

Inventory, material requirements planning, and JIT

Creamline has no inventory system. They places their order usually a month before their production run. The quantity of their orders depends on the product orders they received.

Intermediate and short term scheduling

The company has no definite production schedule. The frequency of their production run also depends on the demand level of their products. Since their product is extremely popular during the summer, their production run is usually once a week. However, during rainy or cold seasons, their production run is seldom.

Maintenance

The company regularly monitors their equipment to ensure that they are working well.

Having an efficient operations management process is a great competitive advantage for Creamline. Since they have a systematic production process, they are able produce safe and high quality products. They also provide a comfortable workplace environment for their employees. Moreover, they are able to gain the trust of their consumers by offering affordable and quality products.

By the end of the month, Creamline Dairy Corporation will be absorbed by the Republic Biscuit Corporation (Rebisco). It is a good opportunity for Creamline because the company will be able to expand its production and improve its operation management.

Clarissa T. Sapnu

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