Tradesphere Industrial Commodities, Inc.

Proponents:Chua, KelvinUy, RachelWu, Ziling

EXPRODU TE001(Midterm)

Submitted to:Mr. Manuel Lionel Basilio

Exprodu Professor

October 2015

Tradesphere Industrial Commodities, Inc.

I. Company Profile

Tradesphere Industrial Commodities Inc. is a company that specializes in the manufacturing of plastic components, primarily for packaging applications since 1988. The company’s location is at 12 Acsie Avenue, Severina Industrial Paranaque City and their contact number is 823-6268.

The company offers a wide range of plastic packaging components which includes

bottles, caps and closures, plastic jars and containers for the personal care, food,

pharmaceutical, home care, oil and lubricant industries.

From designing, prototyping, mold fabrication to plastic manufacturing and decoration,

the company aim to provide to their customers with high quality products, while

providing a one step shop and solution for their clients’ plastic packaging needs. The

company manufactures its product using plastic injection machines and low molding

machines. Their facilities also include silkscreen, UV printing and hot stamping.

Tradesphere provides all-in-one services and assistance for its clients from design

conceptualization, mock-up. Mold fabrication, testing, production, decoration and

technical assistance. Tradesphere operates 24 hours/day and 7 days / week.

II. Product Feasibility

a). Product Description

Tradesphere offers a wide range of stock molds and designs of bottle,

containers and caps for various requirements. With their R&D and mold making

facilities, they also offer and make customized designs and sizes to fit their

customer’s packaging needs.

b). Product Specification/ Design

Raw materials

Polypropylene is primarily used for rigid applications "i.e." manufacturing plastic jars

because it stable at high temperatures and will only distort at and above 200 degree F.

The Polypropelene is the main raw material used in making the cap of the bottles.

The High Density Polyethylene is the main raw material used in making the bottle.

High-density polyethylene (HDPE) or polyethylene high-density (PEHD) is a polyethylene thermoplastic made from petroleum. It is sometimes called "alkathene" or "polythene" when

used for pipes. With a high strength-to-density ratio, HDPE is used in the production of plastic bottles, corrosion-resistant piping, geomembranes, and plastic lumber.

-complete product specs (measurement, color, finish etc)

PRODUCT SPECS

The category which our product belongs to is plastic containers and to be specific,

the container that we’re focusing on is the container of Skin White Deodorant 25

Ml.

BOTTLE:

A.) Body Diameter (mm) – 39.15 ± 0.15

B.) Finished Outside Diameter with Thread (mm) – 35.70 ± 0.20

C.) Finished Outside Diameter w/o Thread (mm) – 33.75 ± 0.20

D.) Finished Inside Orifice Diameter (mm) – 24.50 ± 0.25

E.) Ball Height (mm) – 40.00 ± 0.20

F.) Wall Thickness (mm) – 0.30 min.

G.) Resin Weight (g) – 11.00 – 13.00

BALL:

H.) Ball Diameter (mm) – 25.40

I.) Ball Weight (gsm) – 2.20 ± 0.20

CAP:

J.) Diameter (mm) – 38.20 ± 0.20

K.) Height (mm) – 42.00 ± 0.20

L.) Thickness (mm) – 1.40 ± 0.20

SHRINK LABEL:

M.)Height (mm) – 75.00 ± 1.00

N.) Width (mm) – 63.00 ± 1.00

O.) Thickness (micron) – 35.00 ± 5.00

PRODUCT PACKAGING

Secondary Packaging

Tertiary Packaging

III. Productivity, Competitiveness and Strategy

A.) Strategy for Competitive Advantage (differentiation, cost leadership, quick

response)

The company is using a combination of Cost and Differentiation Strategy. They

provide their customer unique raw materials, and at the same time providing them

a huge price advantage over other potential suppliers.

B.) Product Life Cycle (on what phase does the company’s product, in general,

products belong to)

Introduction

1. Product: Develop

- Use research and development of the basic technology and product concept. Determine

the product features and quality level.

2. Pricing: Penetration pricing or skimming

- A skimming price strategy might be appropriate where there are very few competitors.

Growth

1. Product: Improve

- Product quality should be improved. Additional features might be added.

2. Pricing:

- If the consumer demand is high, the price may be maintained at a high level.

Maturity

1. Product: Differentiate

- There’s an increased competition. The company must find ways to differentiate its

product. Strong company/ brand name is the first thing to deal with this.

2. Pricing:

- Prices should be reduced due to increased competition.

Decline

1. Hold/ Divest Product: Consolidate

- The number of products may be reduced, and surviving products be rejuvenated.

2. Pricing:

- Prices may be lowered to liquidate inventory, or maintained for continued products.

IV. Process Selection (actual pictures needed per process)

A). Product Process (step by step, use product process flow, identify machines

used, time process, total time)

PRODUCTION PROCESS FLOW

Processes in Making the Body of the Container

Step 1- Prototyping/ Product Development

This process uses the Computer in designing and prototyping the container. This is

attached to the Blow Molding Machine which is responsible for making the body of

the container. According to Mr. Padilla, it takes three (3) months for them to work

on prototyping and designing of the container. Most of the containers that they

produce are JITs (Just-In-Time)

Prototyping/ Product

Development

Molding the body of the container

Make two ball halves.

Welding GrindingLabeling

Step 2 - Blow Molding Machine

The Blow Molding Machine is responsible for the molding and forming of

the body of the container. It takes 18 seconds to form two (2) containers

A big tube sucks out the polyethylene (raw material in making the body of the

container) to transport it to the main body of the machine for the actual process

making.

Body of the machine – This is where the actual process- making takes place.

What it look like inside of the machine. Those tiny silver pieces that are scattered

are aluminum. The aluminum’s task is to make the machine work more efficiently

and to make sure that the shape of the container is correct from that of the

computer which is responsible for the prototype.

Image on the left shows the exterior part of the machine and the image on the right

side shows the finished product done by the machine.

Processes in making the ball caps

Step 1- Injection Molding Machines

This machine is used in making two (2) ball halves.

As shown here, the Evalene Polypropelene is being prepared for

the making of the caps.

This image shows the body of the machine where the actual

process takes place inside of it.

Step 2- Welding

In this process, they weld the two ball halves to form a whole ball

cap.

Step 3- Grinding

This is where they would remove the excess part of the plastic

ball. The excess part is then recycled for it to used again in the

next production.

Step 4 – Labeling

The labeling of the containers according to the brand and product

which they are made for.

- Name of the machine (Should research on this)

This image shows the first step in labeling wherein a worker (This worker was

outsourced from an agency that’s why he is not wearing the factory’s actual

uniform.) puts each container in the machine for the labeling process.

-This image shows…… (Something has to be written in here. Please provide the

details.)

The labeling process as it can be seen from afar.

B) Alternative Process (another way to create the product in an absence of a machine or

manual method)

Mr. Padilla, the president of the company told us that the Alternative Process is Not

Applicable, but, the company has numerous machines. In case of a malfunctioned machine,

they make sure that their maintenance is always available to fix, and they have a daily

maintenance for their machines.

V. Strategic Capacity Planning for Products

A) Estimated Product Capacity (per day, week, month, year)

The company produces 8,000 containers every day for 24 hours. In a week, they can

produce 56,000 containers, in a month they can produce 240,000 and in a year, they can

produce 2,880,000 containers. For the ball caps, the estimated amount that the

machine can make is 75,000 in 24 hours. The company can produce 525,000 ball caps in

a week and in a month, a total of 2,250,000 ball caps all in all. For the whole year, the

company produces 27,000,000 ball caps.

Per Day Week Month Years

Container 8,000 (8000x7)=56,000

(56,000x30)=240,000

(240,000x12)=2,880,000

Ball caps 75,000 (75,000x7)525,000

(525,000x30)=2,250,000

(2,250,000x12)=27,000,000

B) Loadability in 20ft. container (show computation)

The company is using box for their product packaging and export packaging. (Legth) 600mm X (width)400mm X (height)500mm

mm to cm 10mm=1cm Length 600(.1)=60

Width 400(.1)=40Height 500(.1)=50

CBM=(l)(w)(h)/1000000 =(60)(40)(50)/1000000 =.12 cbm

Load ability in 20ft container= 28 cbm/.12 cbm =233 box

References:

http://www.ehow.com/about_5747796_raw-materials-plastic-bottles_.htm

http://www.yourarticlelibrary.com/marketing/marketing-mix-product-price-place-

and-promotion-4ps/5395/

http://skinwhite.com.ph/products/big/SkinWhite-Classic-Whitening-Deo-Powder-

Silk.png